As a startup with a healthcare focus we are often met with comments like “Ew.. healthcare is so hard, why would you start there?”
Firstly, because nurses and healthcare practitioners are amazing and we want to work with and help them.
Secondly, from wearables to AI, to electronic processes and telehealth, we’re on the brink of another revolution, changing the face of how healthcare is delivered. The healthcare landscape faces a massive increase in potential to make positive patient, workplace and executive outcomes on the back of embracing innovation and technology.
If only it was easier. Which brings us back to the point.
Where do health start ups and medtechs come undone when building and selling their solution or product?
With stats like “90% of startups fail” … here are our TOP 5 areas that can become a sticking point.
1. The enigma that is Healthcare funding.
This is a huge killer for startups, because healthcare facilities are not your ‘average Joe’ customer. Understand how funding cycles behave, the difference between public and private systems as well as department budgetary requirements and limitations. These will impact your sales pipeline and the time it can take to secure a new customer. Knowledge and preparation for this is a major factor in effectively managing your runway and (lets face it) expectations. This will also go a long way when holding discussions with potential investors and helping them understand sales impacts and managing their expectations too.
2. Pain points. The real ones.
A familiar phrase for most startups: “Fall in love with the problem, not the solution and the rest will follow” ( Uri Levine). This should be addressed in your earliest days of start up life through problem, market and customer validation research. These research moments are crucial for the longevity of your business and ultimately will make the sales process possible. Just because it sounds like a good idea, and your Mum agrees, doesn’t mean it will translate to the real world. If you’re not solving a problem or meeting a need, do you even have a business?
3. What’s your Return on Investment?
The noble goal behind any healthcare start up or medtech is always based around better patient outcomes. Don’t ever change the heartfelt why that drives your business, but don’t let it blind you either. Remember that while we’re all here for the patients, a hospital is still a business at the end of the day. With that comes economic drivers based on performance metrics, funding requirements to be met and financial outcomes to support. When you walk into these sales conversations, sell your audience on your why — but also be prepared with the economic outcomes your product or solution can bring them. What is the return they will see as a benefit if they invest and engage with your business?
4. Get to the point.
We’re all too aware of how precious a commodity time is, so when talking to a healthcare facility, don’t go trying to break any records on how many buzzwords you can fit into a single sentence. Chances are you will go through numerous channels, departments and conversations before you are even able to have a true sales conversation. Being able to articulate your value proposition effectively is crucial. How is your product/solution better? What makes you unique? What is the benefit your business brings?
5. Understand the legislation.
So, you’ve established how funding works, you’re all over your value proposition and really drove home how your product or service will help. You’ve done your research and wowed the executive team with some powerful ROI calculations… and then the IT security team shows up. In a moment faster than you can bat an eyelid your entire sales process can be derailed. Spend some time how strict patient information and health data security guidelines could impact the adoption of your offering. What security measures are you expected to have in place? Do you require specific certifications? Do they differ based on location? What is the cost to meet these requirements?
Start up life will be one of the most rewarding, infuriating, learning curve adventures you’ll ever embark on. Healthcare start ups and medtech adventures are a special level of adventure! But don’t let the hard slog or scary stats turn you away from building your dream. If you believe in it, research it. Have plenty of conversations, surround yourself with experts in the field, be well prepared, back yourself with data and be armed with plenty of knowledge.
Peace of cake, right?
If you’re ready for a chat with the team about how we can help you achieve better business outcomes… click on the chat icon or leave your details below.