We truly enjoy and are committed to the success of startup health tech companies.
Too many times I am listening to the pitch and still think to myself: “You convinced me you have a good idea, but you didn’t tell me yet why it’s a good business.”
My impression is that too many good ideas never gain traction because founders/leaders don’t have a plan to become a viable business, which after all is required for survival or the oft-sought liquidity event.
We are asked frequently, “What are the top reasons startups fail?” Hint: it’s usually not the creativity or innovation or even development of the product or technology.
1. Under capitalization. Lean startup does not mean capital starvation
2. Moving too slow. As much as you love your technology or idea, it has a short shelf life
3. Not enough sales to become dominant in your niche fast enough
If there is a fourth I would say strategy execution by the team. Too many entrepreneurs try to go too far on their own or with limited commitments from team members often related to #1.
There is no doubt in healthcare that there is huge friction and resistance to market entry of innovative digital products and services except during times of actual crisis and threat to institutional viability as we have seen in digital health during Covid-19.
You must overcome the Killer C’s regardless: Cost, Complexity, and Change.
Overcoming this friction is addressed in detail in our Basics of the Healthcare Market series.
1. Make a plan to move at the right pace for your product and market. Either too fast or too slow can be equally devastating.
2. Focus on appropriate capitalization.
3. Get to the market and sell something. No sales = No business. Simple, not easy.
Strategy execution should be brisk and easily adapted to changing circumstance.
To get ahead of the curve, call Green Room and let us assist you with plotting your path to business viability.