Launching a start-up is a great way of converting an innovative business idea into reality. Every day numerous minds are jumping on the start-up bandwagon. In the current scenario, when companies are eager to fund good start-ups, it may be the best time to give wings to great ideas. But, is a great idea enough to launch a start-up? Maybe. However, it definitely requires a lot more to sustain and transform a start-up into a successful business.
It is not for certain that every good product or service will overcome competition and achieve its true potential. The road to a successful start-up can be long, arduous, and unpredictable. Although the success ratio differs from industry to industry, the grim reality is that almost 50% of the start-ups close down within four years of their inception.
In the healthcare industry, start-ups have emerged in a big way and with the help of digitization, they’re reaching the smartphones of every consumer. From finding doctors and booking appointments to ordering medicines and counting calories, healthcare apps are mushrooming with the healthcare sector witnessing a dynamic change. The success stories of early player like Practo prove that the healthcare sector, through start-ups, has steered a change in the status quo by simplifying not only doctor-patient communication, but the entire functioning of the industry.
Here are some factors that must be considered before successfully launching a healthcare start-up.
1. A Practical Stand-Out Product
Simply put, your product should be the “voice of the customer”. The biggest need of any start-up is to achieve decent traction for their product and great products are capable of making traction from even a single customer for a big buy. Providing a simple solution to a big problem a customer regularly faces can turn you into an entrepreneur. All it requires is the feasibility to be executed. For example, the frequently encountered problems of finding details about doctors and getting medical records instantly when required were never looked upon as a business idea until Practo came and changed the scene. The app has over 1 lakh doctors’ information and more than 10 million electronic patient records.
The point is that every business idea need not be unique or path-breaking. The knack for identifying the problem and creating a solution that is technologically possible is what makes a product stand out.
2. Perseverance and Flexibility
Contrary to what it looks like on the resume, the tag of being an entrepreneur is far from fancy. In the U.S., over 65% of entrepreneurs are devoid of swanky offices and most of them start the business from their savings. It may take a while before a start-up receives the seed funding to be able to afford employees and an office setup. As a founder, you should be ready to do everything yourself, from talking to prospective customers to selling and even being on the receiving end of a customer’s anger.
The healthcare industry is complicated and the business cycle can be long with elongated regulations, market awareness, and product acceptance. As a start-up entrepreneur, it is essential to be persistent and ready to work in any condition. Be prepared to face the initial hiccups, sail through the hurdles with perseverance, and think long-term.
3. Come up with a Solid Execution Plan
It’s easy to find similar ideas, processes, and even products, but it is almost impossible to copy the way an idea is executed. Imagine if this were possible, the world would have multiple Twitters, Ubers, and Google.
Execution of a business idea in the healthcare industry depends on a number of factors such as its unique value proposition, completion, marketing efforts, and more. But at the core, the way a business plan is executed largely depends on how the product impacts the user’s mind-set (it must be able to solve their medical issues and facilitate better health opportunities). It, therefore, becomes imperative to validate your product prototype and understand the user’s reaction to it. Your product’s USP may not be a path-breaking new feature, but the way it solves the customer’s problems will determine your start-up’s success story.
Image via: https://pixabay.com/en/diabetes-blood-sugar-diabetic-528678/
Plan for the future and be clear about your final product’s execution plan before plunging in the healthcare start-up world. Also, healthcare still remains an astonishingly innovative industry. It is important to keep yourself updated with the latest market trends and ensure your execution plan is flexible enough to adapt to any last-minute changes.
4. Cling to Stringent Healthcare Regulations
The safety requirements of the regulatory agencies in the healthcare field is extremely demanding. These healthcare regulations have the power to make or break even a revolutionary business idea. While having an antagonistic approach towards these regulations is quite common, it is imperative to understand that compliance is fundamental to a start-up’s survival in the healthcare industry. These regulatory bodies are responsible for protecting the interest of the patients and keep the industry organized.
It is vital to work in harmony with the system and adhere to the rules completely to stay away from unwanted troubles. Understanding and complying with the healthcare industry’s regulations is crucial to the long-term existence of a start-up.
Establishing a healthcare start-up takes prolonged emotional, financial, technical, and functional commitment. Potential entrepreneurs need to ensure that their idea and processes are well-thought-out before moving on to finding the core team and starting their start-up journey.
Featured Image via: https://pixabay.com/en/medical-appointment-doctor-563427/