As a healthcare startup, you will face the same issues as any other type of new business. But, because of the costs involved in healthcare, they can affect you in a much more severe fashion. The average startup won’t make it past twenty months – so make sure you are aware of some of the most common issues. Read on to discover four typical causes of healthcare startup failure.
Your position in the market is vital to your success. Be sure that you offer something that other healthcare facilities can’t. However, it’s important to compel your target audience without antagonizing everyone else. For example, let’s say you offer cellulite treatments to your customers. You love the brand new Velasmooth system that you bought recently, and are keen to put the message out to your wealthier clients. The trouble is, once you go down this route you can look too expensive to your lower-income customers. Unless you can guarantee the high-payers will flock to you in their droves, it could put you in an uncomfortable financial position.
Going it alone
It is hard to run a startup by yourself, no matter what industry you are in. With healthcare, however, it can be even tougher – particularly in the service sector. Yes, you will have medical skills and experience to put to good use. But when you take on too much, when will you find the time to practice? Not only do you have to be a first class practitioner, but you also need to be a business person. You will have to run your admin staff, deal with suppliers, research your market and a whole host of other things. Find someone to partner with who has those skills and you can concentrate on what you do best.
Inability to find investment
Of course, one of the biggest reasons startups fail is because they don’t raise any money. Savings and a small bank loan can only keep you going for so long. And as a healthcare business, you might find it even harder than the rest. Investors can be very twitchy about putting their money into what can be a risky business. You will need to make sure your business plan is watertight, and also comply with every last regulation you can think of. Finally, having a healthcare lawyer on board will prove invaluable. They will cover you back and ensure you are a much better catch for investors.
You don’t measure your customer’s experience
Without customers, your business will fail – it’s as simple as that. Make sure you are evaluating their experiences and validating their need for your service. Without those measurements, you will find that you become irrelevant to your customers. And, you will allow the competition to identify where you are weak and give them a chance to exploit you. Use customer surveys and always keep in touch with your clients. Finally, listen to them. Often, your clients are in the perfect place to offer excellent advice. It’s vital to see your business as your users do – it will tell you a lot about where you are going right and wrong.