In our previous blog, we explored the five most common reasons why HealthTech startups often struggle more with commercial activities than other startups. Now, we turn our attention to actionable strategies that can help you overcome these commercial challenges. Whether you're a startup founder or part of a growing team, these tips will offer valuable insights to help you navigate the complex HealthTech landscape.
One of the most effective ways to overcome commercial challenges is to step out of your comfort zone and ask the right questions. Steve Blank, a pioneer of the Lean Startup movement, emphasizes the importance of "getting out of the building" to truly understand your customers. This concept goes beyond conducting user interviews; it involves a comprehensive approach to validating your business model and understanding the incentives and interests of your target audience.
By actively seeking feedback and advice, you can build stronger relationships with potential customers and industry experts. Remember, asking for advice is often easier than asking for money, and it can pave the way for future commercial success.
Networking is crucial in the HealthTech sector, and it's never too early to start building your professional network. Attending specialized industry events that are tailored to your specific field can be far more beneficial than general startup gatherings. These events offer opportunities to identify key opinion leaders, gain insights from corporate professionals, and establish valuable connections.
If you feel uncomfortable introducing yourself, consider positioning yourself as a student or a researcher. This approach can open doors and facilitate conversations that might otherwise be challenging.
The right commercial co-founder can significantly enhance your startup's performance and improve your chances of securing funding. While finding the perfect fit can be challenging, it's a pursuit worth undertaking. Programs like Y Combinator Startup School provide a wealth of resources and access to a global network of founder-willing individuals. Locally, initiatives such as Bluelion Like-minded or Startup Campus offer additional opportunities to connect with potential co-founders.
When searching for a co-founder, focus on aligning your values, vision, and work ethic. A strong partnership can propel your startup forward and help you navigate the commercial challenges ahead. Be generous with co-founder shares, what has been done in the past is less valuable than what is about to come. Make sure you have professional co-founder contracts in place.
Securing the guidance of a seasoned advisor early on can be a game-changer for your HealthTech startup. Even if you can't afford to pay them outright, many advisors are open to alternative compensation models, such as equity or success-based agreements.
It's essential to choose your advisor carefully, as not all will offer the hands-on support you might need. While some meetings may not yield immediate results, the right advisor can point you in the right direction and connect you with key industry players.
Commercial success in HealthTech requires a strategic approach that begins with the end in mind. Just as you plan your exit strategy, you should also consider the commercialization aspects from the outset. Key questions to ask include: Who will ultimately pay for your product? What does the reimbursement landscape look like? What incentives do doctors and decision-makers have to adopt your solution?
Understanding these factors early on will influence your regulatory roadmap and product development. As a product manager, bridging the gap between interdisciplinary fields can be both challenging and rewarding, and it is a critical aspect of ensuring long-term success.
Hiring a full-time salesperson prematurely can be costly and inefficient, especially if your product is still in the development stages. Instead, consider working with a "Chief Commercial Officer (CCO) as a Service" provider. This approach gives you access to a full range of commercial expertise—strategy, execution, and industry knowledge—without the financial burden of a full-time employee.
An interim CCO can help you conduct a thorough market analysis, develop a professional go-to-market strategy, and smoothly transition to a full-time commercial team when the time is right. This flexible solution is particularly beneficial for startups looking to scale without overextending their resources.
Navigating the commercial landscape in HealthTech can be challenging, but with the right strategies and support, you can overcome these hurdles. By embracing discomfort, building a strong network, and leveraging the expertise of advisors and interim CCOs, you can position your startup for success.
As a CEO, you have many responsibilities, and commercial activities are just one piece of the puzzle. That's why we've developed a customized "CCO as a Service" subscription, offering tailored commercial expertise to meet your specific needs. Remember, salespeople shine once your product is market-ready and processes are in place. Until then, interim solutions can guide you through market analysis, strategy creation, and methodology implementation.
Let’s Connect: Want to discuss strategies for your HealthTech startup? Reach out here.
Stay tuned for more insights in our upcoming blogs.