While creating a health startup can be rewarding, there are also a number of problems behind it. You could find your hands full trying to get all the correct information. You could fall behind based on what other businesses are doing. Worst of all, you could start getting incorrect details that put lives at risk.
Let’s take a look at the 11 brutal truths about health startups that you’ll need to consider before you manage to get one off the ground.
1. Do you have the information needed to keep up?
First, there’s always something new in the medical field.
Look at how unprepared everyone was when it came to COVID-19 a couple of years ago. And if you don’t have the proper tools to do the research to keep up with the times, you could fall behind, especially if the competition is more prepared to pounce.
2. Develop consumer trust.
This is a big one. If you’re a startup clinic and you don’t have enough word-of-mouth going around, you’re just not going to be able to establish a large base of consumers.
And that means no business down the road, so you’ll need to find a way to make this happen. Remember, one bad complaint can lead to a huge downhill in your business.
3. You need to keep up with safety.
It’s important — downright vital, actually — to keep your safety standards in check.
That means clean equipment, employees that aren’t slacking off, and just making sure your procedures are up to standard. The more slovenly your health startup business becomes, the more trouble it’s going to face down the road — and that could eventually mean closure.
4. Prepare for the evolution of business.
Some people are afraid of change, mainly because they believe their business is working just fine.
Maybe they just aren’t in the mood to learn anything new. However, as part of the “keep up” reason above, if they fail to adapt with the times and get the proper equipment and knowhow to do so, they could find themselves becoming a relic of the past, even with an established customer base.
5. What if you can’t find the right talent?
People change professions all the time. In fact, more people left their job this year than in most years.
So what happens if someone you were depending on to fill a void isn’t there? It could easily take forever to find someone just as qualified, if less so. As a result, you could end up having to delay some business while you’re waiting to fill the role, leading to consumers looking elsewhere.
6. Equipment costs money.
You’re going to need to upgrade equipment. There is no getting around it.
What could be the hottest X-Ray machine going for 2020 will eventually become old news by the time 2025 rolls around and a new, advanced model is on the market. So be prepared to invest in new equipment because, without it, you’re likely to be left in the dust right alongside it.
7. Keep your data secure.
Another big problem with startups is how vulnerable they are, especially if they do a lot of work online.
It doesn’t take long for a clumsy employee to share their information with others, or with a potential data thief to come along and wreak havoc by demanding money to give back precious (and private) data on consumers. That’s why it pays to have a good protection tool for your information. Because one click and it could be long gone.
8. Putting the wrong people in charge.
Just because someone has a stacked resume doesn’t necessarily mean they’re a key fit for your business.
And hiring the wrong CEO or someone else in charge of your health startup could be the kiss of death for your business. All they have to do is make one bad decision with the money and you’re better off just trying to provide free medical advice online. Do not make a mistake when it comes to hiring the right higher-ups.
9. Not working with insurance companies.
Some clinics and health startups out there think it’s a good idea to work with patients out-of-pocket instead of working with networked insurance partners or established companies that provide benefits.
This could be a big problem. While beneficial at first to some consumers, it could take away a key part of your business. Worse yet, make people turn away because you don’t offer certain benefits. Nope, partner up.
10. Adding unnecessary business when everything isn’t up to speed.
A lot of people like to cover multiple bases in a business, but sometimes it helps to build something first.
Trying to overwhelm your team with too much will result in not only burnout but lack of business and lost funds as well. As a result, you could lose everything even before you get started with it!
11. Being careful with your resources.
This is why it’s vital to have the right people in charge of your health startup, as well as those working for it. Because all it takes is one mistake with funding. Doesn’t matter whether it’s a decision to invest in the wrong equipment or grow in the wrong area. The next thing you know, you’re looking at an option for bankruptcy. Take your time, it’s not a horse race.