The healthcare industry is currently experiencing significant changes due to the COVID-19 pandemic. The increasing population and diversity of health conditions and lifestyles necessitate innovative approaches to make medical services more accessible and understandable.
The healthcare industry is currently experiencing significant changes due to the COVID-19 pandemic. The increasing population and diversity of health conditions and lifestyles necessitate innovative approaches to make medical services more accessible and understandable. As a result, health tech has become an area of interest for many entrepreneurs, with numerous startups emerging to enhance patient experience with medical services. However, developing a health tech product is more complex than other businesses, requiring expertise in IT, legal matters, and human-related issues. Health tech demands sensitivity and focus on the needs of patients. While launching a new health tech product can be challenging, it is possible to create a solution that addresses market needs with the right approach and careful attention.
What are the initial steps to start creating a medical startup?
The key to building a successful startup is to establish a team of individuals whose skills complement each other and who have a solid understanding of your business vision. A competent Chief Technology Officer (CTO) is critical in the hiring process as they will oversee the development process and select appropriate technical components to meet the specific requirements of your startup, including those related to medical products. The CTO will be responsible for recruiting and managing software engineers, mentoring the team, and optimizing processes and code quality. It is worth noting that outsourcing can provide you with a CTO and developers with the necessary experience at a lower cost. Outsourcing allows you to access specialists from around the world.
After assembling your team, the next crucial steps in building your startup include:
Business plan
When writing a business plan, we are often operating in a somewhat hypothetical world. We attempt to delve into the details of a product that has not yet been used, and financial projections are purely speculative. However, one aspect that can be predicted with some certainty is the costs involved. These expenses may include office space, salaries, hosting fees, and other expenditures depending on the nature of the product. In terms of revenue, startups should adopt a conservative approach, estimating less revenue and later arrival of profits. For instance, assuming that only 1,000 people will use the service in the first month after launching, with 2,000 people in the second, and reaching 50,000 users per month after a year. Revenue estimation for startups can be challenging, and it often involves a degree of risk and optimism. Nonetheless, startups have the potential to bring about innovation and improve users’ access to health services, making it easier for them to interact with the medical industry.
Medical advisory board
It is highly recommended to involve subject matter experts, particularly specialists who possess relevant experience in the medical industry and have a deep understanding of its requirements. Engaging with experts in the medical field increases the likelihood of launching a well-designed product that is based on a comprehensive analysis of its business potential rather than mere speculation. It is worth noting that having a team with a strong passion for the topic can further benefit the product.
HIPAA Compliance
HIPAA (Health Insurance Portability and Accountability Act) is a set of security regulations that safeguards Electronically Protected Health Information (EPHI) data. If your medical startup or patient website provides online account creation or billing services, you are obligated to comply with the legal standards stipulated by HIPAA. While HIPAA is not universally applicable, adhering to its requirements ensures the protection of sensitive data through IT systems security. HIPAA is widely recognized and holds significant importance for users who require trust in products that meet privacy protection standards. To ensure compliance with HIPAA regulations, seeking guidance from consultants or legal teams specializing in HIPAA compliance is recommended to avoid any potential breaches.
MVP – Minimum Viable Product
A Minimum Viable Product (MVP) is a prototype of a product that includes only the essential features necessary to provide value to a specific test group of users. The primary purpose of an MVP is to obtain feedback on the functionality and usability of an idea or software application. Creating an MVP allows you to quickly assess the market and test your hypothesis. It is a valuable opportunity to gather information and insights on customer feedback regarding specific product features, thereby preventing costly mistakes in the future and saving on budget.
Build your app or website
Even if your medical product is tangible, it’s still important to create a website or app. Having a strong brand presence is crucial, especially for a startup that needs to attract new customers rapidly. A well-designed website and user-friendly app help to solidify the brand’s position and make it easier to connect with customers. You can enhance any business with an app that has features such as eCommerce, video chat, or a patient portal.
The ongoing improvement and evolution of your healthcare technology product.
The success of a medical startup depends heavily on the need for ongoing product enhancement and growth. The healthcare industry is continuously evolving, as evidenced by the COVID-19 pandemic, and it’s important for startups to adapt their services to meet the changing needs of patients and stay up-to-date with the latest health tech trends. To attract patients and achieve business goals, it’s crucial to optimize services for users. The health tech sector is challenging and requires a deep understanding of the audience, workforce, and strict regulations. Thus, it’s crucial for startups to remain vigilant and proactive in this constantly evolving field.
The demanding market
Due to the conservative nature of the medical industry, health tech startups encounter a significant obstacle of persuading healthcare professionals to adopt their advanced and dependable products over traditional methods. In the present day, the competition in the health tech sector is fierce, making it critical to meticulously assess the impact of prevalent errors that can make or break the success of new products.
Ways to prevent the most typical errors.
Building a health tech startup without making any mistakes can be difficult. However, by observing the most frequent mistakes and learning from them, they can be effectively avoided.
Wrong people in management positions
Choosing a Chief Technology Officer (CTO) without a deep understanding of the medical industry and the importance of safeguarding sensitive patient data can lead to negative outcomes. It is crucial to have someone who possesses not only technical expertise but also empathy and a comprehensive understanding of the product’s inclusivity in handling patient information and interactions.
Inflexibility
Deviation from the original business plan is a common occurrence for startups. While conducting thorough research is crucial, one should remain receptive to opportunities to enhance their product from the perspective of user needs. A sole focus on generating fast income is not desirable in the health tech sector, where the ultimate aim is to provide patients with innovative solutions that facilitate their treatment process. Unfortunately, several startups have failed due to an inability to comprehend this particularity and a desire for swift profit.
Lack of strategy
Alternatively, while generating revenue is a fundamental aspect of any business, it is crucial to develop a sound financial plan that ensures sustainable cash flow. This involves carefully allocating resources to prevent depletion of funds before stakeholders are convinced of the product’s potential. Therefore, it is advisable to engage stakeholders early on and understand their requirements, allowing sufficient time to establish the product and generate profits.
Poor marketing
Many startups overlook the importance of marketing, which is unfortunate. Effective marketing can rapidly enhance brand recognition and online positioning, as well as establish valuable networks to support the entire development process. Even if you create an exceptional product, it won’t be beneficial if nobody knows about it, and users will opt for a more appealing technology that has better exposure. Effective brand communication makes your product more reachable to users and improves understanding of its values.
No trust
As previously mentioned, the medical industry tends to be quite conservative, so it is crucial to establish trust with prominent health tech companies, hospitals, and other medical organizations. Therefore, it is necessary to have experts in the medical field on your team who can demonstrate the worth of your product and distinguish it from competitors.
Not meeting the required compliance standards.
It is crucial to give utmost importance to compliance standards and strictly adhere to them in each country since industry regulations may vary. Not being aware of the legal limitations on health tech products may lead to significant monetary penalties and erode the confidence of patients and medical institution staff.
Ignorance of feedback
We have mentioned this before, but it is crucial to emphasize that the primary objective of health tech solutions is to simplify patients’ treatment processes. As this involves people, it is not recommended to limit oneself to internal communication only as it could have adverse effects on the product’s success. It is beneficial to obtain feedback regularly and make necessary improvements and optimizations. Nowadays, there are several tools available in the market to aid in acquiring user feedback, such as the Rating Captain application, which provides a wide range of functionalities to make the review acquisition process more manageable. The value of user feedback should be highly regarded by any entrepreneur who is interested in creating a product that adapts to the market’s changing needs.
Insufficient interest
Startups sometimes try to solve a problem that is not in line with the market’s needs. Therefore, it is beneficial to have a Minimum Viable Product (MVP) in addition to conducting market and competitor research. This can quickly determine if your product is meeting the actual needs of its users and has a chance to be integrated into their daily lives.
Should we venture into HealthTech or not?
Launching a health tech startup demands extensive research, knowledge, and market awareness, but the present times favor the development of products in this industry. While startups are inherently risky, they are often led by visionaries who can deliver products that address market needs and bring positive change to people who use medical services. At Applover, we strive to support these visionary entrepreneurs by providing them with experienced developers who have tackled various health tech solutions and remain up-to-date with the latest trends in the sector to offer only the best solutions.
