Although some people in the business world are not aware of the fact, in the last couple of years, the healthcare field has become one of the most exciting places for new businesses.
For instance, two years ago, US healthcare spending grew almost 6% according to statistics provided by Centers for Medicare and Medicaid Services and reached $3.2 billion dollars, or roughly $9,990 per American citizen. Moreover, health spending accounted for almost 18% of America’s GDP.
But that’s not all, you can simply take a look at some of the recent medical advancements and you can easily see just how much possibilities are out there for young entrepreneurs from all across the world.
However, whether you want to get your hands on some of new piece of technology or you want to start developing your own, there are some potential pitfalls you need to pay attention to. Although, you can’t really succeed working from fear – failure is always a potential – you just need to learn to live with it.
So if you’re looking for a way to break into the health care market, here are a couple things young entrepreneurs need to know in order to build a successful company and stay afloat for years to come.
1. Learn About the Rules and Regulations
Right from the get-go, we have to warn you – the health care industry is actually full of different rules and regulations. Therefore, you need to learn about everything from the Affordable Care Act to the rules of the Food and Drug Administration – so you have to learn to embrace these rules and regulations.
Although, a ton of young businessmen get scared by the concept of regulation, you have to be aware that the rules can be a businessmen’s friend. In reality, it’s nothing more than a process to work through – you just need to put an effort to familiarize yourself with the rules as much as you possibly can.
Once you learn how to work through this process, you’ll not only realize that it’s not actually that difficult but that it can also give you a competitive advantage as well. And last but not least, nothing will kill your confidence more than having a great idea only to realize that it’s not plausible simply because it goes against the rules…
2. Protect Your Intellectual Property in Time
Since health care is usually provided by medical professionals with humanitarian goals, people often forget that health care business is… well… still a business. And of course, the industry is always grappling with issues that affect any business, including the protection of valuable intellectual property.
You’re going to be shopping your business/product idea around to health care veterans, some of them might be skeptical about your ideas, while others will probably want to make a mint from your efforts. Luckily for you, there are some ways you can protect your idea in advance.
As CNN reports, one of the best ways of protecting your company in advance of actually receiving a patent is a provisional patent application, more commonly known as PPA. You just need to you need to submit potential workaround variations of your idea and description of how the idea will be used and you’ll get a PPA in no time
3. Find the Right Team Members
Everybody is fully aware that surrounding yourself with the right people is important for the success of any business. However, only when you start looking for investors and trying to get your idea off the ground will you realize the difference between a high-performing team and just a good team.
As Dr. Hubert Zajicek, the co-founder of Health Wildcatters explains in this Entrepreneur article, having a capable team with a diverse set of skills can be the biggest differentiator. You’ll definitely need a couple of medical experts on your team, because no matter how well-informed you are, you definitely don’t have all the insights and answers.
Therefore, you have to be ready to ask a ton of questions before you start hiring, learn about the medical background of your candidates – do they have any previous working experience; what college did they attend or have they even passed the UMAT exam. And make sure to research all of your potential collaborators and investors before entering a partnership or signing any deals as well.
4. Don’t Be Too Picky With Funding
Lastly, you have to be aware that you’re not doing your job properly if you’re not examining every possible source of funding. Luckily for you, both government and private agencies and foundations have a genuine interest in investing in the health care field and helping it move in the right direction.
For instance, if you’re trying to get a biotech startup off the ground, you should take a look at FundRX. According to Forbes, FundRX is a brain child of Zeshan Muhammedi a 26-year-old entrepreneur who made the platform to help biotech companies find credible investors in short time.
It’s actually a platform that connects doctors, scientists and angel investors in an effort to make early-stage financing easier for inexperienced startups. Just last year, they helped Sensulin, a small diabetes drug discovery company raise over $1, 4 million in a matter of months.
One thing that you always need to keep in mind is that the health care field is not a joke – as a matter of fact – your decisions and work will directly affect people’s lives. Therefore, you should make every move carefully and cautiously assess every aspect of your developing business.
If something slips through the cracks it can potentially affect thousands of people and while an incident will give you bad press and cost you a lot of customers and money, it’s not all about that. You have to be aware that your product can make people’s lives better or worse so you have a moral obligation to make sure everything’s in order.
In the end, you’re bound to make some mistakes, but there’s no substitute for experience, so go out there, and get as much experience as you can. Even if you have a medical background, it’s vital to get into the mindset of your potential customer – both medical personnel and patients alike.