How to build a medical product that scales into a company
Many entrepreneurs start with a great product idea, especially in the medtech industry. You’ve identified a critical problem and developed a prototype. But building a successful company around that product requires much more. Today, I'll share how to turn your medical product into a scalable business, complete with actionable advice tailored for the medtech market.
What distinguishes a product from a company?
In medtech, the gap between product and company is particularly significant. Even if you have a "minimum viable product" (MVP) and achieve product-market fit, that’s just the beginning. To build a sustainable business, you must address regulatory requirements, clinical validation, and commercialization strategies from the outset.
Let’s break down the steps to bridge the gap from product to company:
1. Identify your minimum viable segment (MVS)
An MVP is just part of the equation. In medtech, you need to focus your MVP on a well-defined segment where you can dominate and demonstrate value.
How to choose your MVS:
Example: A medtech startup developing wearable EEG devices initially targeted small neurology practices instead of attempting to address all healthcare providers. By focusing, they validated their product’s value and later expanded to larger hospitals and research institutions.
2. Design products for "go-to-market fit"
A medical product must not only deliver clinical value but also be designed for seamless adoption and sales.
The "SLIP" principles for medtech products:
Simple to install:
In healthcare, simplicity is paramount. Reduce setup time and eliminate the need for complex training. Example: A portable diagnostic device that connects wirelessly to existing hospital systems without requiring additional infrastructure.
Low initial cost:
Offer pilots or rental models to reduce financial barriers for hospitals and clinics, especially those with tight budgets. Example: Diagnostic imaging startups often provide devices on a pay-per-scan model to enable early adoption.
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Instant and ongoing value:
Demonstrate immediate clinical outcomes, such as reduced diagnostic time or improved treatment accuracy. Example: An AI-powered software that provides instant analysis of X-rays to assist radiologists, cutting interpretation time by 50%.
Plays well in the ecosystem:
Ensure compatibility with existing hospital systems, electronic health records (EHRs), and workflows. Example: A smart insulin pen that integrates directly with patients' EHRs and shares data with physicians.
3. Build a sustainable business model
Key considerations for medtech pricing:
4. Continuously test hypotheses
In medtech, developing a product can be resource-intensive. Prioritize lean testing to validate assumptions before large-scale investment.
How to conduct research:
5. Focus on growth, not just profit
In medtech, early profitability often takes a backseat to growth. Demonstrate market traction and clinical outcomes to attract investment and scale.
When to seek investment:
Turning a medical product into a scalable company requires a strategic approach. Focus on solving specific clinical problems, design your product for ease of adoption, and build a sustainable business model from day one.
In medtech, success hinges on combining clinical validation, market strategy, and scalability. With careful planning and iterative testing, you can navigate the complexities of the healthcare ecosystem and create a lasting impact.
Ready to bridge the gap between product and company? Let’s connect and discuss how to scale your medtech innovation! - Lisa Voronkova , CEO of OVA Solutions
This is such an important perspective. Turning innovative ideas into scalable solutions can be challenging, but it's where the real impact happens. What do you think are the key factors to successfully navigate that transition?