MedTech/HealthTech Startup Development

Purpose

Present the necessary tasks needed to initiate, establish, build, and grow a successful MedTech or health technology startup.

It takes more than having an innovative idea to form and develop a fruitful MedTech or health technology startup. The novel idea is one of the reasons why the company is being created. Moreover, the unique idea offers a potential solution that solves an identified problem or resolves an issue targeted buyers are confronting.

Success comes when a company is organized around the innovative idea and the innovative idea is then turned into a marketable, revenue generating, and problem-solving solution.

Business Organization Process

The business organization process involves constructing an operating structure enabling the company to support the development and promotion of a ground-breaking MedTech or health technology solution. Below are the components that comprise the business organization process.

• Business Description- Provide information about your company’s purpose, specialized technology development area, formation history, and founders.
• Healthcare/Medical Issue- Describe the specific real-world healthcare/medical issue that needs to be solved, and why the issue is important to solve.
• Legal Status- Determine the company's legal structure, i.e., sole proprietorship, partnership, corporation, and S corporation, which is usually based on the product or service that will be offered to buyers.
• Leadership & Management Team- Profile the individuals who will lead and manage the company's business operational units: Marketing, finance, research & development, human resources.
• Organizational Structure- Describe the role and responsibilities of each management team member.
• Research & Development (R&D) Strategy- Provide specific details about the proposed ground-breaking MedTech or health technology solution including its purpose, design, function, features, and benefits. Indicate, more importantly, how the proposed solution solves a particular problem for targeted buyers/users. Next, explain the company’s R&D approach that leads to (1) demonstrating concept feasibility, (2) building and testing a technology prototype, and (3) developing a minimum viable product that attracts early-adopters (customers).??
• Market Research- Describe and explain the technology market size, leading competitors and their marketed technology solutions, and industry trends/forecasts.?Profile targeted buyers most likely to purchase the proposed solution.? Also, specify how the proposed solution benefits potential buyers and how it solves their problems.?
• Go-To-Market Strategy- Detail how the company intends to reach, inform, and stimulate targeted buyers, i.e., via public relations, direct mail campaign, content marketing, association conference exhibits/networking events, etc., to purchase the proposed solution.?
• Regulatory Strategy- Describe policies or actions that will help the company bring a product to market by identifying and addressing the legal, costs, compliance, i.e., United States Food and Drug Administration, and risk management need.
• Reimbursement Process- Describe how public or private third-party payers compensate healthcare providers for the costs of a specific treatment.
• Financials- Describe the company's projected revenues, operating costs, and capitalization summary & table.

NOTE: The business organization information is integrated into a business model document.

A business model identifies, defines, and articulates how a startup will produce an innovative health technology or MedTech solution, meet the needs of targeted buyers, obtain a competitive advantage in a designated market sector, launch and promote the technology solution, generate consistent sales, and earn steady revenues. More importantly, the business model acts as the foundation allowing the company to grow throughout the various business development stages.

New Technology Development Process

The new technology development process involves executing the startup's business model to turn the proposed MedTech or health technology concept into a marketable, revenue generating, and problem-solving solution.

Acquiring seed funding, executing the R&D plan, and implementing the go-to-market are key elements that are involved with the new technology development process.

Acquire Non Dilutive Seed Funding- Use the completed business model to prepare proposal documents, i.e., 3-Page Project Pitch, 15-Phase I proposal, 15-Phase II proposal, and 15-Phase IIB proposal, from the National Science Foundation (NSF) Small Business Innovation Research (SBIR). NSF SBIR seed funding enables U.S.-based first-time entrepreneurs, startups, and small emerging firms to execute their research and development plan.

NOTE: The business model's management team profile, research and development, and go-to-market strategy sections are helpful in preparing effective NSF SBIR proposal documents.

Execute Research & Development (R&D) Plan- Implement the R&D plan comprise of conducting research activities that (1) prove proof of concept/demonstrating the idea is viable, (2) build and test a technology prototype, and (3) refine the prototype into a minimum viable product (MVP). The MVP is a customer-ready version of the product containing key attributes to attract early-adopters, i.e., targeted buyers.

FYI: U.S.-based first-time entrepreneurs, startups, and small emerging firms with no previous revenue history and no new technology development history can win NSF SBIR seed funding.

Implementing Go-To-Market (GTM) Strategy- The company uses its GTM strategy to reach, inform, and stimulate early adopters, i.e., targeted paying customers, to purchase the minimum viable product (MVP). Early adopters are key influencers who provide product testimonials and lead the way toward wider market adoption. As such, the GTM must be productive in helping a startup achieve initial successful with persuadable buyers.

About the Writer

Mr. Darrell Williams is the founder, president and CEO of Eighteen Ventures. He possesses extensive experience in preparing startup business models and National Science Foundation (NSF) Small Business Innovation Research (SBIR) seed funding proposals. He has been involved in small business development since 1999.

Eighteen Ventures is a Portland, ME independent, private small business development consulting firm serving U.S.-based first-time entrepreneurs, startups, and small emerging firms seeking to produce a novel health technology or MedTech solution.

Our services include preparing sustainable startup business models and NSF SBIR proposal seed funding proposals. We do not provide direct investment in startups or small firms.

Eighteen Ventures helped Sterile Geeks VR, a startup MedTech firm based in Jacksonville, FL, prepare a sustainable business model and produce a winning NSF SBIR Phase I proposal resulting in a $255K new technology development seed grant.

U.S.-based first-time entrepreneurs, startups, and small emerging firms can contact Mr. Williams, at [email protected], and learn how Eighteen Ventures can help your company succeed.