Over the past few years, the number of people forming healthcare start-ups has drastically increased. Between 2010 and 2014, the number of future venture funding deals for healthcare companies grew by a massive 200%. Driving the boom are health reforms which have disrupted business models, the aging population who are collectively demanding increased levels of better quality care, and the adaptation of technology in healthcare provisions. In addition, today we are seeing something of a ‘golden age’ for entrepreneurs, with the declining cost of technology making pursuing a business venture more accessible and affordable for all. We’ve put together some of the best advice for making it in the industry as a healthcare start-up owner.
Although there are no official educational requirements needed in order to run your own business, obtaining an education can be very beneficial for those who are hoping to launch a healthcare start-up. With the growing popularity of healthcare businesses meaning that competition is fiercer than ever before, a qualification such as an MBA in healthcare management can give you the edge over the competition while providing you with a very sturdy foundation of knowledge on which to base your business venture.
The healthcare industry is one that is heavily regulated. From the Affordable Care Act to the Food and Drug Administration’s set of rules and regulations, this is something that any serious healthcare entrepreneur will need to make sure that they get familiar with and used to as soon as possible. Healthcare may be an industry that is full of rules that must be kept to, however, these rules can also be an entrepreneur’s best friend as complying with them will assure you and your patients that the company is being run well.
Although certain industries make it easy for start-up owners to get out there and find rapid growth for their company, the healthcare industry doesn’t often work like that. In healthcare, the sales cycles can be very lengthy and regulatory hurdles can often take some significant time to overcome. Although healthcare is constantly changing and updating with the introduction of new information and technologies, it’s also worth noting that resistance to change throughout the industry can be very high. This elongates the whole cycle, meaning that healthcare start-ups can expect to wait a little longer than others before breaking even or making a profit.
Any successful business owner in, and out of, the healthcare industry will tell you that networking is key to start-up success. When you start a business in the healthcare industry, you have an advantage over entrepreneurs in other industries in that yours is filled with a wide range of professionals to network with. Don’t just communicate with other healthcare business owners; medical professionals, healthcare managers, and even patients can all contribute towards business success. Taking an MBA healthcare course is a great networking opportunity, too.
Healthcare start-ups are increasing in popularity as more business owners take advantage of this rapidly growing, lucrative industry. But, if you’re a healthcare entrepreneur, it’s essential to have a plan for success.