Birthing Healthcare Business

Until you’ve worked on the front lines of a medical or therapeutic group practice, a private healthcare facility, or on a pharmaceutical or medical device core management team, you’re not likely to ever appreciate that healthcare entrepreneurship is a radically different beast.

Non-healthcare business entrepreneurs—minus the excessive regulatory compliance baggage—can afford to be more freewheeling than their healthcare provider-based counterparts.

Healthcare entrepreneurial ventures can carry astronomical price-tags for R&D. The accompanying array of complicated startup legalities, convoluted tax restrictions, partner negotiations, branding and marketing (Healthcare is NOT about smiling doctor billboards!), recruiting and interviewing, position statements, community relations, and building a referral base is enough to confound many dedicated providers who lack even basic business training or experience.

So what? Who cares? You might ask.

This is not to trivialize the amount of hard work and suffering that accompanies the launch of non-healthcare entrepreneurial enterprises—particularly those ventures giving birth to non-healthcare-related hi-tech products and services. It is simply that healthcare has it harder!

Initial non-healthcare-related business investments are often from friends and family who are happy to just get their initial money back.

But healthcare investors are often professional investor outsiders with no knowledge of your business, who want unrealistic return on investment, who are not interested in your sweat equity, and who want to own controlling interest in exchange for the funding they provide.

These wealthy individuals often seek to be “part of the action” and are willing to pay for it, but who will not let business founders off the hook if things fail — and, curiously, many who fit this description seem always to appear at the moment when you most need it.

The #1 underlying message here is DON’T NEED IT! When you most need money, you can be sure you’ll be communicating it without even a word, and that’s like blowing a game-starting whistle to send in the circling sharks. You think TVs “Shark Tank” name has no basis?

Underlying message #2 is STAY FOCUSED ON MAKING YOUR CORE BUSINESS WORK INSTEAD OF LOOKING FOR A QUICK FIX BY EXPANDING OR EXTENDING IT TOO PREMATURELY . . . TRUST YOURSELF AND BE REALISTIC.

So, if you have a choice between starting up a decorator windshield wiper blades company and establishing a business that aims to produce anti-bacterial clamps for micro-surgical openings, or starting up an orthopedic group practice, avoid healthcare pros money woes and go for the wiper blades! (But don’t think a year of that qualifies you to be in the windshield business, the windshield washer fluid business, and the rearview mirror business—or to think a 500-unit order means you need to break ground for a monster manufacturing plant!)

Just in case that thought crosses your mind, go back to the #2 message above, and if you do it right, you’ll be accommodating the #1 message without even trying. Because? Because you won’t need money because you’ll be too busy building your business and blowing out the walls of your garage!

If you’re truly “locked in” to a healthcare business startup, step carefully, listen carefully, speak and write carefully, and don’t let any amount of cash infusion take control out of your hands unless you have something else ready to put your hands on, and can (and are willing to) walk away comfortably. And remember–above all else– that Healthcare Leadership can mean only one thing . . . and it’s not Obamacare or “Lean” Management!!

Headed to 2012–and

your business

is still breathing?

You got guts!

It takes more, much more, than an MBA, family inheritence, or good luck to have a living, breathing business survive this still-spiraling economy. It takes guts.

Guts? Right. You must have ’em, or you wouldn’t be reading this. Okay, enough with the backpats, where do you go from here? Yeah, into January, right. I know. But beyond that, what?

Since you’re an entrepreneur preoccupied with making your idea work, you’ll probably be doing all your gift shopping online, or running around at the 11th hour grabbing stuff off what’s left on nearby retail shelves.

If that’s not the case, and you’re a true romantic who has planned every inch, and had a thousand hours to plan and organize and wrap, you’re probably a corporate type who did all your Christmas shopping in July, and not reading this anyway.

So, here’s a thought: What about taking yourself through a group brainstorming experience —  by yourself?

Is that like suggesting that you do a multiple-personalities thing? Yes, but not so close to the edge that you’ll need a shrink by New Year’s.

I’m suggesting you start with a pad and pen or pencil (if any of those tools are still within your reach). Laptops and all those other hand-heold devices just don’t cut it! They don’t give you enough time to think.

Besides a little practice with that lost art called handwriting, the experience alone could be a good stimulous (speaking of which, Red Bull isn’t a necessary accompaniment, but you may want a cup of coffee?). 

Next, turn off your cell phone; I promise the world won’t end. Then find a place where you won’t be interrupted. (HA! Talk about challenge!) Maybe it has to be a locked car in your driveway?

At the top of your page, write the one business issue that is most important for you to address in 2012.

Be realistic.

Draw a vertical line down the middle of the page.

Put a + (plus) sign on the left and a – (minus) sign on the right. Start to write down everything you can think of (in the left-hand column) that could be a positive outcome of resolving this issue. Everything you imagine as negative on the right. Think freely.

Don’t criticize or second-guess yourself. Instead, go back over your list from the perspective of what you imagine to be your most trusted advisor or most valuable employee. How would it change?

When you’ve given these two columns about 10-12 minutes for each of your split personalities, STOP! Take a swig of coffee. Take some deep breaths. Rub your hands together briskly.

Next page: Write down the three steps you can take on Tuesday, January 3rd, to make some of that left-hand column stuff on your first page start to happen. Rank order the priority of steps.

Make some specific notes about the who, what, when, where, and how each of those three steps can/should/will occur.

Give them a timeline.

Be realistic.

Keep it all flexible: your rankings, your steps, your timeline, and what you expect for results (yes, without this, it’s hard to know why you’re pursuing anything) . . . flexible.

If you get close to the date and it’s not going to happen, don’t whip yourself (that’s hard to do anyway), just move the date. If the steps involve money or other people, leave them flexible enough to adjust in case things don’t go swimmingly (which as you know, they rarely do!)  

Fold up the pages. Put them in your pocket. Type them into your computer tomorrow (not today) and edit them in the process. Share the information as appropriate.

Congratulate yourself for doing goal-setting the right (most productive) way. Now make it happen! And stop worrying. Remember, you got guts!

 # # # 

302.933.0116 or Hal@BusinessWorks.US

Thanks for visiting. Go for your goals! God Bless You.

“The price of freedom is eternal vigilance!” [Thomas Jefferson]

Make today a GREAT day for someone!