[Click Play] Gallup indicates 70% of startups fail in the 1st 5 years. What are
your thoughts on these six strategies to improve the chances of commercializing your startup or getting acquired?
#medicaldevice #startup #lifesciences #outsourcing #reimbursement
#valueproposition #marketaccess #strategiesforsuccess #strategy
Our LinkedIn poll concluded with some interesting findings and a fair amount of debate. It's estimated 75% of medical device start-ups fail or never make it to the market. Understanding the primary factors which drive these outcomes makes or breaks the difference in a start-ups success.
As our respondents weighed in it was clear the primary factor which gets in the way of a start-up meeting up with success is in fact its own people. 48% of voters identified this as the primary reason for failure, many of which current have or have had in the past direct experience operating in a management role within start-ups.
The debate ragged on within the poll as some people felt like the product (ie technology) played a larger part in the failure of the company as it's ability to meet a core, and perhaps large, clinical need drove a variety of things including funding, market acceptance, etc.
In the end the old saying still rings true - the people we surround ourselves with makes all the difference.
The world of startups and small business can indeed be an exciting place to be. Its commonly characterized as highly collaborative, fast pace, less bureaucratic and wildly innovative. While this sounds great in theory, in practice the world of a startup can be rife with challenge, including heavy amounts of stress and uncertainty. It’s vital we as professionals analyze our personalities and professional behaviors to assess whether or not we would do well in the startup world - before we actually jump in. Knowing what you’re up against before you dive in will allow you to determine if it’s appropriate for you to consider the startup space, small business and or entrepreneurship.
Author: Travis Smith
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In this weeks Monday Quickie Recap we talk about our article ‘How to be Successful in the Start-Up World’ and the importance of working outside of the box and your respective job description, as well as the impact good/ bad leadership can have on small companies.
Working for big business certainly has its perks, there’s no doubt about it. Stability, direction, benefits, work that is defined – you name it. It can be a magical place so long as we do enough to stay off the radar of those watching while mentally checking out for 8 hours a day to do this thing we call ‘work’.
If working for the bigs’ is so great than why are so many people changing their professional course of direction and seeking the world of the start-up?
The start-up world can be an exciting place. I’ve experienced this personally over the last two years while also support many clients who are in the same place. Decisions are often made speedily, there’s typically less bureaucracy, work is more flexible and of course it tends to be much more creative.
Then it’s settled, everyone should work in a start-up! I mean, who wouldn’t want to work in that kind of an environment?
Pump the brakes my impatient chums. Before you diving into the world of a start-up (including small business) take a moment to check in with yourself on how you land with these five characteristics of the start-up world:
1. Working Outside the Box
When we work for big companies often times our job and daily output is focused on a certain set of tasks. It’s the opposite in the start-up world as often times the mentality of those who are successful in this space is that they’re willing to do whatever it takes to get the job done and company moving forward. This includes taking out your own trash! If you’ve ever said “that’s not part of my job description” in response to work that was requested of you I would recommend taking a hard look at whether a start-up or small company is the right move for your career.
2. Time Requirements
Working 8-5 in a large company can be a very nice perk. If you’ve done that for any length of time you may have forgotten how nice it is to mentally shut off at 5PM. In start-ups working 8-5 is non-existent. It’s common to work long hours and or be tethered to your smart phone around the clock. The statement of ‘work life balance’ is blurred beyond recognition in the start-up world. Those that are successful here know and understand that it takes time and effort to create something. How dedicated are you to making that happen and what are you giving up in the process?
3. Ambiguous Nature
Working in a large company doesn’t necessarily mean that everything is clearly defined and outlined yet it is typical that SOPs (standard operating processes) are at the very least available for workers who choose to use them. In the start-up world you may find yourself creating these on your own. Take a moment to think how you would feel about being confronted with a daily situation where you are supposed to be working hard, hell – harder than ever before, and there isn’t a lot of direction or support to help you in that effort. If the thought of that excites you than the start-up world may be a breath of fresh air, if not then maybe your 3 foot wide cubicle and plush ergonomic chair your large company bought is the safer bet.
This is one of the most overlooked aspects of a start-up in my opinion. Leadership. If you haven’t worked in the start-up world before you may not be aware that people in leadership still do much of the hands on work. In big business this is hardly the case. Neither camp of leaders are necessarily better than one of the other, it’s just a very different environment. In start-ups every person on the team has to give 150% to the cause which means those who don a leadership title still have to get dirty in the day to day work. The reason you want to consider this as a part of your ‘can I make it in the start-up world’ is because leadership ultimately can have a great or very grave impact on the start-up business. Seems a bit obvious but when someone is doing both daily work and in charge of strategic decision making their influence and involvement has a much greater impact. In big business if a company experiences a failure with one of their leaders it typically can be salvaged whereas in the start-up world one or two cost mistakes by leadership will send the company into a grave six feet under.
Start-ups offer an intimate working experience. It’s a necessity. Working in a start-up everyone knows everything about everyone. It’s close quarters with high amounts of communication, partnering and feedback. Collaboration of course exists in big business but not at the intimate level of the start-up. When we work for a big company we are often a part of a team but doing work independently, even times on our own little island. If you’ve come to enjoy your island and aren’t interested in having neighbors up in your grill on the daily than perhaps staying in big business is the right decision for you.
A professional life in a start-up can indeed be a rewarding and exciting adventure. Once we’ve spent some time analyzing what’s most important to us in our career and what we’re willing to do to get it than we’ll have a better idea of how the start-up environment and career fits in with our plans.
About the Author
Travis Smith is the founder and managing director of Square-1 Engineering, a life sciences consulting firm, providing end to end technical project services to companies which design, develop and or manufacture products in Southern California. He successfully served the life sciences marketplace in SoCal for over 15 years specializing in engineering services, consulting, project outsourcing and leadership development. In 2019 he was recognized as a ‘40 Under 40’ honoree by the Greater Irvine Chamber of Commerce as a top leader in Orange County, CA.