How to Scale a Health Tech Business to $100 Million.Achieving $100 million in recurring revenue is a significant milestone for any SaaS business. However, it is also a process that takes time and dedication.
Healthcare SaaS and tech-enabled services companies often experience higher costs than cloud businesses at early stages, which are typically driven by the time needed to prove outcomes of a healthcare product or service, longer sales cycles, and integrations and customizations.
- Build a strong team
If you want to scale your health tech business to $100 million, you need to focus on building a strong team. This will help you achieve your goals quickly and efficiently.
The first step is to identify your team members. This will give you the opportunity to choose the most suitable people for your company and ensure that they possess the necessary skills and experience to perform their job effectively.
Having the right people on your team will also help you overcome challenges that might occur during the course of development. For example, if you have a medical startup, it is important to make sure that your team includes medical professionals who are willing to test and use your product.
Another key to success is to partner with healthcare organizations that can offer you support and guidance during the course of your project. These organizations can help you establish trustworthy relationships and sponsor your project until you have a fully functioning product that is ready to be released to the market.
Partnerships are an important part of every startup’s go-to-market strategy. They help you build strong relationships with hospitals, insurance companies, and other businesses in the industry, allowing you to grow your business.
When partnering with other companies, you should always remember to be transparent about what’s going on in your company. This will allow your partner to understand what’s happening and why they need to be involved in the process.
You should also be able to discuss the costs of each project in advance. This will help you avoid unexpected expenses and increase your flexibility as your business grows.
In addition, you should be able to have regular meetings with your team to discuss the progress of your projects. This will ensure that everyone is aware of what’s going on in the company and that everyone is working toward a common goal.
- Invest in your product
Health tech startups require a lot of money to get off the ground and to grow. In order to raise funds, they need to find the right investors and develop a business plan. This can be difficult and requires a lot of time and effort.
It is also important for health tech companies to have a great product. They should be able to solve a problem for customers and have a unique product that will help them achieve their goals.
In addition, they should have a strong team that can support them throughout the process. This team should include experts in a variety of areas. It should also have the ability to communicate with customers and investors.
The first thing that you should do is decide what your product is going to be. This will help you determine whether or not you have a good idea for your startup.
Another thing that you should do is find out what other companies in your industry are doing. This will give you more information about how to improve your product and what kinds of customers you should target.
You should also make sure that your product can be sold in a number of different countries. This will help you reach a wide audience and increase your chances of success.
Lastly, you should ensure that your product is safe for use by patients and professionals. This will help you avoid any potential risks and problems.
Investing in your product is one of the most important things that you can do if you want to scale your health tech business to $100 million. By doing so, you can be sure that you will be able to reach your goal and that your company will be successful.
- Invest in your marketing
The hottest healthcare tech startups are using all sorts of innovative marketing tactics to attract new customers and win over existing ones. These include social media, email automation, paid search, influencers, and more.
To get the most out of your marketing budget, you need to be sure that you’re focusing on the right tactics for your business and the right audience. You can do this by defining your ideal buyer, collecting insights about their needs and behaviors, and documenting how your content will address their problems.
In addition to promoting your products and services, you should also take time to learn about the latest trends in your industry. This will allow you to stay ahead of the competition and make informed decisions about how to best position your business.
Healthtech is a fast-paced industry with a high turnover of employees and patients. This means that you need to keep up with the latest in technological advancements and customer demands in order to remain competitive and retain your existing clients.
As a result, it’s important to keep up with the latest developments in digital marketing to ensure your brand stays ahead of the curve. For example, Google offers a suite of tools to help you with search engine optimization (SEO) and pay-per-click advertising campaigns.
A good marketing campaign will include several components, including a clear call to action, relevant content, and social media. This will ensure that you’re maximizing your marketing efforts and gaining the most traction. It will also help you to achieve your financial goals and make the most of your limited resources. A solid marketing plan is the key to success for any health tech company, and it can be a great way to boost your bottom line and grow your business.
- Develop a go-to-market strategy
A go-to-market strategy is a step-by-step plan that helps you launch a product or service to the right audience at the right time. Developing one is a vital part of launching and scaling your business, and it requires a lot of work.
The best strategies start with clear objectives. This gives you specific targets to aim for, a timeline and a way to measure your progress.
Creating a solid strategy also includes defining your audience and messaging, and then implementing an actionable marketing plan. You can start by examining your competitors’ marketing efforts, as well as the customer experience they’ve built.
Your strategy should also include an effective content marketing plan. This involves planning out how you’re going to distribute your content through channels such as blog posts, webinars, eBooks and infographics.
This is a great opportunity to test what type of content resonates with your target market, as well as what types of assets you should be providing them at different stages of their buyer’s journey. By focusing on delivering the right content at the right times, you’ll improve your chances of closing sales and building a loyal base of customers.
A great example of a company that executed a strong go-to-market strategy is Doctify, which launched its platform in 2012. The company focused on two target buyer personas — doctors and patients — and used Facebook ads to acquire them via sign-up forms.
Then, they marketed to them through emails and other marketing tools. These campaigns kept their customer base growing over time, resulting in high net dollar revenue retention (NDRR) values across healthcare SaaS and tech-enabled services. NDRR is a key metric for healthtech startups that want to drive accelerated growth and maximize their cash flows.
- Invest in customer success
Customer success is a critical part of any business, but it’s particularly important for health tech companies that need to retain customers and reduce their churn rate. By investing in your customer success team, you can help ensure that your customers have a positive experience with your product and stay with your company for years to come.
The best way to invest in customer success is to create a clear purpose and set of processes. These will help you to grow your team quickly and get everyone on the same page.
You’ll also need to invest in the tools you need to manage your team. This includes software to manage your customers’ accounts and customer relationships. It can also include a customer success platform to automate workflows and collect usage data, such as your customers’ health scores.
Depending on your product, the volume of your customers and the amount of work they’re expected to do, you may need to scale your customer success team. As a rule of thumb, your CSMs should be handling at least $2 million in annual contract value (ACV) per customer, and up to 50 customer relationships.
Once you’ve determined that you need to scale your customer success team, it’s time to make a strategic decision about when to do so. Identifying the right time is essential for maximizing your success and helping your company grow to $100 million in revenue.
Our research shows that healthcare SaaS and tech-enabled services businesses have similar FCF margins to cloud companies at the early stages, but as they scale to $100 million in ARR, these businesses improve their FCF margins more rapidly than their cloud counterparts. This is due to the fact that healthcare SaaS and tech-enabled service businesses often invest more in R&D at the initial stages of growth, which helps lower COGS and improve their customer experiences and outcomes.