Often, in working with, or investing in, Start-up and small technology companies, I find the companies to be largely building their company and strategy around their technology. This is not particularly surprising and seems to come from the idea that the technology is what has value and is important in these companies. In my experience, this is not the case; it is the value proposition that needs to drive everything in order to ensure you do not make mistakes that can be avoided in developing your product, some of which can be difficult to change later on. More importantly this ensures that you maximize the value you receive from investors as well as future customers, licensees, or acquirers.
Your value proposition needs to be developed with a similar focus to what you have towards developing your product or technology, not based around what the technology does, but rather the value that the technology can deliver, in a differentiated manner, and that is valued by the players in the value chain. In the case of medical products, this value chain consists of patients, healthcare facilities, payers and physicians. While “Lean Start-up” concepts push you to spend time speaking to customers, which is clearly important, in my experience the opportunities that are most valuable and differentiable are found by observing your customers in action, to identify value opportunities that even your customer is not aware of, or at least not consciously, and typically unable to describe no matter how many questions you may ask.
Using this well developed value proposition as the driver for all other aspects of your strategy you maximize the likelihood that: the terms of your in-license of technology is compatible with your business model; that your patent prosecution is consistent with the most important claims relative to your value proposition; that your regulatory claims are consistent with the value proposition you intend to promote on, that your messaging to investors is compelling, that your pricing projections appropriately reflect the value you will deliver,…
The development of your value proposition is just as important as the development of your technology!
Ensure you invest sufficient time and effort in developing your value proposition as early as possible in your company and product development process.
Want more information, please contact us. We would be happy to discuss your project and if and how we may be able to help you in developing and executing a rapid and capital efficient development and commercialization strategy.