The dynamic medical device industry thrives on new business ideas. Opportunity exists for innovative and committed entrepreneurs who wish to start their own companies. Once potential start-ups have developed a compelling business plan, investment dollars might be available for those entrepreneurs who follow the right steps to secure funding.
One frequent misunderstanding common among entrepreneurs is the notion that patents or the technology comprise the major value of the company, and that the work of bringing a product through development and adoption by customers is “just details.” The reality is that technology by itself can’t produce cash flow. The value of a company increases dramatically only if its innovative technology is developed into a viable long-term entity with multiple sources of ongoing revenue and a good reputation with customers and industry collaborators.
1. Agreements formed are long term and all procedures are transparent and unambiguous
2. Being mindful of the long-term client relationship and the opportunity for mutual gains
3. Agreement building values the collective knowledge and skills of both parties
4. Information-sharing boundaries are agreed in order to create value
5. Communication exchanges build trust through verification
6. Value creation ahead of value claiming
How to collaborate:
1. The prelude
Typified by converging views about what might be possible and collaborative behaviours. This stage puts into place the process that lets each side discover if their needs can be satisfied.
A focus on surfacing the issues and understanding the preferences each side holds. As views become divergent and tension rises it is important to manage the conflict by applying the Collaborative Principles.
3. Problem solving
Both sides focus on creating options that provide mutual gain and that are better than what could be created without each other.
4. Decision Making
Each side confirms the decision making criteria and that they have a mandate to make binding decisions. Impasses are navigated and agreement is reached by exchanging low-cost, high-value concessions.
Earlier commitments become actions, and compliance monitoring and enforceable contingencies increase the likelihood the intended outcomes will be achieved.
With stakeholder involvement there is a focus on how the relationship is working and an assessment of the value that has been created or reasons for inequity in the relationship.
Showing value most often means late-stage companies have to demonstrate some revenue. And that requires building a sales, marketing and maybe even a manufacturing organization. All of these carry inherent risks.
Coming up against a competitor with an entrenched product is a challenge and unless the start-up’s product has a solid clinical and economic value propositon, customers have few reasons to make the switch.