With any new medtech product, there is a long road to commercialization. It’s important to ensure that you have that product-market fit early on and throughout the development process so that there is traction when you do finally launch.
We discussed the topic of finding the right product-market fit on The Health Connective Show with our guest, Scott Nelson, the founder of Medsider and co-founder of FastWave Medical. Scott’s work includes showing early-stage medtech companies how to leverage lessons from successful companies in this space.
Product-market fit is key for any medtech company looking to introduce a new product into the market. To have your product be successful, it has to have a substantial market of people who can actually benefit from it and see the value in it.
Pillars of Product Success
In the episode, Scott mentioned what he calls the “3 Pillars for Success” when launching a new product:
1. The product itself
2. Your market
3. Your team
Of course you need to have the right product, and you need to assemble the right team that will help you get there. However, Scott believes that the market is the most important pillar, primarily because you need to have the market to get funding.
Medtech projects require a tremendous amount of capital to get off the ground, which means you will likely need to get investors to begin developing your product. Any potential investors will want proof that there is a market for your product to consider it investable. Even if the product idea is great and you have a great team backing you, you will have trouble raising funds if you can’t find a large enough market for it.
How Data Factors into the Product-Market Fit
Data is a necessary component of some parts of the process. You need data to determine your market size and substantiate the value of your product during a fundraising session. As you move along in the product development process, you will also need data to show off the clinical efficacy of your therapy.
However, Scott mentioned in the episode that sometimes medtech companies fall into the trap of relying too much on data. Medtech devices often have the capability to collect reams and reams of data, and more data may be collected through market analysis and voice of customer research as you continue through the product development process. But when you have so much data available, it can be difficult to cut through the noise and filter down to what matters.
To balance this, Scott advises that medtech entrepreneurs also use their natural intuition to help drive decisions about product and market development. Sometimes, it can also be helpful to get out into the field and talk to your target customer group. You may find out more in that setting than you would with research.
Novel or Iterative Products?
One major question when developing a new medtech product is whether to create an entirely novel solution, or iterate on a technology that already exists.
Often, this comes down to the audience you are trying to court. Investors are often looking for novelty—something totally new and innovative. But if you talk to clinicians, you’ll often hear that they don’t need something entirely new (i.e., “The current technology generally does what I need it to do, but it would be great if it could also do….”).
It’s important to strike the right balance with your product. You need something that gets your investors excited, but you also have to have a market for your product, and that means addressing the real needs that clinicians have.
If you’re not at a startup, then you have a lot of room to keep improving on your current products or creating “spinoffs” to serve different sets of needs.
What to Do When the Product-Market Fit Isn’t Clear
If you are struggling to find the right product-market fit, it’s time to stop and evaluate your next steps. Sometimes, you have to make hard decisions. As Scott said on the podcast,
“You have to be really, really comfortable making decisions in an uncomfortable environment.”
Sometimes, you may find a way to iterate on the product in a way that fits a market need. Other times, you may have to make the hard decision to scrap the project and move on to something else. Even the most successful medtech entrepreneurs will tell you that not every idea makes it to the market. Having that decisiveness and resolve gets you to the next thing.
Ultimately, to have a successful product, you have to have a market for it. By keeping your market in sight from the beginning, you have a greater chance of developing the right product, getting the funding you need, and the team you need to make that happen.
Michael spends a great deal of time with the healthcare industry both professionally and personally, which gives him the perspective of what stakeholders on either side of the care equation need.
He began coding in 2008 and subsequently shifted his attention entirely to online marketing. Michael completed his MBA in 2018, focusing on the intersection of healthcare and marketing.
As the marketing manager, Ashley ensures that our clients’ marketing strategies are put into action. This includes content writing, SEO, online advertising, analytics, and interfacing with the tools, systems, and team members needed to help our clients accomplish their marketing goals.
