What if an Orthopedic company built valuation like a consumer tech company?
I have never seen an orthopedic company measure and optimize customer-by-customer analytics.
Orthopedic companies are usually born with a product concept and some built-in surgeon customers (with equity) and some startup capital. The first sales are a given. The first year can be a bit too cosy with built-in customers. Year two they try to find some new customers, and so on. Year three, more territory, and so on.
Scaling the business and building long-term valuation can be an afterthought.
What if an Orthopedic startup thought like a consumer tech startup?
In order to build a high valuation over time like a consumer tech company, an Orthopedics startup would have to answer “Yes” to these 6 fundamental questions.
Can ANY orthopedic company say “Yes” to all 6?
1. Can you build an approved product (FDA/EU) and launch it?
2. Do hospitals/ASCs outside your insider launch want to buy your product?
3. Can you make a strong gross margin selling your product to your targeted hospitals/ASCs?
4. Can you leverage your sales/marketing investments to generate a strong gross margin? In other words, can your LTV grow faster than your CAG? (LTV/CAG ratio)
5. Can you scale your operations to incrementally grow profit per hospital/ASC?
6. Can you release new complementary products to leverage profit per hospitals/ASC?