Beyond the product or service: Designing scalable business models for healthcare growth

For healthcare companies, reaching the growth and scale stage signifies a critical transition. You've laid the strategic foundation and are now focused on execution. A crucial element of this phase, and one that often presents significant challenges, is designing and implementing a scalable business model.

It's about creating a framework that supports your current growth. Importantly, this framework must also be adaptable, expanding as you enter new markets, reach new geographies, and increase the size of your operations. A startup successful in a small market might struggle when expanding nationally or internationally. This is often because they lack the necessary capabilities, strategic/tactical/operational resilience, sufficient capacity, resilient processes, strong structures, and funding needed for larger operations.

The key pain point here is the challenge of moving from an initial, often informal, way of doing business to a more structured, scalable model. This scalable model needs to handle much larger volumes, serve diverse customer groups, and adapt to changing rules, and payment systems. Companies need models and market access roadmaps specifically designed to transition from the start-up to the growth phases. This requires a forward-thinking approach that anticipates future needs and complexities.

So, what should companies do to design a scalable business model?

Firstly, revisit and refine your value proposition within the context of scaling. How will you deliver that value to a much larger audience, potentially across different geographies? Consider cultural factors, varying patient needs, and the local healthcare and tech infrastructure. This might involve adapting your service delivery model, leveraging technology, or forming strategic partnerships. Your business model should clearly define how value is created, delivered, and captured at scale.

Secondly, carefully design your revenue streams and cost structures. As you grow, your cost base will change, and you need to ensure your revenue generation can keep pace. This involves analysing pricing models, exploring different reimbursement avenues (especially in new markets), and identifying opportunities for operational efficiency to manage costs. The MedTech industry, for instance, has seen increases in the cost of goods sold, highlighting the importance of cost management during growth.

Thirdly, consider the key resources and activities required to operate at a larger scale. This includes talent acquisition and development, infrastructure needs (such as manufacturing or data management), and the processes required to support increased demand. Building a strong operational foundation is essential for scalability.

Fourthly, develop detailed business plans that outline your growth trajectory and how your business model will support it. This includes financial projections, market expansion plans, and operational milestones. Comprehensive planning helps identify potential bottlenecks and allows for proactive problem-solving.

Fifthly, focus on improving operational efficiency. Designing scalable operating models to improve efficiency and reduce costs is not just a good idea; it's often a necessity for maintaining profitability during growth. This might involve streamlining workflows, automating processes, or implementing new technologies to improve productivity. Companies that successfully scale their operations are better positioned for long-term success.

In summary

Designing a scalable business model is a dynamic process that requires continuous evaluation and adaptation. It's about creating a resilient framework that can support your company's growth ambitions while ensuring financial viability and operational efficiency. Mastering this aspect of the 'Propel' pillar is crucial for sustained success in the competitive healthcare market.

How Buoyancy Health Strategy can help you right now

Designing scalable business models is essential for sustainable growth, particularly when transitioning from startup to expansion phases. Buoyancy Health Strategy provides expertise in scalable business model creation, specifically designing models and market access roadmaps to transition your start-up to growth phases. We also assist in developing business models and business plans. This support ensures that your operational and financial frameworks can support increasing demand and complexity.

Engagement for this type of support often falls under project-based consulting for tailored strategies. A key benefit for clients is the creation of a robust, adaptable business model that provides a clear roadmap for sustainable growth and attracts potential investors by building compelling business cases to attract investors and secure funding.