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When I made a decision to build a company from scratch, I knew it could require not only the adoption of technology, but also an iron will to address persistent inefficiencies in the industry. The source of my frustration was the outdated and fragmented practices in the pharmaceutical industry that introduced unnecessary inefficiencies for each pharmacists and patients. I used to be driven by the belief that there had to be a simpler solution.
Throughout our journey, we realized that embracing change and refining our approach was essential to our growth and its overall impact on the pharmacy landscape. Three steps made a significant difference – steps that any company can take to successfully pivot and discover recent paths for revenue and impact.
Here’s what we did.
1. Fail fast, pivot faster
Don’t fall into the trap of considering your go-to-market plan is flawless. The biggest advantage of being a startup is agility. You need to use this flexibility to your advantage and recognize when your plan needs adjustment. Moreover, as a startup you have a limited runway, so make sure you make team decisions quickly.
After launching our initial B2C business in 2017, we encountered gross margin challenges that ultimately forced us to re-evaluate our go-to-market strategy. In 2019, as a team, we took a step back and analyzed the pharmaceutical industry Total addressable market (TAM) and the broader B2B landscape. Ultimately, we realized two key paths forward.
First, a good portion of the market share was attributed to the pharmaceutical industry specialist pharmacy. In the specialty pharmacy industry, pharmaceutical manufacturers need digital infrastructure to help them navigate the difficult patient journey. Secondly, health plans are very focused on clinical indicators, so-called (*3*)quality measures nonetheless, they lack the scalable digital infrastructure needed to cleanse data and automate clinical processes at scale. These projects became the basis for our transition to B2B.
2. Brutally honest conversations
I have all the time believed that transparency is the best way forward, which implies keeping each the internal team and investors fully informed. As a team, we have mapped out all possible development paths, including the possible closure of the company. It’s okay if your initial thesis doesn’t pan out, but it is not okay to proceed trying to make it occur when the indicators say otherwise.
Preparing for uncomfortable conversations is one of the most difficult parts of rotation. It was obvious at the starting that we had to change course, but it was not an easy decision. We were lucky to have a team that wasn’t afraid to express different positions. Our collective contributions helped us chart some downward paths that, in hindsight, would have led us in the mistaken direction.
If your go-to-market strategy is not working, acknowledge it quickly and transparently. Don’t hide from the data or opinions of your team and investors. Laying all the cards on the table helps ensure everyone is on board with potential next steps while maximizing opportunities to implement ideas. This energized our team and investors, allowing us to focus on a recent path.
3. Listen to your customers
One of the golden rules in business is to address real customer problems. The change in approach should place an emphasis on recognizing the weaknesses in your customer base and presenting your company as the best company to solve them.
Throughout our journey, we noticed a growing need for digital infrastructure across the various industries in which we operated. By listening to our customers, we learned about some of their most glaring challenges, which helped us chart our motion plan. Therefore, it is important to remember that while listening to your customers is essential, you should be careful not to let one customer dictate your entire product roadmap. Continually check whether their needs are universal inside the industry. The key is to find a repeatable solution that can scale across multiple clients.
The effect of those steps
Looking back, these three difficult but essential steps completely modified our business. In 2019, we transitioned from a B2C digital pharmacy to a thriving B2B digital pharmacy platform. Our success was mainly due to our ability to turn things around at the right moment and exhibit complete transparency to all stakeholders. We also preached the value of frugality throughout our journey, giving us the longest possible runway to overcome the initial challenges. We took motion early while we still had the opportunity to grow; we didn’t wait until things hit all-time low before making changes.
Embrace change with confidence, but do it rigorously. Make sure that reliable data, deeper evaluation and a well-defined vision for your company’s future are driving the changes you seek. It’s not only about adapting – it’s about making intentional, informed decisions that will lead to sustainable growth and success. Be strategic, thoughtful and deliberate, aligning each change with your broader goals and values to make a positive and lasting impact.