Health innovators struggle with having negotiation power because all the power really is with the hospital system. But if the pilot doesn’t amount to anything revenue-wise, it’s a waste of time. -Dr. Roxie Mooney
“Death by pilot” is a phenomenon that happens far too often for healthcare innovators, and it can take them out of business before they even start selling anything. What is the root of this problem, and what are the initial mistakes innovators make? What are the things you need to nail down before you launch a pilot so that it doesn’t mark the end of your business? On this episode, I talk about how to have a pilot that actually leads to sales and avoids “pilot purgatory”.
3 Things You'll Learn
- Many innovators get so excited that someone was interested in their project they accept everything during the negotiation process. This is how they end up with unfavorable terms.
- If you don’t negotiate any sales terms for the end of the pilot, you can be left holding the bag.
- You want to have a pilot of early adopters because they are the people with a higher likelihood to buy your innovation after the pilot.
When health innovators have to launch a pilot in order to establish medical validation or clinical evidence, they can end up in pilot purgatory and go out of business before making any sales. In order to get a good outcome from the pilot, you have to know what it’s actually for. The pilot is the pathway to demonstrating safety and efficacy. You still need sales afterwards for it to be viable. Your negotiations, goals, and KPIs should be going in that direction.