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When good ideas make bad business

tjcx.me

161–170 of 361 posts

Re: When good ideas make bad business

#161

I still think this idea is powerful. Not because I believe it transforms healthcare, but because it informs consumers a bit more. That’s what seemed to get you excited in the first place. There are a few paths I see still: a. Assuming you own a database, expose your dataset as an API. Consider possible consumers. Open source it, and monitor the usage. Who’s using that data. b. Cold message a few folks on Linkedin fro…

I was thinking the same, except OP's product seems more like a feature for an EMR platform and less a standalone product.

The only downside is that sharing this information may open up the hospital to more liability - i.e. a patient takes an opiate instead of an NSAID and then blames the hospital for recommending the opiate to them because of how much more effective the opiate is at treating pain in clinical trials.

Re: When good ideas make bad business

#162

The author says that they fired the contractors and closed the site. I can never relate to this. You built something that is at least somewhat useful to at least some people. Why not just keep it online forever? It can't cost more than $5/mo to host this, I have a server where I host around ten of my projects for less than $20/mo. Why do people shut things down instead of just leaving them there, unmaintained? Even t…

I was tempted to post this same question. I suspect the answer is that the OP just doesn't know how to scale it down; it was built by contractors and he/she might not even have the keys to the boxes, let alone know how to keep them running.

It is unfortunate. Even if the data goes stale and the product is no longer fit for purpose, it shows well and would make a great demonstration for his/her future endeavors. And you never know who might stumble across it in the future and want to revive the technology.

I've had fairly sophisticated sites running on Google App Engine for years after the company was "shut down". One ended up being instrumental as a demo when meeting a later cofounder.

Re: When good ideas make bad business

#163

Oof. The site was practically named after WebMD, and the founder didn't do any market research on that competitor to gauge how viable the business was before quitting their job? This person probably should have known that their main competitor made $0.50/user before they quit their job. Also: >It had been a bit of a working assumption of mine over the past few weeks that if you could improve the health of the patient…

> The founder didn't do any market research ... before quitting their job That was the entire point of the article (written by the founder). What was the point of this comment?

IMHO the point of the article is its title - and certainly, furthermore, the point made at the end:

“To succeed, an offering must create value for all entities involved in the exchange—target customers, the company, and its collaborators.”

I believe the point of this comment is 'do market research before quitting your job'. The author could have learned their presented points while operating this as a side project concurrent to their existing job.

Re: When good ideas make bad business

#164
post #135

Earlier quoted context omitted.

It's not a parody of anything, it's just his story, similar to most startups.

By parody, I don't mean the entire thing. I mean lines like this: “Call me when you have a business plan,” I said, lacing up my Allbirds before and riding my Lime scooter into the sunset.

Yes that is obviously a joke. He is poking fun at himself for feeling like a business genius after reading one chapter of a Wharton textbook.

Re: When good ideas make bad business

#165

Oof. The site was practically named after WebMD, and the founder didn't do any market research on that competitor to gauge how viable the business was before quitting their job? This person probably should have known that their main competitor made $0.50/user before they quit their job. Also: >It had been a bit of a working assumption of mine over the past few weeks that if you could improve the health of the patient…

He also seems to have misread Susan.

In the story she describes the project as "fun" before he asks what she'd pay. At that point he probably should have picked up that she was being kind and was not in fact seeing a product she was interested in buying.

He probably could have figured that out by asking doctors before he built the thing.

Re: When good ideas make bad business

#166
I think people are being a little too hard on the author. Startups in healthcare are hard. Been there, done that, have the t-shirt (literally, that's all that left). I even made the same fatal mistake - not identifying who the buyer really is. And when I say identifying the buyer, I don't mean it in that hand-wavey, vague way like "doctors" or "insurance companies". The starting point has to be something like "ophthalmologists in small practices (1-10 doctors) in New England who are trying to acquire new patients through social media."

And here's something that's absolutely critical for all engineers trying to build a startup in healthcare to really understand. Healthcare is so alluring because tech people are so idealistic. We think, "Wow, we we can write some code, and then save lives!" And that's sometimes true. But when you are thinking of your customer, revenue model, sales strategy - all that business stuff - the mistake we make is thinking healthcare is different and the same rules don't apply. We think if we can save lives, we can make a business. But the key insight is that you have to take a step back and just treat healthcare like any other for-profit business. Doctors and hospitals care about what generates revenue. Insurance companies want to save money. Pharma companies are looking to advertise to new customers. It's no different than other industries. The psychiatrist's reaction to the sales pitch is the classic thing a doctor will tell when you're not helping their bottom line. As I was reading the post, I could almost predict how she was going to respond.

And if you figure that business stuff out, who knows, you might just build a healthcare business that saves a life or two.

Re: When good ideas make bad business

#167

Earlier quoted context omitted.

He should obviously be selling to clinics / hospitals Plus when did the 'we don't have any budget' excuse stop a SaaS company? That's what you raise VC for - build the product, hand it to the customer for 'free' and charge them what it was really worth based on their usage when you threaten to take it away

Or try insurance actuaries. If _better outcomes_ is the goal then doctors will want to keep their premiums low by prescribing the optimal drug. If the actuaries are able to see what the doctors are prescribing and what is the better fit they might be able to increase premiums for doctors that take more risks prescribing off of the meta-analysis.

Exactly! Find the people that benefit from healthier patients, that'd be insurers or HMOs like Kaiser Permanente.

Edit: Or even Medicaire?

Re: When good ideas make bad business

#168
post #109

Oof. The site was practically named after WebMD, and the founder didn't do any market research on that competitor to gauge how viable the business was before quitting their job? This person probably should have known that their main competitor made $0.50/user before they quit their job. Also: >It had been a bit of a working assumption of mine over the past few weeks that if you could improve the health of the patient…

> they only spent $40k on some very valuable firsthand experience. This. It is very hard to get real world experience. $40k is cheap compared to a bootcamp that won't teach him even 1/10th of this life experience. Btw, actual figure is not $40k, but one should consider it close to $100k+ if you factor in that he used up his "make my parents support shelter, food, living expenses, car". Depending on the cultural backg…

Yup. Depending on how attractive OP is to high-salary big tech employers, the opportunity cost alone of not getting paid for most of a year could easily be several hundred thousand dollars.

Re: When good ideas make bad business

#169

I'm so confused by the tone of this article. Obviously some of the jokes are parodying startup culture and are meant to be funny, however I think the "fantastic idea" stuff is meant seriously? "So I built something people wanted. Consumers wanted it, doctors wanted it, I wanted it. Where did I go wrong?" As far as I can tell, nobody wanted it except the author. The one doctor he talked to didn't, and no consumer ever…

Ya, I'm surprised it's not just a static landing page for consumers with ads. At .50 cents per user, that's only 80k users required to break even (ignoring the time variable there)

I'm no adtech expert, but I'm pretty sure he would not be getting .50 cents per user per year - that's what WebMD, one of the top 1000 most trafficked web sites in the world makes, so I assume it can sell it's ad space at a much higher price than a greenfield site with no traffic would.

Re: When good ideas make bad business

#170
You could have made value for the customer too, you needed cash to keep the operations going. Doctors will pay for this if it lets them get a leg up on other doctors that's how you need to sell it. "Doctor X prescribes what he always prescribes, I make decision based on cutting edge studies." If they got arbitrage because of that and could steal patients, especially doctors with a new practice then you have a sale my friend. You gave up too easy.
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