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When I decided to build a business from scratch, I knew it would demand not just the introduction of technology but also an iron will to address the persistent inefficiencies within the sector. The outdated and fragmented practices in the pharmacy industry were a source of my frustration, as they introduced unnecessary inefficiencies to both pharmacists and patients. I was driven by the belief that there had to be a more efficient way forward.
Throughout our journey, we recognized that welcoming change and refining our approach was essential for our growth and its overall impact on the pharmacy landscape. Three steps significantly influenced this— steps that every company can adopt to pivot effectively and identify new avenues for revenue and impact.
Here's what we did.
1. Fail fast, pivot faster
Do not fall into the trap of thinking your go-to-market plan is flawless. The biggest advantage of being a startup is agility. You must use that agility to your advantage and recognize when your plan needs adjusting. Further, as a start-up, your runway is limited, so ensure you are making team decisions quickly.
After launching our initial B2C business in 2017, we encountered gross margin challenges that eventually forced us to reassess our go-to-market strategy. In 2019, we took a step back as a team and analyzed the pharmacy industry's Total Addressable Market (TAM) and the broader B2B landscape. We ultimately realized two key paths moving forward.
First, a significant portion of the pharmacy industry's market share was attributed to specialty pharmacy. Within the specialty pharmacy landscape, pharmaceutical manufacturers need digital infrastructure to help navigate the challenging patient journey. Second, health plans are hyper-focused on clinical metrics called quality measures but lack the scalable digital infrastructure needed to cleanse data and automate clinical processes at scale. These realizations became the foundation for our transition into B2B.
Related: How to Recover From a Failed Startup
2. Brutally honest conversations
I have always believed that transparency is the best path forward, which means keeping both your internal team and investors fully informed. As a team, we plotted all the possible paths forward, including possibly shutting the company down. It is okay if your initial thesis does not pan out, but it's not okay to continue trying to make it work when metrics tell you otherwise.
Being prepared to have uncomfortable conversations is among the toughest elements of pivoting. Early on, it was obvious we had to change course, but it was not an easy decision. We were lucky enough to have a team that was not afraid to voice differing standpoints. Our collective input helped us shoot down some pivot paths that, in hindsight, would have led us in the wrong direction.
If your go-to-market strategy is not working, acknowledge it quickly and transparently. Don't hide from the data or the feedback from your team and investors. Laying all your cards on the table helps ensure everyone is aligned on potential next steps while maximizing opportunities to ideate. This energized our team and investors, allowing us to rally behind the new path with focus.
Related: How Brutal Honesty Saved My Business From Going Under (Twice)
3. Listen to your clients
One of the golden rules in business is taking on real client problems. The emphasis of changing your approach should be on spotting the pain points of your consumer base and presenting your business as the best one to solve them.
Through our journey, we noticed growing needs for digital infrastructure across the various verticals we operated. By listening to our clients, we learned about some of their most glaring challenges, which helped us steer our roadmap. On that note, it is important to remember that while listening to your clients is essential, you should be cautious about allowing a single client to dictate your entire product roadmap. Continuously validate that their needs are universal in the industry. The key is finding a repeatable solution that can scale across multiple clients.
Related: How to Handle Difficult Conversations With Clients
The impact of these steps
Looking back, these three difficult but necessary steps completely transformed our business. 2019 saw us go from a B2C digital pharmacy to a thriving B2B digital pharmacy platform. Our success came mostly from our capacity to pivot at the right moment and show total transparency to all stakeholders. Throughout our journey, we also preached the value of frugality, giving us the longest possible runway to navigate our early challenges. We took action early while we still had an opportunity to flourish; we did not wait for things to reach rock bottom before making a change.
Embrace change with confidence, but do so with careful consideration. Ensure that reliable data, deeper insights, and a well-defined vision for your business's future drive the changes you pursue. It's not just about adapting for the sake of it — it's about making intentional, informed decisions that will lead to sustainable growth and success. Be strategic, thoughtful, and deliberate in your approach, aligning each change with your broader goals and values to create a positive and lasting impact.
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