- You don't need to capture all (or maybe even most) of the value you create. You need to capture enough of it that you cover your costs while earning a margin. The nature of most businesses is that they capture only a fraction of the value they create, and in healthcare, I think we can be happy with that, as long as value capture exceeds costs + margin.
- The Endowment Effect is the most common cause of founder failure that I have personally experienced within my network. Especially with tech and healthcare products, the founders are shiny product people and well-meaning physicians who have very established ideas about what they think a solution ought to look like. The entrepreneurs that I am most impressed with are the ones who are so open to pivoting their concept in the early stage in response to real customer feedback that they end up with something quite different than they first envisioned. It's not a coincidence that they are also the most successful.
Love this, Andrew, as usual! Two comments:
- You don't need to capture all (or maybe even most) of the value you create. You need to capture enough of it that you cover your costs while earning a margin. The nature of most businesses is that they capture only a fraction of the value they create, and in healthcare, I think we can be happy with that, as long as value capture exceeds costs + margin.
- The Endowment Effect is the most common cause of founder failure that I have personally experienced within my network. Especially with tech and healthcare products, the founders are shiny product people and well-meaning physicians who have very established ideas about what they think a solution ought to look like. The entrepreneurs that I am most impressed with are the ones who are so open to pivoting their concept in the early stage in response to real customer feedback that they end up with something quite different than they first envisioned. It's not a coincidence that they are also the most successful.