Startups often have a tough time surviving, with only 1 out of 10 making it past the first few years. But for healthcare IT startups, it might be even harder. I've seen many new tech companies start with a lot of excitement, only to disappear quickly. So, what's going wrong?

When I started Elixr Labs, a company that uses technology to improve healthcare, I found three big problems that can cause even the best new companies to fail. I didn’t learn these in any of the practical classes, they all came up through hard work and struggle in various industries.

1. Building Solutions With Customer Empathy

One of the common mistakes every healthcare tech startup makes is creating products according to the developers' preferences without understanding the real purpose or user intention. Not caring enough about the customer can secretly cause the company to fail.

In the healthcare industry, risk factors are always high when compared to other industries. Doctors, nurses and other healthcare workers are often dealing with life-or-death situations. So the technology should also be capable of meeting their needs.

At Elixr Labs, we knew that to make a product that helped people, we had to understand their world. So, we spent time in hospitals, followed doctors and nurses, and listened to their problems. Only after gathering this knowledge did we start designing Healthverse, our healthcare platform. This way, we made sure our product was not only technically good but also truly useful for the people who would use it.

Too many startups miss this important step. They create products without fully understanding what people need, relying on guesses instead of research. The result? Products that might seem good on paper but don't work well in real life.

2. Trust is a Key Factor in Healthcare IT Startup Success

Trust is everything in healthcare IT. Startups in this field ask clients to give them private patient information and depend on their systems for important medical tasks. This is a big deal, and clients won’t trust just anyone with it.

It takes a lot of hard work and dedication to earn trust. At Elixr Labs, we understood this from the start, so we never broke our promises and ensured everything was safe and secure.

Many startups don’t realize how important building trust in healthcare is. They think a great product will be enough, but in healthcare, trust is really important too. Without trust, even the best ideas won’t succeed.

3. Lack of Perseverance: Surviving the Long Game

Healthcare is very hard to change. The way things are done has been in place for many years, and getting people to use new technology is tough. Startups in this area need to be ready for a long and challenging journey.

When we started Elixr Labs, we had many problems trying to get our first customers. It was really hard, and we received a lot of rejections. However, we remained constant in our efforts, even when we faced numerous setbacks.

Many startups don’t have the patience or money to get through the early tough times. They hope for quick success, but in healthcare IT, it often takes years of persistence. If they can’t keep going, they might have to give up before they even get a chance to show what they can do.

What Else Are Healthcare IT Entrepreneurs Missing?

While the three big problems—understanding customers, building trust in healthcare, and sticking with it—are important, they’re not the only issues for healthcare tech startups. There are other big challenges too, like understanding the rules, getting enough money to keep going, and knowing how healthcare works.

For example, following the rules is hard in healthcare. If startups don’t meet these rules, they could face fines, legal problems, and lose trust. Startups need to learn these rules well and make sure their products follow them from the start.

Another important thing startups often forget is the need for partnerships. Healthcare is like a collaborative field, and startups that try to do everything by themselves often have a hard time. Working with well-known companies can help them get the trust and help they need to succeed.

Finally, startups in healthcare often forget how important it is to be flexible. The healthcare industry is always undergoing technological advancements to quickly adapt to new situations. If they didn’t go through the timely changes, they might have the chance of being left behind.

The healthcare tech industry offers numerous opportunities for entrepreneurs to succeed, but it also presents unique challenges.

If you work hard, you can get great rewards. But if you don’t understand how tough it is, you might end up failing. Are you prepared to face the unique challenges of healthcare IT and push through the success?