The

Business
of Saving
Lives
Essential Realities for Success
As a Medical entrepreneur

Since gaining independence, the Arab Gulf

States have been known for their strong
national economy and for providing many
free services for their local and foreign
residents. The high gross national product
generated by these nations, in which the oil
revenue is the main source of the economy,
has facilitated the creation of a large-scale,
high-standard healthcare infrastructure and
services. This article is intended to provide
both new and existing medical and healthcare
professionals with the necessary knowledge
needed to be successful medical entrepreneurs.
It also addresses the unique entrepreneurial
experience of conceiving, evaluating, creating,
managing, and potentially selling a business
within the medical discipline.
By Professor Mukhtar Al-Hashimi

42 june 2017 june 2017 43


1
Understanding the foundations and cultural
diversity of medical entrepreneurship
The attributes of medical entrepreneurship include a desire to
achieve, commitment, the will to work more than is expected
and having a progressive vision for their business model. When
it comes to medical professionals, their knowledge, experience,
reputation, and image are the major factors contributing to
medical entrepreneurial success. While some entrepreneurs
possess excellent attributes, they often fail in these specific areas,
but not as entrepreneurs themselves. To avoid failure, there is a
need to understand the business idea, to develop a sustainable
business model while maintaining a positive attitude as a world
changer, inventor, opportunist, or entrepreneur.
2 Discovering
the Creative Mind
of the Entrepreneur
To be successful, the journey has to start with a creative and
innovative idea. Creativity is an important ingredient for
competitiveness and sustainability once it is channelled and properly
aligned with the strategic plan of the organisation. Healthcare
professionals need to develop their own creative processes, as well
as enhance their creativity and transform their ideas into reality.
Also, it is important to protect the intellectual property through
registering patents, trademarks, and copyright materials.
The attributes of medical
entrepreneurship include
a desire to achieve,
commitment, the will to work
more than is expected and
having a progressive vision
for their business model.
44 june 2017
3 Designing a Competitive
Medical Business Model and
Building a Solid Strategic Plan
At this point, it is necessary to develop a
strategic plan for your medical business
using the nine steps of the strategic
planning process. It is important to
underline the competitive advantages
which set the firm’s business model
apart from the existing competitors. It
is also important to place emphasis on
the unique selling points of the firm that
will make it competitive and sustainable.
In the medical field, competitor analysis
comes from three sources. First, direct
competitors that offer similar services
or product lines and are comparable in
feature and prices. The second competitors
often reflect those who offer partial
services or some similar products. The
third source refers to competitors that
offer the same or similar products, albeit
in limited or small areas.
4 Conducting a Feasibility Analysis and
Crafting a Winning Medical Business Plan
Prior to implementing the business concept, it is important
for entrepreneurs to develop business models that define the
process in order to develop the desired outcome, which thus
leads to generating revenue and profit. Once the business model
has been developed, the next steps need to focus on conducting
feasibility study analyses, which thus leads to the business plan.
The outcome of the feasibility studies acts as an investigation
tool, which filters each of the stages of the business model in
order to decide whether the idea is sound and feasible in terms
of market feasibility. This is achieved through identifying
whether there is a market for the business concept, product, or
service feasibility through identifying whether the service or
product is appealing to the customer. Furthermore, financial
feasibility concerns the investigation of required capital,
estimating earnings, and identifying returns on investment.
Upon achieving a positive outcome of the three feasibilities,
the entrepreneur then has to develop a small-scale prototype in
order to test their business model and verify the hypothesis of
the objectives; this is conducted in order to measure customer
perception of the functional model.
5 Forms of Medical Business Ownership
There are many different forms of ownership, such as
sole proprietorship, the partnership, and the corporation,
not excluding the limited liability company, the professional
corporation, and the joint venture. However, there is no ‘best’
ownership fit; rather, the criteria are based on the individual
situation, needs, and circumstances. Generally speaking, the
factors that influence the entrepreneurs’ choice of ownership
could include startup, capital, business goals, managerial
ability and control, liability exposure, business succession
plans, and future plans. In summary, sole proprietorship is the
most popular form of enterprise, since it is simple to create in
terms of time, amount required, formalities, and the ability
for one person to own and manage the business. Also, all the
decisions are in the hands of the owner, while it is also easy to
discontinue or change the ownership. The major disadvantages
of sole proprietorship are that capital, skill, and capabilities are
limited, and importantly, there is unlimited personal liability in
the event of loss or claim from the creditors. The second form
of ownership is partnership, which involves the association
between two or more individuals through a partnership
agreement, in addition to sharing a common vision, trust, and
respect. Most of the time, partnerships are easy to create and
pool larger amounts of capital, and are usually effective once the
skills and competencies of the partners complement each other.
6 Medical Franchising and the Entrepreneur
Recently, many medical entrepreneurs have recognised the
growing phenomena of franchising, and have started to adopt or
operate their business models through franchising. Put simply,
franchising involves two bodies: the franchises that pay a fee,
and royalties to a parent company – the franchiser – in return for
using the parent company trademark, business model format,
and systems to sell the products or services. There are a number
of benefits franchising can offer, and among these, the focus is
on providing the following: a well-established business model;
policies, support, and training; a standardised quality system
and performance measurement indicators; and importantly, a
well-established and recognised brand name and trademark that
is desirable to the potential customer base. Once these benefits
are properly applied, there is a much greater chance of success.
On the other hand, among the drawbacks of franchising are the
loyalty fees involved in the initial application. This is in addition
to the ongoing fee from the sales revenues and restrictions
related to the limited business products or services offered by
the franchiser in terms of purchasing and marketing. Potential
entrepreneurs need to ensure that they are dealing with a genuine
franchiser, as recently, many franchisers have claimed to offer
franchising services that are not genuine.
7 When to Buy an Existing Medical Business
Golden opportunities often materialise through buying an
existing medical business, especially if the business is operational
and successful in terms of its geographic location, employees,
and the competence of its suppliers. Most of the time, buying an
existing firm can be a bargain that is difficult to ignore, in which
a strong business portfolio, reputation, and financial profile
allow the new owner to seek financing for the purchasing of the
firm from the beginning. Prior to the purchasing, entrepreneurs
need to carry their own investigation to assess the value of the
potential business and ensure the successful transition of the
operation after purchasing the firm.
8 Building a Powerful Marketing Plan
Irrespective of starting the business from the beginning
and franchising or buying an existing business, there is always
a need to develop a marketing strategy and aim to attract the
potential customer through different marketing channels. When
developing a marketing plan, emphasis should be placed on the
firm’s Unique Selling Proposition (UPS), which comprises a list of
tangible and intangible benefits that a customer can receive from
either the services or the products. Furthermore, it is important
to pinpoint the firm’s target customers and their profile by
conducting market research. Every medical entrepreneur needs to
create an identity for their business through branding that excites
the customer on receipt of the firm’s services or the products.
9
Pricing Strategies and Financial Plan
Entrepreneurs need to develop a correct pricing strategy,
which involves both an art and a science. Among Many factors
govern the setting are the product or service cost, market demand,
the competitor’s portfolio, purchasing power, and business cost
structure. Along with the pricing strategy, there is always a need
for a strong financial plan, which ranges from a balance sheet,
income statement, and the income of cash flow along with a ratio
analysis related to accounting activity, which acts as a yardstick
reflecting the firm’s performance and is a good predicator of how
healthy the firm is from a financial point of view.
10 other essentials: Innovative Technologies
for Medical firm and business layout
Today, Information technology is the driving force for business
success and always requires a strong alignment between the
information technology and the business strategy at the initial
formation stage. Without a doubt, there is a considerable emphasis
on firms becoming smart solution providers through innovative
technology while lowering costs. For medical entrepreneurs,
information technology can range from medical informatics
applications to e-health and smartphone medical applications.
In summary, medical entrepreneurs should always start
with a creative idea supported by a strong business plan of
envisioning the big dream, which could be started in phases.
It is important to recognise that practice in the private sector
is different than in the public sector. Also, there is always
a need to be aware of the licensing, laws, quality standards,
and regulation of the healthcare authority and the official
bodies. The concept of medical insurance and its coverage
is an essential element of the income source. Assembling a
team of employees with the right competencies, skills, and
attitudes will thus lead to effective management.
Professor
Mukhtar
Al-Hashimi
Ahlia
University,
Bahrain
Email
malhashimi@
ahlia.edu.bh
Instagram
“Prof_Mukhtar”
Mobile
+973- 39664117
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