Outsourcing lead generation : A survival strategy for Life Science Startups

Did you know that a staggering 90% of medical device startups and 80% of health tech startups fail before they even reach their full potential? Funding seems to be draining, with a notable 26% plunge just last year. The question is no longer about who reaches the top - it's about who manages to survive the ascent. (Source 1, Source 2) These numbers are more than just statistics; they are reminders of the challenges life science startups navigate daily. Entrepreneurs come up with new ideas that could change the world, but it's hard to succeed. Every day, these innovators have to work hard to turn their ideas into reality, and they often have to do it with limited resources and a lot of risk. But there is a lifeline: outsourcing services, especially in lead generation and appointment setting.

Efficiency vs. Burnout

One of the biggest challenges for startups is their small size. With limited teams and big goals, it's easy for employees to get burned out. They often have to wear many hats, and it can be hard to find a balance between being productive and being overwhelmed. Here's the good news: outsourcing can help startups overcome this challenge. Outsourcing is a strategy that was once seen as only for large corporations, but it's now a lifesaver for startups. By offloading essential but non-core tasks to outsourced providers, startups can free up their teams to focus on what they do best.

Expertise on a Budget

Having a great idea is just the beginning. To bring it to market, you need expertise in a wide range of areas, from research and development to marketing and sales. Hiring a full-time team for each of these areas can be expensive and impractical for startups.

This is where outsourced services come in. They allow you to access top-level expertise without the commitment of a full-time salary. It's like having your cake and eating it too!

In other words: Outsourced services can help startups get the expertise they need to succeed without breaking the bank. By outsourcing tasks such as research and development, marketing, and sales, startups can save money and focus on their core business.

This is especially important for early-stage startups, which may not have the resources to hire a full-time team for all of their needs. Outsourced services can also be a good option for startups that are growing rapidly and need to scale their operations quickly.

Adapting to a Changing Market

Another challenge for startups is predicting market demand. Outsourced services can provide the agility that startups need to adapt to changing market conditions. For example, if a startup is launching a new product, they may need to hire more staff to handle the increased workload. However, once the product is launched, they may be able to scale back their team. Outsourced services can provide the flexibility that startups need to make these adjustments without having to commit to long-term hiring decisions. Outsourcing is not just about saving money; it is also about being able to adapt to uncertainty in the market. By outsourcing certain tasks, startups can free up their resources to focus on their core competencies and be more responsive to changing customer needs.

Why Outsourcing Lead Generation is Critical for Life Science Startups

Lead generation is the process of identifying and qualifying potential customers. It is essential for any business to succeed, including life science startups. Life science startups are often developing innovative new products and services that address unmet needs in the market. However, in order to bring these products and services to market successfully, startups need to build a customer base. This is what lead generation provides - a foundation for market penetration and subsequent growth.

There are a number of common challenges that life science startups face in lead generation.

One challenge is that lead generation requires a significant amount of time, resources and tools. Startups may not have the in-house resources and expertise to generate leads effectively.

Lead generation can be extremely time-consuming. Startups need to develop and implement segmentation strategies, identify and qualify leads, and nurture them through the sales process. This can be a lot of work for a startup with limited resources.

Finally, in-house lead generation efforts may be inadequate, e.g. without a budget to invest in the latest lead generation tools and technologies. They may not have the specialized knowhow to deploy effective lead generation campaigns.

For these reasons, life science startups should consider outsourcing lead generation to qualified providers.

A Startup Story: Outsourcing for success

Background:

A privately-held CRO specialized in cardiovascular therapeutics (US-based, 39 FTEs, $4-5M in sales) was pretty successful at generating repeat business from existing clients. However, the company was looking for a better way to leverage their customer acquisition processes and tools in order to nurture more sales opportunities. Despite their efforts, they never saw the traction they were looking for.

Solution:

After a preliminary due diligence, Outbound Pharma accepted the challenge. The goal of this campaign was to simply build a stronger pipeline and book quality appointments with key pharmaceutical clients based on set criteria that were to be discussed during the onboarding call. Prior to campaign execution, we conducted an extensive quantitative analysis of the existing clients to look for patterns. Using data and insights, we redefined the ICP and developed a more segmented strategy for lead generation, which led to the identification of our top-tier segments.

Outcome:

The first month was focused on ramping up the campaign with as many quality leads as possible. This was a good time to cleanse prospective businesses and refine our messaging. From January to June 2021, our managers were able to schedule 20 introductory calls. Our lead qualification framework varies depending on specific needs - in this case we adopted a methodology commonly known as ANUM (Authority, Need, Urgency and Money). Five months later, many of these opportunities were still in the pitching stage, and this is because the timing was either not exactly right for the prospective client to make a decision, or they were still under contract with an existing provider. When it comes to lead nurturing, timing is everything. Calling a key decision maker once a week after they told us it is better to wait three months is not only ineffective but also disrespectful. Following up is essential, but equally important it is to understand when it is ok to contact them again. In April, we scheduled a video call with a mid-size pharma company. They urgently needed assistance with their Clinical Trial Management. By August, the prospective business had already signed on the dotted line and the client closed a $125k deal. In addition, our partner was able to secure six additional contracts from other companies. In short, our CRO partner closed 5 successful transactions in just about six months.

Analysis:

This collaboration showed that early stage CROs and specialized outreach can work together well. By working with Outbound Pharma, they were able to overcome one of the biggest challenges that startups face: getting their message out in a competitive market. It showed how important targeted lead generation and appointment setting are in connecting a startup's solutions with its target market.

The Right Way to Delegate: Outsourcing Tips

Outsourcing can be a great way for startups to save time and money, but it's important to do it right. Here are a few tips:

• Carefully vet potential providers. Not all outsourcing companies are created equal. Get a sense of their experience and expertise of your future partner.

• Communicate clearly. Once you've chosen a provider, it's important to clearly define roles, responsibilities, and deliverables. This will help to avoid confusion and ensure that your goals are aligned.

• Check in regularly. Once you've started working with an outsourced provider, it's important to check in regularly to make sure that everything is going well. This will give you a chance to discuss any challenges, make adjustments as needed, and track your progress.
  

For more insights on how to effectively outsource lead generation, check out the Outsource Lead Generation Company: The Insider's Guide for Life Sciences.

In conclusion, surviving as a life science startup is not just about having a good idea and raising money. It also requires smart strategies, flexibility, and making the most of your resources.

If you're struggling to navigate this difficult landscape and need a partner, consider contacting Outbound Pharma. Our specialists in lead generation and appointment setting for the life sciences industry. Think of us as a trusted advisor who can provide the expertise you need in tailored campaigns for the life science niche without any pushy sales tactics. Get in touch with us today to see how we can help your startup succeed.

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