Pivot For Growth

Pivot For Growth Case

Situation

 An early stage ridesharing company that launched in both the UK and US looked to appeal to the “premier” Uber/Lyft market by catering to upscale business professionals with limousine type services via a mobile app.  However, the results were mediocre, and so the decision was made to pivot to the more promising healthcare market.

While the prior model did provide some initial groundwork for the pivot, the majority required a fresh start.  This included overhauls in the sales model, software application, operational delivery, marketing strategy, financial initiatives, and executive team.  

While the undertaking was lofty, there was direct validation from the State suggesting that the pivot would be serving the more prominent needs of the disabled and elderly.  Thus, the goal of becoming the dominant healthcare ridesharing provider seemed attainable with proper execution. 

Challenge

As an early stage company pivoting into a new arena, the need for structure and documentation was high to ensure sustainability as new employees came on and reasonable turnover was expected to occur.

  • Financial Constraints:  To accomplish the growth initiatives, including app development, expanding to new markets, and having a team to support sales and marketing efforts, a capital investment was important to create the bridge to profitability.

  • Software / Application:  A new software was required to provide consistent quality of the service, along with appealing to the differing needs of the drivers, the passengers, and the larger intermediaries responsible for passenger transportation.

  • Billing Process:  The process of billing these larger care providers through authorization codes required an entirely new billing process since it was more akin to hospitals billing CPT codes (versus just charging consumer credit cards).

  • Key Personnel:  To expand in a way that was necessary for suitable growth and momentum, key personnel would need to be hired at the right time, for the right role, at the right price.
  • Sales & Marketing Strategy:  The previous company focused on customer acquisition directly through B2C channels, while the new model was most suitable for a B2B approach due to the intermediaries already in charge of the target market’s transportation needs.  There was also no digital marketing strategy to align with the rollout of the direction change.

Solution 

To address these various challenges, EHC focused on a few key areas:

  • Capital Acquisition:  Initial investment was important to funding the various initiatives from app development to key hiring.  EHC directly supported this process by building out forecast models, participating in and facilitating investor conversations, and guiding overall capital acquisition strategy to increase the chance of close. 

  • Technology Improvement:  EHC helped in identifying the unique needs of each of the software’s stakeholders, such as drivers, customers, and transportation intermediaries.  The needs were then incorporated in a development strategy that prioritized high impact developments first, and prevented costly backtracking by highlighting the bigger picture and all the features set to be implemented over time.

  • Healthcare Billing Process:  Due to the complexity, and critical nature of this process to the company’s top line revenue, it was important that it was understood to the finest details and could be replicated and documented. This allowed for the process to be somewhat automated and easily cross-trained to insure billing and collections would not suffer.
    • creating a spreadsheet that auto populates billing information from monthly ride data, EHC made the process streamlined and efficient.  It also incorporated virtual assistants from abroad to keep costs low on final data entry when submitting to the billing processors.

  • Payroll Process & Employee Staffing Plan: EHC developed a reliable and auditable process for tracking payroll for 20+ personnel weekly.  This provided accurate, consistent, and transparent on-time payments for drivers, employees, and key vendors. This step was critical for drivers who were 1099 reliant.

  • Sales & Marketing Strategy:  shifting from the B2C to B2B market, EHC helped work through different initiatives to land more transportation providers that would be utilizing the company for its transportation services over taxis and other costly ride solutions.  This required a shift in messaging and branding which was created to appeal to the wellbeing of the elderly and disabled passenger population. 

Result 

the end of the engagement, the company had successfully raised their seed round of $400k+ along with reaching a monthly recurring revenue of $30k+.  They also had in place a fully documented process to bill the larger transportation providers via non-medical authorization codes.  Further, they had established a handful of internal processes, such as for payroll and driver management to keep things professional, consistent, and stable.  This allowed for quickly replicating this success in other markets, and also prevented breakdowns when there was employee turnover. 

While early stage companies are always fairly vulnerable, this proved an ability to deliver quality results for the largest transportation provider in the State multiple months in a row (representing more than 50% of their revenue), which grew their reputation and led to other promising conversations around the state and beyond.  This success by the end led to 4 full time hires, including a dedicated operations manager, in-house developer,  customer & driver support personnel. 

This culmination created a scalable foundation for the company to build upon and keep growing out to new markets, building validation and support among key stakeholders, further fueling additional funding and revenue.  In other words, the startup was significantly de-risked upon exit. 

For more information www.eliteholding.co or call us at 612-888-3583

Our Insights

Contact Us

Submit your information below to request a call back.