Entrepreneurs Have Demonstrated That, If Necessary, Startups Can Be Reinvented.
Key Sentence:
- Starting a business is not easy, and the chances from success are always against you.
- Entrepreneur Chris Riley learning this the hard way when he was on the verge of failing with a prescription discount, USA Rx.
Instead of witnessing its initial failure, Entrepreneurs Chris led it through its transformation into a completely different business model and exceeded expectations. This is the story of how USA Rx went from the brink of failure to a thriving business in less than two years. This is an excellent example of why entrepreneurs shouldn’t be afraid to reinvent their startup if necessary.
Huge market opportunity
Chris started USA Rx in 2012. It began as a dropshipping Entrepreneurs discount program on prescriptions, hoping to capture a $300 billion market share by then. It was a good business idea because consumers well received the discounted prescription cards.
However, by late 2019 it was clear that the USA Rx had not achieved its market entry potential through its early post office and medical direct-selling model. According to Chris, the situation was dire. “We struggled to increase our customer base and didn’t attract much traffic to the company’s web portal.
Evolve or face extinction
Chris didn’t want to throw it away. Instead, he and his team begin working on a plan to reinvent the company to survive.
They decided to completely shift their focus from the dropshipping discount card program and turn USA Rx into a digital healthcare marketplace. The idea is to be “like a drug” to provide consumers with transparent online pricing, delivery orders, and retail options. However, as the transformation progressed, the situation worsened. In addition, the COVID-19 pandemic is starting to disrupt the US economy and cripple the rest of the US Rx legacy business.
Chris explained, “We threw ourselves into everything and tried to destroy the business during that time. First came the global pandemic, which slashed sales by 95% in an instant. After that, it seems like the whole world is doing everything it can to defeat us.”
the light at the end from the tunnel
Chris and his team refuse to give up. For me, it was a nightmare with little hope or control. The company desperately needed money at the time and new leadership that believed in team support.” With the reduction of the previous business model, so made the company’s sales. “There were months without pay. They were tough months. I moved from New York to Florida because of that,” Chris said.