Why the Aging Population May Not Help Your Business at All
For half a century, the promise of the organic growth of the baby boomers has tantalized business developers, all keen to cash in on the thought-to-be inevitable business windfall. As boomers age and their healthcare needs increase, conventional wisdom has foreseen massive growth for life sciences companies.
However, few of these fortune tellers take the time to run the numbers on this anticipated “hockey stick” sales spike to determine the important specifics of how, when and to what extent those born between 1946 and 1964 might impact their business. Instead, they simply incorporate elevated growth into their forecasts, assuming conventional wisdom is indeed wise.
The truth is, the effects of the Baby Boom are intrinsically dependent on your business model. Is your product prevalence- or incidence-dependent, and how old are your key customers? Depending on the answer, the Baby Boom may fuel your sales today, or in a certain number of years, or never.