Small Business School
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Winning The Healthcare Battle
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Overview Transcript Case Study Video
Kim says sharing is a strategy for Biosite.
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Give To Add
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HATTIE: It's obvious that the three of you are not greedy.

KIM: We share it equally. I mean that's part of the beauty of the thing. We all sat down and said, we've done nothing yet.

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Transcript Segments
Small Business School
1. Change An Industry
2. Do What You Know
3. Leave The Nest
4. Raise Money The Old Way
5. Listen To Your Mentors
6. Hire Your Replacement
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7. Treat Every Person As An Equal
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8. Stop And Think
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9. Give To Add
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10. Keep Working Even When You're Rich

All we did was get money out of our friends Tim and Ted to go forward and try to do this. There's no way to value our relative contribution other than saying we split it a third, a third, a third and move forward. I've never had a regret about doing it that way.

Don't be greedy and hope that by having three happy people that stay for a long time, as opposed to maybe one guy that's really happy because he took the majority, and he loses those two golden egg layers over the course of time. I don't think that's a winning formula. I think you're going to create animosity, and you're going to lose the people that are actually going to create the growth going forward.

We always give stock to really all full time levels in the organization, and invest over four years period. It's based upon a strike price of the public markets when you join the company. So the earlier you join it, or there's a dip in the stock, there may be fluctuations in that value, but options are an important part of what keeps everybody sort of thinking on the same page.

HATTIE: Right.

KIM: This is not dilutive in the sense of it's adding more to the share pool, it's actually adding more to the talent pool, so it's accretive. And if you like the kind of growth rates that we've put up over the last five, six years, that's because we had good retention and we had the layers of the golden eggs stay with us as opposed to jumping off the start company. So this stuff is going to get quicker, simpler, more immediate and I think more importantly, more definitive. Certainty and speed is really going to be the name of the game because everyone wants to drive down costs of episodes.

GUNARS: We were in its early in the game, we identified what is necessary to have the freedom to operate in this space. We went out and got that intellectual property, and now we're in a privileged position because of that. And at least for the next five to 10 years we don't see that another diagnostic company can get into this business and copy our model.

KIM: I used to wake up in fear in the early days, fears a great motivator. A lot of us lost a lot of sleep, there's not a satisfaction that we put together more resources to make this dream and this model happen and it's not all incumbent on just Gunars or me or Ken. We now have allies that we've hired in that fit with the management team and it's a real sense of satisfaction to wake up and know that we build a bigger entity, far more talented that can really withstand some of these adversities that are going to come our way at some point in time.

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