Founder: Diana Hall
Business: ActivArmor
Revenue/Month: $42K
Founders: 1
Employees: 3
Website: activarmor.com
Location: Pueblo, Colorado, USA
Founded: October 2014

ActivArmor is reshaping the medical field with its revolutionary 3D printed casts and splints. These custom supports, made from waterproof plastic, cater to the unique healing needs and lifestyles of each patient. The mission behind ActivArmor is to improve life quality during recovery, allowing activities traditionally hindered by conventional casts—like swimming, showering, and exercising. Available to consumers directly and through medical professionals, ActivArmor products are making waves both domestically and internationally.

Diana Hall, the driving force behind ActivArmor, is a chemical engineer with a rich background in software for Fortune 500 companies. Hall’s journey began when she took a break from her career to have her daughter. During this time, she earned an MBA and started a mentoring program for underprivileged children in her hometown. “I saw how traditional casts were not only cumbersome but posed serious hygiene issues, especially for children in impoverished conditions,” Hall explains. Observing firsthand the struggles—poor hygiene and infestations—that children faced with traditional casts, she recognized a pressing need for innovation.

Leveraging her expertise in materials science and 3D printing, Hall crafted a prototype plastic cast for a young boy in need. “The doctor’s positive reaction to the prototype was a turning point. He immediately requested more for his other patients,” Hall recalls. This spark led to the birth of ActivArmor. Collaborating with top orthopedic surgeons and sports medicine specialists, Hall refined her designs to ensure they provided optimal healing and functionality.

For Hall, ActivArmor’s inception is personal. Her brother’s battle with Cystic Fibrosis, which entailed frequent hospital visits, gave her a unique perspective. “I noticed that medical devices often forced children to adapt, rather than the other way around,” she says. Her experience, combined with the engineering skills honed at the Colorado School of Mines, fueled her determination to solve real-world problems through technology.

Hall’s commitment to ActivArmor is unyielding. She left a secure engineering job, invested her life savings into the venture, and lived modestly while tirelessly working to bring her vision to life. Despite facing financial challenges and moments of doubt, her perseverance paid off. “Finding investor partners who believed in the mission as passionately as I did was a critical milestone,” Hall notes.

ActivArmor’s growth is a testament to Hall’s dedication to improving lives through innovation. The company’s approach not only enhances the healing process but empowers patients to maintain their independence and lifestyle. The journey from idea to execution was far from straightforward. Creating the first ActivArmor cast involved precise measurement and cutting-edge technology. “Using calipers to measure a child’s arm and CAD software to model and design a breathable, custom-fitted cast was just the beginning,” Hall details.

The cast, printed in biocompatible ABS plastic, met stringent regulatory and testing requirements. Hall’s collaboration with a 3D printing expert at the University of Maryland’s Robert Fischell Medical Device Institute was pivotal. “We rigorously tested for mechanical properties, biocompatibility, microporosity, and conducted finite element analysis to ensure the product met all necessary standards,” she explains.

Overcoming Financial Hurdles and Strategic Pivots

Entering the medical device sector with a self-funded venture presents numerous financial and operational challenges. Diana Hall faced these head-on, investing heavily in 3D imaging equipment, printers, staff, and manufacturing space. A grant from the city provided some relief by helping to lease vacant building space, but the steepest costs lay in legalities, insurance, and regulatory compliance.

“Drafting contracts with hospitals, suppliers, and sales reps, along with securing patents and covering FDA registration fees, required a substantial upfront investment,” Hall notes. Competing against well-established pharmaceutical giants, she knew the battle would be tough but remained steadfast.

Launching ActivArmor demanded extensive clinical testing and navigating the intricate terrain of medical device classification, insurance codes, and distribution channels. As the company began to scale with partnering clinics, the Covid-19 pandemic necessitated a strategic pivot. “We developed an iPhone scanning app and remote ortho-tech support via telehealth, ensuring our product remained accessible nationwide,” Hall says, reflecting on how the innovation allowed continued growth despite the disruptions.

Marketing and sales strategies needed to be both adaptable and resourceful due to the self-funded nature of the business. Grassroots marketing and commission-based sales representatives were critical. Hall’s financial savvy secured over $600,000 in grants and awards, bridging the gap between early-stage funding and venture capital. Additionally, nearly $1.5 million from individual accredited investors, including non-prescribing physicians and businesspeople, provided crucial financial backing.

“Attracting customers in the medical device market requires understanding the pivotal role doctors play as gatekeepers,” Hall explains. Direct marketing to patients with fractures proved ineffective without doctors’ endorsement. Therefore, the marketing focus shifted to healthcare providers. Crafting the right message and targeting the appropriate demographic became vital.

Engaging the medical community required nuanced strategies. Hall learned quickly that promoting high-impact use to risk-averse surgeons was a misstep. “Emphasizing the device’s benefits to university sports medicine physicians, who prioritize quick recovery for athletes, was much more effective,” she recalls. This experience highlighted the importance of a well-researched and targeted approach.

Deciding between direct sales and wholesale distribution posed another challenge. ActivArmor’s mass customization model, with its unique imaging and design requirements, blurred the lines between product and service. “Developing efficient sales channels and training sales reps required ongoing adjustments,” Hall acknowledges. Introducing new technology to a traditional market was intricate and costly, but her innovative problem-solving facilitated progress.

“Retaining customers hinges on consistent, high-quality products and exceptional customer service,” Hall emphasizes. Rigorous quality control and active customer feedback ensure product reliability. Investing in skilled customer service staff to address issues promptly fosters positive experiences.

ActivArmor’s marketing extended beyond conventional ads and keywords. The strategy included engaging potential customers before they needed the product by tagging relevant activities and influencers on social media. “Tags like #motocross, rather than just #waterproofcast, attracted a broader audience,” Hall explains. Engaging influencers such as athletic trainers and orthopedic technicians expanded reach and credibility.

Encouraging customers to become advocates further amplified marketing efforts. “We provided tools for customers to share their experiences on social media, distributed fliers for healthcare providers, and promoted the ActivArmor logo on casts,” Hall says. Utilizing trending tactics, like memes and TikTok videos, enhanced visibility across platforms, establishing a strong social media presence on Facebook, Instagram, Twitter, YouTube, and LinkedIn.

Operational Challenges and Strategic Adaptations

Managing a business that manufactures on demand and requires quick turnaround times presents unique operational challenges. Diana Hall emphasizes the necessity of staffing for demand peaks, which inevitably means higher costs during slower periods. Given the high-tech nature of ActivArmor’s products, maintaining a skilled and stable workforce is crucial to avoid compromising quality and efficiency. Balancing these demands necessitates healthy profit margins to sustain the business model.

“While equipment and labor costs are significant, material costs remain low,” Hall notes. Therefore, maximizing labor and equipment efficiency, even at the expense of some recyclable material, becomes a strategic priority. This approach highlights the importance of optimizing every aspect of the production process.

ActivArmor has experienced substantial growth, evolving from a tiny 97 square foot office to a 6,000-square-foot warehouse, and now operating in an industrial park. The team has expanded to nine full-time employees, supplemented by hourly contract workers to handle demand fluctuations. “This flexible staffing model is particularly useful for sales reps and unskilled labor, allowing us to adapt to varying demand levels without incurring excessive fixed costs,” Hall explains.

To secure international sales, Hall developed a distinct business model focused on protecting intellectual property. By keeping custom design services in-house and automating processes as much as possible, ActivArmor ensures quality and innovation while safeguarding proprietary information.

Frequent A/B testing allows the company to refine its marketing strategies, identifying what attracts clicks and converts them into sales. One challenge identified through this testing was the loss of potential customers who needed to obtain a prescription from their doctor. Addressing this pain point in the sales process is an ongoing effort to streamline and improve the customer journey.

In the short term, ActivArmor aims to increase the number of partnering physicians and clinics, enhance brand awareness, boost sales, and demonstrate scalability. Long-term ambitions include securing a Series A funding round or potentially being acquired by a major medical device company. These goals reflect a strategic vision aimed at both immediate growth and future sustainability.

Hall stresses the importance of embracing discomfort and tackling problems head-on. “Identifying issues precisely and addressing them thoroughly can turn challenges into competitive advantages,” she advises. Encouraging her team to innovate and set new standards that competitors find difficult to replicate, Hall aims to create a sustainable business model.

One of the most valuable strategies Hall learned was the importance of not partnering too soon. “By hiring and outsourcing as needed, we kept startup costs low and retained flexibility,” she explains. This approach proved crucial during the pandemic, enabling ActivArmor to pivot quickly and address critical needs such as allowing people to wash and sanitize their hands while wearing casts.

Hall also underscores the importance of limiting dependencies. By diversifying and making logical, calculated decisions, the company avoids pitfalls and maintains flexibility. She prefers to give employees significant responsibility from the start, assessing their performance and fit within the company culture before making long-term commitments. “This approach fosters a motivated and inspired workforce dedicated to the company’s mission,” Hall says.

Regular internal SWOT analyses help the team understand their strengths and weaknesses, align their roles with their passions, and continuously improve. This self-awareness and adaptability are key components of ActivArmor’s ongoing success and resilience in the face of challenges.

Streamlined Operations and Strategic Tools

To manage its operations efficiently, ActivArmor relies on a suite of powerful tools and platforms. Diana Hall underscores the importance of leveraging technology to maintain seamless logistics and customer relationship management. Hubspot serves as their CRM, facilitating interactions with customers, while Zoho is utilized for order tracking. “Our website is built on WordPress, highlighting the importance of outsourcing technical tasks for optimal functionality,” Hall says. Mailchimp powers their email marketing campaigns, and Google AdWords drives online advertising efforts. For staff scheduling, Homebase is the tool of choice. ActivArmor maintains a robust social media presence across Instagram, Facebook, Twitter, TikTok, YouTube, Google Business, and LinkedIn, ensuring broad and effective outreach.

Hall’s approach to staying informed and inspired includes a variety of influential books and podcasts. “Zero to One by Peter Thiel offers insights into groundbreaking innovation,” she shares. Geoffrey Moore’s “Crossing the Chasm” provides strategies for introducing new tech products to traditional markets. “Donald Miller’s Building a Story Brand emphasizes effective brand marketing,” Hall adds, noting that Malcolm Gladwell’s works consistently offer thought-provoking perspectives. She also values resources on emotional intelligence and leadership, particularly admiring Jordan Peterson’s “12 Rules for Life.”

For those embarking on entrepreneurial journeys, Hall emphasizes caution against partnering too early. “Viewing obstacles as opportunities for growth, leveraging personal strengths, and effectively utilizing team members are crucial strategies,” she advises. Regularly conducting internal and external SWOT analyses ensures that the business remains agile and responsive to changes.