Healthcare is booming and with the population set to double in the coming years, there is no chance of it slowing down. A lot of the growth is being fueled by an increase in investment in the healthcare field and a rise in general health consciousness among the general public. Despite the vast opportunities offered within the medical field, physicians are often desirous of expanding their income streams.
With physician entrepreneurship being more accessible than ever, more healthcare professionals have joined in the trend of operating a business while also pursuing a medical career. Today, let’s take a closer look at some of the most common obstacles encountered on the road to successful physician entrepreneurship.
Understanding Entrepreneurial Scope
In the medical field understanding the scope of ones, work is critical. For example, when looking up a neurosurgeon’s salary and their job duties, the scope of the position is highly detailed. This allows a healthcare professional to focus their time and attention on honing their skills accordingly. The same attention to the scope is critical when starting a business as a physician. Be it a business that is within the healthcare space, or one that is completely unrelated, understanding and defining the scope of the business is one of the biggest hurdles a new entrepreneur will face.
To help alleviate this roadblock, it is important to sit down and create a clear yet comprehensive business plan. Starting with a five-year plan that details the goals, milestones, and general scope will give physicians the tools they need to make actionable business choices.
Creating Affordable Solutions
Physicians may earn handsome salaries, however, their income is often tied up in student loan obligations and medical malpractice insurance expenses among others. In order to be a successful physician entrepreneur, it is important to identify where financing roadblocks originate and how to create affordable solutions to overcome them. Devising easily accessible solutions that are low-cost is the key to creating a scalable business model that is also sustainable.
Securing Business Venture Financing
Another common hurdle faced in the realm of physician entrepreneurship is finding solid financing. As mentioned above, funding a business is critical, and the most common way to do that is with outside financing. There are various investment sources ranging from credit unions, private lenders, venture capitalists, and even other physician entrepreneurs who have already established themselves. The best way to combat this roadblock is but creating a comprehensive business plan that details start-up costs, ongoing expenses, and anticipated rates of return. A business plan will also help boost productivity and help keep your efforts on track. Explore more than a single source of financing, for example, consider a commercial loan and also sourcing capital from a private investor.
Of all of the troubles that physician entrepreneurs face on their journey to success is one that also happens to be the most human. Building a reliable and stable group of employees is easy to envision, but much harder to put into practice. Retention rates among startups, even in the healthcare sector remain low. This is in part due to a struggling economy and also the sheer diversity of lucrative options available in the market. Building a team of trained and dedicated individuals that share your vision is critical for lasting success.
One way to ensure worker retention is by investing in “upskilling” those on staff. Offering continuing education as part of the employment package ensures that you have a workforce that is always up-to-date, while also providing incentives to remain in their jobs. With patience, preparation, and a bit of hard work, becoming a successful physician entrepreneur will become a reality.
Author Bio: Liam Hayden has an MBA in Financial Management. He was born in San Francisco and has lived most of his life in Los Angeles. With 5+ years of experience in the finance industry, he is passionate about topics such as budgeting, investing, insurance, credit, and taxes. To unwind from his stressful job as a 33-year-old middle manager, he enjoys beaches, meditation, and painting.