BLOG: So, you want to start a company?
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Doctors have active minds and creativity to solve problems from the perspective of someone who takes care of patients all day.
Many of us come up with ideas that could lead to companies that could lead to new offerings, whether they be drugs, devices or digital solutions. Scores of books have covered the topic of how to be successful. As a physician entrepreneur and advisor to many companies, both successful and unsuccessful, I would share with any would-be start-up CEO a few truths to consider even before beginning.
1. The idea is the easiest part. The rest will take much more work than you think
I started MDbackline, a software company, in 2012 as a digital tool to connect doctors and patients. At that time, I expected an exit after 2 to 3 years. Like any successful start-up, we were lucky to have an exit at all, and it took 10 years. The journey was a joy, but it challenged every part of my skills as a leader, took me away from my family more than I would have liked and certainly taught me humility. As Dick Lindstrom told me before I began, “I’m not sure if you will be successful, but I am sure you will work very hard.”
2. Have a good understanding of your value proposition.
Whether your customer is other doctors or the public, be able to demonstrate in objective and defensible terms how your customer is going to live better, make more money or otherwise benefit from your idea. Almost everyone resists change, sometimes with remarkable tenacity. Your idea must not just solve a problem. It needs to be so compelling that your customers feel foolish sticking with the old way. Helping them understand this requires tenacity of your own and committed focus on each customer’s perspective.
3. Listen and realize early when you’re wrong and need to pivot.
Whether it is your personal leadership skills, your company’s strategy or the team you have in place, “failing quickly” means turning in a new direction before you waste too many resources. Many companies have fallen prey to escalating commitment bias. Will Rogers said it best: “When you’re in a hole, stop digging.”
4. Relationships are your most valuable resource.
First, if you’re willing to do anything for the team you work with, they will return the favor. Take a personal interest in every employee or contractor, and trust their advice. Rely on the friendships you’ve cultivated over your career for advice, and make new friendships outside your company with as many people as you can. Help other businesses be successful, and they too will return the favor. Do well by doing good for others.
5. Have an idea what’s nonnegotiable.
This may relate to the ethics you apply to your business, how you are willing to raise money, how much you are personally willing to risk and with whom you’re willing to work. Principle-based leadership depends on a few firm boundaries.
6. You’re a salesperson now. Get over it.
Except to our patients, we practicing physicians are the “customer” of nearly everyone we interact with, whether it’s the drug and device industry, our staff who assist us, and even pharmacies, insurance companies and managed care plans (even if we don’t always like their behavior). In a CEO role, you are “selling” your idea to investors, to would-be acquirers, to the team who works with you and of course to your customers. This can be an uncomfortable shift from the honored role we are used to. Use this opportunity to think from the customers’ viewpoint, to understand new perspectives and to expand your thinking.
Starting a company is a great thrill and an incredible learning experience. For those physicians with the fortitude to take on its challenges and with an idea that’s too good to ignore, I highly recommend it as a great way to keep you off the golf course.
Follow @DrHovanesian on X, formerly known as Twitter, and Instagram.
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