How to ensure your idea for an entrepreneurial physician business idea doesn't suck!

Doctors are full of ideas for businesses. It must be all that frustrated creativity manifesting in the shower!

Not all of these ideas, however, will make for a sound entrepreneurial physician business.

So how then do you know whether your idea is any good?

The Harvard Business Review Newsletter has a few tips for evaluating your physician business opportunity that resonate with what I teach, so here they are in a nutshell.

A viable business needs to:

1. Resolve a problem, address a pain or respond to a desire or need that exists "out there" (in the marketplace)
2. Have folks in your target market who want or need your solution, are willing to pay for it, and exist in large enough numbers to justify your efforts at reaching them
3. Have your prospects be the decision-makers who can make a decision fast enough that you aren't drowning in red ink while enduring an endlessly long sales cycle
4. Be in possession of assets that are valued by your market, such an unique design, high performance or functionality, special qualities such a leadership or trend-setting ability, or prized information
5. Be run by a person or a team with a passion for this business, and a culture driven by vision, values and a mission
6. Be "testable" with a small group to provide a proof of concept
7. Be able to succeed as a start-up with manageable overhead costs while generating some income

I suggest you try the Isenberg 2-minute test to see if you should be an entrepreneur and, if you pass, then focus on answering the above for yourself!

Comments

[Rich Berning, MD]

Good list of starting points. I suggest using them as a template and write an answer or response next to each for the idea you're contemplating developing. Don't over think it (paralysis by analysis) and test early so you can either fail quickly, or get momentum to succeed. Be frugal with your initial investment of money too. Doctors are born (and trained) problem solvers. This process should be easy for them! Rich at PrivatePractice.MD

[Philippa Kennealy]

Indeed, Rich.

I like the ideas behind "Ready, Fire, Aim" by Michael Masterson -- don't get hung up on creating perfection, but test early (as you said), be "good-enough" and move on, if it isn't working!

[Mark Conway]

I'd highly encourage anyone thinking about creating a startup business to see if there is an organization for entrepreneurs in their local area. The Small Business Administration has SCORE (Service Corps of Retired Executives) that offer counseling and advisement. I find that these are good for "mom and pop" type businesses but that a bit more sophisticated advice can be had from groups like the Oregon Entrepreneurs Network and StarveUps in my area of the Northwest. OEN (http://www.oen.org) has a set of services for entrepreneurs that range from:
1) business concept validation where a group of folks with business experience in your field will sit down with you for a couple of hours to evaluate your concept and help you strengthen it
2) courses on all aspects of starting up and running a business (market validation, sales channel model selection, financials, fund raising for growth businesses, etc.)
3) partnering you with an experienced mentor or group of advisors
4) social events to meet and network with other entrepreneurs

Starveups (http://starveups.com/) is a peer "support group" of entrepreneurs that all help each other out. They get a much higher success rate in terms of business survival by banding together in a group than startups that go it alone.

Google for organizations in your area. You can also call law firms and ask attorneys that work with startups if there are any organizations like OEN in your area.

The Kaufmann Foundation offers a course/workshop called FASTTRAC on all the steps/stages of starting up a new business . Details here: http://www.fasttrac.org/
This course is offered by many organizations around the country.

Some of my favorite books on entrepreneurship that I've found very insightful are:
"Four Steps to the Epiphany"
"Blue Ocean Strategy"
"A Good Hard Kick in the Ass"