How physician entrepreneurs can turn medical expertise into business success

The traditional idea of working at one clinical practice for your entire medical career is dying. Changes in workplace demands, inflation, and government regulations have given rise to a growing number of physicians who are breaking free from the mold, putting their skills and knowledge to use in entrepreneurship. 

These physician entrepreneurs are bringing innovative solutions to healthcare, creating opportunities for financial independence, and driving groundbreaking advancements in patient care. 

An OBGYN wrote on Sermo, “My initial motivation for experimenting with entrepreneurship was desperation. I NEEDED to escape medicine. Over the last 5 years, my relationship with my business has morphed into something much healthier, but this is not always the case. Here’s what physicians need to be aware of before launching a business:

1. Hustle transfer. We are so used to overworking and functioning on little rest and chronic stress. We take these habits into our business and burn out again.
2. Hopelessness. We start a business with the intention of finding purpose and fulfillment, but are met with normal entrepreneurial challenges and don’t have the experience to cope or have proper expectations for success.
3. Self doubt. Entrepreneurship is hard, and success is built on failure after failure.” 

These insights underscore one universal truth about entrepreneurship in medicine. It’s a path with risks, but one ripe with rewards for those equipped with the right mindset and tools. This article will explore how physicians can use their medical expertise to transition into business success.

Why become a physician entrepreneur?

Physician entrepreneurship is more than just an opportunity to escape burnout and the challenges of traditional practice. It offers physicians the ability to contribute uniquely to healthcare while carving out greater control over their professional lives. 

A Sermo member and oncologist shared, “According to the data — but not media exposure — the average business founder in the U.S. is 42 years old. If you hold off until you’ve had more experience, you’re more likely to succeed as an entrepreneur for three reasons: 1. You’ve developed relevant skills. 2. You’ve learned from your mistakes. 3. You’ve built a network.”

Here’s why many doctors are switching paths:

The ability to be creative

Entrepreneurship offers the creative freedom that clinical practice often restricts. Whether it’s developing an innovative healthcare app or introducing a new model for patient care, physicians can build enterprises that address long-standing healthcare problems without the stress of modern medical schedules and caseloads.

Setting your own rules and culture

Imagine a workplace where you define the standards, set your work hours, and establish your own goals. Physician entrepreneurs enjoy the flexibility to shape a work-life balance that aligns with their values.

Collaborating with like-minded people

From hiring team members to working directly with patients or clients, entrepreneurship gives physicians the power to choose who they collaborate with, which fosters motivation and synergy.

Creating wealth and jobs

Starting a business enables physicians to diversify their income through scalable services and products. Many physician businesses become multi-million dollar enterprises. Additionally, they drive employment by hiring staff and creating opportunities in the communities they serve.

The satisfaction of building something successful 

Few experiences compare to the fulfillment of taking an idea, nurturing it, and watching it grow into a successful and impactful business.

Essential skills for doctors entering entrepreneurship

Physicians already possess an intimate knowledge of the complex healthcare and human systems. Transitioning from a clinical role to entrepreneur allows you to leverage your expertise but simultaneously presents a list of fresh challenges, requiring certain business skills:

Financial management 

Running a business means understanding budgets, revenue, and profit margins. Without effective financial management, your enterprise will struggle to grow. Collaborating with experts and joining financial workshops can be particularly helpful.

Marketing, sales and customer service 

According to a Sermo poll:

• 36% of physicians struggle with marketing their practice
• 71% believe doctors lack a clear understanding of marketing

Physicians need to learn how to communicate their value, attract customers, and retain them through excellent service. Content marketing such as on social media, patient referrals, and newsletters are just a few tools professionals can master. 

A family medicine doctor in Cuba stated on Sermo, “I believe that health personnel should be trained on the different levels of marketing without forgetting our main social objective, which is to save lives and improve the quality of life of our patients and families.”

Communication and negotiation 

Entrepreneurs must know how to articulate ideas, handle negotiations, and build a team based on trust. These skills often need refinement as one steps out of the clinical realm.

Leadership 

“All docs are leaders; many, if not most, just don’t realize it. Being an effective leader of other doctors, on the other hand, requires their colleagues’ trust, so keep one foot in the trenches and ask yourself if most of the docs believe you do a good or great job as a physician. The other leadership skills can be learned as you go along, either with CME courses (Am Assoc of Physician Leadership or MBA courses online Univ of Mass, others).” shared a family medicine physician on Sermo.

Leadership isn’t new to doctors, but effective leadership in entrepreneurship requires adaptability, collaboration, emotional IQ, and humility. Insights shared by Sermo members emphasize that great physician leaders earn trust by staying grounded and relatable.

Project management and planning 

Entrepreneurs juggle multiple responsibilities—from product launches to hiring staff. Being organized and proactive ensures smoother operations.

Delegation and time management 

Doctors are no strangers to demanding schedules. However, entrepreneurship requires being intentional about allocating time and delegating non-critical tasks to avoid burnout.

Networking 

Building relationships within and beyond the healthcare industry is crucial for finding mentors, business partners, and opportunities. Communities like Sermo are great tools for networking with like-minded professionals.

How to become a physician entrepreneur

Here’s a practical roadmap for transitioning from practicing physician to thriving entrepreneur:

Step 1. Identify your niche 

Pinpoint areas of healthcare where there’s a gap or inefficiency. Think about challenges you’ve faced during your career. Could you present a solution for any of these?

Step 2. Gain business knowledge 

Entrepreneurship requires skills outside of traditional medical training. Consider attending business seminars, pursuing an MBA, or researching areas such as operations, marketing, and legal compliance.

Step 3. Build a network 

Tap into networks like Sermo to connect with other physician entrepreneurs and industry mentors. Learning from their experiences will fast-track your path to success and help you avoid common mistakes made by first-time entrepreneurs.

Business opportunities for physician entrepreneurs

You can be a doctor and an entrepreneur simultaneously. Here are some profitable ideas physicians can explore when stepping into entrepreneurship:

• Paid medical surveys – get paid to weigh in on new treatments and drugs impacting patients globally, done on your schedule.
• Practice owner – you already know how to deliver exceptional patient care, level up your skills and fully realize the professional and financial rewards of running your own practice.
• Home healthcare services – cater to patients needing in-home care, providing specialized therapies or home visits. 
• Medical records management – create systems to streamline record-keeping for clinics and hospitals. 
• Healthcare apps – develop tech-focused solutions like telehealth platforms or chronic disease trackers. 
• Diabetes clinics – focus on diabetes care with specialized treatments and educational programs. 
• Online pharmacies – offer a seamless and secure way for patients to access medications. 
• Rehab centers – support patients recovering from surgery, addiction, or injuries. 
• Expert witness testimony – provide medical expertise and opinions in legal cases.
• Utilization management – review the appropriateness and necessity of medical services.
• Disability exams – conduct medical evaluations to determine an individual’s eligibility for disability benefits.
• Coaching & consulting – share your expertise by advising other healthcare professionals or businesses. 
• Clinical research – doctors can conduct clinical trials for pharmaceutical and academic institutions, helping introduce new treatments while achieving a more predictable lifestyle than traditional clinical practice.
• Real estate investments – many physicians diversify income by investing in rental properties. 
• Lifestyle medicine – help patients improve their health through diet, exercise, and behavioral changes. 
• Healthcare consulting – use your professional background to guide organizations in improving operations or patient care.

For more physician side hustles and passive income strategies, see our guide here.

Challenges of becoming an entrepreneur (and how to overcome them)

Launching any kind of business comes with obstacles. But recognizing them and planning ahead can ease the transition.

Financial challenges

The high initial investment can be intimidating.

Solution: start small with a pilot project, secure funding through loans or investors, and create realistic financial goals. 

Marketing vision 

Many physicians lack confidence in marketing. After surveying over 1,300 physicians on Sermo, the main challenges of marketing a practice, as listed, are: 26% Building trust, 22% Local competition, 21% Building awareness, 4% HIPAA compliance, 14% Negative reviews, and 10% marketing budgets.

Solution: leverage digital resources, such as social media, or hire a marketing firm to manage campaigns.

Building a team 

Staffing can be challenging for small businesses.

Solution: look for aligned values in team members and attract talent with clear communication of your mission. 

Finding customers 

It can be hard to reach patients beyond your immediate network.

Solution: focus on customer referrals and launch an official website with online scheduling and patient reviews to establish an online presence and build trust.

Legal and regulatory challenges 

Navigating healthcare-specific regulations can be overwhelming.

Solution: hire legal counsel well-versed in medical law. 

Your key takeaways:

• Physicians can successfully apply their medical knowledge to create impactful businesses by identifying problems in healthcare and building innovative solutions, improving patient care while diversifying income.
• Entrepreneurship offers doctors opportunities for financial growth, professional fulfillment, and independence, allowing them to move beyond the limitations of traditional clinical roles.
• Success in entrepreneurship requires new skills and a mindset shift, including business strategy, marketing, team-building, and navigating legal complexities, all of which physicians can learn and master over time.

Where physicians connect for success

Physician entrepreneurship requires vision, resilience, and ongoing growth —attributes that all doctors possess. What turns ideas into reality, however, is the support of a strong network.

Sermo is a space where doctors explore non-traditional career paths, such as entrepreneurship, and support one another through advice, experiences, and resources. If you’re ready to transition or curious about your potential as a physician entrepreneur, join the Sermo physician community today.

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