Ah, the life of a dermatologist! Spending your days making skin smooth and teaching patients the art of SPF application can be blissful. However, somewhere in between diagnosing eczema and championing anti-aging treatments, many dermatologists feel the irresistible itch to dive into entrepreneurial endeavors or, as the cooler kids call it, “side hustles.” Could it be the allure of a little extra cash, or are they just bored? Who knows? But since side gigs are trending like avocado toast on Instagram, let’s take a closer look.
Let’s Get This Straight—Definitions and Example Time!
Before we launch into the whys and hows of these doctorpreneurs, we must distinguish our terminology. When we refer to “doctorpreneur,” we’re casting a wide net, encompassing any physician poking their head into the world of business beyond their white coat. Think of it as a witch’s brew where the main ingredient is the pursuit of additional income, complete with a sprinkle of skill expansion.
Now, this spectrum ranges from the highly formal—like launching a tech overlord-level startup backed by investors and a team of coding geniuses—to the more casual, such as moonlighting for a few hours or filling in for your colleague who decided to take a surprise vacation. Here’s a checklist of potential side gigs:
- Locum tenens work (because why settle for one job?)
- Moonlighting (great for classic “I need a second job” drama)
- Expert medical witness (because your opinion is *that* valuable)
- Telemedicine (beyond your usual “let’s see that rash”)
- Consulting for the industry (like mentoring, but with paychecks)
- Paid speaking (who doesn’t want to be a guest star?)
- Medical surveys (exciting times!)
- Creating a patentable medical device (good luck inventing the next iPhone)
- Real estate investing (because jealously guarding someone else’s home is not enough)
- Launching a startup (because your personal frustration is everyone’s problem)
Doctorpreneurship: A Balancing Act of Illumination and Frustration
Now that we’ve set the stage, let’s dive into some pearls of wisdom from two and a half decades of advising over 1,500 physicians. We even consulted the vibrant minds from the esteemed “Wealth Planning for the Modern Physician Podcast,” where practically everyone has had at least one existential crisis over their career path. Here are the top things to consider while juggling your new adventures!
1. Brand Yourself—You’re Not Just a Doctor
So you want to build your brand, huh? Whether you’re trying to lure investors or just want to be the best at your clinical practice, reputation is key. You might not realize it, but you’re essentially running a popularity contest, and your colleagues, patients, and local gossip networks are the judges. As orthopedic surgeon Michael Ast pointed out, it’s a combo of being a stellar clinician and running a PR campaign. Just remember, every time someone mentions you, it should be in a glowing light, not like some medical horror story. Now go forth and mingle with local competitors…but in a friendly way, of course.
2. Understanding Contracts: Not Just Legalese
Before you start daydreaming of your entrepreneurial empire, make sure you know the legal terrain underfoot. If you’re employed, this includes understanding your employment agreement. Spoiler: it’s often full of fine print and clauses that would make your head spin. Consulting with an attorney who specializes in physicians’ contracts is like having a GPS in a maze—you won’t just wander around aimlessly, and you’ll avoid that pit of despair that often comes with misinterpretation.
3. Use a Corporate Structure—Because Chaos Is So Last Year
Remember the golden rule: “First, do no harm”? Well, the second part should be, “don’t expose yourself to unnecessary liability.” Setting up an LLC for your side gig isn’t just for show; it shields your assets from potential legal entanglements. Multiple projects? Great! Just know that you might need multiple LLCs, which is like having your cake and eating it too—if your cake was a corporate structure.
4. Protect Yourself Through Insurance—Just in Case
Ah, insurance—the invisible shield that only shows its worth when disaster strikes. Think coverage as your refillable cup of coffee—critical for those late nights of working on spreadsheets and presentations. Depending on your side gig, you’d need everything from malpractice insurance for locum work to landlord policies if you’re moonlighting as a real estate mogul. Consult with an insurance adviser, or risk finding out you’re under-insured when it’s too late.
5. Choose the Best Tax Treatment—Tax Time Isn’t Just a Holiday
As exciting as it is to have a side hustle, the glamorous world of taxes awaits you. Depending on the income generated and the associated liability risk, you may opt for personal income reporting—easy-peasy—or get fancy and create a business entity for tax perks. Just remember: the IRS has a sense of humor, and you don’t want to be the punchline.
6. Implement a Retirement Plan—For When You’re Not Young and Fabulous
Depending on how much you make from your new business, consider opening a qualified retirement plan (QRP) or an IRA to stash away your side hustle earnings. Think of it as putting away snacks for a rainy day, except those snacks have potential financial dividends. Who doesn’t want a fancy retirement while sipping margaritas on a beach somewhere?
In Conclusion: The Doctorpreneurial Adventure Awaits!
Many physicians find themselves drawn to entrepreneurial activities or side hustles at various career stages. For those brave enough to venture forth, these opportunities could provide a treasure trove of financial wisdom. Just remember the takeaways we’ve explored today: brand yourself, pick contracts wisely, and for goodness’ sake, don’t forget about insurance! Who knew that making a few extra bucks could come with such high stakes?
David Mandell, JD, MBA, is your go-to resource for all legal and financial queries. Partner at OJM Group, he’s authored more books than you can count on two hands—because one hand just wouldn’t do. Reach him at 877-656-4362 or mandell@ojmgroup.com, unless you fancy speaking with the lawyer’s voicemail.
Disclosure: OJM Group, LLC is an SEC-registered investment adviser. Just because we’re registered doesn’t mean we’re high-fiving the SEC every day. Be wary of information that’s too good to be true, and remember to consult a professional before diving into the exhilarating world of tax strategies. Because when it comes to finances, let’s face it—confusion is just a typo waiting to happen!
