130. So You Want To Start A Business | Going all in on the side hustle

Many of us have ideas that could make a great business. Most of the ideas, however, never see the light of day. It can feel like a big leap from physician to entrepreneur. So how do you do it? We speak with Dr. Jason Hine, the founder of SimKit, and see how he went from community emergency medicine doctor to successful business owner. 

In this episode, we cover how Jason started his business, accounting for the knowledge gap between clinician and entrepreneur, setting boundaries, why saying hell yes has a critical proviso, the inevitable oscillation between passion and money, and a marketing exercise that’s critical to walk through before you even consider jumping in on a new product or business.

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Guest Bio: Jason Hine, MD, is an emergency physician in southern Maine, where he is the Director of Education for his community hospital. He graduated from Tufts University School of Medicine and completed his residency at Temple University Hospital, where he served as chief resident. His interests include procedural skillset decay and the role of academics in improving the recruitment, retention, and satisfaction of community physicians. He is the founder of SimKit, a medical education company focusing on delivering convenient and effective hands on procedural skills practice.

Our courses and resources mentioned in the episode

Flameproof: The anti-burnout curriculum we all should have learned in training. Cohort 3 begins Sept 10, 2024. Get the deets

Out On Time: Finishing shifts with a stack of charts to complete gets old fast. It also contributes to burnout. We will help you break bad habits and give you skills to walk out the door unencumbered. Out On Time lasts 10 weeks and begins August 15, 2024.

The Driveway Debrief: Leave work at work. Be more present at home. Our free 10-minute guided exercise to shake off the residue of the day. Learn More Here

We Discuss:

Sharks and boulders

• Recognizing the most important aspects of life, or “boulders,” is crucial before starting a business to ensure their protection.
• The boulders for Jason Hine include his wife, children, and physical and mental health, which need safeguarding in an entrepreneurial journey.
• Entrepreneurs will likely encounter “sharks” who may try to acquire equity without contributing significantly.
• Jason Hine acknowledges his initial lack of business knowledge and the importance of filling that gap to succeed in entrepreneurship.
• The entrepreneurial journey is complex and requires a willingness to navigate uncertainties and challenges.

Build a business plan early

• Early focus should be on developing a comprehensive business plan rather than solely refining the product or service.
• Entrepreneurs should climb an intellectual hill to survey the entire business landscape before getting too deep into product development.
• Understanding the business aspects, including marketing, funding, and patent requirements, is essential from the beginning.
• Completing a business plan early on allows for more efficient and effective progression toward getting the product to market.
• Entrepreneurs must address logistical and operational challenges early to avoid costly and time-consuming issues later.

Effective resources and dead-end rabbit holes

• Recognizing personal knowledge gaps and actively seeking education in entrepreneurship is critical.
• State and local entrepreneurial resources, such as Maine’s Top Gun program, provide valuable education and support for new entrepreneurs.
• Avoid spending excessive time on product refinement without concurrently building the necessary business infrastructure.
• Participation in structured entrepreneurship programs can significantly accelerate the learning and implementation process.
• Leveraging available resources and networks can prevent entrepreneurs from wasting time on unproductive efforts.

The first thing to consider before starting a business: pain point and value proposition

• Identifying a customer pain point and the value proposition of your idea is the foundational step in developing a business plan.
• Refining and clearly defining these aspects is crucial before proceeding further in the entrepreneurial process.
• Assumptions about the market and customer needs must be researched and validated to ensure the business idea is viable.
• Early and thorough research helps to align the business plan with actual customer demands and market realities.
• Entrepreneurs should continually revisit and adjust their pain points and value propositions as new information emerges.

Getting out of the Lone Wolf mindset and forming an advisory committee

• Entrepreneurship requires a team of knowledgeable individuals to fill areas where the founder lacks expertise.
• State, local, and regional entrepreneurial networks can help identify and connect with the right advisors.
• Forming an advisory committee with relevant expertise is crucial for addressing complex business challenges.
• Regularly updating and evolving the advisory team as business needs change is important for ongoing success.
• Engaging with mentors and leveraging their experience can provide valuable insights and support for the business.

What challenge surprised Jason as he got the business rolling

• The complexity of structuring operations and managing inventory, cash flow, and profit losses was unexpectedly challenging.
• Effective operations management requires detailed planning and often the outsourcing of specific resources.
• A robust understanding of operational logistics is essential to maintain financial stability and avoid running out of funds.
• Continuous support and specialized expertise are necessary to handle the complexities of a business product.
• Entrepreneurs must be prepared for the intricate details of product distribution and financial management.

How do you pay your advisory committee before your business makes money?

• Key stakeholders in the advisory committee should have equity in the company to ensure their commitment and contribution.
• Contract consultants can be used for non-unique services that are not critical to the core business.
• Equity should be offered to irreplaceable advisors to align their interests with the company’s success.
• Entrepreneurs must protect their equity from opportunistic investors who may not add significant value.

What it means money-wise to give someone equity in your company

• Equity holders receive a percentage of profits and may be salaried, sharing in the company’s financial success.
• Profit distributions are based on equity percentages, with remaining profits reinvested in the company.
• Negotiating equity stakes involves discussing early exits or underperformance scenarios to ensure fair agreements.
• Contracts must address potential conflicts and worst-case scenarios to provide a strong legal foundation.
• Equity negotiations require clear communication and a willingness to relinquish some control for the benefit of the business.

Negotiating equity stake and why contracts are by nature adversarial

• Equity negotiations can be uncomfortable but are necessary to establish clear roles and expectations.
• Contracts must anticipate and address potential conflicts to protect all parties involved.
• Developing a strong contract involves considering hypothetical worst-case scenarios and planning accordingly.
• Entrepreneurs must balance their emotional investment in the business with practical legal protections.

The tipping point from dreamer to doer

• The transition from idea to action involves gradually realizing the entrepreneurial path and its challenges.
• Jason Hine’s journey began with creating models for personal use and evolved into recognizing a market need.
• Participation in structured programs like Top Gun helped transform the initial idea into a viable business.
• Entrepreneurs often face a mix of excitement and uncertainty as they commit to their business ventures.

A self-reflective prompt that puts endeavors in proper perspective

• Entrepreneurs should regularly assess their priorities and align their business efforts with personal goals.
• Recognizing the stage of life and career can influence the approach to new projects and business ventures.
• The “hell yeah or no” mindset helps people make deliberate and informed decisions about pursuing new opportunities. But it comes with a major caveat: You are usually not the only one involved in this decision.
• Balancing passion with practical considerations ensures that entrepreneurial efforts are sustainable and fulfilling.
• Entrepreneurs must be discerning and strategic in their actions to avoid overcommitting and experiencing burnout.

It might be a hell yes for you but a no for your family

• Pursuing a business venture must involve discussions with family and significant others.
• Ensuring family buy-in and support is crucial for maintaining balance and avoiding conflicts.
• Passion for the business should be matched with consideration of its impact on family life.
• Clear communication with family about the entrepreneurial journey helps in setting realistic expectations.
• Entrepreneurs must safeguard their family time and prioritize relationships alongside business efforts.

Protecting immutable boulders

• Recognizing and protecting the most important aspects of life, such as family and health, is crucial for entrepreneurs.
• Structuring time and efforts to safeguard these “boulders” ensures they are not neglected during the business journey.
• Entrepreneurs should establish systems and routines to protect their priorities and maintain balance.
• Regularly revisiting and reaffirming these priorities helps in staying focused and grounded.
• Successful entrepreneurship requires a holistic approach that considers both personal and professional aspects.

Logistics of setting and keeping boundaries

• Efficient time management and scheduling are essential for balancing business and personal life.
• Regularly reviewing and adjusting the calendar helps in allocating dedicated time for business and family.
• Setting specific times for entrepreneurial work and sticking to them prevents business tasks from encroaching on personal time.
• Incorporating tools like Calendly for scheduling meetings ensures business activities are organized and contained.
• Flexibility in managing personal goals, such as physical and mental health, helps in maintaining overall well-being.

Nothing super cool happened becuase someone just wanted to make a bunch of money

• Passion and excitement are often the primary drivers behind successful and innovative ventures.
• Entrepreneurs should focus on creating value and solving problems rather than just making money.
• Balancing passion with practical business considerations ensures sustainable success.
• Purely monetary motivations are less likely to sustain long-term entrepreneurial efforts.
• Successful ventures typically stem from a genuine desire to bring something valuable to the market.

Finding your ideal customer before the product even exists

• Identifying the ideal customer and their pain points is essential before developing a product.
• Conducting both qualitative and quantitative research helps in understanding customer needs and refining the product.
• Entrepreneurs must be flexible and open to feedback to ensure the product aligns with market demands.
• The initial target audience often mirrors the entrepreneur’s own experiences and needs.
• Ongoing customer discovery and validation are crucial for adapting the product and ensuring its relevance.

A marketing exercise to do when a product is still an idea

How to ___

Without ___

Even if ___

By ___

What we cam up with: How to get procedural confidence in 30 minutes a month without the hassle of scheduling with a SIM center or traveling to a course, even if you do small groups at annual conferences by using SimKit.