Who do you want to hitch to your physician business team?

A new reader wrote to me today asking:

How do I go about selecting the right and specific team/advisors from the beginning,who can steer me in the right direction?

Since this is such a useful question, I decided to answer in a blog post on behalf of all of you who may be asking something similar.

In all my podcast series, Conversations with Trailblazers, my interviews with successful physician entrepreneur guests have consistently revealed one secret to achieving a viable business -- getting good advice. Some got it out of the gate: others paid somewhat dearly for stumbling through the forest alone until desperation forced them to reach out. Their mistakes were costly.

I encourage my clients to surround themselves with savvy professionals as soon as they can, and build these professional fees into their financial projections and business budgets as a normal cost of doing business.

This blog post about winning business teams for entrepreneurial physicians from a while back outlines who I believe you need on your Board of Trusted Advisors, and here is the list in brief:

1. A supportive significant other or family member.
2. A business attorney.
3. An accountant who knows small business.
4. A financial planner.
5. An estate planning attorney.
6. An insurance agent.
7. A business mentor or advisor.

I know there are others (anyone with any good ideas of people I've left off the list?), but I suspect the crux of this question is how and where one finds such good people.

These are my ideas:

• Ask a trusted colleague or business professional for a recommendation.
  Find out: How were you introduced to this person? What has been their greatest contribution to your business? What would you change about your relationship if you could? What are their greatest strengths?
  
• Check with your local Chamber of Commerce.
  
• Know what skills, values and traits you are looking for in your "trusted advisor".
  Make sure that the chemistry works between the two of you, given that you're likely to be in a relationship for a long time.
  
• Do your homework to determine your needs in advance and then come prepared to interview several candidates.
  Ask: What are your greatest strengths? In what way do you believe you can contribute to my situation/business? What would be one or two initial recommendations you would make regarding my business? Whom may I speak to as a reference? What kind of direct access may I expect to have to you, and how often? What is your fee structure?
  
• Ask  your "trusted advisor" for recommendations.
  Many successful professionals network with and refer to others on a regular basis. For many years I have belonged to a top-notch professional networking group that has been worth every penny of its high annual dues for the excellent resources I have been able to locate nationwide for my clients.
  
• Don't get hung up on the money.
  ... or as they say, if you pay peanuts you can expect to get monkeys! Competent business-savvy professionals know what their value is to a business, and set their fees accordingly.  It's not necessary to pay top dollar, but unless you are seriously financially strapped (in which case you might reconsider whether this is the time to start the business), know that there is no substitute for good sound business advice upfront, that will save you a lot of angst and money later.

Hey doctor, thank you for the great question and I hope this has been useful. Anyone else have any good suggestions for my physician reader?

Comments

[Akshay Kapur]

Philippa,

I'd also add a billing expert, IT expert and an all-around consultant to the list. We all know people with these traits, and bringing them on as advisors will only affirm their significance in your undertaking.

Billing folks almost always come with HIPAA and credentialing knowledge that can go a long way. Even more than your financial planner/CFO type, they can maximize revenue streams and manage gov't payor bureaucracy.

In the world of EMRs, PHRs, and health2.0, an IT expert has become a necessary part of the business team. Same thing with a general consultant who keeps up with various health care niches and can provide the much-needed contacts within the community.

[Philippa Kennealy]

Thanks for adding these Akshay - you are quite right, especially about an IT expert. No business can be taken seriously these days without mastering the best practices that technology can offer - if you are discriminating and thoughtful in your selection.