The Clinician's Exit Strategy

Thinking about leaving your full-time clinical job to start a business? It's a big step that needs careful planning. This guide will help you get ready for this change, based on what I've learned from my own experience.

Get Your Money Right

First, figure out your current budget. I use a tool called YNAB (You Need A Budget), which will give a very clear picture of your expenses after a few months of use.

I categorized my expenses into two general categories: ones that will go away in my new life and ones that will remain. This will show you which expenses you'll actually need to plan for.

Then, think about how your life might change. Are you moving to a big city or a small town? Even if you're staying put, now's a good time to cut out things you don't really need, like unused subscriptions. After this, you'll have a good idea of how much you'll spend each month in your new life.

Save Up a Safety Net

Your income will probably go down for a while, so you need to save up. Sometimes you just have to quit and figure things out later, but it's much better if you can plan ahead.

Now that you know your monthly expenses, decide how many months to save for. Saving enough for two years feels safe to me. But the right amount depends on your situation:

• How badly do you want to leave your job?

• When does your current work contract end?

• Could you go back to being a full-time clinician if you needed to?

• Will you miss a business opportunity if you wait too long to start?

Also think about how quickly your new business might make money. If you're starting something like a coaching business with clients already lined up, you might make money pretty fast. But if you're like me, trying to create small software products, it might take longer. In my field, only about 1 in 20 startups actually pay the bills, so I needed a bigger financial cushion.

Balancing Clinical Work and Your New Business

You might think about working part-time as a clinician, either to avoid saving as much or to keep your skills sharp. I do this, working half-time as an anesthesiologist. It's nice to know I have this backup if my business ideas don't work out. But it does take energy away from my new work.

When I work Monday to Friday in clinical practice, it affects more than just those days. On Sunday, I have to prep for the week. Then after the work week, I'm tired for a few days and not in the right mindset for creative business thinking. It's different when I have two or three weeks off between clinical work. By the second week, I'm in a good routine and full of new ideas. But then I have to go back to the hospital and lose that momentum.

Also, some new businesses need you to be available at short notice, which might not work with some clinical jobs.

You could try not doing any clinical work for a while, but be mindful that gaps could cause problems with your licenses or certifications. If you do keep some clinical work, don't count on that money when you're planning how much to save. Part-time work can be unstable. Employers usually prefer full-time employees, especially over those who might quit soon when their side business takes off.

Changing from being a full-time clinician to running your own business is a big step. It takes careful planning and flexibility. By understanding your finances, saving enough money, and thinking carefully about part-time work, you can set yourself up for success. Remember, there's no one right way to do this – your path will be unique to you.

Thanks for reading. I’m trying to grow my audience, so if you know someone who might find my newsletter useful, please share.