7 Reasons Why Doctors Should Start a Side Hustle

As a physician, you're no stranger to the rigorous demands and pressures of your clinical role. The idea of adding another responsibility might seem daunting, especially when it involves stepping into unfamiliar territory. However, embracing side gigs and forming a micro-corporation can open up a world of benefits, both financially and personally. Here’s why you should consider it and how you can start creating additional income channels on top of your W-2 job.

The Myth of the "Other" Physician

Side gigs often appear to be something that "other" physicians do. They can seem foreign and intimidating, and you might find yourself thinking, "What makes me so special that I can create a side gig or that someone cares about my opinion?" The truth is, the answer to these questions is simple: You are a professional! Go for it!

The Powerful Effects of Establishing a Side Gig

1. Building Another Stream of Income

Diversifying your income streams ensures that you’re not solely dependent on your clinical income. By establishing a side gig, you create a financial buffer that can provide stability and security. For instance, aiming to earn just 1% of your clinical income through side gigs can set a strong foundation. For the average physician earning $200,000 annually, this translates to $2,000 in your first year—a modest start, but a significant step towards financial independence.

Take Dr. Sarah Johnson, for example. Sarah is a family medicine physician who decided to explore telehealth as a side gig. Initially skeptical, she started dedicating a few hours a week to providing telehealth consultations. Within a year, she was earning an additional $40,000 annually. This extra income not only provided financial security but also allowed her to pay off student loans faster and invest in her children’s education. Dr. Johnson’s story illustrates the potential of side gigs to transform financial situations significantly.

2. Experiencing Empowerment Through Success

Venturing into a new field and achieving success can be incredibly empowering. It builds confidence and a sense of accomplishment, proving that your skills and expertise are valuable beyond the confines of your clinical role. This empowerment can have a positive ripple effect on your overall well-being and professional satisfaction. It makes you aware that others beyond your primary employer appreciate your professional services.

3. Expanding Your Professional Network

Engaging in side gigs allows you to connect with a broader network of professionals within the healthcare world and beyond. These new connections can lead to exciting opportunities, collaborations, and a richer professional life. Networking outside of your immediate clinical environment can expose you to innovative ideas and diverse perspectives, enhancing your growth as a physician and entrepreneur.

4. Uncovering New Opportunities

Once you start exploring side gigs, you may discover opportunities you never imagined. The experience of managing a side gig can reveal hidden talents and passions, opening doors to additional ventures and income streams. The entrepreneurial journey is full of surprises, and each step can lead to new and exciting possibilities. In essence that is what has led to me having a business enterprise that includes 10 businesses.

5. Growing Your Net Worth and Reaching Financial Independence Faster

By consistently earning extra income through side gigs, you can significantly grow your net worth over time. This additional income can be invested, saved, or used to pay down debt, accelerating your journey towards financial independence (FI). For physicians looking to achieve FI, side gigs can be a powerful tool to reach that goal faster.

6. Preserving Professional Autonomy

One of the most compelling aspects of 1099 side work is the preservation of professional autonomy. Unlike W-2 employment, where you might experience significant control and oversight, 1099 work allows you to set your own terms, choose your projects, and maintain a higher degree of independence. This autonomy can be refreshing and empowering, providing a stark contrast to the constraints of traditional employment.

7. Optimizing Tax Strategies

Side gigs and micro-corporations can offer significant tax benefits. With income from independent contracting, you have more options for tax optimization than a W-2 employee. For instance, Alexis Gallati’s Cerebral Wealth Academy online course highlights how choosing the proper entity, maintaining it, and determining reasonable compensation can significantly impact your tax liabilities. She shares her personal journey: “We knew that once my husband left residency, we’d be moving up several tax brackets, and we weren’t ready to see that hard-earned money taken away. He’d invested too much time, money, and energy into his career to have such a big chunk of his earnings go straight to taxes.” This story underscores the importance of understanding your entire business structure, not just your income. Proper tax strategies can save you substantial amounts, helping you retain more of your earnings and invest back into your business or personal goals. You can sign up for the waitlist for her course this fall here.

Personal Testimony

I can attest to these benefits firsthand. Before starting my first side gig, I experienced the same doubts and hesitations. But after taking the plunge, I reaped the rewards: financial security, personal empowerment, a widened network, and unforeseen opportunities. These experiences have enriched my life and career in ways I couldn’t have predicted.

A Challenge to Get Started

I challenge you to build side gigs that earn at least 1% of your clinical income. For many physicians, this initial goal is achievable and sets the stage for more substantial earnings. Remember, 1% returns may seem small at the beginning, but as you continue to build and diversify your side gigs, the potential for growth is limitless. Who knows—your side gigs may eventually exceed your clinical income.

Conclusion

Starting a micro-corporation and channeling your 1099 side income through it is a strategic move that can significantly enhance your financial stability and personal fulfillment. It’s time to break free from the notion that side gigs are only for "other" physicians and embrace the opportunities they present. By taking this step, you’re not only creating additional income channels but also investing in your future as both a healer and an entrepreneur. Let me guide you through the entire process and connect you to key members of my SimpliMD professional network. I’ll save you a huge amount of time, money, and vetting.

Dr. Johnson’s success story is just one example of how you can turn a side gig into a significant income stream. Imagine what you could achieve with the right guidance and resources.

Join the SimpliMD community as a member today and start your journey towards financial independence and professional empowerment. The $2500 in resources that members receive include coaching, courses, and business consultation services and are all designed to help you succeed. Visit our website to learn more and take the first step towards a more prosperous future.