Know Your Marketplace Value—and When to Cut Your Losses

The Entrepreneur’s Life

This Week’s Real-Life Lesson:

Know Your Marketplace Value—and When to Cut Your Losses

A Cautionary Tale for Aspiring Physician Entrepreneurs Navigating the PE Landscape

“Just because you’re being offered a chair at the table doesn’t mean you have to take the seat they assign you.” — Dr. Tod Stillson

Underpaid, Overextended—and Still Willing to Bet on Himself

I recently had a coaching session with an early career GI specialist I’ll call “Dr. L.” His story reveals a hard truth: just because a job offers stability and future potential doesn’t mean it offers value.

Dr. L had been underpaid by nearly $200,000 a year for several years. He stayed in that role, trusting that eventually things would even out. But trust doesn’t pay bills—and it doesn’t build wealth. To make matters more complicated, he had also invested in a short-term rental at the same time he started the new job. With poor timing and thin margins, his STR was barely floating. His cash flow was tight. His family of seven was feeling the pressure.

Still, he came to our call with clarity, courage, and the willingness to explore better options.

The W-2 Trap—Disguised as a Partnership Track

Dr. L was recruited by a large, PE-backed GI practice offering a W-2 job and a two-year path to partnership. At first glance, the offer seemed reasonable:

• $250K+ base salary

• wRVU incentives

• Future share in profits, ASC revenue, and ancillaries

But then the red flags started to surface:

• No contract flexibility

• Clinical control issues that misclassified him as a “low performer”

• Rigid buy-in model

• No willingness to negotiate toward FMV compensation

Despite the allure of partnership, Dr. L found himself waiting—hoping—for something that felt increasingly elusive now over 3 years into the relationship. And all the while, his financial stress mounted.

Each month and each quarter, he reminded himself to keep working hard, believing it would pay off. His wife suspected he was being taken advantage of and undervalued, but Dr. L remained optimistic, trusting the process. But now he was beginning to understand his wife’s concerns.

Know Your Numbers, Know Your Leverage

Dr. L calculated that he was worth at least $450K/year in FMV. Over three years, he had forfeited $600K+ in income. That’s not a rounding error—that’s a real opportunity cost.

To regain control, he planned to downshifted his job to 0.75 FTE, opening space for locums work and additional income streams. He also formed a micro-corporation to begin testing the market through job stacking—locums, consulting, even side gigs—all through the shell of his business entity.

💡 Tool for You:

📘 Why Every Doctor Should Form a Micro-Corporation This free guide explains how to structure your career for leverage, optionality, and tax savings—just like Dr. L.

The Mindset Shift: From Employee to Entrepreneur

“You’re not just a doctor. You’re a high-value service provider in the open market.”

That’s what I told Dr. L. But when you’ve spent your whole career being shaped into an employee, that idea can feel radical.

So we crafted a respectful, strategic script to help him have a frank discussion with his employer—explaining his concerns, his transition to 0.75 FTE, and his intent to explore other work through his micro-business.

This wasn’t about burning bridges. It was about building his own.

Your best way to control your career and your professional future is through ownership you fully control.

When to Cut Your Losses and Move On

Here’s the truth: Some groups just aren’t built for physicians who think like entrepreneurs. If they don’t get it, don’t waste time trying to make them.

It’s better to leave early than to stay trapped in a low-leverage, low-autonomy position.

Dr. L may still move forward with the group—but now, he’s playing the game with a business-savvy mindset and a micro-business safety net.

🧠 Bonus Resource

📘 Design Your Career Around Your Life: The Physician’s Guide to Professional Longevity Use this interactive e-book to explore how to craft your ideal career path from a values-first perspective.

🧰 Related Products for You

Course: Doctor, You Are a Business A complete 8-module micro-business roadmap—ideal if you’re ready to act.

Fair Market Value Consultation: Are you interested in know your fair market value?

• Check out Marit Health’s free database here

• Or you can pay just $297 with Contract Diagnostics and get a personalized report delivered to you with along with a 1:1 consultation over it.

• Regardless of whom you choose, you must know your marketplace value and not blindly trust that your employer has your back.

📈 e-Book: Tracking Net Worth: A Physician’s Guide Because knowing your FMV is only half the battle—net worth growth is the real goal.

📞 Strategy Session: Book a $500 Business Consultation Let’s build your plan together.

🧾 Is This Deductible?

✈️ The Airport Meal That Wasn’t (Deductible)

On my way home from a recent locums gig, I grabbed a quick $27 airport meal and instinctively charged it to my corporate credit card. But halfway through the flight, I remembered—I had already claimed the standard per diem for that travel day. That meant my turkey club wasn’t deductible. Why? Because the IRS doesn’t allow you to double-dip by claiming both per diem and actual meal expenses for the same day.

So I reclassified the charge as a non-deductible expense. Lesson learned: if you're taking the simplified per diem (which I still recommend for most physicians), skip the extra meal deductions—even if it’s convenient to charge them. Clean books. Clean conscience. And fewer headaches if the IRS ever comes calling.

📬 Join the Movement

“A micro-business isn’t a backup plan—it’s a launchpad.”

Ready to reclaim your autonomy and build a sustainable future?

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