Love & Work

How you love determines how you work

Leo Tolstoy, Sigmund Freud (of leiben und arbeiten fame) and Erik Erikson all had lots to say about love and work. It turns out that there is a lot in common between love and entrepreneurship-it doesn’t work out in a significant number of cases, it makes people do crazy things, everyone seems to do it differently, and , in the ultimate triumph of hope over experience, people seem to want to do it over and over again despite previous failures.

Psychologists have taken note and tried to quantify the relationship between love and work. The theorized link between attachment and exploration was tested by investigators who identified three patterns of infant attachment: secure, avoidant, and anxious/ambivalent. Hazan and Shaver (1990) extended the notion to work. They tested the hypothesis that those who are secure in love, will be secure in work and those who are less secure,anxious,ambivalent or avoidant will have more troubles with work.The authors defined the three patterns and, using a questionnaire, tried to identify differences in attachment to work.

Securely attached people had high (relative to those of insecurely attached subjects) ratings of work success and satisfaction, fewer work-related fears and worries concerning performance and evaluation by co-workers, and work habits that do not jeopardize health or relationships. Secure explorers,they found, at any age,  reap the most rewards from exploratory activity because they are not distracted by concerns over unmet attachment needs and do not explore primarily for the sake of pleasing or avoiding others.

Anxious/ambivalently attached youngsters are typically too concerned with maintaining proximity to their caregivers to explore effectively. As these children develop, they learn to use exploration as a means for achievement designed to attract the caregiver's attention and approval. Exploration then becomes a means of satisfying unmet attachment needs. Moreover, exploring merely as a means to win others' praise leaves a person vulnerable to feeling underappreciated.

Like the avoidant infant, the avoidant adult will use exploration primarily as a means of keeping busy, avoiding uncomfortable interactions with others, and avoiding anxiety associated with unmet attachment needs. Because avoidant exploration is believed to reduce anxiety, avoidant people are reluctant to stop working, to finish projects, or to take vacations (all nonsocial manifestations of avoidance). Avoidant attachment is associated with exploratory behavior characterized by a preference for working alone, using work as an excuse to avoid socializing, and a compulsive approach to tasks that includes working during vacations, feeling nervous when not working, and working at the expense of health and relationships.

The authors further noted  that secure people generally do not worry about work failure or feel unappreciated. In addition, they generally do not allow work to interfere with friendships or health and do take enjoyable vacations from work. Anxious/ambivalent subjects, in contrast, worry about their work performance, prefer to work with others but feel underappreciated and fear rejection for poor performance. They are also easily distracted, have trouble completing projects, and tend to slack off after receiving praise. Avoidant subjects prefer to work alone, use work to avoid having friends or a social life, and do not take enjoyable vacations from work.

We're all wired differently. The Myers-Briggs, the Enneagram , other personality inventory scales , your spouse or a good friend can help you understand what makes you tick. If you are struggling with understanding the "why", try spending a little time understanding the "who". Know thyself.

Author: Hazan, Cindy; Shaver, Phillip R. Source: Journal of Personality and Social Psychology August 1990 Vol. 59, No. 2, 270-280

Biotech Deals in 2011

PIPES, option licensing and reverse mergers are starting to look pretty again.

It's difficult to read the tea leaves when it comes to 2011 Biotech and Life Science financing trends, according to the Life Sciences Group at www.headwatersmb.com

An analysis determined mixed messages regarding financing, M&A and partnering opportunities in the broad healthcare markets going into 2011.  

While an IPO window opened during the first quarter of 2010, that window has closed for the foreseeable future. However, there has been a recent uptick in follow-on and PIPE (private investment in public equity) offerings over the last couple of months.  

Although venture investment in life sciences was less in 3Q2010 than the previous quarter, VC investment in the sector in 2010 is on pace to exceed the total amount invested in 2009. Nonetheless, the VC markets remain tight. Many companies are seeking alternative or supplemental sources of capital such as the 2,923 life science companies that recently received grants under the new Qualifying Therapeutic Discovery Project (created by the Affordable Care Act).  

Other mixed messages in 2010: Partnering transaction volume is down, but mean transaction size is up. M&A activity is up, but mean transaction size is down.  

It is a unique transaction environment for life science companies. We believe both the private and IPO markets will remain tight but follow-on and PIPE activity might pick up. We also believe M&A and partnering activity stay consistent or pick up slightly.

Here's a link to the Life Sciences Partnering Commentary.

Where Have All the BioAngels Gone?

Finding your angel takes
preparation, execution
and luck.

BioAngel networks have taken flight, both in the US and abroad. In an effort to match investors with bioentrepreneurs, local trade associations , investment groups and business incubators have launched, networks, events and online sites to identify and match those with money and interested in investing it with those who need money and interested in accepting it. Like any angel, early stage private investors are  elusive, secretive, ephemeral, and  difficult to recognize.In the UK, for example, the industry wide BioIndustry Association has launched a BioAngel Network in an efffort to get more business angels to invest in early stage projects after a decline in the number of venture capitalists willing to fund riskier start-up companies.

In the Western US, another organization, The Business Catapult, cosponsored by a local venture capital association, hosts an annual investor-inventor match fest and online service.

Finding angels take preparation, execution and luck.

Your preparation should include polishing your product and finding potential investors. Make sure your elevator pitch is clean, you have created a credible business entity, you have business cards and basic supporting marketing materials and that you have assembled the A team.

Finding potential private investors is more difficult. Helpful steps include targeting bioangel network attendees, going to events likely to be attended by high net worth individuals, like fund raising events and flying business class. (HINT: DO NOT ASK FOR MONEY AT FUNDRAISING EVENTS)

The next step is to network and create opportunities where you are likely to interact with potential investors. Remember, this is the first date. Your goal is to get the next date by getting someone interested in you and your idea. Read the other posts on this site about networking tips and practice them.

Finally, the best laid plans often go up in smoke. When you least expect it, you will bump into someone in a supermarket, be introduced to a person at a cocktail party, meet someone on a social networking site or ride up on a chairlift with the very person who wants to invest in your company. Luck favors the prepared.

Finding early stage money is a lot like finding love. It will often happen when you least expect it, you'll be excited when you find it, and, unfortunately, at some point ,the glow will fade and the work begin.

10 Tips For A Great Radio Interview

Recently a client of mine e-mailed me in a panic. She booked her first radio interview as a published author. “The interviewer wants 10 questions from me. What do I send him?”

I helped her come up with compelling questions and we did a role play so she could practice.
Here are some of the tips I shared:

1. Think like your audience. Who will be listening to the interview? What do you think they most want to know? What will resonate most for them? Speak their language and speak to their biggest concerns, pains and desires.

2. It’s not about the book. Focus on the information you have to offer to improve the lives of the people listening. Yes, you want them to buy your book (if you have one), but you’re on the air to make a difference. Book sales will stem from service and relevance.

3. Avoid generalities. Tell short, entertaining stories to illustrate your points.

4. Interviewers love sound bites. Create catchy phrases and pithy sound bites around the points you make.

5. Be succinct. The most engaging interviews have an upbeat pace and the banter goes back and forth between host and guest. Hosts find it frustrating if you talk on and on, especially if you’re not on point.

6. Write out your answers to your questions and have them in front of you.  Of course, practice until you get it down before your first interview. You should know your answers inside out. Still, you may get nervous. It can’t hurt to have a cheat sheet in front of you in case you space out. And it may make you feel more relaxed.

7. Stand up. Your voice and demeanor will naturally be more commanding and confident when you stand. Your vibrant energy level will come across.

8. Have fun. The more you enjoy yourself, the more your audience will, too. Don’t be afraid to use humor.

9. Be spontaneous. Once you’ve prepared and practice, allow room for spontaneity to take over. Be grounded and centered for the call and connect with your host.

10. Don’t mention your book too often. It’s the host’s job to talk about your book. Don’t overdo book mentions. On the other hand, if your host doesn’t mention the book at all, by all means,  mention it towards the end. Most hosts are quite gracious, however.

Good luck with that first interview! It gets easier each time. Soon, you’ll be a pro.

50% of Primary Care Physicians Would Leave Medicine if They Could

I am asked from time to time about my perception of the level of physician dissatisfaction with clinical medicine. How do I know that physicians are really dissatisfied with their careers?

I recently came across this article from CNN that adds some credence to my theory. The article was a report on a survey performed by the Physicians' Foundation and was published in November 2008. Of the 12,00 physician respondents, almost 50% said they would leave medicine in the next three years if they could find an alternative. Wow.

To me, the most interesting quote from the article was the following:

"Many said they are overwhelmed with their practices, not because they have too many patients, but because there's too much red tape generated from insurance companies and government agencies."

In my mind it's very simple: allow physicians to practice medicine and everyone is better. The problems occur when insurance companies and lawyers and bureaucrats are allowed to dictate to hospitals and physicians and patients. Clinics and hospitals become assembly lines to push "customers" through as quickly as possible. The number of patients seen per hour must go up because the reimbursement per patient has gone down so much that a system with any delay will not survive. Physicians cannot practice medicine and many patients—even ones with excellent insurance—do not feel they get good medical care from their physicians.  It's a mess.

My hope is that Freelance MD and the Medical Fusion Conference will be an avenue to revive many of these physicians who are desperately hanging on. By introducing these physicians to ways they can supplement their incomes and find a niche where they can use their careers in novel ways, I believe many of these people will be able to adjust their clinical responsibilities and be able to enjoy medicine once again.

Instead of waiting for some magic "fix" of the healthcare system to arrive, why not take steps to revive the workers in healthcare that we already have? How many of those physicians in the survey would continue practicing medicine if they could drop their clinical load by 30% and still have their current level of income? How many physicians nearing retirement would continue practicing if they could practice on their own terms? How many young physicians would not give up on their careers if they could figure out a way to better balance their personal lives with their clinical duties?

If society is saying our nation's physicians are a necessary and important resource, then how are we protecting and encouraging this resource?  

The ultimate goal of Freelance MD and the Medical Fusion Conference is to encourage and stimulate the physicians in this country. By giving clinicians hope and purpose and an extra measure of control over their lives, I believe we will help physicians practice medicine longer and with more satisfaction.

Real Estate Investing For Physicians: Part 2 - Real Estate Auctions

Forclosure properties may be the place you want to be for bottom line ROI.

In my last post, I commented on the importance of timing when it comes to investing in real estate.  In my not-so-humble opinion, I believe that timing can be more important than the oft-quoted mantra of real estate gospel, i.e. location, location, location.

For example, when the market is experiencing red-hot acceleration, even mediocre locations can do extremely well. On the other hand, when national real estate trends are doing their best imitation of Jacques Cousteau diving to new depths, even the most attractive locations may not be able to weather the down-draft.

Timing to me is not just figuring out the best time to buy or sell, but more practically, the true significance of timing is concerned with figuring out what is actually working at that moment in time. To help assess this all-important issue, I'd like to review the Five Stages of the Real Estate Cycle. These are:

1) flat to minimal growth
2) starting appreciation
3) accelerating appreciation
4) topping, and
5) depreciation.

This cycle historically repeats itself ad infinitum (and occasionally ad nauseum), with a general tendency towards upward growth - namely, the trough of the next cycle typically is higher than the trough of the cycle you're currently in.

So what stage are we in now?  In most instances, I would respond that it would depend on your geographic location. However, as you can read in any newspaper, regardless of where you look on the map, we are decidedly firmly mired in the fifth and scariest stage—that of depreciation and falling property values.

Real estate transactions that were uniformly successful in stage 3 could be doomed to failure in stage 5. For example, in the mid-2000's, I had great success with condo conversions as well as buying multiple properties from a developer and selling the individual units. Other time periods called for buying and holding homes for cash flow.

About now, I'm sure you're asking, "Well genius, what's working now?"  The answer in a word - foreclosures. I know that's not some unheard of news but the simple truth is that foreclosure properties represent not only the best value for your purchasing dollar but also offer the best protection against continued depreciation of property values.  And the highest profit margins on foreclosed properties are found in foreclosure and bankruptcy auctions.

But such auctions are not for the uninitiated - for the inexperienced investor, it can be costly place to get an education. Also, you like most doctors probably don't have the time, patience or knowledge to play in this extremely lucrative  but equally hostile arena. Is there a way to take advantage of this unique opportunity to access dramatically discounted properties and still keep your day job, your sanity and your bank account intact? I believe the answer is getting involved with limited partnership syndications that specialize in buying and selling these foreclosure properties.

In my next post, I'll give you more details on this type of investment, that even though it is passive in nature, can be extremely dynamic in terms of the bottom-line return-on-investment.

A Typical Medical Device Company

CEO's are scared.

I asked a friend of mine , the CEO of a medical device company enjoying a dominant market position , if he was considering hiring any additional sales and marketing people. Having recently made the decision to relocate his manufacturing from one European location to another in Asia, I thought he might be in need of some international sales talent.

Not only was the answer NO. It was damned NO. He responded  that "I think we are a typical company right now. Our revenues actually jumped over 15% this year, but we're sitting on the biggest cash position we've ever been in since the companies start. BUT...we have no idea about the unknowns. Obamacare scares us. The possibility of a falling dollar or inflation  not only scares us...it has hurt us and costs us more to manufacture  at our European facility. So, we simply sit tight"

Reading about the 9.8% jobless rate, the flat economy, the budget deficit and other bad news is one thing. The human impact is another. My experienced, very talented unemployed friends continue to crank out resumes and network incessantly, while American competitiveness in the global bioscience innovation community continues to deteriorate.

A recently released report, "FDA Impact on US Medical Device Innovation" reinforces the point and notes that the average medical device company responding to their survey of 204/1023 device companies spent $31 M to get a 510(k) device approved by the FDA and $94 M to get pre-market approval. In addition,while it took 54 months to get PMA approval in the US, it took 11 months in the EU.

That said, keep in mind that the best time to innovate is during hard times like these. Great companies emerge from recessions. Talent is available, people are willing to take risks, suppliers are eager to cut deals, and there is always a need for a better mousetrap.