PEPonline
Professionalization
of Exercise Physiologyonline

An international electronic
journal for exercise physiologists
ISSN 1099-5862

Vol 3 No 2 February 2000

 

The Exercise Physiologist as an Entrepreneur  
Reflections and Experiences in the World of Business
Eric P. Durak, MSc
Director - Medical Health and Fitness
 Co-Director - The Cancer Well-fit Program 
Santa Barbara, CA


I read with keen interest Dr. Tommy Boone's article (1) in the January issue of PEPonline.  His insights are thoughtful, and I hope that my additions and reflections on this subject shed some light on what many think is an eternally long tunnel of success and prosperity in our profession.

I would first like to start this article off by telling of a recent conversation I had with my six year old daughter, Alexandra.  One afternoon she confided in me (crying) that she didn't want to grow up, for she would have to go to work all the time like mommy and daddy, and she didn't want to work all the time like we did.

Her observations stem from the fact that her mommy and daddy are both self-employed, and live in Southern California - in a brand new house.  A recent report in the Los Angeles times states that the median home price in this region is $425,000.

The new world order states that the average working American is worse off at the end of 1999 in real dollars than they were in 1970.  This is a very dismal proposition for those in many professions, but ever the optimist, I would like to share my experiences in the world of self-employment in exercise physiology.  I hope that when ASEP members finish this brief article, they will understand that I believe that our members can be successful and still maintain their professional identity and status.

A Brief History
My venture into self-employment started around 1990 when my funding was cut on a very promising research career in diabetes and exercise.  I made the journey back to school, and half way through my doctoral program, I decided that I had enough.

I worked for two and a half years as a staff personal trainer, but left that job too, as I felt a little silly giving lectures across the United States on how trainers can be successful, and I was probably making less than they were.

My first endeavor was in publishing a series of books called the MHF Clinical Exercise Series.  However, with no real marketing power, they didn't sell as well as they could of at first.  My second stroke of genius was to write a book with a colleague on the healthcare system. Looking back - it again was a bold move.  This book - The Ins and Outs of Medical Insurance Billing has done well over the years, and I am now working with a distributor, and sell enough copies each year to qualify this book as a financial success.

Consulting
I also do consulting.  This entails writing proposals to companies and health clubs to perform some type of consulting service for them.  My first came in 1994 when then - health club president Ernie Zaik of Western Reserve Club wanted me to draft a proposal for a local health club.  He was interested in my insurance book, and eventually took information from my efforts (which he paid for) to form a company called Health Care Dimensions in Tempe, AZ.  Today that business is the largest fitness case management company in the United States, handling capitation contracts for over 200 health clubs and over 350,000 managed care customers - mostly seniors.

Another client was the Marsh, in Minnetonka, MN.  It is perhaps the finest example of a wellness club in the world.  My task was to get them to implement clinical exercise programs into their club, and try to find a way to bill for their clinical exercise services.  To date they have indeed implemented some new and innovative programs, but have not been successful in integrating into the healthcare reimbursement structure.

Are these examples of success vs. failure?  No. They both illustrate the capacity of the exercise physiologist to impart wisdom and information (the first is a more valuable commodity, the second is what companies pay for) and how people use it.  The HCD example is one of financial success because the company took my information - along with many other sources, and build a successful business.  The Marsh took my information and went into another direction.  Still successful, but not as lucrative.

Today I am putting the finishing touches on a partnership agreement between my company (a sole proprietorship), and a large, Colorado-based therapy production company.  I have two thoughts as I approach this new venture.  One is I am thankful that I have the opportunity to work with a company like this one - and the other is that it is about time!  Many EPs fail to understand something about the differences between what they were taught in school, and what is valuable in the working environment. Our business world runs on production.  A personal trainer is more valuable to a health club if he/she can train 10-15 clients a day, as opposed to 3 health assessments.  This is basic supply side economics.

Using the Internet
So how do EPs transition and position themselves into the new world order?  First - look to the internet for something that may be a Godsend for professionals.  Out of the 15 million web sites in the www - thousands of them are looking for GOOD content writers.  This means scanning the medical and health research and coming up with short and concise information bits for consumers.  There is nothing wrong with this type of writing.  It is one of the biggest areas of internet commerce and will continue to grow as the www grows. In my opinion it is better to have a trained exercise physiologist with writing skills than a personal trainer who just wants to get his/her name on the web.

The second is in R and D.  There are many companies that are looking for quality studies to test their products.  For example - there are over 100 natural food products on the market that have energy and sports bars.  I have worked with the Balance Bar Company for over seven years testing their products.  I propose studies, bring them to our hospital IRB, and administer all aspects of this work - from subject and professional recruitment to manuscript write up.  It is challenging work.  I believe that there should be more of it, as well. 

My opinion of much of the research coming out of medicine today is not very good. There is a heavy emphasis on biotechnology and new drug development - and at the opposite end of the spectrum the Institute of Medicine reports that over 180,000 deaths occur each year as a result of improper drug dispensing (too much, mixing of drugs, or the wrong prescription).  Even in sports medicine there is an emphasis on specific research that may not have practical applications.  Corporate research offers the EP a chance to design studies based on their interpretation of the needs of the company, as opposed to doing research that has already been established.

Contracts
What do EPs need to know in terms of being successful in the world of self-employment.  One is knowing contracts.  A good contracts attorney is worth the $200+ an hour you pay them.  Another is having an example of a non-disclosure contract handy whenever you pitch an idea such as a new book, exercise machine, or other endeavor that you have worked hard in creating.  For those who are interested in seeing an example of a non-disclosure contract - email me at the address below.

Contacts
Another important element of success is finding the right contacts.  Many exercise physiologists state that they cannot believe how much money "unqualified" personal trainers earn practicing their trade.  This is because many personal trainers understand the market they are targeting. Many clinical EPs work in healthcare where their skills are not yet defined in terms of their reimbursement value.  A good example of this is the 1995 Louisiana state licensure law.  This was thought to be a model for reimbursement for other states to follow.  It was naturally assumed that EPs would automatically receive reimbursement for all of their services by virtue of being state licensed.  This has turned out not to be the case.

Being an entrepreneur is difficult for EPs because their training is not in business administration or marketing.  They tend to analyze content and go by what the data reveals.  In business, most people learn to trust their instincts.  It is a dichotomy that needs to be tended to in order to grow and prosper.

Persistence
Perhaps the final and most important element to being a good entrepreneur is persistence.  There are many ideas that need to be nurtured before they can be brought to fruition.  There are also quite of few people in the business world who don't think much of your ideas at first. According to most leaders in the field of business, failure is inevitable and a part of the business experience.  For EP's failure may be equated to rejection.  Learning to work past these hurdles and having a long range plan of action will drive success.  But perhaps in closing it needs to be asked, "What is the real success?"  I leave this article with a quote by R. Marley from the late 1800s - "Real success it the ability to live your life in the way you chose".  EPs can and will make real strides in the coming years in healthcare, publishing, and the internet - as they grow their businesses, as they grow their profession, and make inroad into areas that today seem very far away.



References
1.  Boone, T. (2000). The exercise physiologists as an entrepreneur. PEPonline. Vol 3, 
No. 1 [Online] http://www.asep.org/asep/asep/jan2.html



Suggested Readings
1.  Ferguson, T.  (1996).  Health Online.  Menlo Park, CA: Addison-Westley Publishing.
2.  Hawkins, P.  (1986).  Growing a Business.  New York, NY: Simon and Schuster.
3.  Levinson, J.C. (1993). Guerrilla Marketing.  New York, NY: Houghton Mifflin.
4.  Sharp, V. F. & Sharp, R. M. (1998).  WebDoctor. Finding the Best Healthcare Online.  New York, NY: St. Martin Griffins.
5. Fast Company Magazine.  Perhaps the top internet based business magazine out today.  For subscription information - PO Box 52760, Boulder, CO   80328.  800-688-1545.  www.fastcompany.com



About the author: Eric Durak is the Director of Medical Health and Fitness in Santa
Barbara, CA.  He has been self-employed in the areas of consulting, private practice, research, and writing since 1994.  He has written 18 books, chapters and monographs, self publishing six of them.  He is a co-director in the award winning Cancer Well-fit Program, and  this year he is partnering his company to produce health kits for medical patients and the general population.  His email address is edurak@medhealthfit.com

Copyright ©1997-1999 American Society of Exercise Physiologists. All Rights Reserved.

ASEP Table of Contents
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Professionalization
of Exercise Physiologyonline
An international electronic
journal for exercise physiologists
ISSN 1099-5862
Vol 3 No 2 February 2000


The Exercise Physiologist as an Entrepreneur:  Reflections and
Experiences in the World of Business
Eric P. Durak, MSc
Director - Medical Health and Fitness, Co-Director - The Cancer Well-fit Program, 
Santa Barbara, CA

I read with keen interest Dr. Tommy Boone's article (1) in the January issue of PEPonline.  His insights are thoughtful, and I hope that my additions and reflections on this subject shed some light on what many think is an eternally long tunnel of success and prosperity in our profession.

I would first like to start this article off by telling of a recent conversation I had with my six year old daughter, Alexandra.  One afternoon she confided in me (crying) that she didn't want to grow up, for she would have to go to work all the time like mommy and daddy, and she didn't want to work all the time like we did.

Her observations stem from the fact that her mommy and daddy are both self-employed, and live in Southern California - in a brand new house.  A recent report in the Los Angeles times states that the median home price in this region is $425,000.

The new world order states that the average working American is worse off at the end of 1999 in real dollars than they were in 1970.  This is a very dismal proposition for those in many professions, but ever the optimist, I would like to share my experiences in the world of self-employment in exercise physiology.  I hope that when ASEP members finish this brief article, they will understand that I believe that our members can be successful and still maintain their professional identity and status.

A Brief History
My venture into self-employment started around 1990 when my funding was cut on a very promising research career in diabetes and exercise.  I made the journey back to school, and half way through my doctoral program, I decided that I had enough.

I worked for two and a half years as a staff personal trainer, but left that job too, as I felt a little silly giving lectures across the United States on how trainers can be successful, and I was probably making less than they were.

My first endeavor was in publishing a series of books called the MHF Clinical Exercise Series.  However, with no real marketing power, they didn't sell as well as they could of at first.  My second stroke of genius was to write a book with a colleague on the healthcare system. Looking back - it again was a bold move.  This book - The Ins and Outs of Medical Insurance Billing has done well over the years, and I am now working with a distributor, and sell enough copies each year to qualify this book as a financial success.

Consulting
I also do consulting.  This entails writing proposals to companies and health clubs to perform some type of consulting service for them.  My first came in 1994 when then - health club president Ernie Zaik of Western Reserve Club wanted me to draft a proposal for a local health club.  He was interested in my insurance book, and eventually took information from my efforts (which he paid for) to form a company called Health Care Dimensions in Tempe, AZ.  Today that business is the largest fitness case management company in the United States, handling capitation contracts for over 200 health clubs and over 350,000 managed care customers - mostly seniors.

Another client was the Marsh, in Minnetonka, MN.  It is perhaps the finest example of a wellness club in the world.  My task was to get them to implement clinical exercise programs into their club, and try to find a way to bill for their clinical exercise services.  To date they have indeed implemented some new and innovative programs, but have not been successful in integrating into the healthcare reimbursement structure.

Are these examples of success vs. failure?  No. They both illustrate the capacity of the exercise physiologist to impart wisdom and information (the first is a more valuable commodity, the second is what companies pay for) and how people use it.  The HCD example is one of financial success because the company took my information - along with many other sources, and build a successful business.  The Marsh took my information and went into another direction.  Still successful, but not as lucrative.

Today I am putting the finishing touches on a partnership agreement between my company (a sole proprietorship), and a large, Colorado-based therapy production company.  I have two thoughts as I approach this new venture.  One is I am thankful that I have the opportunity to work with a company like this one - and the other is that it is about time!  Many EPs fail to understand something about the differences between what they were taught in school, and what is valuable in the working environment. Our business world runs on production.  A personal trainer is more valuable to a health club if he/she can train 10-15 clients a day, as opposed to 3 health assessments.  This is basic supply side economics.

Using the Internet
So how do EPs transition and position themselves into the new world order?  First - look to the internet for something that may be a Godsend for professionals.  Out of the 15 million web sites in the www - thousands of them are looking for GOOD content writers.  This means scanning the medical and health research and coming up with short and concise information bits for consumers.  There is nothing wrong with this type of writing.  It is one of the biggest areas of internet commerce and will continue to grow as the www grows. In my opinion it is better to have a trained exercise physiologist with writing skills than a personal trainer who just wants to get his/her name on the web.

The second is in R and D.  There are many companies that are looking for quality studies to test their products.  For example - there are over 100 natural food products on the market that have energy and sports bars.  I have worked with the Balance Bar Company for over seven years testing their products.  I propose studies, bring them to our hospital IRB, and administer all aspects of this work - from subject and professional recruitment to manuscript write up.  It is challenging work.  I believe that there should be more of it, as well. 

My opinion of much of the research coming out of medicine today is not very good. There is a heavy emphasis on biotechnology and new drug development - and at the opposite end of the spectrum the Institute of Medicine reports that over 180,000 deaths occur each year as a result of improper drug dispensing (too much, mixing of drugs, or the wrong prescription).  Even in sports medicine there is an emphasis on specific research that may not have practical applications.  Corporate research offers the EP a chance to design studies based on their interpretation of the needs of the company, as opposed to doing research that has already been established.

Contracts
What do EPs need to know in terms of being successful in the world of self-employment.  One is knowing contracts.  A good contracts attorney is worth the $200+ an hour you pay them.  Another is having an example of a non-disclosure contract handy whenever you pitch an idea such as a new book, exercise machine, or other endeavor that you have worked hard in creating.  For those who are interested in seeing an example of a non-disclosure contract - email me at the address below.

Contacts
Another important element of success is finding the right contacts.  Many exercise physiologists state that they cannot believe how much money "unqualified" personal trainers earn practicing their trade.  This is because many personal trainers understand the market they are targeting. Many clinical EPs work in healthcare where their skills are not yet defined in terms of their reimbursement value.  A good example of this is the 1995 Louisiana state licensure law.  This was thought to be a model for reimbursement for other states to follow.  It was naturally assumed that EPs would automatically receive reimbursement for all of their services by virtue of being state licensed.  This has turned out not to be the case.

Being an entrepreneur is difficult for EPs because their training is not in business administration or marketing.  They tend to analyze content and go by what the data reveals.  In business, most people learn to trust their instincts.  It is a dichotomy that needs to be tended to in order to grow and prosper.

Persistence
Perhaps the final and most important element to being a good entrepreneur is persistence.  There are many ideas that need to be nurtured before they can be brought to fruition.  There are also quite of few people in the business world who don't think much of your ideas at first. According to most leaders in the field of business, failure is inevitable and a part of the business experience.  For EP's failure may be equated to rejection.  Learning to work past these hurdles and having a long range plan of action will drive success.  But perhaps in closing it needs to be asked, "What is the real success?"  I leave this article with a quote by R. Marley from the late 1800s - "Real success it the ability to live your life in the way you chose".  EPs can and will make real strides in the coming years in healthcare, publishing, and the internet - as they grow their businesses, as they grow their profession, and make inroad into areas that today seem very far away.



References
1.  Boone, T. (2000). The exercise physiologists as an entrepreneur. PEPonline. Vol 3, No. 1 [Online] http://www.asep.org/asep/asep/jan2.html

Suggested Readings
1.  Ferguson, T.  (1996).  Health Online.  Menlo Park, CA: Addison-Westley Publishing.
2.  Hawkins, P.  (1986).  Growing a Business.  New York, NY: Simon and Schuster.
3.  Levinson, J.C. (1993). Guerrilla Marketing.  New York, NY: Houghton Mifflin.
4.  Sharp, V. F. & Sharp, R. M. (1998).  WebDoctor. Finding the Best Healthcare Online.  New York, NY: St. Martin Griffins.
5. Fast Company Magazine.  Perhaps the top internet based business magazine out today.  For subscription information - PO Box 52760, Boulder, CO   80328.  800-688-1545.  www.fastcompany.com

About the author: Eric Durak is the Director of Medical Health and Fitness in Santa
Barbara, CA.  He has been self-employed in the areas of consulting, private practice, research, and writing since 1994.  He has written 18 books, chapters and monographs, self publishing six of them.  He is a co-director in the award winning Cancer Well-fit Program, and  this year he is partnering his company to produce health kits for medical patients
and the general population.  His email address is edurak@medhealthfit.com

Copyright ©1997-1999 American Society of Exercise Physiologists. All Rights Reserved.

ASEP Table of Contents


Questions/comments