Enter Tom Dorsett, Serial Entrepreneur and CEO of RazorMetrics.
Entrepreneurship is not a suitable path for everyone. It involves taking risks for oneself and those who come on board to create a company from a mere idea.
Startups face the challenge of risking personal and other people’s money, with only a small number of them ultimately succeeding. However, for those who enjoy embracing risk for the opportunity to create something new, entrepreneurship can be exhilarating.
Tom Dorsett’s journey into entrepreneurship began in his early twenties when he was struggling to choose a major at the University of Texas. His family pressured him to become a lawyer, but that prospect seemed unexciting.
Around that time, a friend of Tom’s developed a software product for moving companies but didn’t know how to sell it. As Tom had sales experience, his friend asked for his help and offered a 50% sales commission.
Tom seized the opportunity, and after just one day of making calls and setting up appointments, he closed two sales. The experience hooked him on entrepreneurship.
Over two decades later, Tom has founded three companies, exited two (NuScribe and ePatientFinder), mentored other successful entrepreneurs, and offered business advice to health tech executives across various sectors. He believes that the secret to being a successful serial entrepreneur boils down to four key factors:
Funding: For his latest venture, RazorMetrics, Tom aimed to raise as little money as possible to maintain equity and control over the company’s destiny. However, due to COVID, they had to raise more money to execute on substantial clients they had closed. Fortunately, they found a great partner with Sopris Capital, a family fund. Being well-capitalized is crucial for sustaining a business over time and weathering challenges.
Attracting talent: A company’s success relies on the team behind it. Tom looks for talented individuals who are willing to take risks. With each successful exit, it has become easier to build credibility as an entrepreneur. Moreover, offering vision alongside a great benefits package attracts top talent who can find job opportunities anywhere but choose to work with Tom’s companies because they provide personally rewarding work.
The First Client: In the startup world, tenacity is vital, as it’s challenging to find clients willing to take a chance on a new product. However, early results are crucial for attracting investors and new clients. Tom advises giving the product away if necessary to demonstrate its effectiveness and establish market credibility.
Scaling without running off the rails: To transform an idea into a profitable company, scaling is essential. Timing is also crucial, and Tom admits to having moved forward too quickly in the past. Rapid scaling is possible with good funding and the right team covering all aspects of the business, such as business development, marketing and PR, sales, and engineering.
Tom’s biggest lesson from starting three different companies is that anything is possible. Although he had doubts along the way, overcoming barriers and pushing through challenges emboldened him to tackle more significant problems with each new venture.
His latest venture, RazorMetrics, co-founded with Dr. Siva Mohan, an interventional cardiologist, aims to address the substantial issue of high drug costs in the United States.
With one in four insured Americans unable to afford their medications, RazorMetrics uses technology to help physicians find lower-cost alternatives for their patients.
By mastering the four key factors—funding, talent, a first client, and scalability—RazorMetrics has secured some of the largest employers and PBMs as clients in just four years.
If you would like to get in touch with Tom Dorsett or his company, you can do it through his – Linkedin Page
