Master’s Notebook
Paths to Entrepreneurship in Statistics
George E. DeMuth, President of Stat-Tech Services, LLC
T
he American Heritage New
Dictionary of Cultural
Literacy defines entrepre-
neur as “one who starts a business
or other venture that promises
economic gain but that also
entails risks.”
Successful entrepreneurs come
from all sorts of backgrounds and
succeed in numerous areas. Some
successful clinical research orga-
nizations (CROs) started with
statisticians as key players. Today,
many biotech, pharmaceutical,
and medical device companies
are in need of statistical support
and expertise from consultants
and CROs. This column will
provide ideas for those who are
interested in either working as a
consultant or establishing a con-
sulting business. In particular, it
contains useful ideas for someone through a master’s degree and, All these elements combine to
interested in bootstrapping their as a result, there are a limited make a statistical consulting busi-
business up by using money from number of statisticians. Also, ness an attractive option: relative-
their business to fund more com- smaller companies often do not ly low cost to entry, a source of
pany growth (not to be confused have enough work to employ a customers, a path to growth, and
with statistical bootstrapping). statistician on a full-time basis. potential for exiting the business.
Here are some reasons why It will be tough to go directly
statisticians should consider entre-
There are companion busi-
❸
from school to starting a con-
preneurship as a goal:
nesses that bundle well with
sulting business with multiple
statistical consulting. Data
employees. Usually, statisticians
Statisticians have a natural management and statistical
❶
have to sell their experience and
entrepreneurial path that starts programming are related busi-
knowledge. If you are serious
with being an individual con- nesses that, at least in the clini-
about this path, consider the fol-
sultant and adding services and cal trials industry, are often
lowing recommendations:
additional staff. Aside from bundled. Each of these busi-
experience and education, nesses can be built on top of a Continue your education, as
➀
there is a low barrier to entry statistical consulting business. all degrees are starting points.
as a consultant. A statistical Statistics remains a changing
analysis group’s main expenses
Companies sometimes expand
❹
field, with exciting and chal-
will normally be payroll, rent,
into statistical consulting by
lenging work being done.
insurance, and software.
buying a statistical group,
potentially creating the oppor- Spend time networking to
➁
Statistics is a natural niche busi- tunity for you to sell your establish potential future cli-
❷
ness. It often requires training business. ents, employees, or support
JULY 2009 AMSTAT NEWS 33
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