Comments on: 7 Millionaire In-Training! Review

By: Adrian

Adrian — Sun, 29 Mar 2009 09:42:43 +0000

@ Jeff – I think that Scott is simply saying that it would only take a year or two for a new clinic (costing about $150k to set up and run to break-even) to start generating $360k per year in net profits (~$100k less if Scott has to hire a doctor to run it).

To my mind this is an astounding rate of return … however, your idea of Scott pitching a repeat of the current arrangement with his boss for Practice # 2 is a good one. Costs Scott nothing but a couple of years …

By: Jeff

Jeff — Sun, 29 Mar 2009 04:43:50 +0000

@ Adrian – I loved the Hitchhiker’s Guide to the Galaxy series.

I read them all as a kid and look forward to sharing them with my son when he gets a little bit older. Thanks for the walk down memory lane.

By: Jeff

Jeff — Sun, 29 Mar 2009 04:39:15 +0000

Scott/Adrian – You guys have my head swimming…no drowning in numbers.

What’s the layman’s conclusion here? Are we saying that it makes more financial sense for Scott to pursue clinic #2 on his own at a later date rather than an earlier joint venture with his current partner?

Scott, is there a path to 100% ownership of clinic #2 with your current partner? (i.e. a similar deal to what you have with clinic #1)

If so, that sounds like a way to continually “buy” new clinics at half price.

However, I have to admit that I don’t fully understand the details of the analysis on this one.

Either way, it sounds like you’re on the path you need to be on. Congrats.

By: Scott

Scott — Sat, 28 Mar 2009 22:36:25 +0000

LoL

By: Adrian

Adrian — Sat, 28 Mar 2009 21:57:07 +0000

@ Scott – Just make sure that you leave a note, just like the dolphins did when they finally left the earth:

“So Long, and Thanks for All the Fish”

http://en.wikipedia.org/wiki/So_Long,_and_Thanks_for_All_the_Fish

By: Scott

Scott — Sat, 28 Mar 2009 13:27:28 +0000

Yep, you’ve got it. It’s actually a bit more income per clinic than 240k, because there’s enough generated per year to pay yourself (or split) 60-80k of base pay. I’ve estimated the potential(based on the cashflow i’ve produced) to produce the owner around 360k/year. That will be my approximate personal income after I own practice #1 completely. This is a combination of my base pay + distribution.

By: Adrian

Adrian — Sat, 28 Mar 2009 08:10:32 +0000

@ Scott – the numbers – for our other readers’ benefit – seem pretty simple; from your earlier comment, it seems:

1. That 50% of the Practice # 2 profits = $10k p.m.

2. Practice # 2 would cost about $100k – $150k to start up and get to self-sustainability stage

If these numbers are anywhere near correct, you could start you own practice for, say, $150k that would generate $240k per year?

If my estimate is ANYWHERE NEAR correct:

Stage 1 is when you ask yourself: why waste your time working for him, when you could do this yourself?

Stage 2 is when you BECOME him

But, Stage 3 is when you leap-frog him, because there’s a flaw in his formula

By: Scott

Scott — Fri, 27 Mar 2009 23:44:49 +0000

@ Mark – Thanks for the comment earlier Mark. I think one finds their best success sometimes when focusing their efforts.

By: Scott

Scott — Fri, 27 Mar 2009 23:42:30 +0000

Yeah, I ran the numbers earlier myself and realized it’s not in my best interest.

By: Adrian

Adrian — Fri, 27 Mar 2009 22:20:40 +0000

@ Scott – I’d say that you and the Nice Mr Doctor Benefactor are about to part company …

… but, we’ll discuss the whys, the whens and wherefores in the next post