Has the market peaked?
As an active personal investor in the stock market, this recent unprecedented rally is looking rather top heavy in my humble opinion. The markets have taken some good profits reported by most of the banks and used this as an impetus for rising. In addition, certain key data regarding unemployment in the US was more positive than expected. However, as a keen observer, markets always over-react to news - in a good and bad way.
My feeling it is doing this now too, and that the market is due some sort of correction soon. When? I have no crystal ball, but fundamentally the US and UK commercial and residential property market plus their economies are still weak, no matter how much money is pumped into the economy the fundamentals are still weak.
Unemployment is rising, banks are still hesitant to lend to small businesses, public spending is high...so fundamentally still many problems do exist. This rapid growth in the markets will no doubt come down with a bang very soon, in my humble opinion.
However, you can still make money in a downturn too - you just need to short the stocks or indices!
Happy investing and trading
Wednesday, August 12, 2009
Monday, July 20, 2009
Setting Up In Practice in a Recession
Setting Up In Practice in a Recession
Over the last few weeks i have been visiting many high streets across the country, and as you have probably noticed already, many of the units in many shopping centres are now empty. This recession has forced the closure of many well established names including our beloved Woolies. In many thriving centres, Lidl, Aldi Iceland, and Wilkinson's are opening up, changing the face of UK High Street. In fact, since the demise of Woolies, 7 out of 10 of its stores still remain empty, with such discount retailers taking Woolies old prime sites.
The UK High Street is undergoing a revolution, as consumers search for better value, much of the time online. Most well known department stores, once the preserve of higher prices, all price match on the Internet now. They have to, else the customer will go somewhere cheaper.
However, this shift in profile of the high street, in my opinion, will mean a change in how UK High Street will look in the next 5-10 years. I believe increasingly local councils will change their planning needs, as many shop units remain empty. This presents an opportunity for any budding dentist, as i personally feel over the next few years it will be easier to get change of use from shop status to dental practice status. The future of the UK High Street will include many more service oriented businesses, whilst the shopper shifts their spending on commodities onto the Internet. The high street will be dominated by large company brands and service oriented businesses, such as opticians, dentists and even doctors. Customers will come to the high street for big brands and their services.
As i mentioned, this represents an opportunity for those entrepreneurial service providers. Although rents will be higher in such prime locations (compared to off high street locations), such locations usually justify the prices charged. Being in the centre of the action, where the potential for greater footfall is usually so much higher is usually worth the extra spend. I have seen this in many of our clients who sit in such high street locations.
Location, location, location is ultimately the best marketing investment.
So what should you do now?
Well, as i have said many a time, opportunities don't hang around. Whilst times are tough (especially for commercial landlords) it is a good time to try and get a bargain and set up your own practice. Will it be easy to do? No, but rarely are the great things in life easy.
So if you are one of those dentists wanting to make that move but still feel scared about doing it, good, that is exactly how you should feel. Setting up a practice is not easy, and it is definitely for everyone, however the potential returns can be great, personally and financially.
If you take no risk, the rewards will be minimal, but if you take some risk (managed properly) the potential upside is big. So if you have some savings, lets £50k, you could put it in a savings account and after 5 years, with current interest rates have around £56k. Alternatively, if you use these savings, use your skills of dentistry, raise some finance and combine that with some business and entrepreneurial flair, that £50k could be worth much nearer £500k after 5 years (assuming you set up a 2 surgery practice)! That's not a bad return in anyone's book.
Of course, it isn't so simple, else every dentist and his nurse would be doing this. But if you want to get on board, and take that massive step to setting up your own practice, then you need to come along our "Setting Up In Practice" event on Friday 18th September in London. This is the only event of its type we are holding this year, so don' t miss it.
In this one day event, we will cover all the aspects of setting up a successful practice, Private AND NHS, but we will also be highlighting what you should be looking for when buying a practice cheaply.
So If you really want to open up your own dream practice or buy the right type of practice for you, and build long term asset wealth, this seminar is for you!
During this 1-day seminar you will gain a plethora of theoretical and practical advice from two experts who have set up a multitude of private dental squats across the UK. Moreover, you will learn first hand the real deal in how to set up a successful practice in a short period of time. To book your space, please click here.
Please note the pricing for this event doubles every month, so book early to avoid paying the higher price as we are doing this event only once in 2009!
Book in July - £100+VAT
Book in August - £200+VAT
Book in September - £400+VAT
Book by 31st July 2009 to get your seat for £100+VAT.
We will be only doing this event once in 2009, so make sure you book today, as i can assure you this will not happen again until 2010. If you want to set up your dream practice AND grow your wealth whilst being a dentist, then this event is for you.
Have a fun week ahead!
Arun
P.S Spaces are strictly limited, so if you want to book, make sure you book here today. �
Wednesday, July 8, 2009
To Laugh...
is to risk being a fool
to weep is to risk appearing sentimental
to reach out for another is to risk involvement
to expose feelings is to risk rejection
to place your dreams before the crowd is to risk ridicule
to love is to risk not being loved in return
to go forward in the face of overwhelming odds is to risk failure
but risks must be taken because the greatest hazard in life is to risk nothing
the person who risks nothing, does nothing, has nothing, is nothing
he may avoid suffering and sorrow, but he cannot learn, feel, change, grow or love
chained by his certitudes, he is a slave
only a person who takes risks is free
to weep is to risk appearing sentimental
to reach out for another is to risk involvement
to expose feelings is to risk rejection
to place your dreams before the crowd is to risk ridicule
to love is to risk not being loved in return
to go forward in the face of overwhelming odds is to risk failure
but risks must be taken because the greatest hazard in life is to risk nothing
the person who risks nothing, does nothing, has nothing, is nothing
he may avoid suffering and sorrow, but he cannot learn, feel, change, grow or love
chained by his certitudes, he is a slave
only a person who takes risks is free
Monday, July 6, 2009
One Book That Changed My Life Forever
One Book That Changed My Life Forever
I was reminded by Mahen the other day about a book we both read around 5 years ago. The book in question, was called "Rich Dad, Poor Dad" by Robert Kiyosaki.
This book changed my life forever.
Picture this, back in 2002, i had just quit my highly paid big six figure salary job, and was feeling pretty good about myself. However, i had no plan as to what i was going to go and do. I had been married to a dentist (Smita) for around 6 months, and could quickly see she did not want a layabout of a husband sitting around at home most days (besides, being a very driven person, sitting at home was not what i wanted to do, i had quit the City to do my own thing!).
Well after 6 months of travelling and charity fund raising, i was recommended to have a read of "Rich Dad, Poor Dad". Being the cynical guy that i am, i thought initially, what do i need to learn from a book? At 28, in my last 2 years in the City, i had made more money than many people had in a lifetime. Anyway, curiosity got the better of me, and so i decided to have a good read of it. I did not regret that decision.
So what did i learn from the book?
Well the book traces the author's life from the age of 9, comparing the financial teaching that he received from his own, highly academically intelligent, real dad ( a doctor), and that of his friend's, financially intelligent, dad. Having experienced first hand the teaching and upbringing resulting from both of the dads, he is able to reflect on how they differ and how these differences had a profound effect on financial wealth.
The book for me highlighted, that working flat out, earning a high income was not the answer to growing wealth. Up until 28, that had been my strategy. Increase my income and i would become super wealthy. However, with such high income, come hig taxes, so seeing 40% of my income go each year was not much fun.
However, the book taught me (yes a qualified Chartered accountant, successful City Boy) the answer lay in creating and buying assets (cheaply) which then provided cashflow. By creating or buying assets cheap, my asset base would grow in value and my net worth would grow considerably. This meant for me in 2002, that Samera was started on a shoestring, no loans, just some innovative ideas and hard work in the early days from a core team. Whilst The Neem Tree required a certain level of financing, but with the right business strategy to move it forward. Our aim was to grow these businesses into valuable assets in their own right. Income was not our focus (only enough to cover our monthly needs), asset wealth creation was .
Almost 7 years on, i can safely say this strategy has worked 100% for us. Our liabilities, are low, cashflow is healthy, but most importantly our asset wealth is very strong. This provides us with a firm foundation to take on the next phase of our expansion strategy (you didn't think we would sit still?).
Focusing on asset wealth creation as opposed to income generation, has saved us considerable amounts in tax, and enabled us to build net asset rich businesses. This was the book that started it off to me, so if you have not ,read it, and if you have read it already, read it again, this is one of the best books in the market for taking charge of your own financial future.
So what about dentists?
Well like myself at 28, i see many dentists who have fallen into the same trap as i had up until 28. They have big liabilities, their income is high, their taxes are high, and so ultimately their cashflow is usually poor, and after all the sums (after taking into account all the large loans they have, especially if they have bought a practice in the last couple of years), their net asset position is not great even when working 60 hours plus per week.
Well as some of you may have come to know, i have never followed the well trodden path, i always invest when everyone is fearful (like now) and do things a bit differently. If you want to become asset rich, firstly read "Rich Dad, Poor Dad". If you enjoy reading this book, then secondly book yourself on our "Setting Up and Buying a Dental Practice in a Recession" event on Friday 18th September 2009, at our offices in London. You can read much more about this here.
Please note the price doubles every month until the event. Book in July for £100+VAT, book in August for £200+VAT, and book in September for £400+VAT .
We will be only doing this event once in 2009, so make sure you book today, as i can assure you this will not happen again until 2010. If you want to grow your net asset worth by being a dentist, then this event is for you. �
I was reminded by Mahen the other day about a book we both read around 5 years ago. The book in question, was called "Rich Dad, Poor Dad" by Robert Kiyosaki.
This book changed my life forever.
Picture this, back in 2002, i had just quit my highly paid big six figure salary job, and was feeling pretty good about myself. However, i had no plan as to what i was going to go and do. I had been married to a dentist (Smita) for around 6 months, and could quickly see she did not want a layabout of a husband sitting around at home most days (besides, being a very driven person, sitting at home was not what i wanted to do, i had quit the City to do my own thing!).
Well after 6 months of travelling and charity fund raising, i was recommended to have a read of "Rich Dad, Poor Dad". Being the cynical guy that i am, i thought initially, what do i need to learn from a book? At 28, in my last 2 years in the City, i had made more money than many people had in a lifetime. Anyway, curiosity got the better of me, and so i decided to have a good read of it. I did not regret that decision.
So what did i learn from the book?
Well the book traces the author's life from the age of 9, comparing the financial teaching that he received from his own, highly academically intelligent, real dad ( a doctor), and that of his friend's, financially intelligent, dad. Having experienced first hand the teaching and upbringing resulting from both of the dads, he is able to reflect on how they differ and how these differences had a profound effect on financial wealth.
The book for me highlighted, that working flat out, earning a high income was not the answer to growing wealth. Up until 28, that had been my strategy. Increase my income and i would become super wealthy. However, with such high income, come hig taxes, so seeing 40% of my income go each year was not much fun.
However, the book taught me (yes a qualified Chartered accountant, successful City Boy) the answer lay in creating and buying assets (cheaply) which then provided cashflow. By creating or buying assets cheap, my asset base would grow in value and my net worth would grow considerably. This meant for me in 2002, that Samera was started on a shoestring, no loans, just some innovative ideas and hard work in the early days from a core team. Whilst The Neem Tree required a certain level of financing, but with the right business strategy to move it forward. Our aim was to grow these businesses into valuable assets in their own right. Income was not our focus (only enough to cover our monthly needs), asset wealth creation was .
Almost 7 years on, i can safely say this strategy has worked 100% for us. Our liabilities, are low, cashflow is healthy, but most importantly our asset wealth is very strong. This provides us with a firm foundation to take on the next phase of our expansion strategy (you didn't think we would sit still?).
Focusing on asset wealth creation as opposed to income generation, has saved us considerable amounts in tax, and enabled us to build net asset rich businesses. This was the book that started it off to me, so if you have not ,read it, and if you have read it already, read it again, this is one of the best books in the market for taking charge of your own financial future.
So what about dentists?
Well like myself at 28, i see many dentists who have fallen into the same trap as i had up until 28. They have big liabilities, their income is high, their taxes are high, and so ultimately their cashflow is usually poor, and after all the sums (after taking into account all the large loans they have, especially if they have bought a practice in the last couple of years), their net asset position is not great even when working 60 hours plus per week.
Well as some of you may have come to know, i have never followed the well trodden path, i always invest when everyone is fearful (like now) and do things a bit differently. If you want to become asset rich, firstly read "Rich Dad, Poor Dad". If you enjoy reading this book, then secondly book yourself on our "Setting Up and Buying a Dental Practice in a Recession" event on Friday 18th September 2009, at our offices in London. You can read much more about this here.
Please note the price doubles every month until the event. Book in July for £100+VAT, book in August for £200+VAT, and book in September for £400+VAT .
We will be only doing this event once in 2009, so make sure you book today, as i can assure you this will not happen again until 2010. If you want to grow your net asset worth by being a dentist, then this event is for you. �
Tuesday, June 30, 2009
Emotional Strength
At school we are all taught to do well academically, or to excel at sport or the arts. We are measured by our success in academia by our grades or the height we reach in our sports. However, we are never measured on our emotional strength.
I know so many individuals who are great at sport or who have the best degrees possible, yet emotionally they are weak. Weak? Yes, weak in a sense that they have not trained their emotions. They have trained their academic brains, or sporting prowess but not their emotional strength.
Yet, if you look at some of the most successful entrepreneurs and individuals they are emotionally in control. They have been through the ups and downs of running their own show, but by constantly challenging their emotions they have created the emotional strength they require to succeed in life today. Being a successful entrepreneur requires emotional strength...do you have it? Or do you need to develop it?
I know so many individuals who are great at sport or who have the best degrees possible, yet emotionally they are weak. Weak? Yes, weak in a sense that they have not trained their emotions. They have trained their academic brains, or sporting prowess but not their emotional strength.
Yet, if you look at some of the most successful entrepreneurs and individuals they are emotionally in control. They have been through the ups and downs of running their own show, but by constantly challenging their emotions they have created the emotional strength they require to succeed in life today. Being a successful entrepreneur requires emotional strength...do you have it? Or do you need to develop it?
Monday, June 29, 2009
The Truth About Your Accountant
Face facts, your accountant probably knows very little about your business. Yes they may have prepared your annual accounts, told you how much tax to pay, but do they know the impact of a closed lunch hour on your annual profits? Or the impact of changing the price of your crowns on your annual take home pay?
Probably not.
As a general dentist you probably are not going to carry out complex orthodontic work, or specialist endodontic work, you would refer this to a specialist colleagues of yours.
Well the same principle applies to your choice of accountants you use to advise you. Small or big, in these changing dental times, it is now more important than ever to have advisors who know their subject. I can proudly say, at Samera we eat, live and breath dentistry. By having our dental practices, we see and experience many of the same problems our clients face every day, so not only can we relate to you, we are always looking for ways to overcome the many problems you face daily, just like we do.
If you are unsure if your accountant knows his stuff about dentistry, ask him (or her), amongst many other, the following questions:
1. Does he know what Invisalign is and how much should you be charging for it in your practice?
2. What treatments provide you with 80% of your profit in your business?
3. What non financial Key Performance Indicators should you be monitoring in your practice?
4. How can you increase chair occupancy through low cost marketing strategies?
5. What gross profit margin does a hygienist generate compared to an associate dentist in your practice?
6. What patient cancellation policy should you have in practice?
7. What hourly rate should your fees be set at to ensure a profit margin you desire?
8. What remuneration strategies should you have in place for your Dental Associates? Should you be paying 50% of gross fees or higher/lower?
9. As a % of turnover, what should your staffing costs be?
10. How can you make more money, than you currently are, in dentistry?
These are just the tip of the iceberg. In today's climate your accountant should be able to answer all of these questions easily along with the pre-requisite tax advice. If not, then perhaps it is time for you to demand more or make a change.
Probably not.
As a general dentist you probably are not going to carry out complex orthodontic work, or specialist endodontic work, you would refer this to a specialist colleagues of yours.
Well the same principle applies to your choice of accountants you use to advise you. Small or big, in these changing dental times, it is now more important than ever to have advisors who know their subject. I can proudly say, at Samera we eat, live and breath dentistry. By having our dental practices, we see and experience many of the same problems our clients face every day, so not only can we relate to you, we are always looking for ways to overcome the many problems you face daily, just like we do.
If you are unsure if your accountant knows his stuff about dentistry, ask him (or her), amongst many other, the following questions:
1. Does he know what Invisalign is and how much should you be charging for it in your practice?
2. What treatments provide you with 80% of your profit in your business?
3. What non financial Key Performance Indicators should you be monitoring in your practice?
4. How can you increase chair occupancy through low cost marketing strategies?
5. What gross profit margin does a hygienist generate compared to an associate dentist in your practice?
6. What patient cancellation policy should you have in practice?
7. What hourly rate should your fees be set at to ensure a profit margin you desire?
8. What remuneration strategies should you have in place for your Dental Associates? Should you be paying 50% of gross fees or higher/lower?
9. As a % of turnover, what should your staffing costs be?
10. How can you make more money, than you currently are, in dentistry?
These are just the tip of the iceberg. In today's climate your accountant should be able to answer all of these questions easily along with the pre-requisite tax advice. If not, then perhaps it is time for you to demand more or make a change.
Monday, June 15, 2009
Calling the Market
As some of you maybe aware, over the last few months i have been going back to my roots, of financial analysis and trading. I have got so back into it, very excited, and are in fact now teaching courses on my expertise. This has been one of the main reasons i have not had time to write this blog, as i have been poring over charts, and online information
My expertise which was learnt several years back is now stronger than ever. I have been watching the UK and US markets closely, and have seen my portfolio grow in double digit % figures in the last 3 months. I feel i managed to call the market at the beginning of March. However, at the moment i do feel the market may well be going through a small correction, with certain stocks due a correction, whilst more defensive stocks may start growing at better rates.
With so much volatility in the market, this is a great time to be in the markets. You can make a lot of wealth create in these times.
Watch this space on all aspects financial, as over the last 12 months, i have realised my forte is in 3 areas:
1. business, marketing and entrepreneurship
2. internet marketing concepts
3. investment and trading
so this blog will increasingly become come dedicated to these areas, plus a few more issues that maybe playing on my mind!
Have fun
arun
My expertise which was learnt several years back is now stronger than ever. I have been watching the UK and US markets closely, and have seen my portfolio grow in double digit % figures in the last 3 months. I feel i managed to call the market at the beginning of March. However, at the moment i do feel the market may well be going through a small correction, with certain stocks due a correction, whilst more defensive stocks may start growing at better rates.
With so much volatility in the market, this is a great time to be in the markets. You can make a lot of wealth create in these times.
Watch this space on all aspects financial, as over the last 12 months, i have realised my forte is in 3 areas:
1. business, marketing and entrepreneurship
2. internet marketing concepts
3. investment and trading
so this blog will increasingly become come dedicated to these areas, plus a few more issues that maybe playing on my mind!
Have fun
arun
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