A couple of weeks ago the press reported on the sale of James Hull’s classic car collection. The auctioneers have put an estimated value on the collection of a little over £100 million. (See http://www.dailymail.co.uk/news/article-2630564/Vroom-view-Dentist-cars-keeps-enormous-warehouses-selling-450-classic-vehicles-100-MILLION.html)
As a committed petrol head, I love these cars and I’d really like to own just a handful of them or even just a Series 1 E-Type! However, since JH’s collection made the news, I’ve had several conversations with dentists who were frankly incredulous at the value of his collection and instead of wishing him well with the sale, wanted to know how on earth he had managed to create it. Well, I think I know the answer. One car at a time over many, many years. And now, when classic cars are more desirable than ever, (see my favourite classic car event, http://grrc.goodwood.com/section/goodwood-revival/) JH is reaping the rewards from selling his collection.
In the 1990’s, I had a wonderful mentor, Omer Reed (http://www.omerkreeddds.com) and he said, to any dentist who would listen that, “if you can’t build assets from your income you are likely to be poor when you get old.” Dentists are amongst the high earners in our society (even the complainers usually manage in excess of £70k/year!) and yet they often spend all of their income hoping that the value of their practice at sale will see them right, through 30 years of retirement. Even at today’s sale values, that’s not very likely. What I struggle with is that most practice owners I meet are not actively growing their practices (and therefore the value of their practices). Maybe they’ve got a shed full of classic cars…
If you would like some help in maximising the value of your dental practice before you cash your asset, then call me or email me:
m. 07770 430576
e. simon.hocken@breathebusiness.co.uk
With all best wishes,
Simon