Podcast Episode 88 – Diversification the 1% Way – Dr. Melva Pinn-Bingham
Episode 88 – Dr. Melva Pinn-Bingham is a board certified radiation oncologist, serial entrepreneur, and investor. She understands that the financial opportunities of high income earners are different from those in lower income brackets. Through her podcast, she provides strategies for top income earners to create multiple streams of income to support the career they want to love again. So, if you’re looking for ways to diversify your income streams so you have greater financial security and career satisfaction, tune in, because she’s going to teach us how to do diversification the 1% way.
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Meet Dr. Melva Pinn-Bingham
Dr. Melva Pinn-Bingham, MD, is a board certified radiation oncologist, serial entrepreneur, and investor.
Through her online private community, The 1% Code Collective, she provides strategies for top income earners to create multiple streams of income to support the career they want to love again.
She is also the host of the newly launched podcast, The 1% Code Podcast
Connect to Dr. Melva Pinn-Bingham
- Dr. Melva on Facebook
- The One Percent Code Podcast on Apple
- And on Spotify
- The 1% Code Collective Facebook Group
Most physicians and dentists come out of training programs with a huge amount of personal debt and little to no idea of how to actually run a clinical practice. This Facebook community is for anyone who wants to learn more about how to manage their business more successfully and master their personal finances.
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Access the Show Transcript Here
Diversification The 1% Way
2021, Brent Lacey And The Scope Of Practice Podcast
The Scope of Practice Podcast
[0:00] If you’ve been paying attention to the stock market over the last month or so you may have noticed the markets really took a nosedive
on the heels of the announcement of the discovery of the Omicron variant of covid you know markets really don’t do well with uncertainty.
And I think a lot of people are worried about the virus and a lot of other people are worried about the government’s response to the virus so
when you make financial decisions based on fear or impulsivity it’s almost always a mistake so While others are panicking and dumping their portfolios smart and Savvy investors are looking for opportunities instead.
That’s the difference between success and failure when it comes to investing successful people don’t panic.
On today’s podcast we’re going to hear from a physician who will talk to us all about the kind of opportunities that we can be taking advantage of while other people are freaking out.
This is a great time to look for new Ventures and I’m excited for you to hear her perspective let’s kick it.
[1:00] Welcome to the scope of practice podcast where we help busy Healthcare professionals learn to manage their businesses successfully in master their personal finances.
Now here’s your host dr. Brent Lacey.
[1:13] Hey all thanks so much for joining me for the scope of practice podcast where you can get the knowledge and resources you need to grow your leadership skills your business and your personal finances.
Welcome to episode 88
if you haven’t already subscribe to the podcast please be sure to go ahead and hit that subscribe button right now and also there’s a button at the top of the podcast player that will allow you to turn on
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My guest today is dr. Melva pin Bingham dr. Melva is a board certified radiation oncologist serial entrepreneur and investor she understands that Financial opportunities of high income earners are different.
From those in lower income brackets
and through her podcast she provides strategies for top income earners to create multiple streams of income to support the career they want to love again so if you’re looking for ways to diversify your income stream so you can have greater Financial security and career satisfaction
this episode is definitely for you so here is my conversation with dr. Melva.
[2:40] Hey y’all I am super excited to welcome my guests today to the scope of practice podcast this is the founder of the 1% code podcast.
Dr. Melva pain Bingham.
Dr. Melva thanks so much for joining us today appreciate it happy to be here happy to be here thank you yeah so I kind of love this idea of the one percent code it’s funny because I.
[3:01] You know you hear people talk about the 1% and immediately you go oh no it’s it’s evil it’s the bad at people it’s the it’s the people at the top of the food chain that are just stomping on everybody else and oh no you can’t do that in
you’ve embraced that you said no you know what we’re going to we’re going to Champion these folks we’re going to help them out you know everyone needs help us not just
you know the 99 percent of the one percent need help to and if they have help maybe they can help more people so so what is this,
concept of the 1% code is this some special formula you’ve unlocked help people out or is this just a great name to help the high-income earners to achieve
the financial Independence for themselves right I love the question yeah and what she said embrace it I’ve definitely embraced it after not doing that for a while.
For me the concept of the one percent is.
It’s about doing less I know when I was thinking about starting my podcast it was you know get it done because we always get it done always get it done and I was talking to one of my mentors and she’s like.
[3:55] People in your circle you always get it done you want to be less busy and you want to get less done and so for me the 1% code it’s all about Leverage.
[4:04] How can I look at any business model or opportunity and add leverage to that how can I remove myself from this while I grow it right and then for the 1% I think about just strategically thinking about
everything you do so like there’s nothing that I do now or that when
you know working with other clients and Physicians that doesn’t have some strategic plan and an exit strategy and I think you know so it’s leverage its strategy its systems its scale and so the 1% to me is making money in a
very different way than many of us do currently with are employed jobs.
[4:39] So now when you say leverage I think he people here leverage and most of the time they think Deb but that’s not really what you’re talking about right you’re talking more about you no double-dipping your time or about like.
Finding ways to help things grow that you’re not having to be as active in it’s all right
exactly right and you know it’s interesting because and I’ve talked to I was on dr. Mark Costas Dental preneur show and when I said leverage he immediately went to the debt and credit I was like yeah that’s part of it but it’s also.
Removing yourself you know so like when I first got into this concept of Leverage I looked at it as Outsourcing you know something as simple as.
[5:15] Automations that I could set up in my life you know whether it was email or ordering toilet
paper you know every month so the kids have and I’m not at Walmart in the middle of the night or you know getting someone that checks my
voice memos for me you know this is before they like texted it but it’s removing yourself and like you said to grow without you having to be there so I’m a mom a wife and I have three kids
and I had to figure out how to be everywhere at the same time and after I figured out it wasn’t possible the next next thing was Outsourcing right to have someone else there well one of the things that I know you’ve talked about a lot is the concept of
translating a high-income into a high net worth.
Right so you talked about taking a six-figure income and turning it into a seven-figure net worth and I think people misconstrue the concept of of wealthy and when people think of wealthy they think of someone who makes a lot of money but.
That’s not necessarily enough as you talk about a lot on your show so maybe you could help us start to understand what is this what is the difference between someone who’s a high income earner and someone who is wealthy or financially independent how do those
how are those connected but how are they different I think it starts with decisions and strategy so what I found is.
I started out I feel like very early because I’m in a very specialized medical career so we have a nice healthy income but I didn’t have the system to grow that initially.
[6:42] It was like I used it to pay the bills do some fun things but I don’t think the first decisions we had to invest were wise to grow versus someone who.
A lot of people I know who made less they did things like you know you’re familiar with the fire strategy and taking a smaller income and you’ll hear the people that.
You know lived in an RV for like six months out of the year and next thing you know now they’re living on the island and they have a high life meanwhile a lot of us has high income earners.
[7:10] We don’t have the money in the bank we don’t have that asset so I think a lot of it comes with strategy like what are you going to do with the money you’re bringing in and it may be a shaded view but I feel that a lot of us that are high income earners.
Or capitalizing on the wealth part because I don’t really think we’re hungry enough and.
It’s almost like if you haven’t been forced or been into a situation where you know like you’ve hit rocks bottom you’re not really going to make those changes.
[7:37] You know unless you’re talking to someone else unless something pushes you to make that change to say okay I’m bringing in this high-income.
But that’s not enough I want to have money in the bank I want to own assets I want to have a legacy for my children I want real wealth and I think.
I don’t know if this answers your question but I just think there’s this flaw that after we’ve been in these positions High earn high income earning positions that.
[7:58] We work so hard it’s almost like you burn out
and you’re not really working on that next strategy to position yourself at unless of course you come from a background that this has been taught for generations and I don’t think that’s the story for everyone in our.
[8:11] Well I don’t think it’s the story for hardly anyone in the position I mean it’s I think you’re a hundred percent right.
We spend a long time in medical training and in early in our medical career really.
You know bogged down in debt and making nothing in medical school and very little in residency compared to how much we work I mean I worked it out one time actually did the math on it and I think we were making.
Almost minimum wage it was.
[8:37] Close but I don’t think it’s quite a minimum wage so you’re not making very much or you’re making very little for legitimately a decade right so four years of college four years of med school minimum three years of a residency so.
You know more than 10 years and somewhat sometimes upwards of 15 or 17 or something for some Specialties and so I think it’s very common for people to look at that and go.
Well you know I’m not making any money and I’m poor I just don’t have very much stuff and then all of a sudden you get to a point where.
Now the tables have turned you’re making that big attending paycheck you’re like great I’m making a lot of money.
[9:09] I must be rich now and I think we miss attribute the concept of income to.
And translate that into being wealthier being being financially independent and as we know you’re not very far at any time from a financial disaster unless you’ve got.
A really solid strategy a really solid plan for actually continuing so it mean if you lost your job today.
Everything comes crashing down around you so I think that’s kind of what you’re talking about with this idea of the 1% code is saying okay look
the high-income is great it’s helpful it’s huge it’s important it’s valuable and you worked hard for it and you do meaningful work for it but no you got to take that to the next level so yeah so I think that’s that’s hugely important.
Why do you feel like it’s not enough for Physicians to focus on making a good income you know because you can have a good income and you know you can save that but you talked a lot about.
You know this idea of leveraging you know taking it you know and and and applying that income into something else so why is it so important for us to find ways to diversify our income stream instead of just focusing on
our primary physician income.
You know I and I think my answer today may be different than my answer next week and that’s because of change I think change is inevitable and it’s going to happen and I will tell you I have just been like.
A career focus a new like my father is a physician such as a physician my cousin’s you know a physician she has a.
[10:38] One of the med school buildings at UVA is named after her pin dr. Vivian pin so I was brought up in this community of very high achievers.
[10:46] But change happens you know what I think being in the middle of this pandemic everyone can say
you want to have options so if you’re not happy anymore if you’re not challenged anymore you’re not forced to do something you don’t want to do and I also talked about this concept of turning your job into a hobby
one of my mentors mentioned to this you know mention this to me a while ago he’s a radiation oncologist also.
He always was Diversified in like medical real estate about a farm he looked into like this massage therapy chain that a couple people invested and it was the concept of.
Working now making as much as you can when you’re young but only going to work because you have to not because you know because you want to not because you have to and I think you need the diversification because of change you know so like for example.
Things come up that.
You know maybe you’re a priority shift maybe you have a child that has a learning disability maybe you have a tragic accident that happens maybe you’re in a clinic that’s overrun by administrators and it’s no longer about the pier medicine that you got into it for.
You want the ability to be able to just move and stop when you want to and so for me.
[11:48] I think I had some difficult times in my career very early on where it was just like that decision this will never happen to me again.
I will only be in a place to work with the paycheck because I’m happy because it brings me joy because I’m you know working in my god-given gift and.
I think like the timing that that happened for me was it was very early on it was after my first job after residency actually and.
I meet a lot of Physicians who just feel stuck as a matter of fact I work with one Doctor Who was there for five years before I came to that practice
and after she saw what I did and the transformation almost gave her the courage to say you know what I’ve been here five years I haven’t been happy they haven’t treated me this well and she left.
Now I was a little nervous that that happened that she left after she saw what I did but luckily she’s in the better practice and she’s happy now but that’s a long way to say
change I think you need to be ready for change so you can embrace it the way you want.
[12:39] No it’s great well I I know people are sitting here going okay dr. Melva I am on board I love this concept help me make money help me get more solid help me get more
financially independent I’ve got two hundred thousand dollar-a-year income 150,000 dollar a year income 500,000 whatever it is so how do I do that well let’s start to walk through some of those specific ideas maybe to help people
turn this concept into reality so let’s let’s start a little bit more maybe more General will get medical specific here in a second so.
What are some strategies that are available to us that are maybe also available to the public more generally that we should start considering like you had mentioned for example real estate is that something we should be strongly considering or like
you know I know people are getting into day trading or different you know stocks or invest in the stock market things like that so what are some ideas of ways that we can start diversifying your income streams,
right so I think before we start diversifying I want us to start with the numbers because I think as positions in particular we don’t focus on the numbers.
So if we’re looking at what we’re diversifying is it an exit strategy is it a vacation plan you know what outcome do you want and then second I say before we look at the strategy I want you to do some type of risk.
Analysis ask a financial advisor Google and figure out are you low risk high res I’m high risk like my husband and I will just.
Do things that other people they would cringe at me like oh my God I can’t believe you guys did that and they see that they see the fruits of our labor but not at the end so I think once you know your numbers and you know your risk type and you can.
[14:06] So I feel like real estate is probably the easiest one to start in most people if they haven’t already gotten into like some type of rental right now in today’s market.
You can start with a vacation home if you don’t have it.
[14:17] That’s in an area that makes sense as a short-term rental a long-term rental I think that’s an easy low-risk something because with real estate you’ll always have an asset.
I don’t know that everyone should go get into Fix and Flip with the
a large home I think other problem I see a lot of high income earners do is they buy a half a million dollar mansion and think they can turn into a rental it’s not a guarantee everybody doesn’t live there
I recommend that you start in something that first time home buyer or a VA loan could qualify so it depends on your area but around 100-150 note No Greater I think just start slow
right so get it where it pays for itself and there’s lots of Leverage you can do as far as funding I think that’s the easiest start.
Day trading so my husband does that I got into it took some classes.
[15:02] If you’re going to do that I think again you take it slow there’s a lot of Education you need to know your risk tolerance a lot of Physicians I know are making a lot of money doing that so I would have a mentor if you got into that.
[15:12] And then I’d say probably the third for me is collaboration so I think there’s a lot of Investments that you can do for example we did acquisition.
Of a current franchise we.
[15:24] Cold Stone Creamery owners were working on the second location and we own a Subway and so it was an existing business that you can come in and kind of tweak as a CEO level.
And so I think that’s another thing that people haven’t looked into or collaborations and other collaboration we did for example
which I think with your network as a high income earner their people around you doing this is with
a I so artificial intelligence and we went in with the group formed an LLC and.
[15:49] We’re having a nose but this week so I hope they’re getting close to selling because I think we’re at three years into this one now we came in at the fence friends and family room so those are couple was that helpful
I love it Noah’s great can you talk a little bit more about the franchising concept because I know that that’s a very Niche thing that I’ve definitely had some people ask me about that on the blog and I’ve never personally invested any kind of franchising but I definitely know some people that have done that with.
As you said some Quick Serve restaurants or some local businesses things like that that have
some of whom have done very very well on some of whom it’s been a huge hassle and thoroughly non profitable for them so can you talk through that a little bit.
You know so my best advice for the franchise when we got into the franchise model my husband and I my husband is a stay-at-home dad and he does the real estate investing side he oversees the franchises.
Our goal was to get to the point that we have 10 15 maybe 20 stores with the model so one of our mentors owns I think
50 stores now over 30 States and he’s in one franchise and then he started his own franchise and another Quick Serve business and so the goal would be.
[16:58] To come into almost like a fix and flipping real estate if you’ve done that before and I would I relate it to paint and carpet so you want to find a business that has a solid structure or solid franchise.
In the only reason they’re not monetizing your scaling that business is that there may be some paint missing maybe some carpet needs to be changed out and then.
Going into it not with a goal to make a six-figure income but something that you can grow and scale with management.
And then you’re taking a percent out of it so for example our first year in Cold Stone.
We profited probably over 150,000 I’d say pure profit was the first year we increased the sales by 100,000 we did very well.
There’s a reason we did very well.
There was a casino going in next to the Cold Stone Creamery it’s a strong franchise the franchise was over I believe 50% something ridiculous during the pandemic because they pivoted with their marketing.
So we knew the business that was coming into the location the only thing that was missing the owner was leaving because his father was sick.
[17:57] He’d been there for 10 years it was a solid base we made strategic changes as far as the flow into the restaurant we bought in management we capitalize on some things really really quickly so when I say painter carpet I’m saying looking at a franchise as okay we can come in,
and we’re not I’m not serving ice cream like I’m at home now talking to you I’m not like scooping ice cream but we’re so peripherally over the business but we have a regional manager.
So we’re not in there day in and day out I can give you an opposite one that didn’t work as well which is our Subway which is.
[18:25] We’re happy to break even for that one it’s not super profitable it’s right beside a Starbucks but the area is really hard to get employees.
So we’re working through a lot of things with that we were going to invest to remodel that a 25 thousand dollar investment but we opted not to because the numbers weren’t right.
[18:41] So when I say risk level this is what I mean like I even though I have a lot of wins there’s some difficult things that we go through.
But again before we started we knew what the exit strategy is so we have a number for this franchise that if it’s not working we know somewhere we’re going to sell.
[18:57] So I guess my in story but franchise is that I would get into it to learn the business.
You have to research a franchise ownership the rules because some franchise models for example.
Have you buy everything from them and that could take you if you have let’s say a bottle order you can get for 15 cents and you have to buy it from your franchise for a dollar
right and let’s say you’re stuck in that contract.
[19:19] So you really have to do that back in network of the franchise and then you want to make sure it’s a model that you don’t have to be in the store some franchises want you in the store owner operated they tell you you won’t.
You know you won’t survive if you if you do anything different.
So that’s why I think it’s really important but a franchise is it going to be like your million dollar per year you have to have volume you have to have multiple
one’s of those and it’s helpful to hear some different contrasting examples you know something that really work because I’m sure people heard the Cold Stone thing ago 150 Grand side where do I sign up for that yes you know but then you hear the subway sorry like oh maybe not so much
so let me go back to something you were talking about a second ago this idea of risk tolerance and I think this is a really important Concepts I want to explore this with you for just a second so
how do we determine
what our risk tolerance is it a trial-and-error process or is there is there a way that we can know going into various investment opportunities
that okay this doesn’t
feel writer doesn’t smell right I just have a have a bad sense about I mean how do we determine what our risk tolerance really is to know what kind of investment opportunities we can legitimately be pursuing.
So I went to start with a standardized questionnaire I think it’s some point I’d hope most of us learning this have talked to like a financial advisor or a banker and they have you do a questionnaire like I remember.
[20:37] Maybe was with Northwest Mutual when I first did my disability insurance they had me go through and say you know.
[20:42] Would you like to do this type of stock versus this type of group and they asked you questions so I would try to find something standard in the financial industry.
And then after that I think.
[20:53] As far as if a deal feels good or not if it works you really have to have a board of advisors and I think that making singular decisions on places that were not educated in is probably one of the.
[21:04] Biggest mistakes that we make is highly educated High income earners that we feel like okay we’ve done this so we can do that and it doesn’t always translate 100%.
So when I say Board of advisors I usually like to have someone that’s I don’t know
I’d say five or ten years ahead of where I am financially business investment-wise I like to have someone that’s maybe 20 years out I like to talk to CPA a lawyer and then I kind of have like that good friend who doesn’t do any business but they have that kind of
intuition because they know
what works for me and what I’ve done in the past and so there’s probably a million other people you can put on that board of advisors but I think it’s hard to know
like you don’t know until it happens sometimes how you’re going to feel and.
You know they kind of talked about it in basic terms right like when you’re doing investing you have your defense set up first and I remember when we first got into real estate investing.
I think we drove the financial advisor for Northwestern Mutual crazy because he said.
You know you want to have home run money he’s like that’s what I want your husband to start doing real estate investments in not your like
but it’s like you said I was in that phase of okay I’ve been at work resident for like 14 years at this point I’m ready to get out there and like live I don’t want to wait until I have the Home Run money so.
[22:18] We didn’t use our home run money at that time but looking back it probably was a safe thing to do so to answer your question I don’t really know the right answer but I think you should consider all of those things and have a team around you to help you decide.
[22:30] Yeah I think that’s really good advice and you know the two things that I always tell people
when it comes to investment opportunities whatever it is whether it’s something really simple like investing in stock market index fund or it’s something really complicated like buying a franchise or starting your own business
two big rules don’t invest in anything that you don’t understand.
[22:49] And don’t invest in anything that you can’t afford right so if you’re thinking well I’m maybe I’m going to do this cold stone thing ask yourself okay if you sing.
Thirty thousand dollars into it today in order to kick-start this thing and someone comes along and set the place on fire tomorrow and you get no insurance money from it is that a complete Financial catastrophe for you or is that a risk that you could potentially.
[23:11] And so you have to think in those terms because no business as you’ve just described with the subway thing no business has a guaranteed return for you.
And so you do the best you can and sometimes things just don’t work out so I think that’s really good well so let’s kind of move into maybe more medical specific things we talked about the day trading concept the franchising.
Real estate a little bit and we’ve definitely had a few folks come and talk about real estate Peter Kim on episode 6 and Danger ganesan episode 26 are both great.
Episodes where we talked about sort of long-term and short-term rentals which was really really great but let’s talk about maybe some more medical specific things because there are certain things that maybe are
unique to Physicians that are not going to be available necessarily to the public at large can you talk through some options that are available to Physicians that are unique through our businesses.
[24:01] You know it’s interesting so I’m an employed physician I know that might surprise you but as a radiation oncologist to start up your own practice there’s a lot of
there’s a lot of things you know like we’re watched by the you know home home security with nuclear sources and linear accelerators in a millions of dollars so I’ve never actually owned privately in the medical field but
but that aside I think there’s a lot of unique opportunities that I’ve seen other people do as far as again investment collaboration so
like look at this for example I think when we think kind of you know we step outside from our comfort zone their Physicians that own medical practices that aren’t in that specialty
or they own practices that are run by different level providers and I know there’s a lot of controversy over that
I haven’t done any medical real estate like medical real estate but I know there’s even a conference on medical real estate which I don’t know if you knew that but one of my friends went to when I think it was in Utah a couple weeks ago and I think
medical real estate probably issue Meek but I don’t know that I can really answer because I haven’t haven’t done anything specific for medical.
[25:03] Fair enough yeah and so a couple of things that I was like to think about for folks it’s always a great idea to just start Where You Are.
And so like you had mentioned real estate I know one of the things that a lot of people do for example is they’ll build their own building.
And that can be an incredibly incredibly advantageous thing so hey you get to design the building yourself you know exactly what you want you can
take the flow of how things go and have everything designed just just the way that you like it and then you know you are your own tenant you basically lease it to yourself so you’ve got a real estate
piece of real estate that has a really steady long-term stable tenant and then the as the building hopefully appreciates in value over the next few years eventually maybe you sell it.
[25:44] And if you are a stable tenant in that building and you take out a long-term lease that is really really valuable.
See you a real estate investment trust or a real estate venture capitalist or something like that and so I’ve seen people make.
Big Time Returns on that you know a couple hundred percent even so that kind of thing can be really valuable or I’ve definitely seen people do setup ancillary services like
as a gastroenterologist you know we have an infusion center for folks that are getting their infusions for you know for their inflammatory bowel disease things like that I’ve seen people that
I’ve seen people get really creative I talked to a dock in Mississippi one time they do Linens they have a linen service they have a laundry service they were finding that they had
so many Linens that they were changing out for patient gowns and and bedding and various things like that that they just they legitimately started a laundry service
and and that I mean something I would never have thought of before but it really has turned out to be quite lucrative for them it’s very interesting
so I think the opportunities are there and like you said with the franchise thing what a diamond in the rough I mean that just you know with the casino coming next door and that’s not going to be the situation for everybody obviously but
you know you keep your ear to the ground you look for those opportunities you talk to people you find out what’s happening in the world what’s happening in your community it’s amazing how many things are available to you just right where you are without having to
you know look in other states or other countries I mean it can be very very simple.
[27:11] Right and I think part of you know I like those ideas that you share because I think it’s interesting because I think I kind of knew I’ve done a lot of things outside of medicine because I need the limitations of not owning my own practice if that makes sense so I
for example I bought the piece of lamb beside
the employed Clinic I’m in now so while I haven’t open anything there like I had this big vision for Cancer Center like a support type of Sinner or maybe like a food truck it’s about it’s almost in a whole acre right where the hospital is
the politics I’m in a town so it’s a real towns in the politics are a little tough so I’ve kind of put it on hold but it’s almost like this
okay if you feel like your pigeonholed or there constraints that you feel like you can’t do something for example some of those examples you gave
what else can you do and I think that was my way of saying okay I can’t own the building I’m not going to have my own practice I can’t throw out like 10 million right now to open this this practice here but what can I do how can I contribute and still be an entrepreneur so that’s kind of how I think outside the
I love it well can you think of any business ventures that are maybe going to come out of this this new wave of all the covid shutdowns we’ve seen a lot of businesses closed but I’ve also seen a lot of people that have started brand new things.
So what kinds of things are you hearing people doing as we’re coming out of this new this economic crisis we’ve had the last two years.
[28:28] You know I feel like it’s all about the pivot and the change and this industry like we’re in this fast-paced industry everything is going your quickly one of the things I have seen in our franchise world is
they’re actually opening more kitchen only places like you know if you look at the chat I don’t know if you have chilies where you are but the Chili’s model they started a delivery only wing place I forget the name that you can only get on like doordash for example or GrubHub
and in the Cold Stone World a lot of the New York businesses because they hit the pandemic pretty bad there they’re opening up
just kind of like the freezer section where it’s only a delivery store so instead of running out you know like a 1500 or 2000 square foot space they’ve taken these smaller spaces playing
ping lesson real estate and the stores are doing greater volume because their delivery only stores so I feel like we’re going to see different models that are speaking to what people want
[29:21] You know so I feel like it’s more of that and it’s kind of like looking around to say okay where is that and how can I take like you said something I know and understand and apply it to that model to be able to.
Get into that Trend yeah and you know it’s great to hear different ideas from different people I remember we had Glenn Vo
on one of our earlier episodes I think was episode 12 or 13 he’s a dentist and he was talking about how they started and e-commerce store
for their patients they found a way to get in contact with a wholesaler for
like things like electronic toothbrushes and and various Dental Supplies and they’re able to basically sell it to their patients at,
cost or nearly so and so they make a little bit of money off of that and it’s massively helpful to the patients because they can do you can go right on the on their website and set and just say hey yeah I’m going to order this
toothbrush and this is what my dentist recommended or you know they just keep stuff stock right there so someone shows up to the office it’s like hey why don’t you know this toothbrush we’ve been talking about we’ve got you know 30 of them back here
want to take one home with you and then they can they can buy that they can build that and that’s.
[30:24] Very very simple thing that they’ve come up with or you know we had another fella dr. Paul Thomas I think he was on absurd 20 he’s a direct Primary Care doc up in Michigan
and he was talking about how they set up a pharmacy in their clinic and he said it was actually pretty easy to get his Pharmacy distribution license like a hundred bucks a year or something like that it’s just not that difficult now they offer that as a service for their direct Primary Care.
Patients just as a just they just have it as a service but that would not be that difficult to thing for a.
Primary Care office or an OBGYN office or even even a specialty office to to have some Pharmacy options available for folks and
you know again the none of these are ways by trying to gouge your patients or anything it’s a service you can potentially offer your patients and
potentially make some more money for yourselves but like you said if you create new streams of income you.
Not only are able to make more money and that’s valuable for you to reach your own financial goals but it also
increases your financial stability or Financial Security by not being solely dependent on your income so like if you’re not working for a week and you’re in an eat what you kill kind of model
you’re not taking all my paycheck that week but if you’ve got a pharmacy that’s running 24/7 when your partners are there then and you’re taking a distribution of that you still don’t give still got that coming in so then you’re not dropping down to nothing.
[31:42] Here’s interesting that made me think of another example so our local kind of urgent care it’s a private one but they have a pharmacy for I think there
your most-used prescriptions that you get out of an urgent care center that’s in house like you don’t even go to a window they just kind of bring it with you when you check out here and that model and then another
another friend he’s an oncologist they actually realize that their practice was bringing in a lot of the specialties
and they got really good at billing and so they started to offer that as a service to other specially oncology
clinics for billing so there’s I think like you said there’s a lot of opportunities but the problem is every physician every top income earner isn’t just like a natural entrepreneur so this is where if you’re not an entrepreneur already and the stuff kind of like you know it is like putting light bulbs off but you wouldn’t think of it yourself that’s when you.
You know Network you listen to like the scope of practice podcast you know you go outside of what’s normal for you and then you can
I think people see this a lot things that happen and under other Industries they translate over into your industry a lot of times it’s the concept in the model that works so I think you have to look for it
it’s a lot of people just like you and I talking about I can tell you’re an entrepreneur because you’re like yeah you can do this in this and I think of this but when I talk to people who aren’t there just like how’d you think of that.
[32:58] It’s because I heard someone like the seeds were.
Yeah and the same thing for me I mean I didn’t I didn’t start out if you asked me five years ago are you an entrepreneur session oh thank you very much I have no interest in that at all and over time you know just with listening to podcast and reading books and talking to learn and people.
I just learned enough about it that it became a not Out Of Reach concept and then when idea came along and said hey you know what I think I could really do some good by helping people.
In this particular way I had the knowledge and the skills that I needed to be able to take that leap but it was a lot of preparation beforehand has kind of accidental preparation because I was just doing it because I was interested but it really got me prepared so I must have listened to I don’t know.
Thousands of hours of podcast before I ever launched this podcast in the.
The blog in the website and the business and everything so so none of it happens in a vacuum none of it happens by accident well that actually brings up an interesting point then so as we think about these entrepreneurial
Concepts in the ideas of well I’d love to start a franchise or I’d love to be able to invest in an infusion center I’d love to be able to start doing some real estate stuff.
[34:04] It takes some knowledge as you suggested to figure out how to do that but it also takes some resources to figure out how to do that so if an opportunity comes along and we’re.
Five hundred thousand dollars in debt from student loans and have no emergency fund and you know we’re we can’t really take advantage of that so
how do we prepare ourselves now to be able to take advantage of some of these opportunities when they come our way next year or in three years or five years or whenever I think this is probably a touchy subject and I know everyone would
maybe disagree or agree with me but I think it’s priorities first.
[34:39] I think you have to do mindset work so if we don’t mention money mindset here abundance scarcity I think a lot of middle-class that scarcity mindset which a lot of us probably grew up in.
[34:49] You have to see how you value money how you value wealth what you do to attracted and what you do to spend it excetera and I think that comes into play
but then as far as your resources and this is why I’m saying this because you can get into more debt and you can have good debt you can have risky debt so.
A lot of people that start businesses.
Everyone doesn’t pay cash it would be ideal if you could just go buy a building for 500,000 dollars cash if you saved it or if you want to start now
you can look at different resources whether that’s some type of crowdfunding with your friends and family Network to build money if you don’t have that friends and family Network you can start saving if you want to look at
you know loans to take money out so when I was a senior at Duke University
I took out a student loan hopefully I won’t go to jail but I took out a student loan to buy a mini donut machine to start my mini donut business and paid it off after like the first or second event for Midnight Madness in basketball but I didn’t have any student loans because I went to
undergrad on a bee and Duke academic scholarship so I didn’t have any debt I didn’t have any loans I was like okay
I’ll take out a Sallie Mae loan for a couple thousand bucks but you know I’m not saying you have to take out a student loan to buy your business but they were loans there that have higher interest.
But again if you have a strategy you have a network you have a board of directors.
[36:05] You know you have a strategy for going in to get into these things you can take out a loan that doesn’t have a zero percent interest rate.
And leverage that money and slowly pay it back I think the biggest thing
we took out some higher-risk loans they were just doctor loans shark loans I don’t know that I would do that again I think you can build a relationship with bankers.
Use some of your assets home equity loans like there’s a lot of ways to fund it I know this topic makes people uncomfortable that’s why I kind of preface it with that
but you have to use money that you’re taking out at a percent interest to make money if you’re taking out money to like go buy fancy cars and shopping that’s just not going to
it’s going to go – so that’s my piece on that sorry yeah no it’s this hey you’re the expert here so we want to hear your opinion that’s why we had you on his perfect it’s perfect.
Speaking of advice so
a lot of people are going to come along and give us advice you know I hear this from folks all the time you know someone says Hey listen a guy told me about this this investment opportunity and it seems like a really great idea I’m really excited about it and people get
kind of drawn into the glitz and the Glam of it and the promise of the returns and all that
and then maybe don’t stop to consider what the potential downsides are the potential risks are so.
[37:18] Everybody that pitches us to deal is going to think it’s the best deal ever so how do we start to recognize good deals from bad ones
I feel like we get pitched a lot and sold to a lot like I feel like I’ve been sold a lot of programs and courses and Deals and investment deals
I don’t think that you should start saying yes until you’ve evaluated at least.
[37:38] I don’t know I’m a neurotic crazy number like 10 I think you need to sign the NDA.
Study the deals and kind of have your own like list of okay what are they offering what’s the timeframe Who’s involved,
are they okay if I bet this with a lawyer with my CPA again you have your board of directors but you have to look through a lot of deals until you really know.
What’s on this going to be like if you looked at five deals right now let’s say the big thing now is real estate syndication and I’m sure you’ve had someone talked about that before
if you have no idea how to start looking at that there’s no way you can tell if it’s a good deal or a bad deal so I think it’s the volume of deals that you go through I think it’s a number of conversations that you talk with people over it and then it’s like what you said how much money do you have to give for this.
[38:23] You know so I’m going in 5,000 on something I’m okay if I don’t ever see it again like you have to be okay with okay
if I never see this money but I really think in this probably isn’t a straightforward answer but I feel like you have to have the volume of going through it just like we learned to look at Medical charts right like we had to see you know the code procedure couple times until we could do it with our eyes closed I think you have to look at the volume you have to compare
and then I think you should look in different sectors you know so if you’re looking at real estate compare those with real estate deals if you’re looking at
you know for example the artificial intelligence we did I’d never gotten in,
to an early round like the friends and family around I didn’t know and it was all these not to be funny but they their self-proclaimed Geeks like they were the people who were making the artificial intelligence and they were so excited about their data and I couldn’t translate it something was like cameras at gas stations and
they’re using at Mayo Clinic now.
[39:13] So I needed like an interpreter that could help me understand what I was looking in and so again that was very different than a real estate deal we done or even the franchise a franchise disclosure document.
Is about 800 pages
I can’t read 800 pages about taking Andhra coffee breaks like but I think you have to have the volume you have to look at different sectors you have to get it by sand you have to be ready just to say like the first one you get this is going to sound really bad but be okay with saying no.
[39:40] Just just make up in your mind that you were going to say no until you’ve done these other steps and guess what other opportunities come up.
Yeah and I think that’s an important point is that everyone thinks that oh well what if I miss out on this big opportunity there’s just
always opportunities is a great benefit of a capitalistic societies everyone’s coming up with ideas everyone thinks they’ve got the next best thing and it is a lot easier to lose big.
[40:06] Then it is to win big and so don’t be afraid I agree with saying no don’t be afraid with waiting and having patience I think that’s that’s really wise and that’s I think a major error that people can,
potentially make by just jumping off the bridge or jumping off the dock before the boat gets close enough and then they just end up in the water
um well well dr. Melvin has been a great conversation I love that you’re out there promoting you know some you know really Smart Financial Concepts to folks and you know I think this has been a really
really interesting conversation I hope people are going to be interested to connect to you and continue the conversation and if people want to do that what are some ways that people can connect to you
absolutely so I host the 1% code podcast show and I hope to have you on there soon
and that’s on all streaming platforms and you can find me on any social media at dr. Melva Tuesday OCT orm lva and my Facebook group it’s a thief
free Facebook group is the 1% code Collective so what we talk about all things the 1% code and leverage and how you can diversify and just you know taking those next steps until your
your next greatness that’s fantastic well this is dr. Melva pain Bingham be sure to check her out connect with her on social media and definitely go check out the 1% code podcast it’s available
on all the major podcast players so I definitely want you to go listen to that and hear more great advice from dr. Melva dr. Melva thank you so much for joining us on the scope of practice podcast today really really appreciate you having me on
thank you so much.
[41:38] I’ve been a big proponent of diversification of Investments for a very long time but it wasn’t until the last year or two that I started to seriously think about diversifying your income stream.
[41:48] But I think that does make a lot of sense and if the covid shutdown taught us anything last year it taught us that our incomes are not as secure as we used to think
having additional streams of passive income whether it’s through real estate investing starting a business or online content creation or whatever it is it can really set you up for success and lead to financial Independence
if you want long-term financial success you also need to define the goals for Success how do you know if you’ve reached your goals if you don’t know what your goals are.
Well that’s why I’m so excited about this week’s free resource
it’s a free guide called setting reachable financial goals that guide will walk you step-by-step through a plan to determine how much you need to be saving on a regular basis in order to achieve your long-term savings goals this guide will work for both your business
and your personal finances you need to plan ahead for long-term expenses so you can let compound interest do the heavy lifting for you this guide will help you reach your financial goals
faster and it all starts with making a plan so just download that guide for free by clicking the link in the podcast description
thanks so much for joining me on the scope of practice podcast today don’t forget to check out the podcast description to find all the links to the resources we mentioned during the show
thanks so much for joining me and I’ll see you next time.
Thanks for listening to the scope of practice podcast at www.viki scope of practice.