Author: ecadmin

The Importance of Updating your Website

Digital Marketing, Marketing, Resources

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Coffee shops, grocery stores and other refresh locations update their physical locations every 3-5 years. There is a very good reason for this.  The changes indicate to their patrons that they are staying current and relevant. As humans, we are also very curious about anything new. We are compelled to investigate and see what the latest trends are.

In fact, your virtual presence also needs attention and updating. Your website is often the first time that a new patient interacts with your practice and you want to make sure that it reflects the experience that the patient will encounter if they were coming into the physical office.

Every business has a different strategy, look & feel and personality. It is important that the website reflects all of that so that the patient can be sure that it is the right fit for their needs.

The website also acts as one of your most important sales people. It is going to work for you 24 hrs per day, 365 days/year!

Now the question is, do they have the skills to sell what you do and/or offer?

Take a close and critical look at your website:

  1. Copycat – the highest form of flattery! Look at your competitions websites, see what they are doing. Find other websites in your industries in other major cities and look at what they are doing on their websites.
  2. Hire wisely. Find someone you trust in house or outsourced to be your web person. Look at their previous work and get multiple quotes!

How will you know that your updates are effective?
Conversions! Conversions are people who contact you from your website.

The TWO most important questions you want to know in regards to your website are :

  1. What is the conversion rate to contact from your website?
  2. What is your close/sold/hired/won percentage from those contact conversions?

For example :

100 people visit your website

20 Contact you via Phone/Form Submit/Email (Mix)

You are a closer and your offer and service is great, you close 10.

Your average client value to you is $700

The Answers:

  1. Website Conversion Rate : 15%  (20)
  2. Closed Sale Conversion Rate : 50% (10)

The Math:

For every 100 visitors in our example 20 contacted and 10 became closed/won business.  If it costs $5.00 per click on search to drive 100 that’s $500.00 = 10 New Clients at $700×10 = $7000.00 ROI

ERIC HARBOTTLE

With 15+ years of marketing experience, owner of Addison Marketing Solutions and co-founder of MarketingforOptometry.com Canada’s newest marketing agency option for Optometrists, Eric Harbottle knows what it takes to succeed in a robust and confusion digital world.

Coming from a strong background working and consulting with some of Canada’s largest marketing agencies to offering SMB solutions at the ground level with his boutique agency, Eric is able to understand the needs of every level of client with unique optimism and an experienced view as a business owner himself targeting KPI’s and goals to help every client achieve success.

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Summer Staffing with OD Students is a Good Thing!

Practice, Resources

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We are finally approaching the well-loved and relaxing season of summer. Life seems a bit easier; you can get out the door with less layers t and you don’t have to worry about snow-induced traffic delays. Summer vacations and trips to the cottage are coming.

Of course, when you are running a small business, summer time can also present challenges, specifically around staffing.  Luckily, there are often university students who are currently registered in Optometry School looking for summer work. They are really ideal candidates to hire for the 4 months they are available. They are committed to the industry, they want to learn as much as they can and they are eager to do well.

In our experience, having this additional staff member has more than paid for itself. During the weeks when you are fully staffed, the summer student can tackle jobs that have been on the back burner; organizing the CL trial room, reviewing frame pricing, doing an inventory, price comparisons, the list goes on.

Further, many staff take summer vacations, and with an extra member on your team during this time, you don’t have to go short handed. The reality is, you want your patients who visit in the summer to have the same great experience in your office now as they would in the winter with a full compliment of staff ready to serve and assist.

Another advantage to hiring an OD student for the summer is the potential for grooming an associate for the future. Working in your practice, they will become very knowledgeable about the front end of your business. Understanding the flow from appointment booking to retail sales will make this associate a valuable member of your team very quickly.

It is tempting to consider going short staffed for the weeks different members are off on vacation.  This, of course, is not ideal. Not only will the patient experience be compromised but it will likely also have an impact on your Revenue per Patient (RPP) – the two are intimately related. Are patients receiving additional testing to improve their health care outcomes, are they finding glasses that they want to purchase, are they leaving with drops and vitamins for preventative measures? Discussing these solutions takes time and energy. Tracking and reviewing RPP will give you some reassurance that maintaining a full compliment of staff is in the best interests of both your patients and your business.

KELLY HRYCUSKO

is the co-founder and managing partner of Simple Innovative Management Ideas (SIMI) Inc. and expert Practice Management contributor for Optik magazine. She can be reached at info@simiinc.com.

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Breaking Up Is Hard To Do

Finance|Wealth, Human Resources, Managing Others, Practice, Resources

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When a trusted, long-standing associate leaves, where does that leave you?

Throughout my career, many clients have shared with me the mixed feelings sparked when a long-term associate leaves the business. It’s never easy when someone leaves a practice, especially on short notice.

I’ve heard this story hundreds of times and listened patiently while a practice owner tells me how this feels. They handpicked their associates. They recruited them right out of school. They taught them everything they know. They helped them build their career. In short, they more or less helped them get to where they are today.

And then that young protégé they mentored says, “I’m moving on.” Sometimes he or she gives a lot of notice and is honourable about it…and other times he/she gives no notice or doesn’t even show up and sends a resignation by email.

I’ve been very fortunate that this has only happened to me on a few occasions and not for many years. When it happened the last time, I had known for some time that there was some staff dissension. The company has grown rapidly and my management team has expanded to the point that not everyone fits in, particularly those who started when the business was a small and intimate corporation.

It can be devastating when your long-term business relationship is suddenly and permanently severed. Even if you have a premonition, you really don’t see it coming. As a principal you might think, “They are probably better off with me than without me, so I can’t believe they would actually leave.”

In reality, principals should prepare for the eventuality of an associate leaving. If and when an associate feels able to do so, he or she will go his or her own way. Knowing this might help in your planning process, but it does not lessen the drama and stress that follows such a departure. What’s also deflating and disruptive is the confusion that results for patients.

For the most part, patients don’t like change when it comes to their caregivers. Principals are often left with major knowledge gaps and ignorance of patient’s preferences, established procedures, financial considerations and so on. And last but not least, patient confidentiality issues and company security measures may be at risk. More stress and consternation.

The truth is people will do what they think is best for themselves and their families, and I completely respect that because my own family has been protecting its interests for many years.

It’s the sudden impact of somebody simply saying, “I’m leaving.” That’s hard to deal with-no matter how many times it happens. We’ve all been through it in dating relationships, marriage relationships, friendships or business relationships. And when you don’t see it coming is when it hurts the most.

I’ve reflected on it in many different ways–anger, relief and most of all sadness. I still don’t understand where the relationship failed so badly. Remember, this is a business relationship. This is nothing like being in love with someone. Yet, I have to ponder, what could I have done better? Should I have been more attentive? Maybe I didn’t listen well enough? What did I do wrong? How did I upset this person to the point of deciding to leave?

Self-reflection is a large part of this experience, but when you’re a principal/owner and a long-term associate leaves, I can tell you one thing…

It hurts.

TIMOTHY BROWN

is Chief Executive Office of ROI Corporation Canada’s national professional practice and brokerage firm.

Jackie Joachim, COO ROI Corp

JACKIE JOACHIM

Jackie has 30 years of experience in the industry as a former banker and now the Chief Operating Officer of ROI Corporation. Please contact her at Jackie.joachim@roicorp.com or 1-844-764-2020.

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We Need to Take Our Place at the Table

Practice, Resources, Specialty Practice

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Sports vision is often referred to as a specialty within optometry, but I see it differently: as a core optometric service that can be part of most every optometric practice. In fact, what we now call “sports performance vision and dynamic vision testing” is fundamental to our optometric calling, which is to enhance the visual performance and lives of our patients.

It has been my privilege to serve as team optometrist to the Washington Redskins, Wizards, Mystics and DC United, as well the Director of Visual Performance for the Washington Nationals. But in our practice, which has five locations in the Virginia-D.C. metro area, we also help young athletes and their families to improve their visual performance every day.

Technology advances are dramatically enhancing our ability to establish visual performance baselines and then to track improvements in an objective data-based process. But we bring basic optometric skills to this process, as well. When I speak to optometry students, I explain that they will enter practice with most of the knowledge and many of the skills to do most of what we provide in neurodynamic vision services or what we call sensory-cognitive sports vision training. At the same time, I alert students to the fact that athletic trainers and physical therapists are beginning to conduct visual performance evaluations and training. Shame on us if we miss this opportunity or hand it off to others. ODs need to carve out our place at the table while we still have it.

Today, when a parent calls an OD and says. “My child suffered a concussion on the playing field and was  told to see a vision rehabilitation specialist,” most ODs would say they cannot provide that. I want us to get to a place where most ODs will say, “We can provide that; let’s schedule an appointment!”

Seek Out Training & Expertise

Specializing in sports and performance vision is something that works only if you love sports. There are profits to be made, but you have to love working with athletes and teams because it often demands time away from family and practice.

When I graduated PCO Salus University nearly 20 years ago, I was focused on sports vision and vision training and sought out experts among the optometric community in my area and nearby. There were a few courses available, but I learned because I sought out the best and studied what they did.

At the time, “vision training” had a bad name since some medical professionals felt it lacked science. Also, “sports vision” had been around, and many perceived this as working with pros, not so much with kids and amateur athletes.

I became involved with the AOA Sports Vision Committee, and we changed the name–for strategic  purposes–to Sports & Performance Vision. Again, we wanted to broaden the appeal to include not just ODs who were “sports specialists” but all ODs who had an interest in adding such services to a general practice.

WHAT YOU NEED: DEVELOPING A SPORTS & PERFORMANCE VISION SPECIALTY

Diagnostic Instruments:

Auto-Refractor, Visual Fields, OCT, Optomap, Portable Tonometer

Vision Training Equipment (essential & optional):

Big screen display screen, RightEye system, NeuroTrainer, Senaptic or Vima strobe glasses

Facility & Space:

Pre-test area, Exam room, Sports room, 500 square feet

Be Part of Sports Training Community

Over the past two decades, I have had the privilege of working with a number of professional sports teams, and I’ve seen a dramatic change in the medical expertise that teams now seek.

Once, there was a team doctor. Now a pro team may have a podiatrist, a physical therapist, a chiropractor, a dentist, a neurologist, an orthopedist–as well as an optometrist–on board. There are times when medical professionals outnumber players in the locker room.

This is an enormous opportunity for optometrists. We have great chances to learn from and network with an array of other medical professionals–and we can raise the level of understanding about what optometry brings to the table. Again, we need to claim our place at the table — and be part of the “performance team” of both professional athletes and amateur and youth athletes we work with.

Equipment &Technology

Another enormous change in recent years comes from advances in diagnostic and training technology. In particular, we can employ diagnostic equipment to create baselines in visual performance-eye tracking, dynamic visual focus, visual concentration, visual pursuit, binocularity, reaction times, etc.

This data is important for a number of reasons. It establishes a baseline that determines natural ability, and against which we can track improvement. RightEye, for example, analyzes data to generate what it calls a “Sports Vision EyeQ.”

Should an athlete be injured, and here concussion is a common and debilitating injury, a sports performance baseline provides a critical evaluation tool and a measuring stick in rehabilitation. Further, the ever-higher level of data on visual performance can be used to predict likelihood of injury and to extrapolate maximum performance. In professional sports, data is king, and sports organizations are adding statisticians and analysts from top schools like MIT who play critical roles in determining which athletes get top contracts.

Immediate ROI

Establishing a sports and performance vision specialty requires some instruments, equipment, space and time, but the investment need not be a daunting one. In our practice, it required adding the equivalent of only one more autorefactor and a visual field. In 10 years time, we have invested perhaps $50,000 in equipment related to sports vision training, and we saw that investment paid back in one year. In other words, we’ve been in the black for nine of the last ten years that we have incorporated a sports and performance vision component to our practice.. In other words, we’ve been in the black for nine-and-a-half of the 10 years we’ve specialized in neurodynamic vision.

But again, we do this for love of sport. And the rewards have been tremendous. We’ve helped teams on their way to achieving championships, we helped athletes back from injuries, and we’ve helped pros and kids alike to achieve dramatic and measurable improvements in playing the sports that they love.

 

NEURODYNAMICVISION.org is your single source for the latest information in the understanding of the power of the brain to improve overall human performance. Any new sub-specialty requires a combination of interrelated activities that help elevate an idea from obscure theory to everyday practice. NEURODYNAMICVISION.org offers these in the form of the latest information in the areas of validated scientific research; proprietary testing protocols supported by new advanced concepts in
sports-vision-related tools and training products, and consumer education, awareness and understanding of the benefits of improved performance, both on and off the field.

KEITH SMITHSON, OD

practices at Northern Virginia Doctors of Optometry, which has locations in Alexandria, Arlington, Falls Church and
Reston, Virginia. Dr. Smithson works with amateur and professional athletes to enhance visual performance for sports and to remediate
the visual symptoms of concussion. He is the immediate past chair of the American Optometric Association’s Sports and Performance
Vision Committee and member of the AOA’s TBI Task Force. He is the Director of Visual Performance for the Washington Nationals, the
Team Optometrist for the Washington Redskins, Wizards, Mystics, Spirit and DC United, as well as a visual performance consultant for the
Washington Capitals. He also is sports vision consultant for several companies. Contact: ksmithson@sportsvisionpros.com

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Men Are from Mars, Women Are from Venus

Buying-Selling A Practice, Finance|Wealth, Practice

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I must admit that when this book first came out in the early nineties, I never read it. I still have not read the book to this day. The premise of the book was that most common relationship problems between men and women are a result of fundamental psychological differences between the sexes. Of course, there are differences. Men and women approach things completely different which is probably the reason I have never had the inclination to pick it up. Why read about the obvious??

Then I began thinking about practice values. All successful practitioners take the time to calculate the value of their clinic in the market. By determining this value, they know how much this specific asset is worth. Even if one is not ready to sell, having the valuation completed allows an owner to expand, grow and further increase the value of the practice.

Whenever I speak or write about the factors that affect value, I always make reference to the financials, the value of the actual assets in the clinic, whether the associates and staff are on contracts, the lease, and other factors. Whether you are male or female, as an owner these factors are the same and they definitely impact value.

However, when discussing values specifically with female owners it is a different conversation than with male owners. For instance, more women than men are actually surprised with the final value because the practice ends up being valued higher than what they originally thought. As women, I think we tend to underestimate ourselves and as such, the value in the business itself is not seen for what it really is.

Practice values for women will definitely be affected by age and stage. For example, if a valuation is being done during or after a maternity leave, financials are going to be affected. When we calculate value, we use a three-year weighted average. During this specific stage of life, because a woman will have worked less this means revenue is less yet expenses like rent or staff must still be paid, which means less profit or cash flow. What about when children are young and as a practice owner, practice hours must be juggled? I remember when my daughter was first born until about age 5 my time and earning capacity for my career was reduced because of the stage of life we were in. Remember, cashflow is a huge factor that affects value. Not to generalize but the birth of a child has less affect on the practice’s value when the owner is male. Another stage that potentially affects the value of a female owner is someone who is in her mid to late 50’s and is trying to manage aging parents? Again, these personal situations can affect the performance of the clinic for obvious reasons. I do wish to note that I am not saying managing elderly parents is exclusive to women, men deal with this as well. I am simply making a generalization.

The practice is a significant asset and also another child. What is key for female owners is that women must ask and know the value of their businesses. There will come a time when the decision to sell will be made. Hopefully, it will be part of the overall investment and retirement strategy. Unfortunately, there are many statistics confirming that women do not invest as much as men do.

When female owners do decide to have a practice value completed, please remember one thing. If any of these stages I have referenced required your attention, please do not be apologetic for where your value ends up. If you did take time off to raise a family or manage a personal situation, do not regret having a business that “could” be producing more. An appraisal will definitely cause any owner to reflect on their management and success to date. However, success is not only defined as the number of patients you saw or the level of revenue you achieved. Success is not one dimensional. The definition of success differs from one person to another. Taking care of one’s family, making money and maintaining your own sanity throughout are also clear signs of overall success.

The last point I wish to make, regardless of whether you are a man or woman is that you must be in charge of your finances and future. A huge step to accomplishing this is knowing the value of your practice.

Jackie Joachim, COO ROI Corp

JACKIE JOACHIM

Jackie has 30 years of experience in the industry as a former banker and now the Chief Operating Officer of ROI Corporation. Please contact her at Jackie.joachim@roicorp.com or 1-844-764-2020.

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Finding Opportunity in a Simplified Supply Chain

Marketing, Merchandising, Resources

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We have been working on some interesting projects lately that have afforded us the opportunity to meet with a number of suppliers. These meetings reminded me of how important it is to understand the complete Supply Chain and further, the Value Chain.

To start, a supply chain is the process of all parties involved in fulfilling a customer request while a value chain is a set of interrelated activities a company uses to create a competitive advantage. As small business owners, ECPs want to understand both of these in order to identify opportunities themselves.

Let’s take the assembly of a pair of glasses as an example. The supply chain is familiar to all of us in the industry. We have the frame and lens manufacturers, the frame and lens distributors, the labs and then the opticals. There have been some fairly significant changes in recent history that have changed the supply change.

I would argue that the most significant change was in the lens industry with the introduction of Free Form equipment. It has allowed more customization in lens manufacturing. What does this mean for the optometrist? There is an opportunity here to differentiate by offering the latest in manufacturing technology. If your strategy is to offer the best technology, than this could be a key product to help you define your offering.

Frame manufacturing is also set to see a major change. Up until now, the vast majority of frames have been manufactured outside of the country. With the introduction of 3D printing, we are seeing the possibility of mass production of frames in our own country instead. Environmentally, there is an advantage to this type of manufacturing as it has the potential to reduce waste significantly.  For a practice that is strategically set up to cater to Millennials, this could be quite appealing to their target audience.

These are changes to the Supply Chain – the way in which the goods in the industry are made available to optometrists and opticians. Some owners are using Freeform lenses and 3D printing as a competitive advantage. Early adopters of this technology will certainly attract the more progressive consumers in the marketplace.

The Value Chain is a little bit different. To set themselves apart, these same companies may focus on offering better price, service or product in their category. Take a lab that offers overnight production of a lens product. Their value proposition to the marketplace is speed of service. This, however, does a cost a little bit more in both man power (imagine overtime hours, a second shift of workers and/or same day delivery costs). However, for a practice that wants to differentiate itself through fast service, paying a little bit more for this type of service from their lab makes sense.

The same holds true for frame manufacturers. One might offer frames at a lower price point but the trade off is the quality of the product.  If your practice’s strategy is to sell at a high volume, this frame manufacturer would be a good fit.

It’s an exciting time to be in the Optical Industry as offerings in both the Supply and Value Chains in the optical industry are creating many opportunities for ECPs to differentiate themselves and be supported. With an eye on your strategy, by ever aware of the changes and mindful of the opportunities.

KELLY HRYCUSKO

is the co-founder and managing partner of Simple Innovative Management Ideas (SIMI) Inc. and expert Practice Management contributor for Optik magazine. She can be reached at info@simiinc.com.

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Top 8 Things Corporate Optometry Needs to Change

Differentiation | Business Strategy, Practice

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top 8

It’s ironic isn’t it. Many optometry students are absolutely sure that they won’t join a corporate retailer. Their stated preference is to enter private practice. However, most of them will be sending in their CVs to these retailers at graduation time.

If you are about to graduate, the above scenario probably rings true. What you need to know is that corporate optometry can certainly be a lucrative field – but it also has its fair share of shortcomings.

There are major disadvantages of corporate optometry practices that you ought to know beforehand.

Here are 8 important aspects of corporate optometry that need to change for the better.

  1. Improve Working Hours

Many people envy corporate optometrists because these jobs usually begin from 10 am onwards. But that’s only half the story.  Late starts simply mean that shifts runs later into the evening.

Many Corporate ODs are required to work till 8 pm (or later) every night and often on weekends as well. This is disruptive to work-life balance and is a major reason why most employees in this field start feeling alienated from family and friends.

  1. Let ODs Control the Schedule

One of the most significant problems in corporate optometry jobs is that managers who are not professionally liable such as a general manager (GM) or a records manager (RM), control the scheduling of patients and dictate daily work practices. While not always the case, it is very common.

People in positions of authority and power may know how to run a business but they do not know the intricacies of eye care or the time and individual attention that each patient requires. Scheduling should be left to ODs and/or associates who directly deal with patients.

  1. Improve Knowledge of Lens Optics

We might have spent years in optometry school, taken several courses and undergone a lot of training, but the fact is that technology is always evolving. Instead of being lured by fancy marketing techniques and buzzwords, doctors need to continuously update themselves with the latest technological advancements.

ODs must develop a better understanding of the working principles of the lenses. Having deeper know-how of lens optics will enable us to make the right recommendations for patients.  Corporate retailers should be facilitating this knowledge transfer to corporate ODs.

  1. Reward Top Performers

A primary reason why many ODs will sweat it out in corporate optometry is in hope of eventually getting a sublease. They will work painfully through the hectic and demanding job requirements, serving as much as 7 days a week in order to reach their goals.

Better performers ought to be rewarded with better lease options because they have already proven themselves to be worthy of running one successfully.

  1. Pay Opticians Better

Another disadvantage of corporate optometry is that Licensed Dispensing Opticians are rarely rewarded with better pay. It goes without saying that licensed opticians are far more skilled at what they do and know the tricks of the trade a lot better than the non-licensed staff. Therefore, opticians pay must be more reflective of their higher qualifications.

  1. Training for Everyone

As mentioned above, as extensive as any academic course might be, there’s no denying that practical application requires a lot more than theoretical knowledge.

Every employee in the industry needs to be given practical hands-on training in order to improve the quality of their service.

  1. Advocate the Profession of Optometry

Corporate optometry is far more than performing a ‘glasses and contact lens exam.’ Of course, you would know this if you are a corporate optometrist.

But this is a common misconception that exists amongst the general public. Customers are often bewildered at why a particular exam or service costs beyond what they imagined.

Corporate optometry is a complex practice where every eye exam is customized to the patient’s needs. The public needs to better understand this and Corporate Optometry leadership needs to tell that story.

  1. Pay Fairly

It is said that two things should never be asked: a student’s percentage and an employee’s wage. But not sharing pay information with fellow workers gives the bosses the upper hand.

You may (or may not!)  be surprised to know that most ODs have very different salaries, even if they belong to the same corporation in the same city. What’s more unfortunate is that the corporations know of this disparity and apparently use that asymmetrical information to their advantage.

Do you know what your colleague across the street is earning? Try to find out because it is likely that you are leaving money on the table.

Moving forward on any and all of these points will move the entire profession forward, and with it, patient care and customer satisfaction.  With the suggested changes, don’t be surprised if corporate optometry job satisfaction improves, OD recruitment is made easier and job retention is enhanced.

MARIA SAMPALIS

is the founder of Corporate Optometry, a peer-to-peer web resource for ODs interested to learn more about opportunities in corporate optometry. Canadian ODs and optometry students can visit www.corporateoptometry.com to learn more.

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Disruptive Coastal Contacts Founder Re-enters Eyecare Industry.

Practice, Products | Services | Industry News

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It appears that Coastal Contacts founder, Roger Hardy, is at it again.

After a five-year hiatus, which happens to coincide with the typical duration of a non-compete clause in a business purchase agreement, Roger Hardy, the founder of British Columbia based Coastal Contacts is getting back into the online vision correction device sector.

Hardy Capital, an investment firm founded by Hardy, announced the acquisition of LD Vision Group Inc., an online contact lenses seller headquartered in Toronto, with offices in Richmond BC and Buffalo NY. LD Vision was owned by a trio of brothers. Terms of the deal were not announced.

Hardy was the founder of the disruptive marketer Coastal which was acquired by Essilor in 2014 for $450 million and later renamed as “Clearly”.

Hardy Capital expects to announce broader expansion plans into the eyecare industry in the months ahead. The purchase of LD Vision Group is the second investment in the eyecare category by the group. In 2018, Hardy made a seed-stage investment in millennial sunglass online brand, Privé Revaux.

The LD Vision website touts “Easy prescription submission, fast prescription verification by real humans, and reduced clicks and pages to view from start to receipt…”

According to media reports, Hardy sees opportunity in online testing to generate eyewear prescriptions and eliminate the need for consumers to take more time-consuming test with actual doctors.

Notably, the Hardy expects to announce broader expansion plans into the eyecare industry in the months ahead.

View the Full news release here:
https://www.newswire.ca/news-releases/hardy-capital-acquires-ld-vision-group-880946491.html

More information on LD Vision Group.
https://www.ldvisiongroup.com/

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Plan Ahead—You Never Know

Finance|Wealth, Practice, Resources

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Some of our clients are seniors and with every passing year we are saddened to hear of the illness and sometimes the loss of these highly valued clients and oftentimes they are personal friends. One such client comes to mind. He was still practicing, but reported having fatigue that day. His staff insisted that he go home and rest thinking he had a severe case of the flu. Unable to drive, his son took him home where he slept through the night. When he woke up he was still not well and his family took him to the hospital. He died that same day.

He was diagnosed with a severe case of cancer (stage IV leukemia) and there were no pre-indications that he or his family was aware of. If he did know, he did not tell anybody. If he did not know, it is probably because he was only 53 years of age, very fit, exercised regularly, led a healthy lifestyle and as a result had not seen his physician in some time.

More factors regarding his illness were later found but the bottom line is he was treating patients a few days before he died. As business advisors and brokers, we encourage our clients to examine their Will, update it regularly and designate a trusted family/friend/advisor to know where it is kept.

Next, we advise our clients to have an emergency plan for the business itself. We tell them that a Will looks after your assets after your death and distributes those assets as you have directed. In many cases, this process can take two or more months to be properly enacted by your executors. What happens to your practice/business tomorrow if you suddenly die today?

Do you have a specific individual who will take the responsibility of caring for and controlling the practice to ensure that it continues to operate? This means that patients are seen, staff, landlords, and suppliers are paid to keep the business running in a vibrant fashion. By doing so you prevent your practice from plummeting in value in your absence as the key producer?

Do you have a specific health care professional (HCP) or a group of HCPs who should be called upon to help you, your family and business advisors if an emergency arises to keep the business operating in an orderly manner?

Often, in the absence of any instruction of this nature, the staff or the family members—while in a state of shock or sadness—will shut down the practice and cancel patients’ appointments. They will have no idea when or how to re-open. Should something be said in the newspaper? Should there be an announcement to the patients? How is your practice to be run without you there to guide them?

Understandably, your practice will close for two or three days to allow family/friends/colleagues to grieve and to attend your funeral. BUT soon—it is business-as-usual for the sake of the business! It must be maintained and its value preserved. Subsequently that value will inure to your estate or to the executors in full form and fashion, as opposed to being closed and your practice starts to fail.

Why would you want to leave an asset in a state of rapid decline when all you need to do is have a Will for your business and/or an emergency plan that gives your family/executors/advisors specific instructions?

Here are the instructions you should have in place:
1. A locum be added into the business as quickly as possible.
2. A list of HCP locum names with phone numbers is available to call. Most brokers have locums at the ready for this purpose. An office manager or receptionist can be designated to do this task at this time. It does not have to be done by a lawyer or a family member.
3. The practice should be appraised immediately or if an appraisal is on file, that appraisal should be updated. Your accountant and your lawyer should have a copy of your emergency plan. Again, provide the names and contact information of the individuals designated to perform these tasks.

Delay of any of these steps reduces the operating value of your business. We (as individual advisers/brokers) would not want to leave our business in that condition. Most of us have children and grandchildren and others
to whom we wish to leave a legacy. We never want to leave a negative
declining asset behind.

Additional steps can be taken depending on the unique circumstances of
your practice/business. Consider consulting with a professional practice appraiser/broker to put an emergency plan and business Will in place. By doing so, you will preserve hundreds of thousands of dollars for your family, your church, and your charity.

TIMOTHY BROWN

is Chief Executive Office of ROI Corporation Canada’s national professional practice and brokerage firm.

Jackie Joachim, COO ROI Corp

JACKIE JOACHIM

Jackie has 30 years of experience in the industry as a former banker and now the Chief Operating Officer of ROI Corporation. Please contact her at Jackie.joachim@roicorp.com or 1-844-764-2020.

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Eyes Wide Open

Buying-Selling A Practice, Practice, Resources

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Two pressing issues have surfaced in recent discussions with clients—and they’re both very important and closely related. It’s like the two sides of a coin. Heads deals with impossible promises while the flip side, tails, involves managing expectations.

IMPOSSIBLE PROMISES

A client I’ve known for years called to say that he had been approached by a corporate entity to buy his practice. Later, he called me again for a second opinion to make sure he was doing the right thing. The investor buyer had promised to pay the highest price for the practice compared to any other private-sale offers or open-market sales brokered by any firm.

So, is this a legitimate and fully defensible claim? The first and key thing to remember is that if a practice does not go to open market, the price paid by the buyer will be the highest offer that the seller receives, simply because the seller is not accepting other offers. In that respect, this purchaser made a correct claim.

On the other hand, the buyer also suggested that his/her offer would be the highest of any offer—but if a practice does not go to open market, then this is an absurd claim because it cannot be validated. Why? The reason is also simple: if no other buyers are given the opportunity to make an offer, how can anyone prove that the first offer was the best? Impossible promise!

This type of behaviour is prevalent because there is a limited supply of good practices for sale. Corporate investors are very flexible and have a dedicated senior management team soliciting and focusing on practice acquisition. On the other hand, in the traditional health care practice marketplace, the buyers are mostly professionals who are raising families and practicing in various locations. Typically they do not have the time or resources to invest when searching for a practice to buy. These buyers rely upon brokers to introduce them to practice sales opportunities.

MANAGING EXPECTATIONS

On the flip side of today’s eye care practice sales market, it’s about juggling sellers’ expectations. In the normal course of appraising and selling a practice, many parties are consulted. Early on in the process, the seller should seek legal and accounting advice on sale structure and allocation of sale price as shares or assets. In today’s multilayered corporate structuring, we are still finding old management companies, technical service corporations and multiple health care professional corporations, as well as sole proprietorships. Each of these scenarios has different and unique tax implications and, in some cases, complex legal implications.

Vendors often tell us that they’ve consulted with their advisors, so we proceed to the market (and we often consult with advisors at this early stage). However, as we near the completion of an offer to purchase or closing date of a practice sale, sometimes advisors will realize that there may be some last-minute opportunities to affect tax savings for the benefit of the vendor. In many instances, there is no harm to the buyer and, in some cases, there’s actually a significant benefit to the buyer. But the serious dilemma with bringing these matters to light in the final days and hours, is that advisors on both sides start seeking to re-negotiate a contract or even re-enter a conditional period—perhaps when all other conditions have already been removed—and this puts a transaction in serious jeopardy.

Our advice to both buyers and sellers of any type of health care practice is to begin consultations and preparations of tax and legal matters a year in advance of a possible sale and, at the very least, prior to the preparation of the appraisal of the practice. Any delay in making this investigation or process happen with your tax and legal advisors will likely cause significant delays, high fees and could jeopardize the sale of your practice. In short, poorly managed expectations.

IT TAKES TWO SIDES

It is important to not be misguided by an impossible claim to sell a practice at the highest possible price. Be levelheaded. Adopt a well-conceived, balanced and careful plan when you’re in the process of buying or selling a practice. And save that coin for your pocket.

TIMOTHY BROWN

is Chief Executive Office of ROI Corporation Canada’s national professional practice and brokerage firm.

Jackie Joachim, COO ROI Corp

JACKIE JOACHIM

Jackie has 30 years of experience in the industry as a former banker and now the Chief Operating Officer of ROI Corporation. Please contact her at Jackie.joachim@roicorp.com or 1-844-764-2020.

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