Starting to Practice? Celebrate and then Prepare.

Finance|Wealth, NextGenOD, Resources, Sponsors

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You have likely been a student for over 19 years of your life. You have had summer jobs and after school employment. You might have even taken a gap year to travel or work and save up some money. But now it’s time to “adult up”.

Without a doubt, this is both an exciting and scary time of your life. This September, you won’t be returning to school. When it seems like everyone else is rushing around in “Back to School” mode, you’ll be performing a ream of eye exams on children and teens.

So what does this next chapter look like?  What are some of the new expenses you can now expect?

First …Celebrate!
You truly deserve to celebrate your accomplishment. But keep your celebration within reason, because the money isn’t free flowing yet, and likely won’t be for some time as real world expenses are about to begin.

Licensing Fees
In Canada, you will need to make application and pay the provincial licensing fee. In most provinces, there is a College of Optometry, the self-regulating authority that ensures that practicing members are fit to practice.

Separate from the mandatory College registration, there may also be a voluntary Association membership in some regions. Although these fees are voluntary, they do go to support the profession at a provincial level by negotiating with provincial health and other third party payers of eye exams and some eyewear.

In addition, your association is your voice in the advancement of the profession and is responsible for the delivery of continuing education. I encourage you to make your association part of your annual involvement, both in financial support and for it’s professional value.

Liability Insurance
Part of filing your College registration is proof of malpractice insurance. Unfortunately our world has become more litigious and the premium cost of liability insurance has increased. Ensure that your insurer provides broad coverage and has a good history of practitioner support.

Financial Aid Repayment
All that education has likely created a significant financial obligation that we call “Good Debt”. That is, debt that evolves from building an asset – in this case – your professional education.

It may even be “Best Debt” if it is government student debt where the interest is tax deductible. This doesn’t mean that repayment should be delayed however.

Significant debt can impact your ability to get a mortgage and it keeps following you around. If you are able to maintain your frugal student lifestyle for a bit longer, you’ll be surprised how quickly you can chunk away your debt and start saving for your first home.

Income Replacement Insurance
You’ve worked hard to earn that degree and you are, without a doubt, your greatest asset. It is therefore critical that you insure your ability to earn an income in the event of disability.

Disability income replacement plans come with many different features. Understanding what best meets your needs today and for the future is critical.

Keep in mind that medical underwriting is typically most favourable while you are still young, so it is best to get this conversation started as soon as possible.

Why is it more favourable when you are still young? As optometrists, we encourage regular eye exams to stay on top of changing medical conditions- the same is true when it comes to your own medical history. The longer you live, the longer the opportunity for your medical history (or your family – parents, siblings, grandparents, etc.) to change, which can affect YOUR insurance premiums!

Legal Services
The vast majority of your new opportunities will come with contracts. Before you sign on the dotted line it is worth your time and money to sit with a lawyer and ensure you understand the benefits and limitations of any contracts you are entering into.

You don’t know what you don’t know, and trust me- getting proper advise is imperative to your satisfaction in your career and personal wealth.

Taxes
Income taxes are a significant part of your new reality. If you are an employee, a portion of each renumeration will be withheld and sent to the CRA on your behalf. Although the withheld amount is calculated as per government tables, it is not always accurate, so you should set aside some additional funds each pay period to avoid a surprise on tax filing next spring.

If you are self employed, your first year of income will arrive without any withholdings. When you file your taxes in the spring you will be on the hook for both the employee and employer portion of Canada Pension Plan contributions, as well as, your income taxes.

You’ll also have the opportunity for some business deductions, so it’s important to establish some sort of organization to ensure you’re not losing that important paper trail!

As a general rule, I recommend you set aside 25-30% of every dollar you earn. As the year starts to wind up, we should have a conversation around some tax planning for the current year and to prepare for the following year, when you will have, hopefully, a full 12 months of income.

Advisory
As your Chief Financial Officer, I’m here to help you understand your money and assist you in making smart decisions about your debt repayment, insurance protection, tax management and wealth creation.

Have more questions than answers? Educating you is just one piece of being your personal CFO that we do. Call (780-261-3098) or email (Roxanne@C3wealthadvisors.ca) today to set up your next conversation with us.

Roxanne Arnal is a former Optometrist, Professional Corporation President, and practice owner. Today she is on a mission Empowering You & Your Wealth with Clarity, Confidence & Control.

These articles are for information purposes only and are not a replacement for personal financial planning. Everyone’s circumstances and needs are different. Errors and Omissions exempt.

ROXANNE ARNAL,

Optometrist and Certified Financial Planner

Roxanne Arnal graduated from UW School of Optometry in 1995 and is a past-president of the Alberta Association of Optometrists (AAO) and the Canadian Association of Optometry Students (CAOS).  She subsequently built a thriving optometric practice in rural Alberta.

Roxanne took the decision in  2012 to leave optometry and become a financial planning professional.  She now focuses on providing services to Optometrists with a plan to parlay her unique expertise to help optometric practices and their families across the country meet their goals through astute financial planning and decision making.

Roxanne splits EWO podcast hosting duties with Dr. Glen Chiasson.

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How Optometry is Changing because of Milllennials ODs

Human Resources, NextGenOD

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There is an generational effect  on the optometry industry that is changing expectations from optometry clinics. Millennials and optometry have an important correlation since there are steady changes happening in technology, practice management, work-life balance, patient care and diversity and inclusion. For many millenial ODs, there is a good fit between their expectations and values and a corporate optometry career path.

Trends in Optometry
While millennial ODs need to face an economic reality they do have the flexibility that can help them face future uncertainties.  Going through school and building their careers might leave many millennials with high debt, and without the capital to pursue independent optometry.  Corporate optometry has become an attractive option.

Millennials are part of the digital generation, where, like most industries, technology is prioritized. They also wired to expect high efficiency and productivity. They also have a comfort level with technology that can help build relationships with patients.

Digital Future of Optometry
Modern offices are turning towards digital space to increase efficiency. This can include  software for billing, appointments, and booking – things like cloud access and digital imaging for records and patient data. Optometry offices are being expanded to digital spaces for greater accessibility.

Cloud Adoption
The willingness millennials have to turn towards the cloud is a great asset.

Millennials and optometry involve incorporating IT setups, hardware, and software. It can mean more training as well as costs from tech glitches. If an optometry clinic has different office locations, it can mean the use of multiple IT systems, which can lead to expenditure cost.

Millennials are turning the trend to optometry offices towards incorporating the right sort of technology into the right spaces.

This model needs patient privacy compliance and has a fully-managed and secure structure. It also gives room to optometry clinics to be more transparent with their customers.

Through seamless integration, there is increased accountability of the optometry clinics as well.

Diversity and Inclusiveness
Young ODs want to feel part of something bigger. They make sure the promotion practices throughout the organization are unbiased and equitable.

They are looking for a structured internal mobility program to provide equal opportunities. Many corporate opticals, like Warby Parker, have taken steps to help grow diversity in optometry. Many millennial ODs feel they belong in organizations that provide these opportunities, and have taken subleases accordingly.

Millennial ODs have changed how the industry performs and works with its patients and workforce. This can be quite a positive change in terms of relationships, efficiency, and ability to expand.

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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Independence Through Interdependence

Independent SightLines

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By Dr. Trevor Miranda. 

Dr. Miranda contributes his thoughts and perspectives on the topic of Independent Eye Care Practice in Eye Care Business Canada. This post is his first contribution to the series. Check out all of Dr. Miranda’s articles in Independent Insights category.

Today’s term “Independent Optometrist” has been hijacked by almost every form of practice.

Practitioners next to Lenscrafters, inside of big box stores and practicing in solo and group practices all have seized the phrase “independent optometrist” to describe their mode of practice. I would like to think I am an independent optometrist. Free to practice how I see fit with the equipment, products, staff, fees and culture that I feel suits my practice preferences.

What does it mean to be “independent”? What are the benefits and risks of being truly independent?

Dealing with Complexity
As a parent of three adult children, my goal has always been to raise independent kids. Today’s world is intricate and complex, full of nuanced relationships and global challenges. Might a better goal be to raise children that are capable of independence through interdependence? By this, I mean being stronger as an individual by learning and collaborating with others.

Can we apply the same goal to our optometric professional careers? Learning, collaborating and networking are basic tenets of excellence. In my career, I have learned processes and skills from those practitioners that have consistently shown excellence in their practice and personal lives. Learning is important but implementation is even more important to benefit from the learnings.

How to Collaborate
There are many ways to collaborate within the profession. Join your provincial and national professional associations. Be an active member and take on committee chair or Board positions. Join a buying/training network; I am part of Eye Recommend and have consistently gleaned practice management nuggets from my peers during an ER conference or get-togethers. Join a small business optometric group; I am part of a “mastermind” type group called Quantum where we share professional and personal challenges and collaborate with best practices and share the “group mind”. I am also part of our regional “BIG” (Business Influence Group). This group discusses all matters of optometry from HR and staffing issues to tricks and tips to maximize opportunities and practice enjoyment.

Today’s uber-competitive retail environment requires independent practitioners to collaborate with manufacturer suppliers. Choosing such partners requires careful consideration. Does an independent optometrist fit all contact lenses? Does the clinic deal with multiple spectacle lens companies? Does joining a buying group reduce the cost of goods and improve choices? These questions need to be answered but the most important question is what is best for the patient?

The Role of Bias
 It has always amazed me when one clinic can sell one brand of glasses and a clinic across the street feels like that frame line “doesn’t sell”.

Even at the same store, different opticians may have a bias towards certain products which can result in vastly different styles and designs of optical products that are sold.

Most professional sales personnel don’t usually have such a wide choice of similar products to choose from. For instance, a car salesperson for Lexus has a limited product offering and must understand and highlight the features and benefits of Lexus, not Mercedes.

Choose Your Supplier Companies Carefully
Limiting the product offering to excellent products and allowing very occasional ‘off menu’ choices in exceptional circumstances can improve staff product knowledge, increase supplier investment in your clinic and reduce costs in shipping and reduce costs of goods.

Choose your contact lens, spectacle lens and frame manufacturers carefully. Which companies support your independent practice ideals? Do these companies compete with your clinic at a retail level? Do they have products available online at a retail level? Do they help keep repeat orders through your independent OD channels?

The inter-dependence of suppliers and independent optometrists relies on careful consideration on choosing your supplier partners. Every purchase you make from a supplier is a proxy for your future success.

I recommend picking two suppliers in each category and deepening your partnerships. This existential dilemma will only increase as manufacturers continue to supply optometrists on the wholesale side while attempting to compete for our patients on the retail side.

Next Level Collaboration
Might the future survival of truly independent practices rely on cross-equity partnerships where independent clinics own pieces of other independent clinics? Might this joint ownership model allow for better pricing through a master account so independents can compete on a level playing field with corporate accounts to lower product acquisition costs?

I am a big believer in the future of independent optometry. Independents can truly keep the patient’s best interests at the top of the pyramid while curating partnerships with industry and partnerships with other like-minded clinics. Independence through interdependence!

 

DR. TREVOR MIRANDA

Dr. Miranda is a partner in a multi-doctor, five-location practice on Vancouver Island.

He is a strong advocate for true Independent Optometry.

As a serial entrepreneur, Trevor is constantly testing different patient care and business models at his various locations. Many of these have turned out to be quite successful, to the point where many of his colleagues have adopted them into their own practices. His latest project is the Optometry Unleashed podcast.

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Fact or Fiction? First impressions are everything. A candidate needs to impress me in the first five minutes.

Human Resources, Talent Acquisition

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Fact or Fiction?  – First impressions are everything. A candidate needs to impress me in the first five minutes.

Fact: Sure, impressions are important, and statistics do show that most managers decide at an unconscious level whether they want to hire a candidate in the first three minutes of the interview!

The rest of the time together is essentially an opportunity to gather information to support whatever decision was already made.

You are Good, but…
Really good managers are aware of this and work hard to counteract it. One important way they do this is to understand their ultimate objective.

They want a top performer, not a top candidate. The difference is critical. Top candidates may have a great résumé, show up on time, look the part and have a great handshake. All these cosmetic factors have no bearing on how long they will stay with your company or how well they will work out.

  • Top performers share a very distinctive set of attributes and attitudes
  • They learn fast
  • They take responsibility
  • They build solid relationships
  • They think differently, act differently, and fit differently in your practice.

Flagging these things can’t be done by résumé or even interview alone. Fortunately their are proven techniques that improve your odds and give employers and hiring managers a deeper look into the true character of the candidate.  You might not be using these techniques but the smartest of your competitors are.

The most valuable competitive advantage for any practice is to staff with star employees who perform better and stay longer.

First impressions are everything!! – definitely Fiction.

That’s the Fit First philosophy.

Fit First Philosophy starts with this premise. Hire for Fit, and then train as needed.  Save yourself time and money.
This post is sponsored by EyePloyment.com and Fit First Technologies

Learn more.

TIM BRENNAN

is Chief Visionary Officer with Fit First Technologies Inc, the creators of Eyeployment, TalentSorter and Jobtimize.

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Why Use A Broker When Selling To An Associate

Buying-Selling A Practice, Practice, Resources

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Those who choose to sell to an associate, often do not see the need for the services of a broker. Afterall, you know each other, the associate knows the practice and the patients and more importantly, you have a good relationship so it should be easy to cross the finish line.

Owner Reluctance
While we all wish things were that simple, the reality is that selling your practice is a process. It can take a significant amount of time to prepare, organize, and to ultimately close the transaction. Owners are also reluctant to engage the services of a broker at this point because there is always the fear of paying commission, as well as the concern that the broker will over complicate things.

Regardless of whether you are selling to an associate, partner, or colleague; selling a practice is a complex activity that requires another party to coordinate the activities of the buyer and seller.

A practice broker has the expertise and training to do just that. When doing it yourself there is a higher possibility that the relationship between the two parties will be negatively impacted, because of the length of time the transaction is taking or the difficult conversations that occur during the process.

Until you experience the actual sales process, parties are unaware of the amount of information required by the buyer and their advisors. Unfortunately, many transactions fail when the buyer and/or seller try to conduct the sale of a practice without the aid of an experienced practice broker.

From the day you choose to list until the closing day, your number one priority should always be your practice and your patients. Negotiating and navigating your own sale takes time away from what you do best.

You also must be aware that things will be changing within the practice. Staff may change, prices for supplies may increase or another event could affect the day-to-day operations. These are all material changes that must be communicated to the purchaser.

A Broker Brings Order and Sometimes, Creativity
An experienced intermediary will bring organization, and even sometimes creativity to a transaction. The primary function of the broker is to get the deal closed.

An experienced broker will earn the trust of the other professionals, i.e. accountants and make sure deadlines are met and tasks are completed, and maintain communication with all the principals in the transaction.

A broker does not take the place of a lawyer, accountant, or other advisor. However, your broker can be a huge asset as the final details are being worked out. After all, the broker is familiar with the practice, the buyer, and all that led up to the sale, so they can help with final negotiations. More importantly, they can assist when two parties reach an impasse.

3 Key Points to Remember
The first is that the most important place to start the selling process is to have a formal valuation completed. Many owners really do not know the value of their practices. There are numerous factors that go into determining the value of an office. It is truly the best way to know you have been fairly paid for your years of ownership.

The second key piece of advice is to keep an open mind and trust that the broker knows what they are doing, given that this person has facilitated the sale of many practices like yours.

Finally, and perhaps most importantly, a vendor needs patience. A practice never sells overnight. Every practice is different, but with a professional guiding the process, the likelihood of success increases.

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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Basic Principles of Investing

Building Wealth, Finance|Wealth, NextGenOD, Resources, Sponsors

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You invest in many things. You invest in your education, your home, a new car. You might even invest in the stock market or by purchasing your own practice. Some of these investments will do well and others…maybe not so well.

We’ve discussed it before – that unless you are investing in a classic car that has shown significant appreciation to collectors, your vehicle is not an investment. Your home can be in a similar predicament based on your entry price, repairs needed, and time horizon. I do hope that your education has been a worthwhile investment showing a great return to date!

Today, let’s focus on what most people consider to be investing: the stock market!

Investing in Good Businesses
It probably goes without saying- the best investments are those in businesses you know and understand. Investing in yourself and your practice is, in most cases, a very good investment. By being actively involved in your business you have the capacity to control your future success of the overall investment.

When it comes to investing in other peoples businesses or the public market (stocks or mutual funds as an example), do you take the same approach? Do you look at the business in detail? Do you analyze their financials? Do you interview the key decision makers? Do you review the mergers and acquisitions and expansion policies?

And what makes a good business ‘good’?

Definition of a Good Business
Just like in making your decision to purchase into an optometry practice, making investment decisions in the private and public markets should be based on the same sound principles.

Does the business make more money than it spends? Does the business have significant competition risk? Are you getting in for a good price? You wouldn’t buy an optometric practice that ran a deficit every year and held significant debt, would you?

Financial Capacity
Market price is one thing, but it doesn’t tell you the profitability of a business. It tells you what someone is currently willing to pay for the business. And because the vast majority of people don’t buy stocks based on sound business principles, these offers can be low or outrageously high.

What does it mean for a business to spend less than it earns? First off, the business needs to create revenue in excess of their expenses. Sounds simple enough on the surface until we take a deeper look. Does the business have excess profits to continue to meet their debt obligations? Are they reinvesting in themselves to continue to grow and expand? And as an owner, are they making enough money to pay you a piece of the rewards of ownership? Personally, If I’m taking on the risk of owning a business, any business, I want to get paid along the way for taking that risk.

Sustainably Profitable
We want businesses that will be here for the long term. True investing involves a longer term buy and hold position. You typically wouldn’t buy a practice with the intention to sell it within six months, would you?

The same is true for your external investments- you want businesses that you know will be around for the long run. You want businesses that won’t disappear if inflation gets too high. Businesses that are ultimately difficult to live without, difficult to replicate, and difficult to compete with. As an example, one of the easiest businesses that fits that definition would be a railroad. Can you imagine someone trying to recreate a railroad across Canada today?

Price Matters
When we look at optometric practices we often hear terms like 3-5 times EBITA  (see more about this in our article on How to Read Your Corporate Financial Statement).  Similar to EBITA, the stock market uses a Price to Earnings ratio. What price is the company selling for in relation to its earnings? The price is determined by the market price per share multiplied by all shares issued. For example, Shopify was trading at 350.08 price to earnings on June 3, 2022. Is that reasonable? If we apply the principal of time, this is saying that it would take you 350 years to recoup your cost to buy Shopify based on their profits alone. I’m pretty sure I won’t live that long.

Speculating vs Investing
Sticking with our example of Shopify, on March 25, 2022, the stock was trading at just 29.53 price to earnings (PE). If you had bought it then, you would have paid, in my opinion, a far more reasonable price for it as the 2021 year end net income per share was recorded at $23.38.

So how did Shopify get to a 350.08 PE valuation a couple of months later? Someone was willing to pay an inflated price for it under the assumption that they could sell it to someone else at an even higher price.

Let’s face it, we all want to make money investing. However, when you buy a business based on hopes of resale rather than the underlying value of the business, you are really speculating, more commonly known as gambling. This is not sound investing. And remember, for every person you hear about that makes a lot of money on a speculation gone right, you aren’t hearing about all the people who lost that money on their speculation gone wrong.

Sleep is Good
The stock exchange markets have been very volatile this past bit. We’ve seen it happen with Reddit and Gamestop; or Trump and a Tweet. Someone says something and it spread like wildfire. Is that enough to know you are making a sound investment?

If your crazy neighbour is leaning over the fence and making grossly overpriced offers to buy your house one day and low ball offers the next, does this truly indicate the value of your home? Emotional attachment to your home aside, this is just your neighbour being speculative. This can be very unsettling.

If you know that you own good businesses and that you purchased them at good prices and that they are paying you appropriately to own them, it’s a lot easier to sleep at night.

What is your goal?
Investing is designed to save for your future. Your future home down payment, your future dream vacation, your future freedom from work. Investing should be in businesses that can fulfil this requirement.

Personally, I want to see my money earn me money. I want the businesses I own to pay me. I want to be able to sleep at night and not be worried that doubling down on black might make my savings disappear in a single spin of the roulette ball.

Advisory
As your Chief Financial Officer, I’m here to help you understand your money and assist you in making smart decisions about your wealth.

Have more questions than answers? Educating you is just one piece of being your personal CFO that we do. Call (780-261-3098) or email (Roxanne@C3wealthadvisors.ca) today to set up your next conversation with us.

Roxanne Arnal is a former Optometrist, Professional Corporation President, and practice owner. Today she is on a mission Empowering You & Your Wealth with Clarity, Confidence & Control.

These articles are for information purposes only and are not a replacement for personal financial planning. Everyone’s circumstances and needs are different. Errors and Omissions exempt.

Reference for Shopify: https://ycharts.com/companies/SHOP.TO/pe_ratio and Sedar.com

ROXANNE ARNAL,

Optometrist and Certified Financial Planner

Roxanne Arnal graduated from UW School of Optometry in 1995 and is a past-president of the Alberta Association of Optometrists (AAO) and the Canadian Association of Optometry Students (CAOS).  She subsequently built a thriving optometric practice in rural Alberta.

Roxanne took the decision in  2012 to leave optometry and become a financial planning professional.  She now focuses on providing services to Optometrists with a plan to parlay her unique expertise to help optometric practices and their families across the country meet their goals through astute financial planning and decision making.

Roxanne splits EWO podcast hosting duties with Dr. Glen Chiasson.

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Fact or Fiction? Finding the right person is a numbers game.

Human Resources, Talent Acquisition

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Fact or Fiction?  – Finding the right person is a numbers game. To improve the odds, the posting needs to be broadcast using big recruitment boards, niche boards and other offline media like papers and publications.

Fact: At any given time only about 20% of the workforce has an up-to-date résumé and are actively looking for work. These are likely not the top performers you are looking to attract.

Quality versus Quantity:
There is a huge difference between quantity and quality of candidates, and as Mies van der Rohe says, less is more.

The best job candidates are usually not actively looking for work. They don’t hang out on the job boards, but 60% of people who are not actively looking and don’t have an up-to-date résumé to whip out in a moment’s notice may not be in love with their current job.

Often the résumé is a barrier to finding the right talent for your business. Making it only one piece of the puzzle and focusing on finding the right fit, candidate quantity may decrease, but quality, like cream, will rise to the top.

The most valuable competitive advantage for any business is to staff with star employees who perform better and stay longer.

The Verdict:
Finding the right person IS a numbers game! And that number is ONE.

Objectively vetted and matched to fit the role and your practice, one new star employee is all that really matters. Having a handful of candidates or a hundred, in the final analysis, doesn’t really help if you don’t hire for fit.

Fit First Philosophy starts with this premise. Hire for Fit, and then train as needed.  Save yourself time and money.
This post is sponsored by EyePloyment.com and Fit First Technologies

Learn more.

TIM BRENNAN

is Chief Visionary Officer with Fit First Technologies Inc, the creators of Eyeployment, TalentSorter and Jobtimize.

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Eyewear and Eye Care Franchising – Is it for You?

Buying-Selling A Practice, Practice

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Eyecare professionals who want to start a business but are hesitant to go it alone can opt for a hybrid solution: franchising. This business model allows you to rely on a solid partner while remaining the owner of your business.

In Canada, franchises are the twelfth largest industry and employ about one in eight workers. “Franchises are found in most economic sectors, including the optical industry,” says Kenny Chan, Vice President, Content & Marketing at Canadian Franchise Association (CFA).

A number of companies, such as Pearle Vision, Specsavers, Kanda Optical and the Eyeglass Warehouse, are using a franchise structure. “It’s a good business model for an entrepreneur who wishes to start their own business, with the help of a partner,” says Chan. “They can use the intellectual property of a well-established brand and benefit from multiple services, while remaining the owner of their business.”

However, the franchisee must adhere to certain rules or standards. The franchisor will generally require that products and equipment be purchased from specific suppliers and will impose certain standards to ensure that customers receive essentially the same service at each franchise location.

Financially, the franchisee must pay a franchise fee upon signing the agreement. Other start-up costs may also be required, such as construction costs, interior design, equipment purchases and inventory. After that, the franchisee must pay annual royalties for the use of the brand and for national advertising that is provided by the franchisor. Many other royalties can be added.

In exchange, the franchisee receives a range of services, from an integrated supply chain to marketing, accounting and equipment upgrades.

Investing in the Entrepreneur

Approaches and costs can vary between franchisors. Specsavers has had great success in recent years by covering the expense of building new stores rather than having the franchisees bear the cost. This approach requires an investment of $500,000 to $700,000 per store, according to Specsavers. The per store investment by Specsavers is not a loan, but the company obviously expects to pay itself back over the years through various franchise fees. Franchisees pay only $25,000 and receive the keys to their business. In April, the company announced a $25 million investment to open 50 franchises in Alberta.

“We know it might take 10–15 years to recoup this kind of investment, but it allows us to help a promising professional start his business,” says Mike Protopsaltis, Partnerships Director at Specsavers.

Such a gamble requires careful selection of the opticians, optometrists or retailers who will go into business under the British giant’s banner. “Our selection process is very thorough, and we are really looking for professionals with the mindset of an entrepreneur, and not of an employee,” says Mike Protopsaltis. The franchisee must be a good communicator and, above all, be passionate about their work. The franchisor expects customers and associates to be treated with great care and attention.

A Hybrid Model

IRIS The Visual Group is gradually shifting its former franchise formula into a partnership approach. “Our new model is very similar to the franchise model, but the ownership of the business is shared between IRIS and the eyecare professional,” explains Dr. Daryan Angle, Vice President of Business Development. IRIS and the entrepreneur create a corporate entity and sign a shareholder agreement. IRIS can own between 51% and 95% of the ownership, while the optometrist or optician can retain between 5% and 49%.

“Rather than paying a start-up fee, the entrepreneur buys a certain amount of stock in the business, which is priced according to the value of the business,” continues Angle. If the eyecare professional wants to break the agreement, they can sell their shares under certain conditions.

The eyecare professional is granted exclusivity in a territory. They must pay an annual fee for the use of IRIS services, which includes 3% of net sales for administration and 4.5% of net sales for national marketing. The entrepreneur must also invest at least 1% of net sales in local marketing. However, the local marketing expense can be made in any way the entrepreneur deems most appropriate for their market.

“We believe this model allows the ECP to use their entrepreneurial abilities to grow their business in his market, while benefiting from a ton of services offered by IRIS,” says the vice president.

Being Careful with a Commitment

Signing a franchise agreement is a very important decision for an eyecare professional. And it’s not always easy to get out. These contracts have a specific duration and are often accompanied by non-competition clauses. If an ECP leaves the franchisor, they may not be able to practice in the same territory for a considerable period of time. It is therefore important to understand what you are getting into.

Chanel Alepin, a lawyer in franchise and business law and a partner at Alepin Gauthier, points out that you should not expect to negotiate every aspect of such a contract. “In general, franchisors propose fairly standard agreements,” she says. “If you see several things you don’t like in an agreement, it’s probably because that franchise isn’t right for you.”

She advises prospective franchisees to never sign any document without reading everything and especially without consulting a franchise law professional. This even applies to the non-disclosure agreement, which franchisors often require at the beginning of discussions. “Make sure you understand all aspects of the agreement and don’t hesitate to ask questions of the franchisor and your lawyer,” she suggests.

She also suggests researching the franchisor. Is it a well-established company or a new one? Is its intellectual property, the greatest value of a franchise, well protected? Is it involved in litigation? How does its offering compare to other franchisors (entry fees, royalties, territorial exclusivity, etc.)? A good accountant knowledgeable in franchising is a valuable asset in this regard. Optometrists and opticians should also make sure that the franchise’s business model complies with the rules of their professional order.

“Above all, these entrepreneurs must ensure that they will be able to meet the financial obligations imposed on them by the franchisor, while remaining very conservative in their projections,” concludes Ms. Alepin. “It must be a win-win relationship.”

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Do You Have Shelf Appeal?

Marketing, Merchandising, Resources

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Increase Capture Rate with an Intentional Frame Board
You spend time attracting patients, providing the best eye care, building relationships but without an attractive eyewear selection, your patients walk down the street and spend their money.

Your patients are checking out your eyewear collections as soon as they arrive for their eye exam and deciding if they like anything they see, and if they like what they see, they will stay and buy. If not – goodbye!

If your frame board all looks the same and if it looks the same as it did the last time they were in your office, chances are at least 50% of people are going to walk out with prescription in hand.

Shopping Journey
You can be intentional and guide the shopping journey for your patients. You have the advantage that many patients come to you for their eye exam with the intention of purchasing their eyewear. If at first glance they don’t see a frame that pops off your board that they simply must try on, they are already consciously forming their “no buy escape plan”.

They may have even formulated an “escape plan” before their appointment.

Creating uniqueness in your frame board with innovative and diverse collections that are visually exciting will encourage a greater percentage of your patients to purchase from you.

Do They Want to Buy?
This question is powerful. Are you trying to “sell” the same eyewear styles to all your patients or is your eyewear collection diverse enough to inspire most people to want to buy?

Often the frame board reflects the optometrist’s style or the optical manager’s personal style depending on who is doing the buying. Buyers like to buy (and sell) what they like. But, is this the best approach?

If all your patients like the same eyewear style that you or your frame buyer likes, then this strategy will work. The problem with this approach is that at least half of your patients are immediately eliminated as potential buyers. Ouch!

Discovering your patient’s Eyewear Style can be achieved with a client-focused discussion, specific questions, and the power of observation. This leads to an engaging and interesting conversation that resonates. They feel like, “hey, you get me!” This is like emotional oxygen and people are motivated to buy. And guess what? They will be happy to spend their money.

Having a diverse frame board is the magic to increasing your revenue per patient and levels up your selection to create an exceptional buying experience for your patients.

Diversify Your Purchases!
In the average practice, 80% of frame sales come from 20% of the frame board. It is important to analyze your frame board sales at least every six months to note what is jumping off the board, what is creating excitement and what is passed over time and again.

Create uniqueness in your choice of eyewear and then display it beautifully. Presentation is a key component and helps your patients resonate emotionally with the product.

Avoid purchasing new product that looks similar to the frames you already have in your inventory and choose to invest in a line that is noticeably different. If most of your board is black and tortoiseshell, consider adding an eyewear collection that includes brightly coloured frames. If a large percentage of your frames are traditional shapes, add eyewear styles that are more fashion forward.

Profitable Shelf Appeal!
If you are thinking, “these styles will never sell”, my advice is GIVE IT A TRY. Style your team in flattering eyewear and they will do the marketing for you.

An intentional and intriguing frame board that is noticeably distinct will help you differentiate your office from any near competitors. You can design your identity and get known as the “go-to” optometry clinic in your area for those who want beautiful eyewear and an exceptional buying experience.

Your optical gallery can be the most profitable centre in your practice. Curating an attractive frame board that captures attention and has “shelf appeal” can boost your capture rate with patients who love to buy.

WENDY BUCHANAN

Wendy Buchanan, Eyewear Image Expert is a Registered Optician, Image Consultant and Educator.  She is the creative force behind the Be Spectacular Eyewear Styling System® for Eye Care Professionals.  Wendy helps eye care practices to systematically reinvent their eyewear dispensaries to create an exceptional buying experience and increase profits.

Connect with Wendy on Instagram   https://www.instagram.com/bespectaculartraining/

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Fact or Fiction? A solid résumé and a personalized cover letter define the perfect candidate.

Human Resources, Talent Acquisition

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Fact or Fiction?  – A solid résumé and a personalized cover letter define the perfect candidate.

Most assuredly FICTION!

In today’s world, most candidates don’t even write their own résumés … and then factor in the embellishments or even sometimes, unfortunately, outright falsifications.

In fact, it’s hard to believe that we are still accepting these documents as the primary admission ticket into any credible organizations’ hiring pipeline. Astute interviewers will be able to recognize an applicant’s overreach, but even professional recruiters are often fooled.

The glitzy slick resume and expertly crafted resume might well make it through your selection filters, but by then, you have already wasted valuable time and energy, and perhaps even overlooked a true superstar for your team.

FACT:  There’s no real correlation between what’s in the résumé and how well people will perform or how long they will stay in your practice.  None. Nada.

In fact, relying on just a résumé to find your next superstar associate gives you about the same odds as buying a lottery ticket.

The difference is that hiring the wrong candidate will cost you a whole lot more than a $1 Powerball. It costs time and money and causes a great deal of aggravation. In fact, a bad or toxic hire will have an infectious impact on your practice – and not a good way, potentially even leading to some of your true stars to leave your practice.

All hiring managers, whether it be the practice owner or a trusted manager, need to  use the résumé as only one piece of the puzzle and screen for things that are actual predictors of retention and productivity.

The most valuable competitive advantage for any business is to staff with star employees who perform better and stay longer. The good news is that there are better ways.  Many of Canada’s leading eye care employers deploy sophisticated algorithms in their screening process to stack the odds in favour of getting that star candidate.

Fit First Philosophy starts with this premise. Hire for Fit, and then train as needed.  Save yourself time and money.
This post is sponsored by EyePloyment.com and Fit First Technologies

Learn more.

TIM BRENNAN

is Chief Visionary Officer with Fit First Technologies Inc, the creators of Eyeployment, TalentSorter and Jobtimize.

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