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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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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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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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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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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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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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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Tackling Debt from Student Loans to Credit Card

Finance|Wealth, NextGenOD, Perspectives, Resources

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I’m not sure why, but for some reason we love using football analogies in financial speak. I quarterback, you receive, and we tackle.

As we move into the summer, we are more jubilant and with that, we can have a tendency to overspend and forget about our financial plan.

To refocus, remember that your financial plan is really about what you want to achieve. So despite the lure to buy things that media is so great at convincing us we need, take a step back and ask yourself, “Does this purchase meet my cash flow and/or financial plan?”. (Wait, if you don’t have one, skip to the end and call me! Let’s get you working on building your wealth!)

The vast majority of young professionals have started their adult careers with a significant amount of debt, stemming largely from student loans. You may have also been dazzled by the glitter of a new car, a downtown condo, and in my case, a very expensive winter coat for our return to Winterpeg.

All of this can lead to an amount of debt that weighs you down and feels insurmountable.

Living the Good Life
You have worked hard to get where you are. You’re a doctor and with that often comes the expectation to live a lifestyle well beyond your current means. After sacrificing for years, you are now making money and want to enjoy it.

Absolutely! However, will a lifestyle of the rich and famous actually lead you to be rich and famous or will it lead you to a lifetime of debt?

If you could wave a magic wand and make your money do anything for you in the next 6-18 months, what would it do?

Are you taking the necessary steps to make this happen? Are you setting yourself up for success or will you always be chasing that next intermittent “high” from purchases? If you set yourself up properly and take action now, your magic wand doesn’t need to be magical.

Two Methods for Tackling Debt
There are two common methods for tackling debt – you know, take it down! Both methods focus on the getting rid of your debt in a time effective manner. When you gather all your debt information, you will want to review:

  1. Who do you owe?
  2. How much do you owe them?
  3. What is the interest rate?
  4. Are there any special terms on repayment, like 6 months interest free?
  5. What are the minimum payments?

Debt Snowball
The snowball method uses the concept of starting with a small pack of snow and essentially rolling it around your yard until you make a giant snow boulder. You start small, but as you keep going, you pick up momentum and before you know it, you have tackled a lot of that debt!

In this method, you pay off your smallest debt first – just get rid of it! Then move on to the next smallest. By decreasing the number of debts on your plate, you build significant positive emotions and reinforce your behaviour. You can see real progress.

Remember, you should also be making the minimum payments on all your debts while you are lump sum reducing the smallest. And as you remove the smaller debt minimum payments, you now have even more lump sum money to throw at the larger payments.

And voila – you have won the snowball fight (and waved that magic wand).

Debt Avalanche
The debt avalanche uses a slightly different approach. Just like in the debt snowball you will continue to make your minimum monthly payments on all your debts. However, here you will focus on your debt with the highest interest rate first for your lump sum additional debt repayments. The idea is to make your debt come quickly crashing down.

Which is Better
Depending on who you ask you will get a different answer and generally speaking, the approach that works better for you depends on….YOU!

If you’re someone who frets about interest, then use the debt avalanche. If you’re someone that gets easily off track, then use the debt snowball.

Positive reinforcement is a powerful thing and should never be underestimated, even if it means you’ll pay a few dollars more in interest. And, if you are someone whose highest debt is 100% consumer credit card debt – you do need to ask yourself why your credit card is racked up in the first place.

High Interest Credit Card Debt
Understanding why you overspend on consumer goods is critical to truly tackling debt. There is really no benefit to paying off your highest debt credit card first if you are just going to run it back up again. This type of behaviour is not only counter-productive, but it’s also morally deflating.

Debt is Bad
Understanding that debt is bad and ultimately steals from your future is step one to getting on the field. Having the self-discipline to get rid of debt is a life skill worth developing.

Even if your extra lump sum payments are only $20 this month, put it towards your debt and then celebrate with a beverage from your fridge – one you have already paid for! Every dollar paying down your debt will get you closer to financial freedom.

That being said, there is such a thing as good debt and best debt.

Good Debt Best Debt
Not all debt is bad. Consumer debt is horrible. Good debt actually allows you to build your wealth. Buying a home is good debt. But beware, even good debt needs to fit within you cash flow. It’s good only if you are paying it down and have a plan to eliminate it.

Best Debt is debt that not only builds your wealth, but where the interest is tax deductible. In many cases this does include your student debt. It can also include the purchase of a business. Using debt to build your wealth is a much bigger conversation and should be done as part of your financial planning.

Advisory
Circle back to your plan and take an honest look at why your debt exists in the first place. Then make a true commitment to yourself. Growing wealth is really as simple as that.

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@claritywealthadvisory.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.

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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Next Generation ODs Supported by FYidoctors Future Vision Leaders Program

Finance|Wealth, NextGenOD, Perspectives, Resources, Sponsors

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FYidoctors announced the launch of  their “Future Vision Leaders Program”, which will provide up to $100,000 in forgivable, individual loans, to support the next generation of Canadian Optometrists. This new initiative is design to help both new and recent optometry graduates.

This new program comes at a time when efforts to recruit young optometric professionals, particularly in ex-urban and rural areas, have been amplified by virtually all players in the market, including corporate and independent optometry organizations and individual independent practices.

Up to $100K – Selective and Forgivable
“FYidoctors was founded on doctors defining what eye care looks like—both now and in the future,” says company Chair and CEO Dr. Alan Ulsifer. “This includes the vision to bring the highest level of eye care to all regions of Canada, with special appreciation and presence in rural and under-serviced areas. Eyecare and vision is too important to the quality of one’s life to be limited in availability. We are excited about the Future Vision Leaders program to help us fill these important public needs while giving the next generation of optometrists rewarding opportunities.”

FYidoctors will assess applicants on an ad hoc basis and selectively offer 100% forgivable loans of up to $100,000 for new graduates as well as those who have graduated within the last several years. Successful applicants who enter the program will be partnered with clinics in either urban, rural or remote regions, with the aim of bolstering the future of the industry while giving Canadians in those regions better all-around access to eye care.

Apart from the forgivable loan, graduates who enter the program will also receive competitive base rate compensation, optical benefits and access to world-class innovation, leadership and development opportunities, according to the company.

Additionally, individuals could be eligible for guaranteed minimum pay and moving expenses.  “I was a young optometrist when we founded FYidoctors in 2008,” says Dr. Michael Naugle, FYidoctors’ Vice President, Optometric Partnerships, “and I have benefited from our OD-owned and controlled model that allows us to practice to the highest level of care due to our emphasis on technology and advanced eye care. As the largest collegial ownership model, we are always looking for the best optometric talent. This one-of-a-kind program helps serve our collective goals in a way that everyone—especially the health care industry—wins. We are excited for its launch and to congratulate our first cohort of Future Vision Leaders.”

Young ODs wanting more information on the Future Vision Leaders Program are invited to email the company at: Optometryleaders@fyidoctors.com for more details and to initiate a discussion with a program advisor.

 

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