Page 19 – Eye Care Business Canada

Fact or Fiction? I Can Only Afford to Hire for Experience

Hiring Fact or Fiction – I can only afford to hire people who have experience.

The fact is that is most organizations find themselves hiring for experience and then firing for fit.

Associates are more often than not brought into an organization because they have the right blend of education, credentials, and work experience on paper.

They may even be a qualified Optician or and Optometric Assistant or have experience as a frame stylist in a practice or optical.

Many of these hires ultimately move on because they don’t jive with their coworkers, your clients or the practice owners and they just don’t fit the practice culture that you have been working hard to create.

FACT: Save time, effort, and resources. Decrease staff churn. Hire for fit.

It is far better to find people who fit. People who can work productively with your people and can learn what they need to know quickly.

Most often the reason for short circuiting what might seem like the obvious is the practice does not have a training plan and process in place or doesn’t have the time (or the skills) to train the person for a particular job.

Particularly in this swirly job market, hire for fit, then teach them what they need to learn. Only hiring for experience can lead to an endless churn of staff, which in the long-run, costs you more and can be disruptive to the practice and to the great employees you already have.

The most valuable competitive advantage for any business is to staff with star employees who perform better and stay longer. An eye care practice is not an exception.

I can only afford to hire people who have experience: FICTION.

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 You Should Avoid the Do-It-Yourself Trap When Selling Your Practice

Buying-Selling A Practice, Practice, Resources

Recently I have met with a number of vendors who tried selling their clinics privately. These were not good experiences for a multitude of reasons.

The number one reason people do this is to not only save commission but more importantly to try and keep the sale quiet. There is a definite fear that going to the market will mean EVERYONE will discover that your practice is for sale.

Ultimately, owners want to sell to the right buyer, a person who will treat their staff and patients well. In general, most buyers also want a smooth transition. After all, they have purchased your practice and want to ensure it succeeds.

However, when you open your practice to one or a selected group of potential buyers, there are risks associated. Some potential buyers can be quite crafty particularly when they start poking around your office. Most will often conduct the first bit of research before you even know he/she is interested in buying your practice. He/she may pose as a new patient calling for an appointment, visit your website or even come into your office to get a feel for things. This may cause staff to wonder if the clinic is for sale.

Without an experienced broker, you expose yourself and your practice to various pitfalls of a private buyer.

Due diligence is a stressful time – to put it crudely, it is “the owner’s proctology exam”. Unfortunately, if you manage this process yourself, you will quickly find out what it feels like when a stranger pokes, prods, and looks inside every inch of your practice. You are asked to produce many documents and then, you need to answer questions as to your reasons for doing business the way you do.

Using an advisor who is not familiar with the industry can also negatively impact your sale and stigmatize your practice. There are many times where our appraisal is used in a private sale. Buyers then call us to clarify certain points because the person representing the owner is not providing correct answers. I am definitely not insinuating that the individual is intentionally misleading but the reality is if you do not know the market by default, you will lose a potentially good purchaser.

It is never good to have one person representing both the vendor and the buyer. Relationships are extremely important. However, when the party who is introducing you to the buyer will continue to have a relationship with that buyer post sale, it is natural that the advisor may push a little harder for the buyer’s interests. This is exactly why we choose to represent vendors only. We believe you need someone in your corner fighting for you.

Selling a practice is not as straight forward as owners think. With the guidance of an experienced business broker, you will be challenged to take nothing for granted and look at the value of your clinic from a variety of angles, some of which may not be top of mind for you.

To ensure you receive the best possible outcome, you must ensure that when you sell, the practice is positioned in the best possible light and that the terms, which are important to you, are negotiated properly.

I always tell owners not to let what may be the biggest transaction of your life turn into something you think will be “obvious” to a new owner based on a quiet and private sale. You deserve to maximize your sale, exit ownership with dignity and to have no regrets.

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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How to Read your Corporate Financial Statement

Accounting Basics, Finance|Wealth, Resources

Annually we take our corporate financial documents to the accountant and about 90 days later we return to pick up the financial statement. We meet with the accountant who highlights a few aspects, tells us how much tax we owe and present their invoice for payment. Often we walk out thinking “I have no idea what he was talking about”. We proceed to pay the taxes and the invoice and then file the package away until next year.

The reality is that to be an effective business owner and build up a practice that have value beyond you being the doctor, you need to understand the document.

When you measure something you begin to have control over it. You have the ability to impact change and increase the value of what is likely your largest material asset.

So today, a quick preliminary lesson on your corporate financial statement.

The Balance Sheet
This is the overall financial picture of your business. It represents your assets (good things the business has) and your liabilities (the money you owe).

To make these two numbers match, the shareholder’s equity/deficit section includes the retained earnings (deficit). This is how the balance sheet balances what you have in the business.

Assets
Assets are typically separated into Current Assets, Long Term Investments, and Property & Equipment.

Current assets are those items that are typically easily accessible or readily available to turn into cash. This section will include the money you have in your bank accounts at year end (cash) and the money other people owe you (accounts receivable). Here is where you will also find your inventory value.

Other assets will typically make reference to “Notes”. The Notes section is where additional details are laid out related to the items listed. On the Asset side, these often include any long-term investments like the art you may have on your office walls, and corporate owned life insurance cash values.

Corporate owned marketable securities (investments) will also be listed in one of these categories.

Property & Equipment is sometimes listed as Capital Assets depending on the accountant. In any event, these are larger cost items that are subject to depreciation schedules. Depreciation is how the value of a capital asset is reduced over time as you use it. More details on the depreciation of an asset class can be found in the Notes to the Financials as well.

If you purchased the corporation from someone else, you likely paid a soft fee called Goodwill. Goodwill represents the value of the business that was attributed to the none-numerical value of the business assets at the time of purchase. This often represents the good reputation and value of repeat business for a corporation.

Liabilities
Liabilities refer to the money you owe, or in this case, the money your corporation owes someone else. This might include banks, yourself (shareholder loan), taxation, utility companies, etc. You get the idea.

Shareholder’s Equity
Shareholder’s equity is generally made up of two parts. Share capital refers to the amount of cash the shareholder’s paid to buy their shares of the corporation. For most of us, this is a nominal amount.

Retained earnings refers to the numerical value you have created in your company. If this is a deficit, it means you owe more than your company assets are worth. In other words, if you sold everything at current valuation, you would still have outstanding debt.

The Income Statement
This is where you will see the revenue that the corporation brought in during the past year. For most optometric practices, the cost of goods will be taken off this value to create what is called the Gross Profit, or “how much money you made before you had to pay for expenses”.

Operating expenses are then listed – either in alphabetical order (gosh I wish all accountants listed it this way), or from highest to lowest cost amount. There are general classifications of expenses that most accountants use based on the tax rules with each item.

Once you subtract out the expenses from your gross profit, you are left with “Earnings from Operations”.

Next comes the broad category of “Other Income” which typically represents revenue generated from your investments and any rental income you collected.

Note that rental income will appear here for most optometrists because being a landlord is NOT the main business of your corporation. These are listed separately because (a) they are not derived from the active business activities of the corporation, and (b) because they are taxed at a different rate.

This brings you to “Earnings before Income Taxes”, then “Income Taxes” and finally “Net Earnings” or “Net Income”. This is the final measure of how profitable your business was during the year.

Bank Accounts
So how come the “net income” amount isn’t what is in your bank account?

Glad you asked. The biggest reason is often that net income is impacted by “Amortization and Depreciation”, yet your bank account may have paid for the asset (think “piece of equipment”) with cash. Here is where we open up the conversation to leasing vs loan vs cash purchasing. That is a bigger topic for another day.

Dividends
If you elect to take dividends (profits) out of your company, these will be deducted from your net income, after taxes are paid, and will appear on your financials before the balance of your earnings are counted towards your retained earnings on the balance sheet.

Notes to Financials
The notes section should provide additional details about various line items on both your balance sheet and income statement. They will outline the total cost of equipment, how much has been claimed under depreciation, and what the net value of that equipment is now. These are generally lumped into different categories based on their tax treatment.

Computer equipment for example, depreciates at a much quicker rate than optometric equipment, because computers have a very limited life span on them. Having said that, even if your exam room equipment has been depreciated down to $1, it likely still has a greater resale value.

The net book value simply refers to the value of the asset from a tax perspective. Generally speaking however, if the net book value of an asset is $1, that might be all someone is willing to pay you for it. And then we come to the subject of determining a selling price for your practice, another big topic!

Advisory
As your Chief Financial Officer, I’m here to help you understand the money things in your business and personal life.

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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IRIS Announces New Partnerships in BC and Ontario

Practice, Products | Services | Industry News

IRIS, The Visual Group, continues to consolidate their national footprint with the with renewal of partnerships in British Columbia and Guelph, Ontario.

The group currently has 32 locations in BC, 13 in Ontario and over 100 across the country.

Strengthened Position in BC
New partnerships were announced for Vancouver Island locations in Parksville and Langford, BC.

Parksville IRIS

In Parksville, Optometrist Dr. Adam Reid and Optician Manager, Tammy Baker are the new shareholders, along with IRIS. The locations has a longstanding record of success for over 20 years with the previous IRIS partner, the late Dr. Gerald Trees.

Dr. Adam Reid, originally from Bowden, Alberta is a Pacific University School of Optometry graduate, and has been practicing Optometry at IRIS for 8.5 years

Tammy Baker, originally from Clearwater, BC graduated from the NAIT optician program in 1996. Baker joined IRIS 29 years ago and transferred from the lower mainland to Vancouver Island in 2007. She has been managing the Parksville location since December 2014.

The Langford IRIS location, near Victoria BC, has been a success since its first inception 22 years ago.

Dr. Robert McLaughlin, originally from the UK, was a professional physicist holding a PhD from Cambridge University prior to becoming an Optometrist.

IRIS TEAM Langford BC — IRIS Team in Langford BC

After five years in practice in the UK, he re-located to Calgary where he practiced for eight years. In that time, he worked with Ophthalmologist Dr. Al-Ghoul developing a Dry Eye specialty clinic. While in Alberta he was a council member on the board of the Alberta College of Optometrists.

As a passionate advocate for scope expansion, Dr. McLaughlin completed the Oklahoma College of Optometry’s advanced procedures course. He relocated to Victoria, BC two years ago. The warm hospitality, outstanding patient care and strong leadership of the successful Langford IRIS team, inspired Dr. Mc Laughlin to partner into his location.

In the IRIS partnership model each location is a separate legal entity and the shareholders only participate in dividends from that specific location.

Ontario Location Merges nearby Optical Practice
In Ontario, Optician Elena Klotz has merged her store, Edge Opticians into the downtown Guelph IRIS location

Edge Opticians, a family business, was founded seven years ago while the IRIS location in downtown Guelph was the result of an acquisition of the longstanding Scott Coburn Optical store by IRIS in 2021. The new combined business will operate in the existing IRIS location.

Guelph IRIS

“The IRIS vision of providing high-quality products to patients/clients is what most appealed to me. Having a support network while still maintaining the flavour of my individual practice was also appealing.” said Klotz.

Klotz is a third-generation eye care professional; her father was an Optometrist and mother an Optician. She has been an Optician for over 25 years having trained at Georgian College. She also holds a bachelor’s degree in Psychology from University of Guelph.

The new IRIS partnership consists of ownership of shares in an Ontario registered corporation that holds the assets of the downtown Guelph location only. Elena Klotz will receive dividends based on the profit of this individual location and participate in the appreciation of value of that specific practice as it grows. Elena will also receive a salary as the location’s Managing Optician.

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Luxottica Ties up Accessory Supplier Adding to Vertical Integration

Practice, Products | Services | Industry News

Luxottica Group has moved forward to acquire the majority shares (90.9%) of Milan-based accessory supplier FEDON thus taking another step forward in EssilorLuxottica’s vertical integration strategy.

While not considerably known or active in Canada, FEDON is a major player in the global eyewear cases and packaging market.

Sources indicate that the move, while not large in the total scope of EssilorLuxottica’s business, does secure their supply chain for eyewear accessories amidst growing luxury competitors, LVMH and KERING and overall consolidation in the frames sector.

The move also provides volume that can be leverages to scale-up for automation and cost reduction.

The company cites, “cutting-edge technologies and dedicated innovations (to) better fit the eyewear and spectacles with the cases and packaging to ensure maximum protection and integrity of the product.”

According to thier statement, EssilorLuxottica will also leverage the acquisition to pursue its sustainability strategy, investing in the recyclability and circularity of the packaging materials produced by the Company.

It is expected that the transaction will close by the end of June 2022.

Click HERE for the full press release.

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Scrubs or Street Style? The Psychology of Clothing

Marketing, Merchandising, Resources

How can your team attract your ideal clients and style multi pairs?

First Impressions
Your team can be powerful in representing your business brand, and these all-important people are your calling card and first point of contact in your practice.

We do live in a society where appearances matter, and your patients are assessing your practice based on that first interaction with one of your team members.

People will make a split-second decision about you within the first 30 seconds of meeting you. Usually, this is impacted by your eye contact, greeting, and attire.

Your patients are deciding that fast how successful you are, your education, your expertise, and how trustworthy you are, all based on appearances. It’s true!

Clothes Impact How Others See You
What you wear is a message to others and to yourself about who you are. The “psychology of clothing” tells us that there is more than meets the eye when it comes to the clothes you choose.

Wearing a lab coat or scrubs implies that you are in a medical profession. Wearing athletic clothes shows that you’re sporty and fit and on your way to the gym. Rocking a stylish outfit suggests you are in a fashion role.

But the association between clothes and perception runs even deeper than that. What you wear impacts how others perceive your personality and actions, and it directly influences your thoughts and behaviours.

Can Clothing Affect Your Behaviour?
Researchers at Northwestern University have found that the clothing we wear affects our psychological states as well as our performance levels. Hajo Adam and Adam Galinsky coined the term, enclothed cognition.

Enclothed Cognition is the scientific term for the idea that clothing impacts how we think and act. The theory says the clothing we wear (or that others are wearing) changes our thought patterns.

And this isn’t new. Originally clothing was worn for necessity to protect us but eventually morphed into fashion and a visual means of communication. What we wear can be a non-verbal way to express our unique personalities and create a favourable impression.

For centuries, what one wore was an indication of status in society. It indicated where you ranked, what you could afford and what profession you were in.

For example, certain colours (like purple) and fabrics (like silk) were reserved for the royal or elite classes. People would strive to mirror the same look and save to buy an accessory or dress to make them look the part.

Perception is visual and clothing and fashion is just as important today as it was centuries ago. It also tells your own brain what kind of behaviours and language it needs to possess while wearing a certain outfit.

Think of how you feel and act wearing work out gear compared to being dressed for a wedding. People tend to embody the expectations of the outfit.

Fashion Psychology Can Benefit Your Practice
You can use the psychology of clothing to work in your favour to be even more powerful and productive in your optical gallery. Wearing clothing and eyewear that is your style when you are styling eyewear for others can be used to your benefit.

Positioning your practice to have the desired results is a conscious choice. If you would like to be perceived as a “medical” practice, you can definitely “rock the scrubs”.

If your business plan is to scale your gallery and make the offer for lucrative multi pairs, clothing psychology suggests that a fashion clothing style will help you achieve that goal.

When getting dressed for your day, ask yourself “What do I want to feel like today?” and then think of an article of clothing in your closet that makes you feel that way. And don’t stop there. Go all out with your eyewear that is the perfect style for you.

Do your heels make you feel like a confident woman?

Do your glasses make you feel fierce, intelligent, friendly?

Does your jacket make you feel empowered?

Does your favourite shirt make you feel fashionable?

Project the very best you, attract your ideal clients to your eyewear gallery and then relax and spend your day styling and selling.

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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Why Would I use Insurance as an Investment?

Building Wealth, Finance|Wealth, Resources

Did you even know insurance can be an investment tool? Why would you ever want to do such a thing? Well, the simple answer is taxation.

Permanent Life Insurance
Two general forms of life insurance can help build your wealth.

Universal life insurance is like a term to age 100 policy that has a side investment account. You have the option to use the side account at any time. This is a great feature as you can secure the life insurance coverage you need today and hold onto the investment contribution room until you have excess cash to deposit.

Similar to purchasing mutual funds, a universal life insurance policy usually has a small selection of funds to invest in.

Whole life refers to a life insurance policy that has a dividend. The dividend can be set, often called non-participating, or it can be variable and dependent on an investment pool created and held by the insurer, called participating.

There are many dividend options to pick from and you should review your selected option from time to time to ensure the policy is still meeting all your needs. In most cases, a paid-up addition dividend option will help your policy values increase and typically outpace inflation so that the purchasing power of your benefit is maintained at the very least.

When you purchase a permanent life insurance product, you will be provided with an illustration that shows how the cash values might grow in the future.

Like any investment, there is no guarantee of long-term performance and typically these policies are designed for the long term as we want you to live a long and fruitful life. It is therefore important to also see the illustration of values showing 2% less growth so that you have a better understanding of some of the risks.

Risk?
All investments have risks. Having said that, the risk built into a life insurance contract is typically far less than the traditional marketplace.

Because the insurance company relies on their own investments in order to take your premiums and grow them to a point where they can pay claims, they tend to select lower-risk investments, have access to institutional funds, and lower management fees than many individuals do on their own.

Beware of illustrations that show you a high rate of return and minimize your premium payments by showing a high dependence on policy growth. It was quite common before the end of the last century to illustrate policies with double-digit growth.

The reality however was that most companies had to greatly reduce their growth payments and these policies started to implode. That policy that you thought would be there for life and provide a retirement supplement, was quickly disappearing to cover the base insurance cost.*

*If you think you might have an imploding policy, ask your advisor for an in-force illustration using the current growth rate and another showing 2% less. There are options to salvage what you have left if you act sooner rather than later.

Can Insurance Create Retirement Income?
Here is where things get interesting. A healthy life insurance policy with a decent investment side account can serve to not only cover your estate taxes at death, clear your debts, and provide a legacy to your family or charity, it can also be used to fund your lifestyle or other expenses while you are alive.

Typically, the value of the policy can be used as collateral for a bank loan, a policy loan (where you are your own banker), or partial surrender. There are various options depending on your need and long-term desires.

What About the Taxes?
When investments grow inside a life insurance policy, as long as the deposits stay under the contribution line, they grow tax-free. Keep in mind, that how you remove the money later in life may create a taxable event. Typically, if you access the money through a collateral or policy loan, there is no taxation.

Business Owned Policies
Here is where it gets really interesting. Growth from investments held by your business are deemed passive income and are taxed at the highest business tax rate. So being aware of the tax-saving opportunities for business investments is important.

Using life insurance can provide a great option for sheltering some business funds. Again, how you access these funds may trigger taxation – so you need to be aware of all the ins and outs of what you are trying to accomplish.

We didn’t even mention how investing in your life insurance contract can help you preserve the small business deduction tax rate on your active income!

When using a business-owned policy, you also need to be aware of how this investment and your life insurance coverage would be impacted by a change of business ownership.

Advisory
As your Chief Financial Officer, I’m here to help you understand the various tools available to you and your business to build your wealth. There are many factors to consider and understanding your goals is key to building a plan that serves you today and well into the future – as your life changes.

Have more questions than answers? Educating you is just one piece of being your personal CFO that I offer. 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 to Empower 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 splits EWO podcast hosting duties with Dr. Glen Chiasson.

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New Private Practice? Consider All Your Buying Group Options

NextGenOD, Perspectives

Are you considering starting or buying a new optometric practice? Being an independent eye care professional doesn’t mean you’re alone trying to figure out the day-to-day challenges of running a practice. By leveraging the power of numbers, today’s buying groups have evolved from providing ‘just a discount’ to offering a full array of resources and tools for the new independent optometric practice.

With so many diverse groups to choose from, the choice (and exactly which group to join), can be a challenge. To determine the right group for your practice, ask yourself the following questions:

What do I want from my group? What is it I need the most help with? Discounts? Marketing? Financial management? Education? All of the above?
What type of group do I want to join? One that offers just good discounts? Or am I interested in education and networking opportunities with other practice owners?
Who are the vendors in my group? Do they align with my offerings?
How is the group managed? Do I still make the purchasing decisions? Will my practice remain autonomous? Do I need to report my earnings?

Let’s take a closer look at the key buying groups available the country – each offering programs to support your business, save you money and help you succeed. The question is – which one is the best fit for you?

The Optical Group

For 33 years, The Optical Group has been servicing eye care professionals across Canada. With over 600 clinics, this group offers discounts, consolidated monthly billing, marketing, private label product and education. Recently, The Optical Group has partnered with New Look Vision Group to offer members a broader range of services.

“Not only do our members enjoy great discounts and programs, but they also receive industry leading customer service and care. We also believe in giving back. We support Seneca and Douglas college opticianry programs in addition to our Business Enrichment Grant,” says Ruth Priebe, Director of Operations, The Optical Group.

The Optical Group negotiates with over 110 vendors providing members with exclusive discounts and programs.

Members will benefit from the group’s multiple programs including website and digital marketing, social media and SEO (search engine optimization) to help promote members’ practices. In addition, accredited education including events and webinars are also part of the offering.

Members have access to a new and improved website that provides more in-depth information on available programs.

Founded: 1988
Division of Private Canadian Corporation
Membership: 600 clinics
National
$300 annual fee for first location only
www.theopticalgroupcanada.com

OSI Group

OSI is the original quintessential buying group in the Canadian landscape, having originated over 35 years ago.

OSI Group offers a wide range of training and services (financial, marketing, technology, for example). It also strives to prepare for the next generation of professionals, supporting young professionals who are starting their own business and helping those who are retiring to hand over their practice to another member. Younger ODs looking for a practice mentor and have an interest in migrating to ownership of an existing practice may find this option of interest.

“One of the major benefits of our buying group is of course the possibility of obtaining advantageous prices from certain suppliers and access to our private brands of contact lenses and our collection of Avenue Eyewear frames,” says CEO Patrice Lacoste.

OSI Group helps independents compete with the big chains. “What sets us apart is our Optosys^® clinic management platform, the latest version of which we launched last November,” adds Patrice Lacoste. This all-in-one system makes it possible to streamline the management of areas such as appointments, orders, patient relations, inventory, and sales.

“In a context of labour shortage, the automation of certain tasks frees up a lot of workers’ time,” says Lacoste. Members can choose to use a number of modules of the platform, depending on their needs.

Founded: 1982
Private corporation
Membership: 1,600 members in over 850 clinics
National
No membership fee
www.opto.com

Eye Recommend

With a focus on training networking, technology, and shared resources, Eye Recommend (ER) was founded in 2001 in Alberta but has since expanded to over 1,300 optometrists coast to coast. Their mission is to support independent optometrists by providing freedom of choice, business management and personal resources to ensure practice success.

Lee Raffey, newly appointed CEO says that Eye Recommend is member focused. “We encourage networking and sharing of ideas amongst our members and leverage the power of our network to bring the best technology, resources, and services in order to enhance the business performance of each practice. Before making a decision, we always ask – ‘How will this benefit our members?.

ER members benefit from choices with a variety of business solutions, consolidated monthly billing, suppliers’ discounts and, exclusive access to Doctor Recommends (D|R) lenses. With over 500 clinics across Canada, ER has considerable power to provide members with the resources needed to be successful.

Each practice has a dedicated certified business coach and trainer who, as a combined team, provide hands on support. These optical industry experts work to help identify opportunities and challenges to assist in the overall success of the practice.

ER conducts one of the most comprehensive training events for practice owners and staff called National Training Event. These events are led by industry professionals who have years of training experience. Two events are held yearly– one in the West and one in the East – featuring guest speakers, accredited continuing education, and team building.

Founded: 2001
Membership: Full scope optometry only
Registered Alberta Co-operative
1,300 ECPs, 531 practices
National (excluding Quebec)
$1,000 one-time administration fee per clinic
www.eyerecommend.ca

Digital ECP

Digital ECP Inc. offers Canadian eye care professionals business solutions that save members time and money. Their focus is offering flexible payment programs and access to supplier’s discounts and support.

Founder and President, Karen Ouellette provides a summary: “Many of our members come to us by word of mouth, recommended by colleagues or suppliers. Our members are independent and have the choice on who they want to purchase from. We offer access to promos and discounts to over 80 suppliers”.

The group features many offerings on the financial side. Members gain access to suppliers’ promos, discounts, and product training. In addition, billing is consolidated in one monthly statement. Members may choose to pay their bill early for a prompt payment discount. In addition, this group offers the flexibility of split terms: Members can split their bill over 30, 60 or 90 days. Particularly in a start-up situation, this benefit can be helpful for cash management

Founded: 2014
Membership: Opticians and Optometry
Privately owned Canadian Corporation
78 ECPs
National (Excluding Quebec)
One-time Membership fee: $150
www.digitalecp.com

Do Your Homework
There are many buying groups to choose from, so do your research to find a group that best aligns with your business needs.

Speak to your colleagues, and other group members. Some groups focus predominantly on financial (consolidated billing, discounts, and inventory tools); others focus on marketing, coaching, and training; and some do a bit of both. Finding the one that best suits your practice will take a bit of time, but it’s a step towards your practice’s success.

Note: The above mentioned organizations operate in English Canada. Among these four, only OSI operates extensively in Quebec. Readers interested in the buying groups servicing the Quebec market are referred to a feature article in Optik Magazine.

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Selling Your Practice? Keep Expectations Real and Be Prepared

Buying-Selling A Practice, Practice, Resources

Your practice is your baby. Even if you purchased it from another optometrist, you have put your own hard work in to make it your own.

You’ve toiled, fretted, and challenged yourself to reach new heights and now it’s nearing the time to move on.

When the time comes for selling, it is critical that realistic expectations are set. If not, the goal may never be achieved.

Healthcare is Pandemic Resilient
Thankfully, the market has not cooled since the beginning of the pandemic which is proof that healthcare is pandemic resilient. Vendors need not be afraid to sell if they believe the time is right for them.

People choose to sell for a variety of reasons. Those who have owned 30+ years simply feel it is time to hand over the reins. Some feel that owning a practice is stressful with HR issues, attracting new patients, retaining existing ones, dealing with landlords, etc.

For others, it is the desperate search for work life balance. After all, managing a practice and a young family is no easy feat.

There are also those external and internal events: divorce, health issues, death, partner disputes, death of a partner or a family member, having to relocate or issues with children. All of which can cause a practice owner to want to sell.

Emotions are Natural – Put Them Aside
Regardless of the reason, vendors do need to enter the sale process with the right mindset. The practice itself represents so much more than patient charts, equipment, and the physical location.

Regardless of how long the individual has been an owner, the practice represents them, their efforts, successes, and failures. It is a symbol of fierce pride and accomplishment.

All these reasons are valid which is why the sale of a practice has an emotional component whether an owner wishes to admit this or not.

The harsh truth is that once the decision has been made, the vendor must be realistic in how the process will unfold and more importantly how a buyer will view their practice.

It is not uncommon for a vendor to believe that the buyer should be grateful to acquire such an amazing practice. However, a buyer, while happy to have the ability and opportunity to purchase the office, also believes they are paying the vendor a fair price.

This is where things get a bit tricky.

Consider the Buyer’s Burdens
During the negotiations, the vendor feels the buyer should agree to all their terms because they are presenting them with an office they can simply walk in to and take over, unlike the vendor who had to work exceptionally hard to establish and build this practice.

The buyer on the other hand, feels that their requests should be accepted because once again, they are paying a healthy price. Whenever money changes hands the potential for ugliness to rear its head most certainly can be expected.

Many vendors believe any purchaser of their practice will be successful if they simply treat their patients well.

This is partially true, but a buyer likely must make some improvements, engage in a marketing plan, and most importantly have the staff rally around them to ensure their success.

Buyers, unlike the current owner are also carrying a significant loan, therefore the room for error is quite slim. If a vendor wants to stay on as an Associate for a period, many will demand 45% to 50% as associate compensation.

While this certainly makes sense given the level of experience and maturity the vendor has, the reality is that if this vendor worked with a large corporation, the compensation would be 40%.

In addition, more times than not, the numbers simply do not work for the purchaser by the time the bank loan is repaid along with the overhead and some type of draw to cover personal expenses.

Post Sale Emotions – Be Prepared
Another expectation that must be addressed by the seller is the relinquishing of control.

They may be your patients and staff today, but on day one of new ownership, these fine people are now the buyer’s patients and staff.

This can be a very tough thing to accept particularly if the vendor wishes to remain working post-sale. Vendors are very protective of patients and staff. They are always worried that the new owner will not be accepted easily.

They worry how staff will be treated. Buyers worry about this too; they worry that they will not be seen as the owner and that staff will constantly run back to the prior owner.

When the vendor wants to stay post-sale, they must accept the changes made by the purchaser regardless of whether they agree or not. It is difficult to change behavours after 20 or 30+ years of being in charge. The vendor must be prepared that their opinion is not required regarding new technology, schedule changes, treatment planning and staff motivation (or lack thereof).

The vendor must also be willing to accept additional growth generated by the new owner. One cannot have regrets when the buyer increases revenue by 20 or 30%.

There will almost always be opportunities for improved efficiencies, expanded hours, etc. It is not a sign that the vendor did not maximize potential or failed to reach a certain level of success.

A vendor needs to understand that it is normal for a level of comfort to set in, particularly when the practice and perhaps even personal debt is paid off or at least nominal.

Selling a practice can be quite emotional for some vendors. It is so critical to be prepared because an owner does not want to suddenly be faced with a good offer and back out of a sale midway through the transaction because they did not prepare themselves psychologically for what happens next.

Get the Right Advisors
Fear of the unknown can be paralyzing, and no one can make the best financial decisions if the proper time was not spent planning for the next phase. Transition planning looks different for every practice owner.

The common thread is the need to proactively prepare for both the financial and emotional aspect.

With the right advisors, vendors can successfully go through the sale of their practice with few battle scars. Change is always scary, but it is also important to remember that none of us are defined by our professional occupation.

There are so many other facets of our lives that we should be aware of and be grateful for. Life post-sale can be exciting if one chooses to make it so.

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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Episode 27: Bring Style into Your Sales Strategy

Eyes Wide Open, Podcasts

Wendy Buchanan is a Registered Optician and an Image Consultant. Wendy has a highly successful mobile practice. She shares her highly unique skill set with Optometry practice owners through a training course and consulting. Podcast host, Dr. Glen Chiasson explores Wendy’s success formula, how it came about and reveal how Optometry practice owners and managers can bring optical sales to a new level.

About the Guest

Wendy Buchanan combined her Fashion Image expertise with her Opticianry skills to build a hugely successful mobile practice. Over the last 25 years Wendy has built a proven system to style boutique fashion eyewear in multiple pairs with a very high repeat purchase.

Wendy lives in Mississauga Ontario, has a passion for all things fashion, takes an amateur stand at hitting a little white ball and enjoys peanut butter and jam on toast.

Episode Notes

Wendy relates her “optical journey” with podcast host Glenn Chiasson from junior lab tech to registered optician to entrepreneurial eyewear stylist and optometry practice consultant.

She reveals why she initially left the optical industry and pursued an alternative career in image consulting, only to be guided back into the optical world by serendipitous comments by her customers.

Wendy provides insights into the system behind her Be Spectacular framework which has yielded outstanding results for optometry practices teaching teams to style and sell increasing capture rate.

Resources

Dr. Glen Chiasson

Dr. Glen Chiasson is a 1995 graduate of the University of Waterloo School of Optometry. He owns and manages two practices in Toronto. In 2009, he co-hosted a podcast produced for colleagues in eye care, the “International Optometry Podcast”. He is a moderator of the Canadian Optometry Group, an email forum for Canadian optometrists. As a host of “Eyes Wide Open”, Glenn looks forward to exploring new new technologies and services for eye care professionals.

Dr. Chiasson enjoys tennis, hockey, and reading. He lives in Toronto with his wife and two sons.

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

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Episode 27: Bring Style into Your Sales Strategy

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Dr. Glen Chiasson

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