Following on the heels of a busy Black Friday shopping season, December is also a busy retail month. As an independent optometric office, there are a number of ways to meet the needs of the consumers during this season of giving.

Many offices offer a BOGO on lenses for patients throughout the year. What about offering a Buy One Gift One for the month of December? This could be particularly effective for sunglasses. Keep the rules fairly simple. For this promotion, the office can allow a customer to purchase one pair for themselves and one for another person.

The goal with any BOGO is two-fold; you want to move as much inventory as you can as this allows you to get better discounts from your suppliers. You also want happy customers! If consumers are able to get all their needs met at your location, there will be no need to shop elsewhere.

Keep in mind too that many people simply haven’t thought of buying something from their optometrist as a gift for someone else before. There are lots of possibilities! Gift certificates are the most versatile. Recipients can use it for anything from contact lenses to new glasses.  Make one up and display it at check out so that patients know that this is a possibility. Also consider offering the gift certificates at a discount. Everyone loves it when their gift giving money can be stretched a little further! And you are guaranteed a sale in the new year.

Think about the check out at any retail location you visit this month and consider implementing some of their ideas. For instance, most offices carry drops, vitamins, contact lens solution, cleaning clothes and cleaning spray. These all make great stocking stuffers or Secret Santa gifts! Put a few together in a clear gift bag with a pretty Christmas bow on a counter. Patients will thank you for the ideas!

In fact, it is also a great time of year to thank patients for their loyalty and business. Consider offering a small gift with purchase throughout this month. For example, our orthodontist gives away $5.00 Indigo gift cards at every visit.

Of course, December marks the end of their benefits period for many consumers. It is helpful to remind patients to use their benefits before they reset in January. If you have a large television in your office, this is the perfect place to inform patients of all your December promotions, including a Use it or Lose it reminder.

This is a month when many people are looking for ideas for gift giving. Help your patients by displaying some ideas and take the opportunity to give back as well.

KELLY HRYCUSKO

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


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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’sinterests. 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, 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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“I couldn’t beat people with my strength; I don’t have a hard shot; I’m not the quickest skater in the league. My eyes and my mind have to do the most work.”

— Wayne Gretzky

I’ve been immersed in the world of sport technology for the past couple of weeks and have had some really interesting conversations about how technology can help (or in some cases hinder) sport performance. One aspect that I’m always drawn to is the potential benefits of using technology to improve an athletes perceptual and cognitive skills.

While most training programs tend to focus on an athlete’s physical characteristics, there has always been at least a passing interest in the “mental” skills that underpin performance. I use quotations because I’m not talking about psychological skills like imagery, goal setting, etc. but referring to the skills that help athletes see the right information and make good decisions. For an example of what can happen when these skills go wrong, have a look at the video below!

In this week’s article, I’ll take a look at how perceptual and cognitive (PC) skills can influence performance and questions that coaches and teams should consider before adopting any type of training tool.

What are PC skills and why do we want to train them?

As I mention above, perceptual and cognitive skills can be thought of as mental skills. Except rather than training psychological skills they focus on how athletes perceive and use sensory information from the competition environment to support their performance. PC skills range from skills that are almost purely perceptual, such as basic visual skills or how athletes control their eyes while performing, to more complex perceptual-cognitive skills like anticipation and decision-making. Now, if we want to get really granular, we could argue that things like visual skills training aren’t perceptual-cognitive skills because they lack the cognitive component but in this article I’m going to refer to everything as PC skills to keep things simple!

Why are we interested in PC skills? You can probably think of any sport and name a player who isn’t the most physically gifted but has excelled because they possess the ability ‘see’ the game better than anyone else – guys like Wayne Gretzky and Lionel Messi come to mind. PC skills are the unseen skills that allow these players to dominate the game. Think about it, at the highest levels of sport, physical skills tend to be less of a limitation for athletes so we need to look at other areas to explain the incredible advantage some athletes have. And before anyone freaks out and says “well physical skills are important too”, absolutely. It’s the combination of a wide range of capabilities that contribute to expertise but, I’d argue, that aspects like PC skills are what sets the best of the best apart.

Key questions to ask yourself

The  Modified Perceptual Training Framework (MPTF) is a scientific approach to evaluating PC training tools and is designed to be fairly easy to use but, if that’s not your cup of tea, there are pretty straightforward questions you can ask yourself when considering adopting a training tool.

Does it look like the game? Remember concepts like specificity and representative learning design suggest that better transfer occurs when the information presented and actions required are closer to game-like. Is it targeting skills that are important for your sport? Again, think sport-specific here.

Is the tool training skills that would actually be used in competition. Beware of tools that target really generic skills – you’re more likely to be disappointed by the results.

Has the developer got any support to show that it works? Don’t take their word for it, look for anecdotes, case studies, or better yet experimental evidence. They’re trying to make money at the end of day and the best way to sell a product is to show that it works. It’s in both of your interests

DEREK PANCHUK

Derek Panchuk is the founder of Chiron Performance and a Skill Acquisition Specialist with over 15 years experience working with elite athletes. Derek completed his postgraduate studies with Prof Joan Vickers at the University of Calgary where he studied gaze behaviour and Quiet Eye of elite hockey goalies. From 2014-2018 he was the National Lead in Skill Acquisition at the Australian Institute of Sport.


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What do you get when you combine an Engineer and an Optometrist?

Keep reading to find out how Dr. Gerry Day manages to combine his

education as an engineer and his passion for eye care.

Gerry Day owns three practices in the Sarnia – Lambton region of south western Ontario.

Dr. Gerry Day

Optometrist, Professional Engineer

Doctor of Optometry, University of Waterloo, 1996

Chemical Engineering, University of Waterloo, 1991

 

How did you get into the eye care business?

I actually started my career as an engineer working for the oil company, Suncor. I had the good fortune to have several different positions that gave me a great business background for later operating my optometry practice. First, I worked in the oil refinery dealing with complexities of day to day operation of making gasoline and other petroleum products. Next, I spent time in time in Industrial Marketing. That gave me a background in product market strategies and competitive pricing. After that I was moved to manager of company operations, where I got experience overseeing and developing my reporting managers and their many gas station employees. My final role at Suncor, was as a business analyst which gave me experience in competitive analysis, budgeting and strategic planning. It looked like my career was set, tackle an MBA and pursue more senior management positions on the horizon. That’s when I decided to take a step back and to reflect on my career and what I wanted to achieve when it was all done. Did I want to pursue the corporate ladder or did I want to pursue my lingering interest in optometry that had started way back in high school. Should I go back to school, open my own practice and spend my career helping people see better? I decided to write the optometry admissions test, did well enough to apply and the rest is history.

What have you done to set our practice apart?

The single biggest thing we have achieved to differentiate the way we practice is Super Techs. Several years ago, we assessed the patient journey through our practice and found there was many inefficiencies and too many hand offs between staff, doctors and patient. A typical visit included Checkin at reception then to pretest, on to optical tech and scribe, then to optician and then finally to check out. Too many missed communications over billing, eyewear needs, future appointments were occurring. So we implemented our super technician program. In our system, a patient checks in and then is greeted by a super tech. The super tech performs testing, scribing, education and dispensing, staying with the same patient for their whole journey through the office until their final stop with admin at check out. Super techs were trained and tested in pretesting, pre-examination, scribing for doctor, patient education and lifestyle dispensing skills. It was challenging work but my staff rose to the occasion and now find it very rewarding. Our patients now have a much more efficient and connected eyecare journey, staff are empowered in eye care delivery and my time with patient is much more efficient and it allows for better quality doctor patient interaction.

 

What is your definition of success?

I see the definition of Success being different for each individual optometrist. Success for an optometrist is achieving the perfect mix of Clinical Optometry, Business Management and Lifestyle, that provides good income and time to enjoy quality of life. My current mix is three days of patient care, two days of administration, including work for Eye Recommend board of director’s and time off for family and personal pursuits. I currently take 6-7 weeks of vacation to follow aspirations of travel and outdoor recreation. That’s success for me. Another interesting combination I recently heard was of an optometrist who was a scuba instructor in Belize. He arranged his optometry practice to enable him to take several months away from his practice each year to be a dive instructor…perfect balance for him.

What is your favorite past time or hobby?

Mountain biking has been my favorite past time for 20 years. I love being out in the woods and exploring the trails. We travel each year to different mountain biking destinations across Canada and the United States. My other passions are family boating and travel. Our next journey is Greece in 2018 and hopefully Australia/ New Zealand in 2020.

Perfect Day?

My perfect work day is enjoying the growth and development of my staff. I love to see their passion for eyecare, super rewarding. There are many perfect leisure days to be had. The world if a fascinating place, anywhere from your back deck to travel destinations. The end to my perfect day is sitting on the beach with my family and our dog. Talking, skipping stones and enjoying the sunset.

What is the best possible future invention?

Anything that would enable better eye care for those who don’t have access to care, especially 3rd world countries. For example, an easy to use hand help laser for performing peripheral iridotomies. Many of the world’s people are hyperopic and that brings with it, narrow angles. While on a mission in Zanzibar, I saw an 18 yr old patient that was blind due to angle closure glaucoma. That was sad to see and never forgotten. Preventable blindness, no care available on the whole island. A portable laser would enable field teams to assess, treat and prevent blindness.
Outside of eye care, a cure for cancer.


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As we all know, the optical landscape continues to become more and more competitive. Consumers have more options and are able to shop more transparently, creating a price pressure on glasses that is real.

So if you know your patients are shopping, how do you respond? The answer lies in thinking about it from the patient’s perspective. When they are shopping, what are they looking for?  Some are looking for the best price, some for the best value. Some just like to know all of their options so they can make the best-informed decision!

Once you have identified all the reasons a patient shops around, you can start to strategize ways to address their needs.

For the patients who are looking for a great price, having a Value Package section in the gallery can be appealing. For these packages, you will want to source good quality frames (that won’t give you a lot of headaches with returns and warranties) at a good price. For the lenses, the package should include scratch coated lenses in a traditional design.  It is possible to have add on options for anti-reflection coating and photochromic properties. The price should be bundled to include both frame and lens costs.

For patients who are looking for the best value, we recommend having clearly laid out choices for them. Show them that they can choose from more price effective products that may not have the same features and benefits as the higher priced options.

We also like to look to other retail examples for some great ideas. Have you been to the movies lately? They have some great ways of bundling products. Popcorn, drink and a bag of candy – for one or two people!  Could you optical do the same? Do you have a BOGO deal that extends to another family member? There is a makeup store that is adding value but sending samples home with each purchase. Not only does this encourage additional future sales, but it also leaves the customer feeling like they got some extra value. What about sending home a sample of an eyelid wipe? It is such a great connect for patients – learning what the best product is to remove make up with from their eye doctor.

Another way to add value is to provide more convenience. Many locations are now offering shipping directly to their patient’s homes – everything from drops to contacts to glasses. The reality is, most patients are happy to try their glasses at home and if they need an adjustment, they will make time to pop by your practice. In the meantime, having their new spec delivered directly to them adds a much-desired layer of convenience onto their shopping experience!

At your next staff meeting, take an opportunity to brainstorm all the ways that your clinic can bring value to the patient’s shopping experience – and then package those ideas up! Your patients will love that you have options that have anticipated their every need.

KELLY HRYCUSKO

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


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The technology to measure and improve an athlete’s visual perception and on-field performance has never been better. But how you utilize that technology is key. There is an art as well as a science to it.

Performance vision testing on SENAPTEC sensory station

Helping athletes to see and perform better is what you might call our family business. My late father, Bill Harrison, OD, worked with countless professional athletes for over 45 years, in particular major league baseball players. He created “SlowTheGameDown” as a leading resource and training center to help professional, amateur and student-athletes of all sports. For the last 20 years, I joined my father in training elite and amateur athletes. We recently opened an elite training center in Irvine, Ca.  My background was as a Division II placekicker, and I have a degree in Exercise Physiology. My sister, Alicia, Harrison, OD, followed in the medical direction as an optometrist and also runs a sports vision practice in Laguna Beach, Ca.

Common in all our work is that we take a multifaceted approach to how the eyes play a role in sports. We examine the visual demands from a medical, skills and tactical approach and come up with treatments and training regimen for elite athletes to perform at a higher level.

Another common thread: Each athlete is different, and a successful training plan must be individualized in its goals and processes. We provide the human element of coaching, involving the entire life of the athlete, and not just machine testing and analyzing two eyes.

Establish a Baseline Evaluation

Let’s take the case of hitting a baseball, sometimes referred to as the hardest task in sports. In working with a hitter, we establish a baseline in four areas:

  • Clarity and quality of vision
  • Depth perception, eye tracking and visual processing
  • Visual Tactics: Are the eyes in the right place at the right time?
  • Concentration: Is an athlete thinking about other things?

Our baselines may differ from what a sports vision practice might commonly see, but creating an effective program still requires the same process. Always consider the athlete’s needs, challenges, fears, goals and lifestyle routines when developing a comprehensive neurodynamic vision program.

Visual Tactics and Concentration Patterns

The difference comes when we create a dynamic training environment to simulate the stress of an action-packed situation. Then we see differences and begin to identify challenges:

  • Are the eyes where they’re supposed to be?
  • Is the athlete sorting out good information from negative information?

Here we often discover an element less quantifiable but vitally important: The ability to notice clues and track patterns. It’s a conundrum of sports: If a catcher calls pitches all game long, why isn’t the catcher the best hitter on the team? It figures that they would know what pitch is coming from the opposing pitcher.

One answer is that a catcher can develop visual laziness. They have seen so many pitches that their visual intent becomes less intent. This can detract from their concentration and ability to recognize and anticipate patterns.

Consider: The first time that you drive an unfamiliar route, you work hard to recognize landmarks. After you drive that route regularly, you tend not to.

Similarly, a catcher has caught pitches so many times in a row, they can lose that same keen emphasis. Fatigue sets in, their focus shifts. The hockey goalie faces a similar challenge to be “in the zone” when the game seems to slow down. Here we may see two goalies with equally outstanding eyesight, but one can handle and process a lot of visual information while another is paralyzed with information. Some are better pattern recognizers than others.

Centering vs. Concentration

Most people talk about the importance of concentration–but concentration is not a good word in this case. Awareness of it doesn’t tell you anything about what to do. Most people try to concentrate by trying harder or by blocking things out.

It’s ironic that when we have our best concentration, we not even aware of concentrating.

Centering is an active effort of directing your energy to a target to process relevant, available information. It isn’t about aiming. It isn’t about blocking things out. Centering is about actively processing the available and relevant information radiating from your task at hand. It’s proactive in that you can direct and control.

Great concentration is relatively effortless and is not exhausting. Concentration appears to be something you’re conscious of only when you don’t have it, because when you’re concentrating, it appears to happen automatically.

Customize an Individual Training Program

It is important to work on developing an athlete’s strengths and negate their weaknesses without prejudging overall performance potential. We believe that data is only part of the evaluation process and must be shared with the athlete to help understand the development process.

It’s important to choose technologies that are validated for accurate measurements and a comprehensive database. These results should be cross-referenced against the trainer’s experience and expertise with the athlete and visual requirements of the sport during a 1:1 baseline evaluation.

The Shortcomings of Predictive Performance Models

One fast-growing area in major league baseball, as well as in other professional sports, is in testing skills and creating predictive models of potential performance on the field. This commonly involves testing individually and in the Combine that precedes drafts.

Testing and modeling is useful, but you need also to spend time with an athlete to fully understand their potential. Some athletes test well in a pre-draft Combine but their on-field performance fails to match up. Some have phenomenal vision but lack visual discipline.

One useful application of testing and modeling comes into play more in the middle of draft picks. When teams select their top draft picks, they expect phenomenal performance from the athlete right from the start. It’s the middle and lower picks, where teams want data and improvement models for players with potential, that they are willing to develop. By first dealing with these issues and addressing others, we may not help your very best players. But we will help your larger potential pool, and that wins games.

In addition to professionals, we work with a large number of college and high school teams. It is important to understand that you will find more fundamental visual problems that need to be addressed before performance vision training can be implemented.

  • Do athletes have correct Rx and eyewear, including contact lenses?
  • Are they wearing correct protective eyewear and sports specific tints?
  • Is there a significant difference between day time and night vision (under floodlights)?
  • Do athletes have comprehensive concussion baseline results to compare against?

 

NDV Performance Center
Irvine, Calif.
www.ndvperformance.com

Training Center:  Great Park Ice and 5 Point Arena: 280,000-square-foot complex offers a variety of ice sports including youth and adult hockey programs, tournaments, figure skating, curling, broomball, sled hockey, public open skating, The Center will be used as the practice facility for the Anaheim Ducks NHL team.

Specialties:  Performance Vision training, athlete and team performance evaluations, concussion baseline assessment and rehab programming

RYAN HARRISON

is the founder of Slow the Game Down and the Director of Training for Neurodynamic Vision. He has a degree in Exercise Physiology from the University of California at Davis. Ryan has worked with his father, Bill Harrison, OD, on improving athletes’ visual performance on the field since 1999. Through the years, he has worked hundreds of baseball stars and organizations. He is currently working with the 2010, 2012 and 2014 World Champions San Francisco Giants. He previously has worked with the Toronto Blue Jays 2011-2015 and Philadelphia Phillies 2009-2012, as well as nine other professional baseball organizations over the last 14 years. At the college level, he has worked with the 2016 NCAA Champions Coastal Carolina, the 2012 NCAA Champions Arizona Wildcats, the 2013 NCAA Champions UCLA Bruins, as well as Oregon State, Wichita State, Kentucky, and Long Beach State. Ryan has worked with many collegiate softball programs, and with individual athletes in various sports such as MMA, Motocross, NHL, NFL, WTA, AVP, and PGA.


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Host Glen Chiasson speaks with Warren Modlin, founder of NeuroDynamicVision.org and a trained optometrist with 25 years of optical industry experience, about how optometry should be at the forefront of the eye-brain connection and how to make sports vision a rewarding practice differentiator.

 

 


Warren Modlin

About the Guest

Warren Modlin is a trained optometrist with 25 years of optical industry experience. As VP of product strategy for Oakley, Warren helped develop sports vision eyewear for a broad range of sports specific verticals including cycling, golf, baseball and more. He is the founder and CEO of NeuroDynamicVision.org.

 


Episode Notes

NeuroDynamic Vision (NDV) was founded by Optometrist Warren Modlin, an industry veteran with over 25 years of experience including eight years at Oakley. NeuroDynamic Vision was created as a resource for eye care professionals to expand their value in a highly competitive market place with retail consolidation, online competition, AI and technology in the area of vision performance for athletes.

In this podcast, Warren explains where to find the latest scientific evidence  and resources on the subject of vision performance. He explains how the techniques used by NeuroDynamic Vision can evaluate concussion protocols and help bring athletes back on the road to wellness.

According to Warren, “The core of what we offer is the understanding that vision goes beyond 20/20.” Optometry is at the forefront of eye-mind-body connection and optimizing human performance.

Warren shares his insights on how Optometrists can bring vision performance into their practice and how to market and manage a practice conducive to athletes. He walks through an athlete’s experience in his practice, from assessment to developing an 8- to 12-week plan for an athlete’s sensory-cognitive training.

Resources

 

 

Dr. Glen Chiasson

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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The optometry world is changing dramatically, especially with the increase in competitors. It is essential for practitioners to find new and unique ways of growing their practice and setting themselves apart from other providers.

Like any other small business owners, an OD has to be liked and respected by their customers. If you are an independent OD who is looking to give yourself an edge, here are some simple tips to consider for standing out from the crowd:

Use the Power of Technology

This might come as a surprise to you but most patients are impressed and amazed more by the advanced instrumentation that an OD has set up in their exam room more than the OD themselves. They consider all optometrists to have the same level of skill and expertise. Therefore, a good way to differentiate you is by using the power of technology.

Tools like retinal camera allow you to impress the patients, provide them with premium-quality care and give a boost to your revenue at the same time! This kind of technology doesn’t only let you stand out but also allows you to get faster, efficient, and more error-free results.

Communication is the Key

While advertising your practice, always remember, communication is the key. You really want to communicate with your patients and make them understand the work you do. Get the right message across; use pictures to illustrate the value of your practice, be transparent about the hours you are willing to accommodate to your patients. Make sure that your advertisement is catchy enough to grab the attention of a potential customer.

Even the most ideal location won’t do you any good if you fail to get your point across to your prospective patients.

Customer Satisfaction

Have you heard that in the business world a customer is always right? Same goes for your optometry practice. You need to hire staff that is friendly and considerate of the patients. As an optometrist, you should be very easy to talk to. Patients never like to be rushed, especially when the matter is about their eyes. Try to ease the patients into a conversation. Ask them how they are doing and make them feel as comfortable as possible.

The most important thing you can do to satisfy your patients is to listen to them and their needs carefully. Provide them with all the possible, safe options and treatments available to them and answer as many questions of theirs as possible.

Give Suggestions

Give suggestions where required. This practice will not only make your patients feel that you are going the extra mile to provide them the best service but will also be beneficial to your revenue. Moreover, this conversation won’t take up much of your time so it’s a win-win solution!

Use the above tips to grow your practice and stand out from other optometrists in your community!

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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I say no. Essentially, EBITDA on its own makes for a fairly futile statistic. There is, after all, a very good reason why you depreciate and amortize assets. To simply put those charges back in to earnings may give an unrealistic measure of your finances. Many in the financial industry will use this as a rule of thumb to help obtain an estimate of value.

EBITDA seems to be very sexy these days. Everyone is talking about practices selling for a multiple of EBITDA. Although some folks do not really understand the formula and yet they feel it is a reasonable way to value clinics. There are endless variables and measurements that factor into the value of your practice. The best way to start is with an appraisal which will extract the maximum value for your practice and go to the Open Market. One buyer who offers you a price based on EBITDA is not a market. Would you give the opportunity to sell your home to only one buyer? Also, financial due diligence may reveal a lower EBITDA which means the purchase price will be reduced from the original offer.

So what is EBITDA? Simply put, EBITDA is net income (or earnings) with interest, taxes, depreciation and amortization added back. It is a quick way to evaluate a clinic’s performance without having to factor in financing decisions, accounting decisions or tax environments. It also certainly does not factor in intangible items such as location, highly valued staff, premise lease, quality of patients, various services etc. Normalized EBITDA also adds back discretionary expenses such as travel, meals etc, which we also do when completing an appraisal.

It is important to understand that EBITDA has its flaws. You should not put too much emphasis on it when looking at the strength of your practice because EBITDA does not consider risks like the potential for future growth and your mix of patients. It does not consider whether you have an assignment or non assignment practice, offer a variety of treatments, your plan for attracting and retaining new patients, excellent terms in your premise lease, contracts for staff, and other proprietary items in your clinic.

EBITDA is based on actual financial statements. Let’s assume for a moment that your year end is December 31. Your EBITDA is $500K. You are made an offer of 6x resulting in a price of $3 million. Sounds great!! However, you are currently into your new year by 8 months and your net profit will be up because you have made many positive changes (adding more services, bringing on another associate, etc.) These positive changes indicate that your expected EBITDA will be $650K which means you are leaving $900K on the table. What a lovely gift you have given this one buyer!!

We believe the best way to place a value on a practice is to use a combination of the cash earnings method and comparables. While there are certainly many valuation methodologies, we use the cash earnings method because we want to demonstrate how much a practice can produce after all the fixed expenses (staff, supplies, rent) have been paid in order to support the doctor(s). Our appraisals never place a value on a doctor. One doctor may be very comfortable living on a draw of $100k while another must have a minimum of $200k. Same practice, same revenue but different requirements of the person providing the treatment. Being in the appraisal and sale of practices for 45 years means we have the largest data base of sold practices. Having this knowledge is critical and can help set expectations for both the vendor and buyer.

Selling to one buyer may seem like the right decision. You will, after all, save on commission. But I ask you to consider the following: a business broker can help present your practice in the best light to maximize the sale price. We have an understanding of the key values that buyers are looking for and can assist in identifying changes that can lead to a better selling price. Even more important than the final sale price is what your requirements are post sale. If your plan is to continue working, negotiating your working agreement post sale is also critical.

In the end, I always respect and admire practice owners. It is difficult being the provider of treatment as well as employment to so many. Running a business is never easy, therefore, when you come to the point in your career where selling is the option, I encourage (or challenge) you to consider taking your practice to market. Your clinic represents your life’s work. It is likely one of your most valuable assets. As such, you deserve to exit with the maximum price and dignity!!

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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As former sales professionals, Kelly and I are both familiar with how much energy is required to “close a sale”. In fact, closing the sale is just one piece of a very long process where many sales are not closed. There is an actual name for this process; it is called the Marketing Funnel.

According to a quick search on the Internet, the Marketing Funnel is defined as the way of breaking down the customer journey all the way from the “awareness” stage (when they first learn about your business) to the “purchase” stage (when they’re ready to buy your product or service).

At SIMI, we are always talking about putting energy into the top of this Funnel. That “energy” is everything we do from writing articles to connecting with optometrists on LinkedIn to asking for referrals from current and past clients. Each of those activities, an effort to promote and build awareness about our company, is represented by one of the balls in this picture.

From all of the energy we put into the Funnel, we expect to see about 10% of that flow out of the bottom as sales.

Of course, like any business, we have times when we are really busy – and so we don’t put a lot of energy into our Funnel. We have to remind ourselves that this is short sighted. We will reap the rewards from the energy we invest into our Funnel now further down the road. And investing time and energy into growing our business has to be a consistent endeavour if we want to thrive.

The same holds true for your Optometric Practice business. Most practices will get some passive referrals from patients who are natural connectors. But in an age when information is shared so much more easily, it is even more important to put time and energy into sharing the story of your brand to attract new patients.

How you should spend your time and energy on promoting your business will, of course, depend on your strategy.

If you are offering a more specialized service, you likely need to connect with colleagues who can identify a need and explain the solution you offer to their patients. Promotional activities might include taking colleagues out for lunch, writing articles for industry magazines and speaking at Continuing Education events.

If you are offering Primary Care to your local population, you may look for outreach opportunities to connect with the community. Some practices set up “sunglass” booths at their local markets or sponsor a local event. These practices are more likely to spend on Google Adwords and have active social media accounts to attract new patients. Many practices host annual or biannual sales, which also create a lot of buzz and energy.

The key is consistency. As tempting as it is to lay off the gas pedal when you are busiest, it is these activities that will fill your schedule during the quieter times. So as we look to 2020, start planning how you will fill your Marketing Funnel and keep your business growing and thriving.

CHRISTINA FERRARI

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


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