When graduating optometry school, retiring from practice seems a lifetime away. In a perfect world, it is.
But when you factor in today’s daunting economic dynamics (student loans, practice acquisition debt, keen competition and diminishing patient loyalty), a graduate’s spanking new career plans may be amended by a more sobering reality.
In a very real sense, a beginning optometrist should plan from the start to be a successfully retired optometrist one day. This requires a total career strategy, one that likely will have many twists, turns and adjustments along the way. But it begins by envisioning an optometric career in three stages:
Stage 1: Starting Up
Starting up is the initial stage of beginning practice, assessing various settings, beginning to pay off student loans and planning to take on more debt with the acquisition of a pratice or a partial buy-in, as well as instrumentation and other practice assets.
Stage 2: Building Wealth
Building wealth is the second phase of a career, once practice acquisition or partnership has been obtained. In this middle stage, an optometrist looks to build wealth by growing a practice, possibly buying one or more other practices and/or the real estate associated with them and taking on associates and growing staff. This stage often involves a change in identity, as a practice owner fully realizes the role of practice CEO.
Stage 3: Transitioning Out
Transitioning out is the stage in which one plans an eventual exit from practice and there are many different scenarios. The key words are “transition” and “plan.” In this phase, an optometrist can change from being a full-time practice CEO to working part time, in an advisory position or not at all. The worst scenario to simply to close one’s doors and try and sell assets, due to poor planing or a premature or unexpected death or incapacitation.
In this issue, we examine Stage 1: Starting Up and the issues of practice acquisition.
Part 1
Taking the Step to Practice Ownership
By Bob Schultz
President, CEO, Vision One Credit Union
Optometrists make a common assumption, and an errant one: “If I build a good practice during my working career, I can sell the practice and live well in retirement.”
In most practices, the value of a practice itself will not fully fund retirement. We have to think in new ways. >>READ MORE>>
ECPs:Pathways to Practice Ownership
Mulitple Locations, Corporate Affiliations
Kim Raharja, OD, is a corporate-affiliated optometrist in metropolitan Atlanta. In just a few years, she went from being a fourth-year optometry student to runningfour Walmart opticals.>>READ MORE>>
Buying Into an Independent Practice
Jason R. Miller, OD, who has been in practice 11 years, bought into
the existing practice Eyecare Professionals of Powell, Ohio. His partner
is Tamara M. Kuhlmann, OD, who has been has been practicing
for 25 years. For some, taking a slow and steady course toward
partnership is the best route to success. >>READ MORE>>
Web Resources for Those New to Practice Ownership
There is absolutely no need to be overwhelmed! This Internet resource guide will help you to find everything you need, from online resources for business plans, to point-and-click marketing and advertising tools, to finding a good deal on anything from computers to optical supplies to pens and copy paper.>>READ MORE>>
