Private Practice Ownership

Optometry practice ownership can be an incredibly rewarding career path, offering a unique combination of autonomy, financial growth, and personal fulfillment. However, some of the less positive aspects are often overstated, deterring some optometrists from taking the plunge. In this article, we dispel four myths surrounding optometry practice ownership and uncover the truths behind them.

MYTH NO. 1: IT’S IMPOSSIBLE TO HIT Seven-FIGURE REVENUE

One of the most persistent myths is that independent practices can’t generate substantial revenue. Vision discount plans continue to devalue the profession, large corporations are becoming more competitive, and online companies persist in their unscrupulous business tactics, leading more patients to buy their glasses and contact lenses from online retailers.

Despite these challenges, many independent optometry practices not only hit a seven-figure revenue but also thrive in their local markets. The key to such success lies in creating a practice that balances patient care with sound business strategies. Offering specialized services such as myopia management, dry eye treatment, scleral lenses, vision therapy, or orthokeratology can differentiate your practice and generate higher revenue streams.

Another option is to create standard operating procedures to streamline operations and improve efficiency. Consider increasing your marketing efforts, updating patient retention by keeping the schedule full, and hiring an associate (once the books are full). Take the leap and expand the office, if the space is becoming outgrown.

Although achieving seven-figure practice revenue is not the norm and is not easy, it is certainly achievable. Understanding when to scale, maintaining the right mindset, and having a solid plan is how multimillion-dollar practices are created.

MYTH NO. 2: YOU NEED EXPENSIVE BUYING GROUPS TO SUCCEED

Buying groups are often marketed as essential for independent practices to compete with larger entities. These groups do a great job of creating fear of missing out (aka FOMO) among optometrists. While alliances can offer discounts on products and services, most of them carry membership fees, which can be expensive. Furthermore, joining a buying group can also come with restrictions that may not align with the goals of the practice.

Private practices can succeed in the real world without joining an expensive buying group. Negotiating directly with vendors, partnering with independent companies that support your office, and combing through practice costs, inventory management, and inefficiencies can highlight areas to significantly improve office profitability.

Because buying groups tend to partner with larger ophthalmic companies (many of which are owned by conglomerates), it is clear that not all large eye care businesses support independent optometry. Practice owners must carefully consider which organizations to align their offerings with.

We’re not saying that buying groups prevent business success. Rather, we’re highlighting that it’s possible to be successful without them and that it’s important to calculate the alliance group’s true return on investment to decide if membership is the right decision for your practice.

MYTH NO. 3: ALL VISION DISCOUNT PLANS ARE BAD

It’s no secret that vision discount plans have a reputation for devaluing optometric services. Poor or stagnant reimbursements for examinations and materials hinder opportunities for offices to maximize profitability. Two things can be true at once, however. On one hand, vision discount plans can have too much control over the care and services that ODs offer, but on the other hand, they can also be a tool for owners to grow their practices.

It’s crucial to understand which plans align with your business model and patient base. Some vision plans can drive patient volume and serve as a stepping stone for capturing lifelong patients. Thus, many practice owners refer to vision discount plans as a marketing tool. Reassess which plans are worth accepting to balance patient accessibility and volume with profitability. It’s also crucial to educate patients about the value of additional services and premium products that go beyond what discount plans cover, thus enhancing both patient care and revenue.

MYTH NO. 4: IT’S TOO RISKY

Starting or owning a practice always involves risk, but this risk can be managed with proper planning and execution. In fact, the rewards often outweigh the risks, with many practice owners reaping the benefits of higher incomes, more autonomy, increased vacation time, and more control over their personal and professional future.

Reducing risk begins with a great deal of research on details that can make or break an ownership opportunity. Familiarizing yourself with the local market, understanding patient demographics, feeling out the competition, researching lease/rent rates, qualifying for lending, and many more aspects come into play when assessing an ownership opportunity.

Some ODs cold-start their practices; others purchase an existing practice—each path carries its own risks and benefits. However, it is vital to surround yourself with a knowledgeable and experienced team that has helped many optometrists tackle the journey of becoming a practice owner. Expert advice can streamline the process, mitigate potential pitfalls, and offer peace of mind. Fortunately, many optometrists find that practice ownership becomes less risky and more rewarding as their expertise grows and their business thrives.

Of note, in our experience, banks tend to view optometry as a relatively “safe” industry in the lending realm.

TAKE A LEAP OF FAITH

The myths surrounding optometry practice ownership can be intimidating, but the truth is that countless ODs prove them wrong every day in the real world. With the right strategies and mindset, independent optometry practices can not only survive, but thrive in today’s competitive landscape.

Owning your practice isn’t just a financial investment—it’s a commitment to creating a lasting effect on your patients and your community. Don’t let these myths hold you back from pursuing your dream of practice ownership.