Sydney Pollock

10/28/2024

Getting Off the Ground: Business Foundations for a Thriving Eye Care Practice

Thinking of starting your own eye care practice? In this guest post, Akrinos breaks down the essentials to go from dream to reality! Learn how to build a rock-solid financial foundation, craft a business plan that stands out, and pinpoint the perfect spot to attract patients.

Cold-starting, or building your optometry practice from scratch, can be rewarding but daunting. Building an effective plan is the first step in achieving this goal and Akrinos has the tools to support you along the way.  

You’ll begin by handling the financial and legal aspects of your business before diving into your operational factors like operational setup, hiring, and equipment. 

Building a thriving eyecare practice requires solid Business Foundations composed of 3 pillars:   

Financial Forecast & Feasibility Analysis

You’ve got an idea, let’s start by gaining clarity on the exact capital investment & cash flow projections for your venture. Quantify financial requirements, project cash flows, and conduct feasibility analysis:

  • Capital Investment

    Total start-up investment. This includes all equipment, inventory, systems, and other necessary capital outlays for purchasing or cold-starting a practice.

  • Revenue & Expense Modeling

    Your 1, 2, & 3-year targets, across the primary areas that drive revenue including doctor coverage and exam volume, professional fees, materials revenue, and conversion rates; and construct cost projections based on industry benchmarks across key expense categories. 

  • 36-Month Revenue Forecast

    Monthly revenue & expense forecasts based on your Revenue & Expense Modeling target assumptions over 36 months. 

  • 3-Year Snapshot

    Projected Profit-&-Loss at 1, 2, & 3-year marks based on your Revenue & Expense Modeling targets.  

  • Debt Service & Feasibility Analysis

    Determine financial viability based on total project cost, deal structure elements, and financial requirements. Forecasted cash flows as projected in your 3-Year Snapshot.

Strategic Business Plan

Now that the numbers make sense (your dream is financially viable!), it’s time to create a comprehensive roadmap of your vision, serving as the guiding light for the journey ahead. Your strategic business plan composition shall include: 

  • Executive Summary

    Provides prospective investors, associates, & purchasers with a general snapshot and layout of the practice. Includes Company Information; Products & Services; Mission, Vision, & Purpose; Purpose of the Plan 

  • Company Description

    High-level view of the practice explaining who you are, how you operate, and what your goals are. Includes Organization; Products & Services; Customers; Suppliers; and Goals. 

  • Products & Services

    Describe the scope of care & products with a focus on patient benefit, features, cross-selling, lifetime value, pricing strategy, and net revenue. Includes Scope of Care; Competitive Advantage; Patient Lifecycle 

  • Market Analysis

    Indicates industry trends, target customer segments, what needs you are filling for them, and the latest trends among these consumers in terms of growth and behavior. Includes: Industry Snapshot; Patient Segmentation; Competitive Analysis.

  • Strategy & Implementation

    Summarize sales and marketing strategies, as well as an operating plan for implementation. Includes SWOT Analysis; Marketing Strategy; Operations & Labor.

  • Organization & Management

    Outline the company’s organizational structure, and identify owners, management team, & board of directors. Includes Ownership; Management Team; Organizational Chart; Financial Forecast & Feasibility Analysis.

Geo-Spatial & Competitive Market Analysis

Explore local market economic trends and household spending, assess the demand for vision, medical, & specialty eye care, and identify competition across zip codes in your market.

With your budget and plan in place, you're ready to find and build the ideal office suited to your vision, scope of care, & goals (and within your Master Budget!). A robust geospatial & competitive market analysis should include:

  • Eyecare Nearby

    Size up the competition including distance, scope of care, and key differentiators.

  • By the Numbers

    Assess the local population, their demographics, and nearby traffic.

  • Who’s Nearby

    Compare your practice population to the generations and segments nearby.

  • Where to advertise

    Plan your marketing knowing which media types are favored locally.

  • Primary eyecare

    address gaps between local demand and your scope of care.

  • Contact lenses

    match generational & lifestyle indicators and contact lens wear, price sensitivity, and fulfillment

  • Eyeglasses

    Explore the purchasing behaviors of eyeglass wearers across purchasing frequency, price point, and location.

  • Myopia & Pediatrics, Dry Eye & More

    Assess consumer demographics, lifestyle indicators, and other factors that impact demand for specialty care.

With solid Business Foundations in place, it is time to proceed through the development & launch of your practice which we will explore in the next blog by Akrinos. 

For support with any of these steps, Akrinos has solutions like Business Foundations and DIY Launchpad to help you get on the right track. You can visit getstarted.akrinos.com to begin your journey today! 

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