Key consultants you need when purchasing a practice.

- Practice appraiser

- Attorney

- Accountant

This video breaks down the role of each one.

In this video, Dr. Brasfield emphasizes the importance of reviewing your optometry practice's Profit and Loss (P&L) statement at least once a month. The P&L statement provides crucial financial information about the practice's income and expenses, including fixed and variable costs.

Dr. Brasfield highlights the acceptable ranges and key metrics for expenses as a percentage of gross revenue. Keeping track of your net income is crucial for long-term planning and making informed business decisions.

By being proactive rather than reactive, optometrists can make more cost-efficient and impactful decisions for their practices.

Dr. Athena Brasfield discusses the five key elements that should be included in a business plan for optometric services. These include:

-Market research and competition analysis

-Service delivery plan

-Marketing plan

-Financial plan to project revenue and expenses, and a

-Financing plan to identify sources of funding.

The details of each element are explained in the video

If you have any questions post them below.

Dr. Athena Brasfield discusses the five key elements that should be included in a business plan for optometric services. These include:

-Market research and competition analysis

-Service delivery plan

-Marketing plan

-Financial plan to project revenue and expenses, and a

-Financing plan to identify sources of funding.

Starting a practice from scratch (cold start) allows for creating a new business based on personal vision and ideal patient experience.

Complete control over all factors from the beginning, including location, design, equipment, and staff.

Learning and growing with the practice is important, avoiding overspending and waiting for catch-up.

Considerations for building a startup practice: minimum investment of around $350,000, focus on prescribing and treatment plans, traffic flow, product selection, and sufficient working capital.

Cold starts may be more suitable for smaller towns with existing connections while purchasing an established practice offers an established patient base, cash flow, knowledgeable staff, and referral network.

Opening an optometry practice presents challenges and considerations, and seeking guidance and resources can be helpful.

Dr. Athena Brasfield discusses the fundamentals of financing an optometric practice, focusing on bank loans for starting a practice. She explains the two principal methods of loan repayment (renewable short-term notes and installment notes) and two types of interest rates (simple and add-on) commonly used by banks, highlighting the advantages and considerations of each.

🏥 Factors affecting practice value: internal and external factors.

🔍 Internal factors:

1️⃣ Good practice reputation = higher value. Indicates efficiency, quality, and patient satisfaction.

2️⃣ High revenue per patient and patient volume = more value.

3️⃣ Efficient processes and updated operations = increased value. Improves staff productivity.

💡 Modernization factors:

New equipment, computer systems, and technology.

Leasehold improvements. Offer a turnkey operation and add value.

💰 Cash flow is key:

Net operating income determines the practice's profitability.

Buying a practice without profitability is not recommended.

📈 Practice-specific trends:

Patient volume and retention.

Practice capture rate.

Effective patient communication.

Referral sources' impact on patient flow.

📍 External factors:

Location analysis is vital.

Area demographics and competitors affect practice viability.

Economic climate, employment rate, and home prices impact the practice.

Local demographic conditions influence the type of services provided.

Population age helps determine specialization options.

City growth rate indicates potential new patient acquisition.

📊 Analytical and unbiased approach:

Gather data and understand how the business operates.

Formulate changes for growth and improvement.

Determine feasibility.

Hit the ground running and maintain successful operations.

💼🌱 Gather data, analyze, and plan for a successful practice purchase.