The Warning Signs of Optometric Business Failure – Part 1

 

Business closes

Source: BBB Web site May 30, 2012

Optometric business failure or bankruptcy is uncommon in optometry.  Every morning, doctors arise unlock their doors for business. Every night doctors lock their doors to their office.  At each opening and closing, there is hope that each opening or closing does not bring optometric business failure.

One of the first tenets of business operations is how much money are your taking in and how much money is going out.  That arithmetic difference is the optometrist business owner’s profit. If the owner is not making a profit at the end of six months or even a year, this is one of the most important warning signs that should not be overlooked in an optometrist business failure.   Therefore, awareness of the financial condition is vital. That means that accurate recording of revenue and expenses and reporting requires a financial professional.

The second sign of an impending optometric business failure is a lack of enthusiasm of being an owner. It is also otherwise known as “I don’t like my profession anymore”. This particular attribute is difficult to hide from patients and staff. Eventually, no amount of beguile will cover up dissatisfaction or disenchantment.  The consequences are an inability to tolerate criticism, an increase in customer complaints. and an indifference to your patients.

Lastly, economic conditions affect business planning. If the optometrist owner is unwilling or incapable of considering economic and business conditions, the seed for optometric business failure will likely germinate.  Be aware of the demographics of the marketplace audience to adjust business spending, inventory levels and the kind of service offered.

In summary, the warning signs to optometric business failure should never be a surprise.  Because such a failure exacts a physical and emotional toll on all who are involved, discovering the seed that might lead to failure can prompt corrective actions or directions to forestall an optometric business failure.

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Disclaimer: These are the personal opinions of Dr. Hom. There are no disclosures for this post. © Copyright 2012 Richard Hom OD MPA aka “Tips4EyeDocs” [nicepaypal type=”Donate”]