Optometry Practice Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Optometry Practice Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start an Optometry Practice business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PDF Format
- Meets SBA Requirements
Optometrists help people with their vision, and as such there are always able to maintain profitability within their practices at all times. The barriers to entry for a new optometry practice is extremely high given that there are substantial educational and licensing requirements before an individual can operate one of these medical practices. One of the best aspects of the optometry practice is that most private insurance covers costs relating to vision care. As such, these businesses are able to produce income not only from the sale of medical services but also from the sale of glasses and contact lenses. One of the nice things about these businesses is that there is going to be a continued demand especially over the next 20 years as more people enter the their senior years from the baby boomer population. In fact, this is one of the industries that’s going to experience significant growth over the next three decades. The startup costs associated with the new optometry practice generally range anywhere from $100,000 to $200,000 depending on the amount of inventory that the optometrist will hold as it relates the glasses and contact lenses.
All financial institutions are willing to provide capital to optometrists given that this is a healthcare business that is immune from negative changes in the economy. Of course, any optometrist that is looking to develop their practice must have a business plan. This document should include a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. Special attention within the business plan should be paid to the fact that these companies receive a nice mix of revenue from both medical services as well as product sales. Beyond the financial information, a well-developed demographic profile that examines the population size, population density, median household income, median family income, number of other optometrists working within the market, and the number of people that are over the age of 65 should be thoroughly examined. It is important to note that an analysis of the number of people from the baby boomer generation that live within the target market should be examined given that this demographic has the highest demand for vision care services.
Beyond the business plan, and optometry practice marketing plan should also be developed. This document should focus heavily on how to market the companies I care services and glasses to the general public. Most optometrist maintain ongoing relationships with general practitioners as well as allied health professionals for referrals. Additionally, an online presence that showcases the biography of the practicing doctor, inventories of glasses available, hours of operation, insurance is accepted, and how to obtain employment should be included on the company’s website. To a limited extent, and optometrist benefit significantly by having a presence on popular social media platforms such as Facebook and Google, Google, and Twitter. Many new practitioners will call upon their existing contacts within social media in order to develop their initial patient base.
Beyond both the marketing plan and the business plan, and optometry pop practice SWOT analysis should also be developed. As it relates the strengths, optometry practices have very high barriers to entry and are able to remain profitable and cash flow positive at all times. For weaknesses, there are many other medical professionals act provide eye care services including ophthalmologists. Competitive issues are going to be one of the ongoing things that any optometrist is going to need to address on a day-to-day basis. For opportunities, many optometry practices will hire Associates that will render additional services the general public. This is a very quick way of boosting revenues will also allow in the practicing owner to expand the business. For threats, as with any healthcare focus business there is a continued debate with the United States it relates to insurance reimbursement and the state of health insurance. As such, any optometrist needs to keep a close eye on these metrics in order to prepare for any decline in reimbursement that may happen over the next five years.
Optometry practices can be highly lucrative medically focus businesses. One of the keys to growing these businesses on an ongoing basis is to establish highly visible retail locations – especially in multi-facilities – where people can conveniently common to have their eyes checked and selecting new pair of glasses. Unlike most other healthcare focus businesses, and optometry practice does have a retail component that makes up a significant portion of its revenues and profits. As such, these types of companies need to be treated as both a professional practice as well as a retail store.
Optometry Practice Business Plan
1.0 Executive Summary
The purpose of this business plan is to raise $150,000 for the development of an optometry practice while showcasing the expected financials and operations over the next three years. Optometry Practice, Inc. (“the Company”) is a New York based corporation that will provide general optometric care to customers in its targeted market. The Company was founded by Dr. John Doe.
1.1 The Operations
Dr. Doe will render optometric services to his patients. These services include comprehensive eye examinations, medical treatment of eye diseases, and LASIK co-management with ophthalmologists. The Company will receive direct fees from patients as well as reimbursement from private insurance companies.
The Company will also recognize revenues from the sale of glasses, contact lenses, glasses repairs, and the sale of frames.
The third section of the business plan will further describe the services offered by the Optometry Practice.
1.2 The Financing
At this time, Dr. Doe is seeking to raise $125,000 via bank loan for the development of the business. The terms, interest rate, and loan covenants are to be determined at the time of negotiation. However, this business plan assumes that the Company will receive a 10 year loan with a 5% interest rate due on the outstanding principal balance. The financing will be used for the following:
- Development of the Company’s practice location.
- Financing for the first six months of operation.
- Capital to purchase medical equipment.
He will contribute $25,000 towards the development of the practice.
1.3 Mission Statement
Dr. Doe’s mission is to become the recognized leader in its targeted market for general optometric services.
1.4 Management Team
The Company was founded by Dr. John Doe. The Founder has more than 10 years of experience as a practicing optometrist. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Revenue Forecasts
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Dr. Doe intends to implement marketing campaigns that will effectively target individuals and families within the targeted market.
2.0 The Financing
2.1 Registered Name and Corporate Structure
Optometry Practice, Inc. The Company is registered as a corporation in the State of New York.
2.2 Use of Funds
2.3 Investor Equity
At this time, Dr. Doe is not seeking an equity investment from a third party.
2.4 Management Equity
Dr. Doe will retain a 100% ownership interest in the Optometry Practice, Inc.
2.5 Exit Strategy
If the business is very successful, Dr. Doe may seek to sell the practice to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the practice. Based on historical numbers, the business could fetch a sales premium of up to 2 to 3 times earnings.
3.0 Operations
Below is a description of the services offered by the Optometry Practice.
3.1 Optometric Services
Dr. Doe is a licensed optometrist, and his practice will render general treatment of eye disorders, co-management of LASIK procedures, prescribing of corrective lenses, and comprehensive eye examinations. As stated in the executive summary, the business will be reimbursed from co-pays, direct patient payments, and reimbursements from insurance companies.
3.2 Glasses, Contact Lenses, and Frames
The bulk of the Company’s revenue will come from the ongoing sale of prescription lenses, glasses frames, contact lenses, and repairs to glasses. The business will carry an expansive line of fashionable glasses including designer frames. Management expects that approximately 60% of the Company’s revenues will come from this revenue center.
4.0 Market and Strategic Analysis
4.1 Economic Analysis
This section of the analysis will detail the economic climate, the optometric industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic condition as a result of the COVID-19 pandemic is rapidly improving. Interest rates have remained low, which has led to substantial improvement in the economy. Although there are issues with inflation, the US Federal Reserve has indicated that they are willing to adjust monetary policy to combat this issue. The economy is moving back towards normal at this time.
However, the current issues with the pandemic will not impact the Company’s ability to generate revenue. Glasses and proper eye care are in need in any economic climate. As such, the Optometry Practice will be able to remain profitable and cash flow positive at all times.
4.2 Industry Analysis
Optometry practices provide aggregate revenues of $17 billion a year and employ 140,000 people. There are approximately 32,000 private optometry practices in the US.
The industry is expected to grow faster than that of the general economy as many baby boomers will require a greater level of eye care over the next ten to twenty years.
One of the major trends within this industry is to integrate ecommerce functionality into a practice’s website. Moving forward, the Company will offer its entire inventory of glasses through the business’ website.
4.3 Customer Profile
The Optometry Practice’s average client will be a middle class man or woman living in the Company’s target market. Common traits among clients will include:
- Annual household income exceeding $50,000
- Lives or works no more than 15 miles from the Company’s practice location.
- Has medical insurance with eye care coverage.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Optometry Practice intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the practice.
5.1 Marketing Objectives
- Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
- Implement a local campaign with the Company’s targeted market via the use of print advertisements.
- Aggressively use search engine optimization and social media marketing in order to increase the Optometry Practice’s brand name among numerous online channels.
- Establish relationships with referring physicians within the targeted market.
5.2 Marketing Strategies
Dr. Doe intends on using a number of marketing strategies that will allow the Optometry Practice to easily target men, women, and families within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. The Company will work closely with a local marketing firm in order to cost-effectively place advertisements among newspapers and distributed publications in the targeted market.
The Company will maintain an expansive online presence via a proprietary website as well as through multiple social media platforms. The Company’s website will showcase the optometric services offered by the business, hours of operation, insurances accepted, and will showcase the entire inventory of eye glasses offered by the business. The website will have ecommerce functionality. Moving forward, the Company will hire a search engine optimization firm that will ensure that the website is found on the first page when searches for optometric practices are carried out.
Beyond the Company’s proprietary website, the business will also maintain pages on all major social media networks with a focus on Facebook and Instagram. Over time, the reviews that are left on these pages will further boost the visibility of the practice. The Company will also have a number of professionally produced videos created, which will be uploaded to social media platforms as well as YouTube. These videos will showcase Dr. Doe’s work and the practice location.
Finally, the Company will develop referral relationships with physicians throughout the target market. This will ensure a steady flow of new patients from the onset of operations.
6.0 Organizational Overview
6.1 Organizational Chart
6.2 Personnel Budget
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
- Optometry Practice will have an annual revenue growth rate of 16% per year.
- The Owner will acquire $150,000 of debt funds to develop the business.
- The Company shall settle most short term payables on a monthly basis.
7.2 Sensitivity Analysis
In the event of an economic downturn, the Company will not see a major decline in revenues. Optometric services are in demand regardless of the general economic climate as they are an essential service for health.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
Additional content is provided in the downloadable version of the business plan.