i am looking into starting my own optical. i am an OD and am tired of working for someone. i an in new york city and it looks like the market here is gone and no new optical will be able to thrive. thats why i am looking to move away to NJ or upstate or long island and am thinking about going the franchise rout. seems to start the handholding and teaching could help from going BANKRUPT.
its also hard to swallow the 8% or so yearly fees
thoughts?
You need to move here and work for us, we need an OD. Ours is the owner and he's wanting to cut back prior to retiring.Originally Posted by v8
DragonlensmanWV N.A.O.L.
"There is nothing patriotic about hating your government or pretending you can hate your government but love your country."
I would not start anythig new at this time!
Unless you have some inside info......
About Franchises.
Unfortunately people in our woods still think that franchises are cheaper that private stores and they always have some security and someone to complain to!
So franchises overcharge people and they are happy!
Last time I checked fees for some of the well known names were at least 15% of gross sales. Several successful OD's I know started out with franchises to build a following and then opened their own place upon expiration of their franchise contract.
If you realistically speculate the following of patients you gain is more than what you pay in franchise royalties then franchising may be worth it. On the other hand, what you pay in fees can be spent on development of your own new business right out of the gate.......Catch 22
I personally wouldn't consider a franchise because when you add insurance adjustments and the current economic climate to franchise fees, it's like trying to keep a half sunken ship afloat.
Unless you are opening a McDonalds, I don't know of ANY franchise that is worth the cost - including Starbucks.
The reason franchises are popular is that the owners can become filthy stinking rich without working. I mean the OWNERS, not the franchisee.
Handholding is great when you are a toddler, but is a real pain when you are 17 years old and able to stand on your own.
My point is, that they never stop, and you could easily pay a fraction of the price for the info you need, and be on your own..w/out the ongoing fees.
Listen to MarcE and the others. If you're really ready, spend a little upfront and get going.
Ophthalmic Optician, Society to Advance Opticianry
V8,
Work for a franchise first (leasing OD or employee) and see it from the inside.
I worked at a couple franchises, then decided to open cold independantly and am doing OK. What kills you in the franchise are rents (high traffice areas) and ridiculous hours (leading to payroll through the roof).
In this market, there is no loyalty, they only care if you take their insurance, so if you are planning anything in the future, get a provider number in as many plans as possible.
Harry
V8,
And now Part Deux.
Customers are nicer to small private businesses.
A small business has a face, and people really aren't out out screw you.
A chain is a large conglomerate that everyone wants to take as much out of as possible. And no matter what the rules, being loud means you get what you want, especially if you threaten to write the home office.
Recently had an optician start for me that had previously only worked the chains. She regrets she hadn't switched years ago, she says our customers are so much nicer. And some she recognizes from her chain days, she says they act different (nicer) in my office.
Harry
v8 i sent you a private message
Johns is right. If you want to be your own boss stay away from a Franchise. No different than working for a corp. Be you own boss, you have the education in optics/optometery so use the resources to learn the rest and do it.
being a franchise is expensive and a hassle. it's only worth it if the name is going to drive business to your location. it also doesn't hurt if you are able to find creative ways to make income without violating your non-compete that they don't get to touch or see. we are one simply because we're in a resort beach town and the tourists that loose their glasses in the ocean look for a name they know. if we were in a normal market, it wouldn't be close to worth it.
I managed a Pearle franchise for almost 8 years...the good news was you really could make good money...the bad news...Luxottica owns your soul........
"Coimhéad fearg fhear na foighde"
I agree to start something on your own. Especially now that the internet has brought all the business networks in our PC. You will need someone to help you with the setup and the organizational procedures and one more person for the marketing. If you have experience in these fields then you can try on your own.
Franchise stories worldwide teach that only when you join in the start and the built up of the brand name you get earnings. If you join last you pay the system to survive!
Angel the Greek
Eyewear manufacturer
Handmade optical frames and sunglasses 100% made in Greece
www.neaoptiki.com www.elgrecoeyewear.com
v8, you would definitely have a different 'feeling', being a business owner vs a franchisee. Some of the doctors I work with, who left franchises, didn't like the 'non-negotiables' presented from a franchise. On one hand, yes - you can learn a business model and then hope to tweak or duplicate it in private practice after your contract expires and you work through the (almost guaranteed) non-compete clause. On the other hand, if you really want to be your own CEO, you can find a consultant or trusted adviser to help you get your processes in place and your business in order. If you haven't had any ownership/leadership experience in your current role, you might be surprised at the number of decisions you'll need to make. Good luck to you!
I can't make my soap box high enough to preach "Stay away from franchising!!!!" Unless you like to throw away money and flirt with bankruptcy, open your own office! Get on every insurance plan possible and the patients will come. Your initial investment buying into a franchise will exceed the money you would need to start your own practice and the money you make will be your own. In New Jersey, I went the franchise route in 1997, got out in 2006, and am still paying for it. Trust me, don't consider a franchise.
There you have it folks! Right from the mouth of someone who's been there!
I LOVE OPTIBOARD!!
Ophthalmic Optician, Society to Advance Opticianry
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