I am a new optical owner. My wife and I opened the optical in mid-January this year. My question to those of you in similar situations is, what kind of growth, percentage wise, did you see from year 1 to year 2 and if there was something that you could attribute it to?
Thanks
Congratulations and welcome to the club of Optical Store owners!
I doubt that anyone can answer your question with a realistic number. There are far too many variables. And any accurate projections would have to be based on past experience, which don't exist for a new office.
If you have a good business plan, and satisfy your patients, you should begin to see steady growth month to month. I can tell you that within 2 years you should begin to see your "old" patients returning as you continue to see new patients. This is when you'll be able to really start forecasting results.
As far as what to attribute your growth to... I would stress the importance of a good Business Plan which should include a marketing plan that you can sustain and build upon. Print or mail advertising, signage, location, all help. Direct contact with professionals and community leaders or groups in your area will also give a big boost.
I hope this helps. Best wishes with your endeavor.
Rich.
My congrats to you as well !
You've chosen an excellent time to go into business on your own. The economy is lousy, and by the time it finally comes around, you won't believe how easy it will all feel. (I started 2 businesses at the height of recessions, and it was a great experience).
I agree with Rich that you should see month to month growth, but don't be surprised if you have a surge at the begining, then it slows down, and then another surge a few months down the road. It will take a while (somtimes years) to fine tune your external/internal marketing. What works well for many of us may not work at all for you, and visa-versa.
People will realize that they are dealing with the owners just by your sheer enthusiasm and your desire to make them happy. When you succeed in the latter, the growth will come natuarally.
Best of Luck !!!
Johns
My main reason for asking was to help prepare a budget, my optical hasn't made much profit (only 3 of the past 10 months) although it has come close in the other months. I was mainly curious as to the amount of growth that some of you have experienced, understanding that alot of variables are involved.
I have heard that 30% is about right, but would like to hear some of your experiences.
We were in your position13 years ago. Amazing thing is that we are still married! Just over 4 years ago we started from scratch again in a new town in a new state. We're crazy and we love it!
Sold the original office 2 years ago.
My not so humble suggestions:
1) Now that you are in business, we must assume that you did your homework and have made cash flow projections for the first year or so. That is actually you budget.
2) Shut of your computer and get out onto the street! ALL BUSINESS IS THE PEOPLE BUSINESS! Meet your business neighbors. Take time to talk with them. Ask them about their eyeware buying experiences. Do some small favors for them. One of you needs to be out of the office 50% of their time during the first months - perhaps a year - until you are so busy you can't afford to be on the street.
3) Get involved in your community. Volunteer to be on a committee with the C of C. Get involved in the best service club in town - Rotary, Lions, etc. Religious groups can be good too bu are too small and often too ingrown.
4) Don't keep looking at the numbers, look directly into the eyes and hearts of your patients/customers. They should become your friends. Remember you can only do business with your friends because your enemies won't do business with you!
Thanks Homer, we have been doing most of the things that you have outlined, are business is off to a good start. I was hoping that someone could help me out by saying something like:
Yes the first is very difficult, but the business will grow, we experience x percentage over year 1. I can't believe that the flow of customers tops out in your 1st year. I was looking for some rough estimates as to how much some of your businesses grew in the years following your opening.
I don't think anyone has an answer to that question because there are so very many extenuating circumstances. My first office almost doubled my projections for the first year and had increases from 5% to 35% (dollar volume) over the next few years.
The one I am in now was less than I hoped for the first year, a 34% increase the second year, a -5% the next year and we are looking at a 15% increse this year.
Things like the size of your market, competition, having a doctor in your office, referrals from doctors and the general economy as well as the local economy can have great effects on you business even if you are doing everything right and are the best optician in town.
This is why I say to concentrate on people and friendships rather than numbers, percentages and volume. The thing that can get you through the the less-than-desireable times are the customers who have become friends.
I think that only the chain type stores can afford the time to think about percent of increase in sales volume and clients. We have the great privilage to concentrate on every individual that comes to us and make them happier than the alternatives. Do this and the volume will increase ..... unless everybody moves out of town or "the plant" closes.
I started my business 5 years ago.
I keep detailed records an comparisons of sales ect.. As mentioned, there are alot of variables. I think the biggest right now is the economy and who YOUR market is. I think the high-end, niche boutique is not feeling the pinch as much as a more "mainstream" shop. I am thankful that I am the high-end boutique.
My second year of business saw a 30% growth over the first year (gross sales). My third year of business saw a decline of 2% compared to the second year. My fourth year of business saw a 25% growth over the third year. My fifth year of business saw a 3% decline compared to year four. There is an increase this year....as you can see, after 5 years of business, there is certainly a pattern. Again, this is all gross sales.
My net sales have grown each year...as loans and equipment are paid off and other variables change.
I hope this answers your original question.
Hip Chic,
Thanks for the informative reply, those are the figures that I am looking for. I hope to see an increase, if not we won't be around to long ;)
Thanks again for your reply
optdsn, 25 years now and just hads my first year of non-growth, a 7% drop. I'm in a very competetive market, 90% of our doctor relations went away to those we supported for 20 years going into dispensing (and they're not making any money at it, just taking away bidnes from others), so considering the posr 911 economy, the rising unemployment, lasik, and vsp e.g, it's only God's grace we're doing this well. I can say that when I started, the interest rates were 14.5%, 4 month's into bidness, a major employer went on a vision insurance benefit, effective 6 months down the road; so of course, all those folks postponed eyewear purchase, and when they did start, it took 6-7 weeks to get reimbursed by the insurance company. In the meantime, we had a new baby; but we were poor, had a mobile home and a chevy vega w/o air,etc. so we didn't need much to get by on. we had no doctor within 3 miles of us, had been an optician for 10 years and had the support of 4 MD's. had a small finish lab. had 450 sq. ft., one dispensing table, and 6 chromecraft chairs(still have them). have about 40 sem. hrs. of Acctng. and I can tell you that gross sells mean real close to zero, the reality (to me anyway), is hoe much you get to keep, regardless of how big you are. my brother died in June, had a small one-man shop that he made a living at for the past 12 years. he just kept his living expenses and overhead under control. like Homer said though, it's all about relationships! an interesting thing in accounting is that when you sell a business, you can place real dollar value on "good will"; which is what will make you succeed of fail. I always express my sincere appreciation for the opportunity to be of service to our clients, and they know it. another thing is to always work with
"state of the art" products. and stand behind it! you will succeed, if you know what success is. sorry so long fingered!
Sure is amazing how many doctors start out saying they are not going to dispense and then once they have built up a practice on referrals from independent optical dispensaries, they seem to feel the need to dispense (Oh, it's like this, its not costing me much money my local wholesaler is putting it all in and consigning the frames.)
I wonder if these are the same doctors that marry some nurse in medical school to support them and then dump the girl when they get out in private practice?
Chip
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