How much does it cost?

[OdTech]

Hello if it isn't a secret, i hate to pry into personal life.

How much $$$/ capital you need to open you own place?

The capital would cover:

Buying inventory- edgers, tools, furniture, frames, stock lenses(possible renovation to the office)
Staff:
employee wage/salary, various insurances- what kind do you actually need in practical terms?


This is just for personall research.

Please you're welcome to add anything that i missed, Thank you.

[PAkev]

Odtech,

Ive been in the optical industry since graduating college in 1986 and have pioneered two optical businesses along the way. My first optical business was a Mobile Optical Service which I still do one or two days a week. My second has been a retail location in an ophthalmology practice. I really enjoy marching to the beat of my own drum BUT If PA was a licensed state and I would be paid what a person with a college education is worth, I think I would rather work for someone else, make it home to have dinner with my wife and kids each night, enjoy at least one or two weekends off each month, have two weeks PAID vacation, and have paid health benefits.

The first venture required little overhead but a lot of time and legwork such as free routine adjustments and repairs long before the phone started ringing to purchase new eyewar. My investment was about 20K for a new van, about 5K for tools and equipment, about 2K for frame inventory, about 3K for advertising, and another 2K for office equipment. At the time, I didn't have the means to come up with 32K so the van was a personal auto loan and the remainder was a second mortgage note. I was fortunate enough at the time that my wife was employed full time as a teacher which took care most of our financial needs.

The second venture was actually a sweetheart lease deal where the leasor paid a percentage of the fixture costs. I ended up taking a second mortgage note to purchase about 35K of lab equipment and took a commercial line of credit for about 30K to pay for the initial frame inventory.

Even though a business is operated as a seperate entity, you can see there is still a lot of juggling between the prevailing demands of personal and business finances.

However remember there are 3 kinds of business people:

Those who hope things happen
Those who watch things happen
Those who wonder what just happened

Good Luck and keep us posted

Kevin
<><

[OdTech]

Hello Pakev: Thanks for the reply, very optimistic, I really liked the last 3 sentences. I think you should begin "OptiBoard Poems", you sound like a poet.

I understand each person has his own opinons/image on reality; Are you implying its better to be experienced than educated in college? and also i guess you implying employers pay big $$$ for experienced fellow than just college education.

{I really enjoy marching to the beat of my own drum BUT If PA was a licensed state and I would be paid what a person with a college education is worth, I think I would rather work for someone else, }

I don't remmember who said the sentense, but i paraphrase it.

"Companies pay to the people [for what they do best] not to the educational facilities which give diplomas"

Thanks again for replies.
Rafael

[PAkev]

Odtech,

I am a firm believer that "Experience" is the best mentor but don't regret having a college education.

My college degree is in accounting with a minor in marketing. It is kind of a long story how I became involved in the optical business but I believe my education has enabled me to execute the routine functions of my business operations. This helps doing billing, corporate taxes, payroll, and advertising to mention a few. These are all things I would otherwise be paying someone to do if I didn't know how to do them.

To most optical retailers here in PA your college education is meaningless because they are hiring you as an optician; not an accountant or sales consultant, etc. etc. If an optician is contributing their optical skills, they deserve to be fairly compensated as an optician to the level of their ability, however outside the parameters of management and common sense, many other skills are not routinely called upon. There are times I wish I had a computer background when I get a new computer or our network goes down and an electrical or mechanical background when the lab equipment goes down but these times are few and far between.

My .02 again
Once you THINK you know EVERYTHING, you STOP knowing ANYTHING

Kevin
<><

[Texas Ranger]

ODTECH.
you might want to get a book called "Small Business for Dummies", and check with the "S.C.O.R.E." division of the SBA. and sit down and work out some proforma financial, hypothetical , sheets. If I assumed that I would be starting a "new" venture, I'd certainly hope to be in a market that I would have confidence in being competitive...like, who will my clientele be?, where will they get an eye exam? how will they get to my shop? how does the weather affect these things? where will they park?, do they have insurance?, can I be a provider?, and if so, would I want to be a provider? what is the "market" like in the area?, saturated?...what kinds of product lines of frames and lenses will we carry? etc.... Okay, those questions answered; are we going to do "labwork" in-house? surfacing?., finishing? molding? I've had years of experience in finishing, and I believe in the National Optronics "dry-cut" system. best environmentaly, use a model 6E that sells for about $30,000. and comes with a tracer unit for I think about another $5,000. you need a basic lens blocking system, that runs about $600, optronics has a more sophisticated unit, for a bit more money, that I haven't seen, but for a "start-up" operation, I couldn't justify...you'll need a lensometer ($1000); a lens tint system($1500); a 'salt pan', and an assortment of hand tools, $500. I have a lens groover, but need it seldom, since the 6E edger grooves lenses in the edging cycle, but it's good to have a back-up?($500)...I don't want to skimp on pt' waiting chairs, too much liability; so get the sturdiest theay make (there are some 'big people' that wear glasses'). spend $1500-2000)...get two dispensing tables, about $400 each...need a frame inventory, somewhere between $15-20,000 should do nicely, but this has a lot to do with your market demographics, doesn't it? should have a 'new' pupilometer', to get the best monocualar fittings...I have special pt record file cabinets that are steel, with a wood overlay, about $4000 per unit, can start with one...you can spend between $1000 and $6000, or more on frame displays, but creativity can save you a great deal, and the fewer frames you show, the lower the cost...you'll need a private office desk with a PC, flat screen monitor, and all in one type printer. the credit card processors sell you the processing machine, about $400. like the phone company doesn't give you the phones? likely spend $500-2000 on decor`. credit card processing fees are 2-4% of the sales volume...are you adv. in the yps? keep it to a bare minimum...it can't pay for itself...how much space do you need, and whare will it be? our first 500 sq.ft. office was $650 a month, our present office is 2600 sq.ft. and is $3000 a month(but could be as much as $7000 if we were a block away(?)...utilities will be $300-500 a month, and escalate in extreme weather conditions...spend $100 a month on postage, a smallish yp ad is $200 a month. business liability insurance is $300 month, accountant services is $400 a month; so now we're down to payroll...is it just you? and what do you need to make a month personally? oh, if you borrow all the 'start up' money, there will be a monthly payment for it...so, will you have an employee?, full-time? part time? who does the lab work? you?, when will you do it? gonna work 7 days a week, by yourself, or just six? do you plan to have a life, outside of the business? then there's unemployement taxes, and property taxes, etc. and business cards and letterhead, and insundry office supplies...a lot to consider, so you have to have a very definite business plan, before you ever get started...but please consider how well you are prepared to live your life with each of your choices, and remember that there isn't anything set in stone, you need to be flexible, and be able to change something, once you feel it needs to be changed...best wishes....

[OdTech]

Hello Pakev: Thanks for the reply, I will take you 2 cents into consideration, Wish you well.

and Texas Ranger : Thanks for the reply, Wow:drop: I never seen anyone give a very general yet down to the point answer. You hammered the nail on the head!

What is S.C.O.R.E. , SBA?

Best regard too