FEATURE | OPENING COLD

OPENING COLD

Our checklist to help you decide if ownership is right for you…and how to make it happen

BY KIRK KASTENS

whether you’re a new graduate, in a commercial setting, or just considering your options, you’ve probably thought about the possibility of practicing or operating independently. However attractive, independence brings with it a host of questions that you may not even know you need to ask before taking the plunge.

Here are the essential decisions to nail down when you choose the path to an independent practice or business.

✓ MAKE SURE OWNERSHIP IS FOR YOU

Though the idea of independent practice is appealing to many, it’s not a one-size-fits-all situation. Ask yourself some hard questions, such as:

• Do you have the right personality to own a business?

• Do you have the drive necessary to push forward when roadblocks are placed in your way?

• Do you have realistic expectations of the costs and time necessary to start a practice?

• Why do you want to own your own business?

It’s not the best choice for everyone, but there are huge benefits to independent ownership because of the financial freedom and enhanced quality of life it can bring.

✓ GET BUSINESS PLAN IN PLACE

Before you can get much else accomplished, you need to have a business plan to secure financing. Though some aspects of the business plan will be static for most owners, there are several keys that need to be tailored specifically to your situation.

For example, in examining your potential locations, consider the following:

• Which community are you targeting for your location?

• What can you do to differentiate yourself and create a niche in the community?

• Is there a market for your services there?

• Does your business plan fit with the demographics of the location?

Once you’ve figured all that out, then and only then you can decide how to make yourself stand out in the market.

✓ SECURE YOUR FINANCING

Finalizing a loan goes hand-in-hand with signing a lease. You’ll need to get a lease in place with your landlord before you’re able to obtain financing—you cannot have one without the other. And, you certainly shouldn’t get approved for a loan without knowing what your actual costs are going to be to get your doors open. Unfortunately, this is a common mistake.

Fortunately, however, real estate costs, interest rates, and the ability to secure financing are very favorable for business owners right now. In addition, thanks to recent healthcare legislative changes, vision benefits are now a part of any insurance plan.

✓ CONFIRM PLAN, BUILD TEAM

That being said, it’s always important to remember that just because you build it, they won’t necessarily come. You need a plan of action to be successful in any market. Also essential to your success at this time is having your professional team lined up. An experienced lawyer, a connected real estate agent, a trustworthy accountant, and a top-notch consultant (like those at The Williams Group) are all instrumental to future success.

✓ SET BUDGETS, BEGIN BUILD-OUT

Generally, your loan will be divided into three categories: Leasehold Improvements (the build-out), Equipment and Furniture, and Working Capital (reserved for when you open). It’s extremely important that you stay within your budget in all three of those areas so you’re not upside down before your doors are open.

Once your loan is approved and your lease is signed, three to five months is a fairly realistic timeline estimate to getting your doors open. The design and permitting phase may take about a month, and then your build-out can begin. Most build-outs take around six to eight weeks to complete.

Once all final inspections have been done and you have your certificate of occupancy, you can begin moving in and getting your office or shop set up. There is still a tremendous amount of work to be done, but, typically, about two weeks are needed to get the doors open.

✓ MAXIMIZE TIME DURING BUILD-OUT

Depending on your current employment situation, you should start marketing and getting your brand out to the community as soon as possible.

• Get your website and social media presence up and running and keep them updated as you make progress.

• Get out in the community. Educate in the local school system.

• Develop relationships with other healthcare providers in your area.

✓ SELECT VENDORS, HIRE/TRAIN STAFF

• Select your frame inventory and equipment, and meet with all of your vendors before you start buying to ensure you don’t end up purchasing more than you planned too early. Choose your pre-appointing system and EHR software as well.

• Begin the hiring process. Building a talented team takes time! It’s never too early to start looking; just be clear in the interview process that you’ll be opening on (X) date and will need your employee to start training on (X) date.

• Get everyone trained on your software (especially the EHR software) and develop the processes and procedures for your office.

✓ FINDING THE BALANCE

Owning a business isn’t for everyone. But for those with the passion and drive to succeed, it is extremely rewarding. I’ve worked with many clients who enjoy an excellent balance between their personal and professional lives, all while achieving financial freedom and professional fulfillment.

Kirk Kastens is a senior consultant with The Williams Group, based in Lincoln, NE.

HOW SHE DID IT

Kira Connally, ABOC, opened her shop—Spectacles West in Weatherford, TX—two years ago after working in optometric practices as well as chains. She paid attention to what was working and what wasn’t in each situation, and finally decided to open her own shop in her home community, many miles from where she previously worked.

Two years later, her shop is a success and she employs two other opticians in addition to her husband/business partner (who, as a former engineer, handles all the finishing work).

We asked Connally what she did to make sure the business started on the right course.

PREPARATION. Her business plan was thorough, outlining how every aspect was going to operate…almost down to how they’d greet the customers.

“We spent six months writing the business plan, poking holes in it and revising it,” she explains. “Then we put it away for a while before poking more holes.” That took six months.

When she was done, she spent another six months revising it some more. “It’s a lot of time, but it’s a lot of money you’re risking,” she notes.

WHAT SHE DID BEST: Understanding the minutiae of the business and planning for it, including displays, training, equipment, and product mix.

PROJECTING CASH FLOW. Connally charted her projections out to five years, and included best- and worst-case scenarios. She made all her plans according to the worst-case scenario.

WHAT SHE DID BEST: Creation projections based on the number of exams she figured were performed in the area, and how many of those prescriptions she could expect to fill.

READY FOR DEBT. Knowing she’d eventually have to take her plan to a bank for a loan, she spent years building and protecting her credit.

WHAT SHE DID BEST: Making sure her family lived within their means for years before even attempting to open a store.

BUILDING CLIENTELE. Other than referrals, Connally says she builds her customer base by simply knowing her market. Though her shop looks high-end, the majority of her mix is mid-range with a few high-end and value lines to meet demand. And, she has made it known in town that her shop is the one to go to for repairs and adjustments.

WHAT SHE DOES BEST: Embracing a credo of quality and service, she constantly trains staff on the latest developments. Connally says: “Once we proved (to area doctors) that we did what we said we’d do—make their Rx’s correctly and treat their patients well—the referrals kept coming.”

— Susan Tarrant

WANNAPREUNEUR WARNING

BY DANIEL STEENERSON

Thinking about starting your own business? Beware! Below are 10 signs that you just may not be cut out to be an entrepreneur.

No. 10 YOU CAN’T STAND THE HEAT
Before you jump, make sure you’re very comfortable being uncomfortable. Every day you’ll need to try something for the first time—all with less financial security.

No. 9 YOU HAVE PROFESSIONAL A.D.D.
If you get bored and frustrated easily, or you like to go in a new direction every 60 days, ownership may not be for you. Being an entrepreneur requires unwavering laser focus, and achieving goals takes time and persistence.

No. 8 YOU GET STAGE FRIGHT
If you’re uncomfortable in the spotlight or you don’t like public speaking, you better master these competencies before you launch.

No. 7 YOU HATE ROLLER COASTERS
As a business owner, you never know what’s around the corner. There will be countless ups and downs and you need to hang on and enjoy the ride.

No. 6 YOU THINK COMPLEXITY IS COOL
Complexity may be cool, but it’s hard to create, market, and sell. As an owner, you need the ability to distill concepts to their simplest forms so they can be easily communicated and implemented.

No. 5 YOU CAN’T EXPLAIN THE STEPS OF SHOE-TYING
Tying a shoe is complicated. So is running a business. You have to be able to delegate tasks and to direct others. This means you need the ability to break big ideas into easy, actionable steps for implementation.

No. 4 YOU DON’T BELIEVE IN MARKETING
If you don’t believe in and embrace marketing, you’ll never succeed. Be ready to dedicate effort and a decent budget to the task, and give it time to work using a variety of mediums. There’s no silver bullet.

No. 3 YOU’RE EASILY WINDED
Once you get past the adrenaline rush of starting up, you’ll encounter a portion of the journey called the “middle mile” where you’ll face challenge and drudgery. Despite inconveniences, you must place one foot in front of the other and press on.

No. 2 YOU’RE A PROBLEM PASSER
In business, there are problems that must be decisively resolved by the owner. Sometimes customers and employees will be unhappy with your decisions and that’s OK. Successful entrepreneurs never postpone difficult choices.

No. 1 YOU’RE ON A QUEST FOR QUICK CASH
You are in business to solve problems and serve others. If you find a way to deliver a better solution or service than your competitors, you will make plenty of money. But it doesn’t happen overnight.

As the above pitfalls exemplify, starting a business isn’t easy, but it can be extraordinarily worthwhile and satisfying. If any of the 10 warning signs above DON’T give you pause, you just may make a good entrepreneur.

Daniel C. Steenerson shares his success wisdom, principles, and philosophies through his proprietary “Science of Visioneering” approach to help companies, entrepreneurs, and other professionals realize business greatness. He may be reached online at DanSteenerson.com for no-nonsense, “tell-it-like-it-is” success advice.