Mark Wright, OD Playing the Game to Win Mark R. Wright, OD, FCOVD - PowerPoint PPT Presentation

• CEO: The Practice Management Center • optometrymatch.com • President: Pathways to Success • mwright@pathways-o.com • Professional Editor: Review of Optometric Business • reviewob.com • Author: Coding, Reimbursement and Contracting for Optometry • Director, The OSU College of Optometry Business Management Program • 2006 Benedict Professor: University of Houston • 1980 – 2007 founder: Professional VisionCare, Westerville, Ohio Mark Wright, OD

Playing the Game to Win Mark R. Wright, OD, FCOVD

optometrybusiness.com 2 websites to know optometrymatch.com

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There are 42 topics on this Today’s Great topics for page, most with multiple powerpoint can your Private links. The topics follow the outline of the APME textbook be found here. Practice Club (with a few modifications). meetings.

Would you rather have 1/2 or 1/3 of a pumpkin pie?

What is 1/2 of 1/3?

The number of possible chess positions after White’s first move is 20. (16 pawn moves and 4 knight moves). 400 different positions after each player makes one move apiece. There are 72,084 positions after two moves apiece. There are 9+ million positions after three moves apiece. There are 288+ billion different possible positions after four moves apiece. www.bernmedical.com/blog/how-many-possible-move-combinations-are-there-in-chess

The number of possible chess positions after White’s first move is 20. (16 pawn moves and 4 knight moves). 400 different positions after each player makes one move apiece. There are 72,084 positions after two moves apiece. There are 9+ million positions after three moves apiece. There are 288+ billion different possible positions after four moves apiece. www.bernmedical.com/blog/how-many-possible-move-combinations-are-there-in-chess

MARKETING • Strategies • Get current patients to return • More new patients • Increase your per patient revenue

MARKETING • Strategies & Tactics • Get current patients to return • Pre-appoint • More new patients • Patient reward system • Increase your per patient revenue • Dr. Prescribe in Exam Room • Transitions Lens example • Order matters: Sun before Dress

Excerpt from: Best Practices of Financial Management. A How to Guide for Owners of Independent Optometric Practices (Bob Schultz, Vision One Credit Union) optometrybusiness.com, STUDENTS, Best Practices of Financial Management

Game Prep Beginning Game Middle Game End Game • Food • Rest • Exercise

Employer Employee

To play the Game Prep to HAVE 2 EXIT STRATEGIES UNDERSTAND WORK-LIFE (UNDERSTAND THE BALANCE win, you must ENDGAME) Start NOW UNDERSTAND THE UNDERSTAND PRACTICE IMPORTANCE OF NUMBERS NETWORKING

Which would you rather have $1M or I penny doubled every day for 30 days? $5,368,709 Time Value of Money

$3M to $5M

2018 Jobson ECP Compensation Study • The average pay for owner/partners was $141,624 • The average pay for employed optometrists was $109,625 • The average owner/partner optometrist makes $31,999 more per year. • If we multiply that difference of $31,999 over 40 years , the average owner optometrist makes $1,279,960 more than the average employed optometrist.

What happens if the owner/partner optometrist invests that average difference of $31,999 over the course of 40 years and achieves at a conservative 6% interest average annual return on investment https://www.edwardjones.com/preparing-for-your-future/calculators-checklists/calculators/retirement-savings-calculator.html

The $5M decision Employer Employee

Invest a minimum of 10% of your gross income Invest automatically into Owning Owning real Stocks and businesses estate Bonds

EMPLOYED OD • Security – 30 day contract • Flexibility – Told when to work • Freedom – Told how to work

Work – Life Balance Systems Employer Employee

Networking Eye contact Business cards Employer Hand shake Tell them up front - ownership Eye contact Business cards Employee Hand shake Tell them up front - employment

Know the practice numbers

CATEGORIES DEFINITION RANGE YOUR BUDGET MONEY IN Revenue Money actually collected $640 - $1.4M $700K CLINICAL SERVICES then $1M MATERIALS Per FTE OD OTHER MONEY OUT COGS MATERIALS 23.9% - 34.2% 25% Lab bills + All in-house lab costs Staff Payroll All costs for having staff 15.5% - 24.2% 20% Occupancy Occupying your space 4.4% - 8.9% 7% Equipment Clinical equipment 0.2% - 3.4% 1% Marketing Internal and external marketing 0.6% - 2.3% 1% Overhead Everything not covered above 3.3% - 10.3% 10% MONEY LEFT Dr Payroll Costs for doctors 20% Net What is left over 16%

What is the average to pay an employee OD? .15 x $500,000 = $75,000 .15 x $700,000 = $105,000 .15 x $1.4M = $210,000

What is the most to pay an employee OD? .2 x $500,000 = $100,000 .2 x $700,000 = $140,000 .2 x $1.4M = $280,000

Game Prep Beginning Game Middle Game End Game

OPTOMETRYMATCH.COM PRACTICE VALUATION To play the Beginning Game to win PRACTICE CONSULTATION TURN-KEY PACKAGE

Bank approval Escrow Transitioning the practice Contracts Broker How to successfully Negotiating Matching right navigate the practice the deal Negotiating a buyer & seller transition minefield fair price

Decide today which path is yours Employer Employee

Game Prep Beginning Game Middle Game End Game