How to Open a New Optometry Practice

Starting your own optometry practice can be a rewarding journey. It offers you the freedom to make decisions and the opportunity to create a unique vision for your practice.

Dr. Courtney Dryer, who founded Autarchic Spec Shop in Charlotte, NC, shares her insights on this process.

Why Open a Private Optometry Practice?

Dr. Dryer decided to open her own private practice for the freedom it provided. After working in various settings, she realized she wanted more control over day-to-day decisions, from staff to products.

This autonomy allowed her to implement changes and improvements without waiting for approval from others.

Owning your practice means you can enjoy pride in your services, fulfill your vision, and have the flexibility to balance work and personal life.

Choosing a Location

Location is crucial.

Start by researching lease rates in different areas and comparing them to find the best deal. Then, meet with landlords to gauge potential relationships and consider the type of patient base you want to serve.

Check the demographics of your chosen area to ensure it aligns with your target patient base.

Talk to existing tenants and ask four important questions:

• Are they happy with the landlord?
• How is the business in their area?
• Would they do anything different?
• Anything they wished had been a part of their lease?

And a final note – very important! — before signing your lease, have a lawyer review it to ensure it complies with industry standards.

Also, the number of existing optometry practices in the area should be considered to assess competition. Conducting a competitive analysis can help you identify areas with high demand and limited competition.

“I always suggest that people find out if they qualify for any of the Small Business Association loans. In particular, check interest rates and see how they compare to standard bank loans. “ – Dr. Dryer

Keep in mind that there are benefits to working with a small, local bank versus a large bank.

Each bank has its own loan requirements, such as a necessary number of years out of school or the mandatory hiring of a consultant.

Larger banks may have other special requirements you might find onerous.

“Small banks can be easier to work with, according to colleagues who’ve gotten loans from those institutions.” – Dr. Dryer

Loans will be given based on financial status, how much debt is tied up in student loans, and the amount of living expenses.

The bank will ask for tax documents and proof of income from an outside employer.

Keep in mind that most loans require a business owner to work at least three days outside of their optometry practice so that there is some cash flow and working capital.

Creating Your To-Do List

Opening an optometry practice involves a lot of paperwork.

You can begin by registering for NPI numbers and a business tax ID. Fortunately, it’s a pretty easy process.

A National Provider Identifier is a unique, 10-digit identification number issued to healthcare providers in the U.S. by the Centers for Medicare and Medicaid Services.

Next, register for a business tax ID, then file your business entity with both the state and your state’s board of optometry. This process may vary depending on the state where you plan to operate.

Find out how optical goods are taxed in your state. Can you get an exemption certificate?

Set up your business on social media platforms like Instagram, Facebook, and Yelp, and consider using Google paid ads to drive traffic to your site.

Start the process of getting approved for Medicare early, as it can take several months.

If your bank loans require that you have disability, malpractice, life, and business insurance, then line those up as soon as possible.

Also, line up the necessary insurance plans and begin the credentialing process.

Branding and Marketing

Branding is essential to stand out in a competitive market.

Branding is really the fun stuff, where you get to tell the community who you are and what you’re about.

Develop a clear mission statement and articulate your values.

• What makes your practice different?
• Do you have a niche?  
• Do you have a mission statement?
• Are you able to clearly articulate your values?

Communicating these aspects will help brand your practice and attract your target audience.

If you’re thinking about establishing a niche practice, then be sure to include it in your name — for example, vision therapy or sports therapy. Your name should clearly convey that focus.

Dr. Dryer’s practice, for example, caters to a clientele looking for unique fashion eyewear and positions itself as a high-end luxury boutique.

Marketing your practice effectively is crucial.

Utilize social media to build a following and engage with potential patients. Referral networking can also be an effective strategy.

Connect with other local private practices, such as physicians, specialists, dentists, and therapists, to build a referral network.

Additionally, consider offering incentives like discounts on glasses or contact lenses to encourage patient referrals.

Managing the Build-Out

The build-out phase involves construction, layout, and design.

Consult with several construction companies to get quotes. Visit your space regularly during construction to catch any mistakes early. Choose flooring and colors that create a welcoming environment.

Your office should be redecorated or remodeled every seven years to keep it fresh and inviting.

Choosing an EHR

Selecting the right Electronic Health Record (EHR) system is vital.

Research different options and choose one that fits your practice’s needs. An efficient EHR system can streamline your operations and improve patient care.

There are some very important considerations when choosing an EHR:

• Is the company innovating and changing to meet the demands of healthcare?
• Does the EHR allow for customization?

“Personally, I love the way RevolutionEHR allows me to lay everything out the way I want to.” – Dr. Dryer

• Will it save you time and money and reduce your risk of errors?
• What about integration with other equipment and business solutions?
• Is the software intuitive to learn?

“Staff turnover is very high within optometry. It’s important to me that every staff member I’ve had come on board has learned to use Rev within a week.” – Dr. Dryer

• How simple is the optical ordering process? For example, RevolutionEHR’s vision web integration makes sending glasses from the system to the lab very easy.
• Is it easy to manage/input inventory? RevolutionEHR allows you to import certain frames from Frame Data, but it’s also easy to manually input data if you have something unique.
• Are you able to run reports and track KPIs?

“I worked for a doctor once and managed his AR and saw that no one knew where the money was. I really love how easy it is to track the accounts receivable that are out there. You can see all the claims that have been accepted, denied, and why.” – Dr. Dryer

• Is the software cloud-based or tied to a server? This is a huge consideration, especially if you plan on working patient files while offsite.
• What about the security systems in place to protect patient privacy?

Look for features that enhance patient interaction, such as online appointment scheduling and online patient portals.