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1.0 Executive Summary
Optometry Practice, LLC (“the Company”) will provide the greater Cambridge, Massachusetts community with comprehensive eye care services coupled with an immense selection of stylish frames. The Company was founded by Dr. Johannes Paul, a board certified and licensed optometrist. At this time, the Company is seeking $225,000 via an SBA loan in order to launch operations in this market.
1.1 The Services
Dr. Paul and staff optometrists will provide a wide range of optometric services to patients through the Company’s state-of-the-art clinic facility. These services will include diagnostic services, eye treatments, prescribing eyewear, and coordinating surgical treatments with ophthalmologists. The business will use the latest in optometric technology in order to render diagnoses.
A major component of the Company’s profitability will come from the continued sale of stylish frames, contact lenses, and medical appliances that are specific to treating eye disorders. Management anticipates that 50% of the practice’s income will come from frame sales.
Chapter three of this document will go into detail regarding the Optometry Practice’s services.
1.2 Financing
As stated above, Dr. Paul is currently seeking a practice development loan that will receive a SBA guarantee. This document assumes that the Company will receive a 10 year loan that has a 7% interest rate due on the principal balance. It will be normally amortizing. The funds will be used for the following:
• Optometry clinic development in Cambridge
• Diagnostic and surgical equipment
• Working capital for the early expenses of the practice
As the Optometry Practice reaches near 100% capacity for its initial location, Dr. Paul may establish secondary and tertiary locations in the greater Boston metropolitan area market. In this event, the Company could easily acquire additional funding via a second SBA loan, conventional business loan, or revolving line of credit to facilitate the development of a second clinic.
1.3 Mission Statement
Optometry Practice, LLC’s mission is to provide comprehensive optometric care to residents of Cambridge that focus on diagnostics and preventative care.
1.4 Management Team
Johannes Paul, OD has been a practicing optometrist for the past nine years. He is board certified, and he is properly qualified to provide comprehensive optometric care to his patients.
1.5 Sales Forecasts
1.6 Expansion Plan
There is a very strong demand among Cambridge and Boston residents for proper optometric care. The Company will hire staff optometrists that will work at the business’ location and subsequent locations throughout this market. The Company may also hire staff ophthalmologists that can render surgical care in tandem with the practice’s optometrists. Dr. Paul may also acquire existing optometry practice from retiring practitioners in this market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Optometry Practice, LLC.
2.2 Required Funds
Dr. Paul requires a $225,000 practice development loan in order to establish operations in Cambridge, Massachusetts.
2.3 Investor Equity
Johannes Paul will make a $50,000 investment into the practice to establish the operations. As time progresses, the Company may work with private funding sources on an as needed basis in order to establish the number of optometry practices that the Company operates throughout the Boston area. However, this event is not expected to occur as the substantial after-tax cash flows can be used to finance growth.
2.4 Management Equity
Johannes Paul, OD is the owner of the Company. In the future, staff optometrists that ultimately become partners in the practice may be given equity participation based on the number of years that they have worked for Optometry Practice, LLC.
2.5 Exit Strategy
Optometry practices are in-demand among practitioners given that purchasing a practice carries substantially less risk than starting from scratch. Based on this, Dr. Paul would coordinate with established optometric practitioners in order to transition ownership from him to a potential buyer. The sale of the Optometry Practice to a third-party practitioner is not expected to occur within the next fifteen years.
3.0 Optometric Services
Under Dr. Paul’s care, the Company will provide a full range of optometry services to the Cambridge general public. These services will encompass:
• Cataract Treatment
• Diagnoses of Eye Disorders
• Glaucoma Treatment
• Prescription of Eyewear
• Wellness and Routine Checkups
The business will also provide specialized minor surgical treatments. These surgical treatments will include chalazion injections and incisions, lesion removal and biopsy, and radiofrequency ablations.
As stated earlier, a major force behind the continued expansion of profitability will come from the sale of frames, contact lenses, and glasses. The practice will offer a number of stylish frames from numerous recognized manufacturers. The Company will partner with a glass laboratory in order to have prescriptions issued by Dr. Paul and staff optometrists created.
In order to provide an exceptional level of care, the practice and all staff optometrists will coordinate with a patient’s ophthalmologist when complex surgical procedures are required.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
Optometry practices enjoy substantial economic benefits as they establish their operations. Foremost, people will continue to have issues with their vision which necessitates ongoing visits to optometry practices. These companies have very high barriers to entry given the immense amount of education and post graduate training to become licensed and board certified in this healthcare field.
Even during challenging economic climates, the demand for optometry services remains incredibly strong. As will be discussed below, the demand for these services is expected to increase given the continually aging demographics regarding the Baby Boomer population. Given this matter, the Optometry Practice will face very limited economic risks. The only issue that may occur is that people may purchase less expensive frames during an economic recession.
4.2 Industry Analysis
There are currently 29,000 practice locations that provide optometric services to the general public. The industry, among all service providers, generates in excess of $20 billion per year. Including optometric physicians, the industry employs slightly under 150,000 people.
This industry is poised for significant growth over the next ten years. As more people reach older ages, the demand for vision care increases. Additionally, new technologies allow eye issues to be more effectively diagnosed without having to undergo complex procedures. Corrective glasses can be quickly provided to patients. As technology continues to expand in this healthcare field, there will be a number of new opportunities to render more comprehensive care for patients with eye disorders.
4.3 Customer Profile
Any person that lives within Cambridge and has vision issues is a potential patient of Optometry Practice, LLC. For this market, Dr. Paul has developed the following profile:
• Requires corrective glasses
• Lives within three miles of the Company’s state-of-the-art practice location in Cambridge
• Has access to vision insurance that covers diagnostics as well as prescription eyewear
Dr. Paul has specifically chosen the Cambridge market given its wealth and a number of major universities that are within the market. The practice’s location to the greater Boston metropolitan area will allow for growth should the Owner want to establish new practice location.
4.4 Competition
The ongoing competition that Optometry Practice will face as it establishes its operations in Cambridge are minimal. The demand for optometric services outpaces the number of optometrists that are currently practicing in this market. Patient wait times can often exceed one month. The Company will maintain a strong differentiating factor given the state-of-the-art diagnostic equipment that will be featured onsite (including radiofrequency ablation technology).
As it relates to your own optometry practice, you can further discuss your experience as an optometric physician and elements of your practice that will set you apart in this market. As discussed earlier, many markets in the country often have a major shortage of optometrists. If this is the case in your market, you can highlight why establishing a new practice will be economically viable despite any competitive matters.
5.0 Marketing Plan
Optometry Practice, LLC will engage multiple forms of advertising and marketing in order to establish an ongoing patient base in the Cambridge market. Johannes Paul, OD will continually foster ongoing relationships with physicians (especially ophthalmologist) that will provide ongoing referrals. The Company will also develop relationships with healthcare professionals that work at the numerous universities in this market.
5.1 Marketing Objectives
• Maintain referral relationships with allopathic and osteopathic physicians in the market.
• Advertise the Company’s optometric services to university and college students in Cambridge.
• Develop a proprietary website while concurrently maintaining profiles on platforms that allow individuals to make appointments to see an optometrist.
5.2 Marketing Strategies
As has been one of the central themes throughout this document, the demand for comprehensive care in the Cambridge market is substantial. As a result of this demand, the ongoing marketing that will be required by Optometry Practice, LLC will be moderate in nature. Foremost, the Company will use Dr. Johannes Paul’s existing relationships with area physicians and hospitals for referrals. As he has worked in tandem with numerous ophthalmologists in Cambridge and Boston – the business will receive an influx of patients at the onset of operations.
The practice will also develop a search engine optimized website specific for the Cambridge market. This platform will showcase Dr. Paul’s biography, those of staff optometrists, and the diagnostic/surgical procedures are that are offered onsite. The website will also showcase the numerous manufacturers of frames that are carried as part of the Company’s inventories. This platform will connect to all social media pages maintained by the business as well. Socia media marketing will be a more modest component of the Company’s overall growth strategy as most people find optometrists through search engines. However, the Company will establish pages on Facebook and Instagram to discuss important eye care topics while concurrently showcasing images of the location and frames offered.
The Company will also develop ongoing referral relationships with real estate professionals that are assisting people move to the Cambridge market area. Often, real estate agents and brokers will provide books of local businesses to new residents as a courtesy. The business will distribute business cards and brochures to these individuals for inclusion in these directories.
To further increase visibility, the Company will offer free eye screenings to the general public every six months.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
7.0 Financial Plan
7.1 Underlying Assumptions
• The revenues of Optometry Practice, LLC will grow by an average of 10% per year during the first three years.
• A $225,000 practice development loan arranged through the SBA will be used to develop the practice in Cambridge.
7.2 Sensitivity Analysis
Any negative issues with the economy will not impact Optometry Practice’s ability to generate revenue. As stated earlier, the only issue that the business may have is that less expensive frames may be purchased when discretionary income declines. However, diagnostic and surgical procedures will not be affected.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
