My journey began over 15 years ago. For this analyst, the proverbial “handwriting on the wall” was indelible. The signals were clear. The voice in my ear increased in resonance. The time was right to speak out. Of what am I speaking, you ask? I’m referring to the point at which I clearly understood that vision plans and private-practice optometry were on a collision course.
It’s been quite a year. In spite of a world-wide pandemic, natural disasters, social unrest, economic challenges and a political system that seems to have gone haywire, we’ve much for which to be thankful. If you’re listening to this message, if you’re breathing, you’re ahead of the game.
Remember Blockbuster? That chain of video rental stores that started with one location in 1985, had over 9,000 locations at its peak by 2004, only to vanish from the planet by 2014. That’s right, from seed to dust in less than 20 years! In that short period, Blockbuster moved an entire industry from a purchase and own business model to a rental model. Their inventory intensive business was then usurped by the streaming subscription model of Netflix; a business driven by technology that wasn’t even possible a decade earlier.
A couple of weeks ago, I shared with you some interesting data about your performance during the 2nd quarter of this year compared with 2019. Overall, on a per patient basis, our clients fared well during the darkest days of the Covid19 period. While, on average, you saw 25% fewer patients, your per patient revenue increased by 13%, mitigating fully 50% of the potential downturn. That’s outstanding!
It’s early November and next year is right around the corner. By now, you’re likely well on your way to finishing your 2021 plans and budget. You and your team have thought through what you’d like your practice to accomplish; your goals; your personal development objectives. Your managers have turned in their individual budgets and you now know what you expect to gross; and net. You’ve got a good idea of what you’ll invest in team development and a clear understanding of what positions you’ll have to fill.
Clearly, the second quarter of this year seemed like Optometry’s Armageddon. 2020 was supposed to be Optometry’s year. But with most of you closed down for at least ½ the quarter, and our industry’s events wiped clean off the calendar, stress flowed like a mountain stream. Our data shows that, on average, you saw 25% fewer patients in the 2nd quarter of this year vs. 2019! For most businesses, that would be the kiss of death. But you and your teams stepped up to the plate and made lemonade out of the proverbial lemon.
“That which doesn’t kill you, makes you stronger.” Well, certainly, we wouldn’t wish the worst case on anyone. Our hearts go out to those families who have lost loved ones from this Pandemic and the myriad of other reasons that people leave our world.
But Nietzsche’s words from 150 years ago make sense. What he’s really speaking about is adaptability. Life continuously delivers challenges. Survival is not about the fittest, but the adaptable.
A man had two sons. One the consummate negaholic, the other an unwavering optimist. Come Christmas, he ordered everything in the LL Bean catalogue and placed the goods in his attic. He also ordered a truckload of horse manure and loaded that into his basement. Come Christmas morning, he goes to his attic and observes his one son picking up every item and cross referencing it to the LL Bean catalogue. “I know there’s something missing,” he said.
Last week I spoke about the importance of taking time to sharpen your saw. How time away from your practice is even more important than time spent in your practice. This week, I’m providing you with some guidance on reflection.
It’s the beginning of October and mother nature has begun to turn the thermostat down in upstate NY. The leaves are turning into their majestic colors and the smell of fall is in the air. It’s one of my favorite times of the year.
I believe that it was the author T.S. Elliott that coined the phrase, “data begets information begets knowledge, begets wisdom.” Certainly, in today’s data driven society, these words CAN ring true. But when is enough, enough? In this week’s message, I’d like to explore some myths about data as it relates to your practice.
Forty-two years ago I had occasion to participate in the very first national eyecare exposition, called Optifair. At the time, I was the marketing manager for a small eyewear importer. The concept of Optifair was intriguing and we chose to exhibit at this first-of-a-kind event.
It’s near the beginning of the fourth quarter. Of course, by now, you’ve got a good understanding of how this year will conclude. You’ve compared your 2020 plan to your actual performance. You’ve made monumental changes thrust upon you by Covid19. 2020 has been that year where your goals may have been tossed out the window.
On several occasions over the past few months I’ve talked to you about opportunity. I’ve asked you to open your eyes to it, as during firestorms like we’re currently engaged, opportunity arises from the ashes.
Warren Buffett likes to say, “be greedy when others are fearful and fearful when others are greedy.” I think these wise words for the current era.
There are only two ways to increase your revenue…only two. You can either increase the number of exams which you deliver, or you can increase your average revenue per exam. It’s really that simple.
Seemingly little things can have big payoffs!
I remember reading a study years ago about a specific retailer. This retailer’s clerks, like so many others, would greet customers entering the store with “may I help you.” Think about the last time you were so greeted. What did you say?
If Covid19 has delivered anything but havoc, it’s delivered lessons in financial control. For some of you, you were on top of your finances and had a pretty easy time navigating the financial challenges associated with shutting down and then reopening. For others, you’re still scratching your head and saying, “what happened.”
Ralph Waldo Emerson once said, “the speed of the leader determines the pace of the pack.” I believe in that philosophy. That’s why I invest a substantial amount of time and money each year on my and my team’s personal development. I can’t think of a better investment. For me, such investing has become second nature. Setting personal and business goals is a way of life. I will never accomplish all that I want. I can’t imagine life having done that. What would I have to live for?
As much as Covid19 has caused physical harm and, sadly, the demise of some of our citizens, it has also dealt operating challenges felt by many businesses, with a significant negative impact on the travel industry. As you’re aware, along with personalized consulting and transaction services, our firm has specialized in delivering impactful in-person events. Naturally, we’re working hard to find a path through this period. We thank you for your support during these unprecedented times and trust that we’ve come through for you.
Over the past couple of months, I’ve shared with you that Covid19, while horrific and sad, has opened the door to opportunity. As Warren Buffet often says, “be fearful when others are greedy, and greedy when others are fearful.”
