The College of Optometrists

Can a practice be successful in an area where only 25% of the population are over 45 and only 50% are economically active? i.e a very deprived area.

What are the key population statistics you should be looking at?

Depends on the size of the initial population. Also the presence or otherwise of other optical practices.

You can build a successful practice just doing NHS/ Income support work. Not exactly thrilling work, granted, but the economics can make sense if you have enough patients to do 15 - 20 tests per day.

ANY business plan for a startup has to take a (wild?) guess at the level of custom you can expect. So, if you're going to NEED 4800 patients per year to be making good money, then on say a 2 year recall, you need 10,000 active clients. So your catchment population needs to be 10000 * 4 (assuming mostly over 45's are your target) i.e. 40,000. Presumably all these people already get their eyes tested somewhere already, so you can only expect to get a %age of the population. So you can multiply your 40000 target by say, 3?

So, are there 120,000 people in your area of interest?

If there are, you've got something worth looking at. So, for me, population size is the KEY statistic.

Whats your cash situation ?

Remember strange things happen, can you survive if it takes a little longer to pick up.

Whats the least amount you need to breakeven and how little income can you live on?

they are right godzilla - things are not easy - you have to be careful - you can get the frames cheaply enough - and have a go. But make sure you can get out early if it doesnot pan out. Many practices these days turn out to be a treadmill and no more. If there is no competition - then you should be okay on 20,000 people population. But don't forget everyone has a car these days and may well travel out of yr area - so the numbers may be meaningless. You are only going to be successful if you are good and well liked. Don't forget the NHS is wicked if they think you are bending rules to see more people and compare practice to practice to see if yr rates are similar. Think it over - I think a business owner of a big optical chain said 'always go where the monye is'. He is not wrong

A cold start up sounds very risky but what if you take over an existing practice with a proven, consistent turnover, then surely you can't go wrong.

By the way, how do you get out of a leasehold contract? How do you get someone to take over your practice if it has not performed well.

If you just wait until the end of the contract, would you have to sell all the equipment and then you would lose the gooodwill payment you made.

In a situation you describe irrespective of numbers you are signing up to an income dependent on the whims of your only paymaster.......virtually no private business......just take a look at the situation of criminal lawyers doing only legal aid. nuff said.