BUSINESS

  MARKETING

CAN BUYERS ‘FEEL’ THE VALUE?

GIVE POTENTIAL BUYERS THE ASSURANCE THEY NEED TO PURCHASE YOUR PRACTICE

STEVE VARGO, O.D., M.B.A.

TODAY’S YOUNGER generation of doctors is more skeptical of practice ownership than prior generations. Consider: There is less certainty about the future of health care, competitive threats loom, and change occurs at warp speed. Young O.D.s have heard the angst and frustration expressed by seasoned practice owners like yourself — and now you’re asking them to buy your practice. To a potential buyer then, the prospect of ownership may not seem all that enticing.

If you are considering selling your practice in the near future, consider the marketing messages you will convey. Remember, selling is much more than just a financial transaction; it’s emotional as well. If a potential buyer cannot “feel” the value and benefit of owning your practice, the likelihood of a sale diminishes.

PERFORM A “SWOT” ANALYSIS

To provide answers to a buyer’s concerns, which likely center around the future profitability of the practice, consider performing a SWOT (Strengths, Weaknesses, Opportunities and Threats) analysis from the buyer’s perspective. The analysis can answer: What strengths will sustain this practice and allow it to remain competitive? What weaknesses will limit the growth of the practice? What opportunities will I acquire through this purchase, and will the opportunities offset the threats?

BREAKING IT DOWN

Let’s look at these factors independently:

• Strengths. Make a list of your competitive advantages, which will become key selling points when you market the sale of your practice. What advantages does your practice have? What do you do better than the competition? What do your patients see as your strengths?

Consider your strengths from the perspective of the patient. If your competitors provide a similar level of products and service, then it’s not really a strength.

• Weaknesses. As with strengths, make a list of all your weaknesses. What could you improve that would provide a competitive advantage? What factors prevent sales or limit your growth? If it’s within your control, consider repairing these weaknesses prior to a sale.

• Opportunities. Once you have identified your strengths and weaknesses, consider whether these strengths create competitive opportunities in your market. Likewise, would eliminating your weaknesses create opportunities as well?

• Threats. Rational or irrational, threats create fear — and fear can become a major obstacle to a sale. A buyer wants some level of assurance that he or she will get a healthy return on his or her investment. Do you have a strategy to deal with Internet vendors? Online refractions? Declining third-party reimbursements?

BUSINESS OF PROMOTING

Marketing is defined as the action or business of promoting and selling products or services. You will be much more effective with marketing the sale of your practice when you effectively showcase your strengths and help potential buyers overcome their fears and apprehension. OM

DR. VARGO serves as Prima Eye Group’s vice president of Optometric Consulting. A published author and speaker with more than 15 years clinical experience, he is now a full-time consultant advising O.D.s in all areas of practice management and optometric office operations. To comment on this article, visit tinyurl.com/OMcomment.