BUSINESS

  BY THE NUMBERS

EVOLUTION OR REVOLUTION

IT’S ALL BUSINESS METRICS

JAY BINKOWITZ

AS HISTORY has taught us, revolutions have been so very important in the creation of who we are, or our evolution. A further look into evolution (only different from revolution by the letter “R”) points us down the path of genetics and heredity, where change (or evolution) creates new needs in order to sustain and grow, which, inherently, creates a circle right back to revolution. Suffice is to say, we are experiencing revolutions and evolution every day.

For me the next question is: Are you:

1. Reacting and losing control?

2. Proactive and taking advantage of new opportunities?

3. Waiting to sell or retire?

I pick No. 2. To take advantage of what I call “Re-evolution,” remember the power of information, or leave your results up to fate. Commit to re-learning your business.

The first step toward your re-evolution is to gather the following information:

1. Frames: How many: on display, collections do you carry, do you sell per month? (This excludes free Medicaid frames.)

2. Sunwear: How many: on display, collections do you carry, do you sell per month?

3. Lab: Do you edge, use stock single vision lenses, use a remote tracer? Are you participating in the in-office finishing programs from VSP and EyeMed?

4. Lenses: How many: progressives, materials and AR coatings do you offer?

5. Team: How many full-time members of your team work in the optical? Do you offer Saturday hours? How often do you have team meetings? Do you scoreboard with your team and inform them of both their and the business’s results each month? Do you provide annual reviews?

6. Look and feel: What was the date of your last optical refresh? Does your team wear uniforms with your logo, business casual clothes or scrubs?

7. Online presence: How old is your website? How often do you post on Facebook? Do you use a third-party marketing program to excite your patients?

8. Accountability: Do members of your team truly understand your goals and expectations? Ask them to tell you what they think these are. How often do you randomly call a patient just to say, “Hi,” and get feedback?

9. Numbers: What numbers are you tracking and why? And what do you do with them once you know what they are?

10. Expenses: What are your total quarterly expenses against your total net revenue? (Expenses should remove any compensation or value you receive above the marketplace norm for a full-time employed O.D.) The operating expense ratio is equal to a company’s operating expenses divided by its revenues.

Email AskJay@GatewayPN.com your re-evolution. I will follow up with suggestions to tweak, refine and, most importantly, help you take advantage of the great opportunities in front of you. OM

MR. BINKOWITZ is president of GPN, a leading businesss management company based in Farmingdale, N.Y. He has had extensive experience in retail operations, merchandising and marketing. Email him at jay@GatewayPN.com, or to comment on this article, visit tinyurl.com/OMcomment.