Dr. Mena, center, with AnneMarie Barsoum, OD, in black scrubs, and two support staff team members. Dr. Mena shares his insights on whether being a business owner is worth it.
Does being a business owner make sense for you?
By Vittorio Mena, OD, MS
March 26, 2025
A few months back, I received an e-mail from a colleague asking if I could write about private practice ownership in optometry and the impact of private equity.
From a financial perspective, is becoming a practice owner still worth it?
With the rising cost of living—expenses like gas, food and hotel stays—it’s crucial to ask: Are our paychecks increasing as well?
Understanding Pay Raises
In the past, I emphasized that if you don’t receive a raise of at least 3 percent, you’re effectively earning less than you did the previous year. This is especially true unless you’re compensated with additional benefits like more paid time off, bonuses or the option to work from home.
The American Optometric Association and ODs on Finance have consistently shown that private practice owners tend to earn more than employees. However, there’s a fear factor involved; it takes a certain type of individual to embrace the challenges of ownership. As noted in the book E-Myth Revisited,1 “80 percent of businesses will go out of business in the first year alone.”
While I don’t have specific statistics on how many optometric practices fail each year, the Bureau of Labor Statistics projects2 that employment in optometry will grow by 9 percent from 2023 to 2033. This indicates a strong demand for our profession, especially given the shortage of ophthalmologists and the various specialties within optometry.
Trends in Business Ownership
According to a research article from the Brookings Institution,3 the share of the U.S. population owning a business increased in recent years.
In 2016, 13 percent owned some form of business equity; by 2022, that number rose to 14.6 percent. Additionally, family-owned businesses have also seen growth, from 7.3 percent in 2016 to 8.1 percent in 2022.
Traditionally, business ownership has been dominated by white families with higher education and income levels. However, recent data shows an uptick in ownership among African American and Hispanic populations.
The Risks and Rewards of Ownership
Starting your own business is akin to running a marathon; it comes with its own set of risks. Yet, true control over your time and paycheck often lies in becoming a business owner, whether solo or with a partner.
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With advancements in artificial intelligence and technology, marketing has become more streamlined than ever. Additionally, lower interest rates on loans make borrowing easier, especially if your personal credit score is 700 or above.
According to the Federal Reserve, 37% of small businesses applied for a traditional loan, line of credit or merchant cash advance in 2023! The interest varies for each type of loan taken out, but from what I have seen, SBA loans are between 4-13%, traditional bank loans are between 5-10% (the better your credit score the lower the interest rate), business line of credit loans are between 7-25% and working capital loans tend to start at 23%, which is pretty high.
I remember during my fourth year at the Pennsylvania College of Optometry (now Drexel University), we had to create our own business plans. This included details like operating hours, employee count, exam lanes, square footage, equipment, business name (don’t forget to check domain availability on GoDaddy!), location and pricing for services.
Steps to Starting Your Own Practice
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Draft Your Business Blueprint: Writing out your business plan is the first step. Decide whether to form an LLC, S-corp or C-corp. The Small Business Administration (SBA) offers valuable resources, templates and guides.
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Explore Financing Options: Consider taking out an SBA loan, financing through a bank or seeking help from family and friends. Establish a dedicated bank account and consider having multiple accounts and a business credit card.
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Find a Mentor: Connecting with a successful practice owner can help you avoid early mistakes. Organizations like SCORE provide one-on-one mentoring and workshops.4 You might also consider mentors in optometric business development, such Bethany Fishbein, OD, or Renee Wheelock.
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Track Your Business: Use software like QuickBooks or FreshBooks, or manage your finances with an Excel spreadsheet. Some may prefer hiring a bookkeeper.
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Promote Your Brand: Ensure patients can find you through online marketing and community events.
Conclusion: Don’t Overlook the Strong Benefits of Business Ownership
Being a business owner has its ups and downs, but if done correctly, the rewards—both professionally and financially—can be tremendous.
Stay tuned for next month’s article on the impacts of private equity!
Read another recent article by Dr. Mena
References
- Gerber, M. The E Myth Revisited: Why Most Small Businesses Don’t Work and What To Do About It. March 21, 1995.
- https://www.bls.gov/ooh/healthcare/optometrists.htm#:~:text=9%25-,Employment%20of%20optometrists%20is%20projected%20to%20grow%209%20percent%20from,on%20average%2C%20over%20the%20decade.
- https://www.brookings.edu/articles/the-changing-demographics-of-business-ownership/#:~:text=In%20the%20past%20several%20years,and%208.1%20percent%20in%202022.
- https://www.score.org/
Vittorio Mena OD, MS, is the sports vision director with Optical Academy. Dr. Mena is also an Optometric Financial Coach, with Series 6 and 63 investment licenses and Series 2-14 life and variable annuity licenses. To contact him: menavitt@gmail.com
