The New Optometry Practice Startup Checklist: 25 Things to Do First
A practical 25-step checklist for opening an optometry practice, covering legal, financial, operational, and marketing essentials with realistic costs.
Opening an optometry practice is a complex process with many moving parts. This checklist covers the 25 most critical steps, in order, to get you from idea to opening day. Follow it sequentially to avoid costly mistakes and delays.
1. Write a Business Plan
A business plan is your roadmap. Include your mission, target market, services, pricing, and financial projections. A simple one-page plan is fine to start. Use it to secure loans or investors.
2. Choose a Legal Structure
Decide between sole proprietorship, LLC, or corporation. Most optometrists choose an LLC for liability protection and tax flexibility. Costs range from $50 to $500 for filing, depending on your state.
3. Register Your Business
Register your business name with your state and obtain an Employer Identification Number (EIN) from the IRS. This is free and can be done online.
4. Get Malpractice Insurance
Professional liability insurance is non-negotiable. Expect to pay $2,000 to $5,000 per year for new practitioners. Shop around for quotes from multiple carriers.
5. Secure Business Insurance
Beyond malpractice, you need general liability, property, and workers’ compensation if you have employees. Bundle policies for discounts. Annual premiums typically range from $1,500 to $4,000.
6. Open a Business Bank Account
Separate your personal and business finances. Open a business checking account and apply for a business credit card. This simplifies accounting and tax filing.
7. Set Up Accounting Software
Use QuickBooks or Xero to track income and expenses. Costs are $30 to $80 per month. Hire a CPA who specializes in medical practices to set up your chart of accounts.
8. Find a Location
Choose a location with high visibility and easy parking. Consider proximity to other healthcare providers. Rent for retail space averages $25 to $50 per square foot annually, but varies widely.
9. Negotiate a Lease
Hire a commercial real estate agent to negotiate lease terms. Aim for a 5-year lease with options to renew. Watch for hidden costs like common area maintenance (CAM) fees.
10. Design the Office Layout
Plan your space for patient flow: reception, waiting area, exam rooms, optical dispensary, and lab. Use an architect or medical office designer. Typical build-out costs run $100 to $200 per square foot.
11. Obtain Necessary Permits and Licenses
Check with your state optometry board for licensure requirements. You may also need a business license, health department permits, and signage permits. Fees range from $100 to $1,000.
12. Purchase Equipment
Essential equipment includes an exam chair, phoropter, autorefractor, tonometer, and slit lamp. New equipment can cost $50,000 to $150,000. Consider leasing or buying used to reduce upfront costs.
13. Buy Software for Practice Management
Choose an EHR and practice management system. Popular options include Eyecare Advantage, RevolutionEHR, and Crystal PM. Costs range from $200 to $600 per month per provider.
14. Set Up a Phone and Internet System
Use a business phone service like RingCentral or Nextiva. Costs are $20 to $40 per user per month. Ensure high-speed internet for EHR and telemedicine.
15. Stock Your Optical Dispensary
Purchase frames, lenses, and contact lenses. Start with a modest inventory of 300 to 500 frames. Wholesale costs for frames average $30 to $100 each. Build relationships with vendors like Essilor, Zeiss, and VSP.
16. Establish Vendor Accounts
Set up accounts with suppliers for frames, lenses, and consumables. Negotiate terms and discounts. Compare pricing from at least three vendors for each category.
17. Hire Staff
You’ll need at least one receptionist and one optician. Consider hiring a part-time optometric technician. Salaries vary by region, but budget $30,000 to $50,000 per full-time employee.
18. Train Your Team
Train staff on customer service, insurance billing, and practice software. Create standard operating procedures for front desk and clinical tasks. Ongoing training improves efficiency and patient satisfaction.
19. Set Up Insurance Credentialing
Apply to be an in-network provider with major insurers like VSP, EyeMed, and Medicare. Credentialing can take 60 to 120 days, so start early. Hire a credentialing service if needed, costing $500 to $1,500 per application.
20. Create a Fee Schedule
Set your fees for exams, contact lens fittings, and optical products. Research local market rates. Typical exam fees range from $80 to $150. Adjust for insurance contracts.
21. Develop a Marketing Plan
Build a website, create social media profiles, and plan local advertising. Budget 5% to 10% of projected revenue for marketing. Use a mix of online and offline tactics.
22. Build an Online Presence
Your website should include your services, location, hours, and online booking. Invest in search engine optimization (SEO) for local keywords. Claim your Google Business Profile to appear in local searches.
23. Plan a Grand Opening Event
Host a ribbon-cutting ceremony, offer free eye health screenings, or provide discounts on eyewear. Promote the event through local media and social media. Aim to attract at least 50 attendees.
24. Prepare for the First Day
Run through a mock patient visit. Test all equipment, software, and payment systems. Ensure your team knows their roles. Have a checklist for opening and closing procedures.
25. Review and Adjust
After opening, track key metrics like patient volume, revenue, and expenses. Meet monthly with your accountant to review financials. Adjust your marketing and operations based on data.
FAQ
How much does it cost to start an optometry practice?
Startup costs typically range from $150,000 to $400,000, including build-out, equipment, and initial inventory. Leasing equipment and buying used can lower this.
How long does it take to open a practice?
From planning to opening day, expect 6 to 12 months. Credentialing and build-out are the longest steps.
Do I need to be credentialed with insurance companies?
Yes, to accept insurance and get reimbursed. Start the process early because it can take months.
Can I start a practice without a business plan?
Technically yes, but a business plan helps you secure funding and make informed decisions. It’s a critical first step.
The Bottom Line
Opening an optometry practice is a major undertaking, but following this checklist in order will keep you on track. Focus on the legal and financial foundations first, then move to operations and marketing. With careful planning and execution, you can open a successful practice that serves your community for years to come.