How to rock the recession

What is your strategy to keep your head above water?

Dominic Watson looks at the optimal way to prepare yourself – and your practice – for the anticipated economic downturn...

the Covid-19 recession was the speed of the recovery and the spending patterns of consumers in the wake of the pandemic.

Once the lockdowns were over and the vaccines provided, consumers’ confidence in circulating again – a heady mix of record savings levels and an unprecedented level of latent demand – meant boom times for many practices as customers returned and purchased freely.

As a result of this, many practices experienced record profits and record financial years. Here at Myers La Roche, we have facilitated high numbers of practice sales at record prices in the post pandemic period to date.

Tip: As the business owner, your business reflects you – so don’t allow there to be a recession in your mindset, attitude or approach.

Not all practice owners fared well, however. Practices come in all shapes and sizes and there is a vast array of variables that determine success or failure, growth or decline in independent practice.

During the pandemic, in my experience, the mindset and outlook of owners was the key variable. Some froze in fear during the lockdowns, became quite passive in the face of the challenges, and were overly cautious and slow to get going and adapt as conditions improved.

Ad materials to support Rodenstock’s MyCon launch

effect of reducing myopia progression using myopia control lenses is also higher. An independent clinical study examining myopia progression in Caucasian children aged seven to 14 years over a period of five years has shown that myopia control lenses built on the principles of Rodenstock MyCon are effective in reducing the progression of myopia by up to 40 per cent13

Rodenstock MyCon lenses are available in indices of 1.5, 1.6, 1.67 and 1.74, making them both thin and sleek – a strong sales argument for the ECP, the company suggests. Attractive advertising materials and a comprehensive campaign have been designed to help the ECP encourage long-term patient loyalty with support from childhood onwards.

8. Logan NS, Gilmartin B, Wildsoet CF and Dunne MC. Posterior retinal contour in adult human anisomyopia. Invest. Ophthalmol. Vis. Sci. 2004, 45:2152-2162.

9. Millodot M. Effect of ametropia on peripheral refraction. Am. J. Optom. Physiol. Opt. 1981;58:691-695.

10. Mutti DO, Sholtz RI, Friedman NE and Zadnik K. Peripheral refraction and ocular shape in children. Invest. Ophthalmol. Vis. Sci. 2000;41:1022-1030.

11. Schmid G. Variability of retinal steepness at the posterior pole in children 7-15 years of age. Curr. Eye Res. 2003;27:61-68.

12. Benoit DP, Dillehay, SM. New clinical evidence through six years: NaturalVue Multifocal for Myopia Management. Poster. American Academy of Optometry, Boston, 4 November 2021.

13. Tarutta EP, Proskurina OV, Tarasova NA, Milash SV, Markosyan GA. Long-term results of perifocal defocus spectacle lens correction in children with progressive myopia. Vestn. Oftalmol. 2019.

At the time of writing, with all of the major economic indicators flashing red, the UK appears to be in recession in everything but name: interest rates are going up, while disposable incomes and consumer confidence are coming down. So what should independent practice owners do in the face of this onslaught of negativity, and what is the best course of action to navigate these choppy waters?

The honest answer is – it depends – and the fact of the matter is that giving one size fits all advice is a fool’s game. A quick example will illustrate this.

As well as the cost-of-living crisis, the UK is suffering from another major challenge: an obesity crisis. However, just because 64 per cent of the population are overweight and 28 per cent obese, I am not going to assume that you need diet or exercise tips. Even if you do have a weight problem and wanted me to help, I would need to know a lot more about your age, weight, height, medical history and lifestyle before determining a course of action.

The reality is that most (but not all) practice owners will need to adapt their businesses as the recession hits, but to do this effectively it is first necessary to identify the specific challenges facing the individual practice. Only then can the appropriate remedies and responses be implemented.

Lessons From The Past

All but the newest of practice owners experienced the short, sharp shock of the Covid-19 recession that took place over Q1 and Q2 of 2020; but this year’s anticipated recession is likely to be a very different animal – requiring a different approach.

The Covid-19 recession had a number of exceptional features that will be absent this time around, including cash grants of up to £25,000 for small businesses and a generous furlough scheme that allowed staff to be paid and retained despite being mothballed. The Scottish government went even further, paying a guaranteed percentage of normal monthly NHS income. As a result of these measures, practices were able to retain staff and remain viable. In many cases, they were surprisingly profitable.

What was even more unusual about

Others seized the day and remained highly active and proactive; they remained in regular communication with patients and shone as beacons of positivity. I have a number of clients who carried out shop fits during lockdowns and benefitted hugely when they were able to fully re-open, experiencing record month after month and quickly repaying their capital investment and positive initiative.

Conclusion

The next recession is likely to be a very different affair – and most practice owners will require a very different approach. Once more, it will be the proactive owners who take things in their stride who will come out best. Those who stand by passively will struggle.

If you would like to understand more about how you can take a proactive approach that is right for you and your practice, get in touch with the Myers La Roche team via 0161 929 8289 or email info@myerslaroche.co.uk