Power Hour Optometry Episode Summary

Title: How Pursuing Passions Outside Optometry Can Grow the Value of Your Practice, with Dr. Gary Gerber
Host: Eugene Shotsman, The Power Practice
Release Date: July 2, 2025
Guest: Dr. Gary Gerber

Introduction

Eugene Shotsman welcomes Dr. Gary Gerber back to the Power Hour Optometry, highlighting Gary's unique perspective on balancing passion projects with optometric practice. The episode delves into how pursuing interests outside of optometry can significantly enhance the enterprise value of a practice.

Gary Gerber’s Journey: From Optometry to Music

[02:18] Gary Gerber:
"I've always been a musician, a keyboard player... I never kind of stopped playing."

Gary shares his multifaceted career, detailing his transition from running an optometry practice in Northern New Jersey to founding the consulting company Power Practice, and later Treehouse Eyes. Despite his professional commitments, Gary has maintained his passion for music, actively playing in bands alongside his optometric pursuits.

Building a Practice to Maximize Enterprise Value

Defining Enterprise Value

[10:39] Gary Gerber:
"Enterprise value is your everything from the value of your current lease... What you're really selling is the ability of the business to continue performing as it is now after you're not there."

Gary emphasizes the importance of building a practice that operates independently of the owner to maximize its enterprise value. He likens a well-structured practice to a franchise model, where the business can continue seamlessly without the primary owner’s direct involvement.

Core Principles for Enhancing Enterprise Value

1. Systematization:
   Gary stresses that the practice should function like a well-oiled machine, with detailed processes that ensure consistency and reliability.
   [12:52] Gary Gerber:
   "You need to manage your practice as a collection of talent or processes that are replicable... otherwise, you're putting all your eggs in one basket."

2. Operational Independence:
   The practice should run smoothly without the owner, allowing doctors to focus on patient care and business growth without micromanagement.
   [17:59] Gary Gerber:
   "Most practices run about being all about me, but those that are about the process are more valuable."

3. Franchise Mindset:
   Creating a predictable and reliable patient experience akin to a franchise ensures higher enterprise value.
   [17:59] Gary Gerber:
   "It's like KFC where you can’t have the Colonel make the chicken. The business runs independently of the owner."

Common Mistakes That Erode Enterprise Value

1. Over-Reliance on the Owner (The Talent Show Model)

[32:37] Gary Gerber:
"If you're running your practice as a talent show, it's a high-risk enterprise because the moment Kim decides she can't work anymore... the practice has immediate impact."

Gary explains that practices overly dependent on the owner or key staff members are vulnerable. If a single person leaves, it can disrupt operations and patient experience, thereby reducing the practice’s value.

2. Excessive Inventory

[32:37] Gary Gerber:
"Too much inventory is a big one... Frame inventory is like having a $100 bill sitting up on a wall; you can't spend it for something else."

He advises maintaining minimalistic inventory levels to avoid tying up capital in unsold stock. An overflow of frames not only occupies space but also represents sunk costs that could otherwise enhance profitability.

3. Lack of Measurable KPIs for Staff Performance

[33:44] Gary Gerber:
"You need to have a way to tell where they should be three months after they've been deployed into that role."

Gary underscores the necessity of establishing clear Key Performance Indicators (KPIs) to evaluate employee performance objectively. This ensures that staff contributions are measurable and aligned with the practice’s goals, facilitating better management and higher enterprise value.

Connecting Enterprise Value with Life After Optometry

[38:52] Gary Gerber:
"Think of it this way. If I started to practice saying, I'm building this practice with the intent to get out as soon as I can and go play with a rock band... I have to build it in such a way that I don't have to be there."

Gary articulates how structuring a practice for operational independence not only enhances its enterprise value but also provides the owner with the freedom to pursue personal passions. By setting clear goals and working backwards, practitioners can align their business strategies with their life aspirations.

Personal Story: Embracing His Passion for Music

Gary recounts his journey of committing to play in a band while managing his optometric practice. Through dedication and careful planning, he successfully balanced both roles, illustrating the practical application of his advice.

[45:05] Eugene Shotsman:
"But it sounds like the thing that drove that was that you said yes to a dream opportunity."
[45:37] Gary Gerber:
"The first step before that was I committed. There was definitely a lot of luck here, but I committed to doing something."

This narrative serves as a testament to the benefits of integrating personal passions with professional endeavors, showcasing how such balance can lead to a fulfilling and valuable career.

Actionable Steps for Practitioners

1. Define Clear Goals:
   Identify specific, measurable goals for both your practice and personal passions.

2. Develop Robust Systems:
   Create detailed processes that allow the practice to operate independently of your daily involvement.

3. Optimize Inventory Management:
   Maintain an optimal level of inventory to ensure financial efficiency and operational smoothness.

4. Implement KPIs:
   Establish and monitor performance metrics for all staff members to ensure alignment with practice objectives.

5. Cultivate Passions Concurrently:
   Allocate time and resources to pursue personal interests without compromising professional responsibilities.

Conclusion

Dr. Gary Gerber’s insights in this episode of Power Hour Optometry provide a comprehensive guide for optometrists aiming to enhance their practice’s enterprise value while simultaneously pursuing personal passions. By building a systematized, independent practice, practitioners can achieve both professional success and personal fulfillment, ensuring a balanced and prosperous career.

[59:25] Gary Gerber:
"You got to practice your piano scales or practice your golf swing, whatever it's going to be."

Eugene Shotsman and Gary Gerber wrap up the conversation by reinforcing the importance of setting clear goals and systematically working towards them, encouraging listeners to take actionable steps towards balancing their professional and personal lives.

Notable Quotes:

• Gary Gerber [10:39]:
  "Enterprise value is your everything from the value of your current lease... What you're really selling is the ability of the business to continue performing as it is now after you're not there."

• Gary Gerber [12:52]:
  "You need to manage your practice as a collection of talent or processes that are replicable... otherwise, you're putting all your eggs in one basket."

• Gary Gerber [32:37]:
  "Too much inventory is a big one... Frame inventory is like having a $100 bill sitting up on a wall; you can't spend it for something else."

• Gary Gerber [33:44]:
  "You need to have a way to tell where they should be three months after they've been deployed into that role."

• Gary Gerber [38:52]:
  "Think of it this way. If I started to practice saying, I'm building this practice with the intent to get out as soon as I can and go play with a rock band... I have to build it in such a way that I don't have to be there."

For more insights and detailed strategies, visit www.PowerPractice.com.