As I type this, the news is dominated by concerns over the economy, including unease around inflation and a looming recession. This has practice owners understandably concerned and asking, “What should I expect, and how can I prepare?”
I’m not an economist, and I don’t have a crystal ball, but I think it’s helpful to look at past history to guide current decisions and expectations. While wild swings in the economy make people uneasy (especially when it’s trending downward), it’s easy to get caught up in the short-term and lose perspective of the long-term.
We don’t have to go that far back in history to analyze the past. If you were practicing in the years 2007 to 2009, you practiced through what is now known as The Great Recession. The Great Recession was the most severe economic recession in the United States since the Great Depression of the 1930s. Certainly this was a challenging time for business owners, but fortunately for the optometric industry it wasn’t nearly as challenging as other industries. If your practice followed the trends, you most likely recovered and even thrived in the years that followed.
Every practice is different and as a consultant, we take a lot of individual factors into consideration when offering guidance. Some short-term planning or adjustments are probably wise during these times, but don’t let fear of the short-term derail your long-term goals. When you look at the data below, there’s reason to be optimistic.
Recessions and the Optical Industry:
For a deeper dive into matters of the economy and a looming recession, tune into this podcast episode where IDOC CEO Dave Brown and I discuss what to expect and how to prepare for weathering inevitable economic downturns.
For tips on minimizing the impact of inflation on your practice, read this post by Nathan Hayes, IDOC’s Associate Director of Financial Services.
Sources:
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