In this candid conversation with Marketing Assistant Dana Smith, Certified Financial Planner® Roxanne Arnal opens up about the lessons she’s learned throughout her career, both the triumphs and the tough calls, and how she now pays those experiences forward to help others succeed. As a retired Optometrist and the founder of C3 Wealth Advisors, Roxanne understands fellow Optometrists on a deeper level. She’s lived every side of the profession; as a contracted associate, solo practitioner, partner, and ultimately, as a seller and brings that firsthand knowledge to every client she serves today. |
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Dana: Having been through this process yourself, and guiding several others through it as well, is there anything you would have done differently? Maybe something you learned that, in turn, you’ve passed along to your clients?
Roxanne: Business transitions are rarely smooth. On paper, they appear to be fact-based but in reality there is A LOT of emotion (and lawyer time). My decision to create a partnership was rooted in fear – a fear that should I lose an associate doctor, I’d have far too many patients to care for! A fear created out of my success – a success that I really didn’t know how to manage. Let’s face it, Optometrists are never taught how to lead a team, manage a growing business, or ever told what questions they should be asking of their financial team.
From the start, we knew we needed an Unanimous Shareholder Agreement. We had a draft, but in hindsight, one that was far to skinny and unfunded. We never a signed copy, even three years into our partnership, when we really needed to have the rules of the game agreed upon.
My advice: make the signing of the Buy/Sell Agreement contingent on the signing of the Unanimous Shareholder Agreement. There is no reason to rush the Buy/Sell (wedding) when the foundation of the relationship isn’t solid (marriage).
Price is one thing to hammer out, but understanding how your business relationship and management styles will mesh is critical. And yes, not doing a thorough pre-marriage prep course cost me my practice. Fear pushed me and I let myself fall into the hole.
As the business marriage took its toll on me, I also became increasingly bored with routine care. It’s no secret I’m a lifelong learner – I keep expanding my education with new courses and designations and have never taken the easy road. Unfortunately, my discontent, at the time, would have been hard to miss around the office and so our new associate saw an opportunity to realize her own ownership dream and I parted.
The final parting was actually easier than the partnership. I needed a change and, given that the partnership didn’t grow the practice, I didn’t even bother to get it revalued. A final buy/sell can happen actually very fast when you want it to, especially when I didn’t weigh out alternatives.
I still find it amazing that not one of the financial people in my life – not my accountant, financial or insurance advisors, nor my lawyer, took the time to educate me on what these decisions really meant for me and my family.
Regardless of what has happened in my Optometric career, I do believe I’m in a better place now. Sure, I could have found great fulfillment in running a successful Optometric practice and handling only emergent cases, but knowledge is never lost. Every step of the journey has led me to where I am today. Personal experience is said to be the best teacher. I’ve used my experience to help others avoid similar mistakes and amass greater knowledge so they can make truly informed decisions.
Dana: What are some of the things you got right? Did anyone give you advice or did you figure things out on your own?
Roxanne: I purchased privately owned income replacement disability insurance right out of the gate. I should have increased the coverage over time however and neglected to do that. I also kept that coverage after I stopped practicing because I knew I’d do something again. I’m so glad I did as I put that policy to good use with a claim in 2018!
I continued to live like a student, for the most part, after graduation. No big vacation, no fancy car (but I did buy a really nice coat). This allowed me to pay off my student loans and family loans within 18 months of graduation. I really just wanted that weight to be lifted. That paved the way for me to purchase a practice less than 2 years post graduation. Oddly, I purchased my practice before I ever bought my own vehicle, and before we owned a home. I suppose generating wealth and moving forward with my career was just one of those things I couldn’t see putting off.
Dana: Do you think an Optometrist should seek outside/professional help when they consider opening or buying? What professionals do you recommend they seek?
Roxanne: Many people like to think they know enough to stand on their own. But it’s impossible to know everything about everything. My home builder put it best “You’ll make way more money focusing on what you do compared to anything you’re going to save trying to do what I do.” It was a great reminder that time is valuable and focusing on what I was trained to do and what I really enjoyed doing in my off time was of far greater value than doing tasks outside my realm.
Hire an independent accountant. In the early years it’s easy to do your own taxes, but there are opportunities you may be missing that an accountant can guide you on. By going with an independent you have a far greater chance that the accountant is actually doing the work for you rather than shifting it down to students or sending it overseas. Start to build that relationship early and make an effort to understand not only your personal financials, but also your corporate financial statements once you incorporate.
Having a quarterback to manage the various professionals involved in your purchase can be a great help. I can help guide you on financing options, business marriage concerns (if you’re forming a multi-owner practice), and give you little tips along the way. If you’re looking to purchase an existing business, I can provide you with guidance on a reasonable valuation and discuss how the practice revenue can support the financial payments and any impact that may have on your lifestyle. Lastly, be aware that lawyers are busy. They will tend to use templates and paralegals to help ease their time. Unfortunately, that can lead to errors and oversights. I’m no lawyer but have read enough contracts and understand the business well enough to review all your documents and point out concerns or recommend changes prior to your signing.
Dana: How would you put into your own words that the OD will need to be patient and thorough and what are a handful of questions the OD could ask themselves to a) make sure they are choosing the right practice and b) they are ready to own their own practice?
Roxanne: When I first graduated there was no doubt in my mind that I was returning home to Winnipeg. Returning home seemed to have a pull on me that I can’t explain and, though we really enjoyed our time back in Winnipeg, it was not without practice challenges. The first year went fairly smooth as I learnt to trust my skills and diagnostic knowledge. We took up curling and excelled in our local Friday night mixed league thanks to my brother. But, once my Optometrist returned home from a year teaching in India and wanted his exam lane back, I was left to piece together a week working out of four different locations and the CNIB. It didn’t take me long to realize that this was not going to be sustainable.
It wasn’t an easy time to be back in Manitoba. The government had just de-insured the working age group and, even when they provided covered exams, they only paid $28. Couple that with a fractured profession that was fighting to keep patients coming back by offering exams at $25. Even by mid 90’s standards, these rates didn’t provide a profit margin for practices to hire associate doctors, so we began to look for other opportunities.
During my time at school, I was involved in national Optometric leadership and had the opportunity to meet several of the provincial association presidents of the day – people that were true leaders of the time and it was time to reach out to them to expand my career search beyond the Manitoba borders.
I don’t recall if any of the other doctors replied to my enquiry, but Dr. Baker was open to the idea and in no time we found ourselves touring Wainwright. Believe it or not, our car actually got broken into in the Baker’s driveway! We must have left our doors unlocked and the out-of-province plate made the old Cavalier an inviting target!
I didn’t let the frozen rutted roads, following an early snowstorm, deter me from moving to Wainwright. Dr. Baker and I came to an agreement on practice value and start date and Ken and I moved from Winnipeg the last day of January 1997. Who moves during the winter in the prairies? It turned out to be a lovely day. Although our lawyers had not yet finalized the buy/sell contract by our agreed upon start date, Dr. Baker and I agreed to proceed as though all was finalized in good faith as per our verbal agreement. I guess that legal delay opened the door for other possibilities and Dr. Baker was offered to join the clinic of a colleague. He presented me with an option:
“I know this isn’t what you came here expecting and I’m happy to stick to our original timeline agreement, but you can purchase the entire practice for an additional [modest] increase from the value you were purchasing the original third for.”
Well, when an offer like that falls on your lap, you’d be a fool to turn it down. I guess Right Place, Right Time.
After working together for only 4 months, my husband and I were left to run our own business. We figured it out, we leaned into others for guidance, we joined a buying group that offered ownership coaching, we prospered.
Sometimes it’s a leap of faith, sometimes it just being willing to put in the effort and know that you just can’t fail yourself.
Advisory
As your Chief Financial Officer, I’m here to help you understand the various tools available to you and your business to build your wealth. There are many factors to consider and understanding your goals is key to building a plan that serves you today and well into the future – as your life changes.
Have more questions than answers? Educating you is just one piece of being your personal CFO that I offer. Call (780-261-3098) or email (roxanne@c3wealthadvisors.ca) today to discuss your long range goals, potential business marriages, or buy-sell agreements .
Roxanne Arnal is a former Optometrist, Professional Corporation President, and practice owner. Today she is on a mission to Empower You & Your Wealth with Clarity, Confidence, & Control.
These articles are for information purposes only and are not a replacement for personal financial planning. Everyone’s circumstances and needs are different. Errors and Omissions exempt.
