Starting Your Own Optical Store in Canada: Choosing a Format
Your first decision in opening an Optical Store would be to choose a format. There are three major formats available in Canada:
- Open Your Own Store from Scratch
- Buy an Existing Optical Store
- Get a Franchise of a Successful Chain
Open Your Own Store from Scratch:
Building your own store will give you full control over every aspect of the business, from choice of location to product selection and marketing. Starting from scratch allows you to tailor your business to your own vision. You will have the opportunity to build a business that is uniquely yours and that can grow and evolve as you see fit.
It does have high start-up costs though. You will need to invest in everything from equipment and inventory to rent and marketing. Therefore it is inherently riskier than buying an existing business or franchising, as you are responsible for all aspects of the business and there is no established customer base or track record to build on. Building a business from scratch requires a lot of hard work and dedication, as you will be responsible for building the business from the ground up.
You would choose this option if you have experience running or at least working at an Optical Store. Some business owners would choose to hire an experienced optician to assist them in establishing the new store. That would be mandatory if you are not an Optician yourself.
Buy an Existing Optical Store:
Buying an existing Optical Store is expected to come with an established customer base, which can help you get off to a strong start and generate immediate revenue. An existing optical store will already have the renovation, equipment, fixtures and inventory you need to start operating, which can save you time and money. You will also have access to financial and operational data that can help you make informed decisions about the future of the business.
Buying an existing business can be expensive, however, especially if it is a well-established business with a proven track record as the seller would cash in on the goodwill and revenue of the store. When you buy an existing business, you will likely inherit existing policies, procedures, and systems, which may limit your ability to make changes and customize the business to your specific vision and goals. An existing business may have hidden problems that are not immediately apparent, such as declining sales or outdated equipment. It is important to do your due diligence and thoroughly evaluate the business before making a purchase. It is a good idea to hire an experienced accountant to evaluate the financials of the business before you make the decision to buy it.
You would choose to buy an existing store if you have more capital to invest and start the revenue stream immediately.
Get a Franchise of a Successful Chain:
When you franchise an optical store, you will be able to leverage the established brand and reputation of the franchisor, which can help you attract customers and build your business. Most franchisors offer training and support to their franchisees, which can be particularly helpful if you are new to the optical industry. A franchisor will have a proven business model that has been tested and refined over time, which can give you a greater sense of security as you start your business. Franchisors will likely be able to get you lower inventory costs through their already established volume buying.
There are some downsides to franchising though. Franchise fees and ongoing royalties can be expensive, which can limit your profits and flexibility as a franchisee. As a franchisee, you will be required to follow the policies, procedures, and systems established by the franchisor, which can limit your ability to make changes to your business model.
Franchising is a good option if you want to play safe and want easier into the Optical Industry without much prior experience.
This post is part of our Starting Your Own Optical Store in Canada: A Comprehensive Guide to Success series.
