Debt is the leading cause of anxiety amongst recent optometry school graduates.  For 8 years students can live oblivious to the rising debt that they accumulate during school.   Not until a couple of months post-graduation does the signed loan papers become a reality of 20 more years of monthly payments.  You are now faced with the new house, new car, baby number two on the way AND the addition of a school loan repayment.   At the end of the month you maybe asking yourself why you spent 4 additional years in graduate school to just work to pay bills.

Fortunately your optometry education has given you the skills to earn a 6-figure income.  Many recent graduates are not hitting the 6-figure income until they are 7-10 years into practice, which limits the disposable income available for the family.  This problem has left many eye doctors wondering why their dreams of a 6-figure income are not coming true.  A survey done in 2010 by the AOA (graph below) demonstrated that employed ODs make significantly less money over the course of their career then owner ODs.  This continues to be true as we see the end of 2012 approaching.  It is possible that you graduated optometry school with limited debt and you have a spouse that already makes a 6-figure income decreasing the pressures put on you to make ends meet.  If you are married to a 6-figure spouse then you do not need to keep reading.  For those of you who have more student debt then a year’s household income, here are 3 ways to easily exceed 6-figures within your first three years of practice.

  1. Verify the Health of the Practice – There are many associates that fall victim to irrational exuberance.  This is the emotionally charged decision to believe everything that a hiring OD says and gloss over the potential red flags.  All practices do not have a structured budget and all optometrists do not follow guidelines for establishing their NET practice income.  It would seem intuitive, but unfortunately optometrists not well versed in usual and customary accounting of an optometry business are not aware of what makes up the NET of a practice.  This leads to owners, looking to sell practices or take on partners, who mistakenly calculate the NET income of the practice.  Healthy practices know their numbers and are willing to divulge those numbers when you are sincerely interested.  Proceed with extreme caution if a practice is unwilling to show you their numbers, this is usually a sign that the practice needs to go to the doctor and not hire one.
  2. Join a Group Practice – It is well documented that optometrist’s that work in groups of 3-5 have the highest mean annual incomes.  When you are looking to join a practice it is important that the associate agreement be clear that there is the opportunity to buy in as a partner at the conclusion of your first year.  The option would be available only if the practice decides to continue your employment, otherwise, you would need to restructure an agreement or look for opportunities elsewhere.  Most working relationships should know within a year if the parties are compatible.
  3. Become an Owner – This is the most important aspect of reaching 6-figures within your first three years and then exceeding that for the rest of your career.  Many new ODs worry about their debt and the financing required to be an owner.  The financing is surprisingly easy.  There is also a definite trade-off in owning your own business.  There are sacrifices in ownership but if you want to reach the 6-figures fast, then the studies say, that the maximum time frame before buying into a practice should be 1 year post-graduation.

The road to 6-figures does not happen accidentally.  The road is paved for those who intentionally begin their 6-figure journey in optometry school.  There are many successful young optometrists that waited for graduation to begin searching for a practice to join.  Money is not the key to happiness, but if it is your goal to make 6-figures by your third year, then verify the health of the practice before joining, join a group practice, and become an owner after one year of associateship.