The business of optics

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Continuing from the situational assessment (Optician 29.10.10), which shows us where the business stands at the moment, we shall now take a look at the place and importance of money, and knowing how it works. Money is like oil in the machine of the business - it connects and enables everything, although it does not, of itself, make more money. We spend money on materials (frames, lenses, contact lenses etc), equipment and people, and then by combining these elements cleverly we add value to goods and services so that we can charge more than they collectively cost and make a profit. This profit can be either retained and accumulated, paid out to the investors, or invested in further assets which will bring more profits to the business. A clear understanding of the flow of money in a business can help enormously with prioritising its use to deliver excellence, and from that, profits.