How One Optometry Practice Freed Up $25,000 by Tackling Inventory

Running a busy practice can sometimes feel like you’re doing everything right—strong collections, a steady stream of patients, and an active team—yet still feeling stressed about cash flow. That was exactly the case for Dr. Alyssa (name changed for privacy). Despite the surface-level success of her single-location optometry practice, she constantly felt the strain of financial pressure.

When she joined a Hidden Cash Session, we uncovered what was really going on.

The Red Flag: Inventory Turnover

During our analysis, we dug into her cash conversion activities and immediately spotted a red flag—her inventory turnover ratio was only 1.2, far below the industry benchmark of 2.5.

Put simply, she was sitting on too much inventory—about $40,000 worth more than she actually needed. Her team had been reordering frames “just in case” they ran out, which caused unnecessary buildup and tied up cash that could have been working for her business.

The Fix: Resetting Inventory Levels

Using her sales volume and benchmarks, we identified an optimal inventory level and capped it. This allowed her to:

• Sell off excess frames at full margin, keeping 100% of the sales instead of the usual 70–72%.

• Stop unnecessary reordering by giving her team clear guidelines.

• Shift focus toward stocking the right items rather than more items.

Within just two months, she freed up $25,000 in working capital. This eliminated her need for a line of credit and gave her the freedom to reinvest in her team instead of worrying about cash shortfalls.

The Lesson for Practice Owners

Cash stress doesn’t always come from slow sales or rising expenses—sometimes it’s hidden in overlooked areas like inventory. By spotting and correcting inefficiencies, you can unlock significant amounts of cash without seeing more patients or working longer hours.

✅ Want to see how much hidden cash is sitting inside your practice?

Check out our transformative training: Find Hidden Cash in Your Business