Is Veterinary Practice Ownership Right for You?

Although corporate consolidation in veterinary medicine is increasing, the goal of independent practice ownership is still alive and well. Aspiring owners have more options than ever to choose their model, including full, partial, and group options. Veterinary practice ownership is a significant career decision that will help you build wealth and take pride in the practice you establish. Here, we look at the steps and considerations to help you on this journey.

1. Self-assessment: Are you ready?

Practice ownership demands clinical expertise, leadership, business acumen, and resilience, and you should first consider your ability to manage people, handle finances, take risks, and balance work and life responsibilities. If you think you’ll struggle in any of these areas, consider a mentor, training courses, or an advisor to help get you up to speed.

2. Establishing skill, knowledge, and experience

Veterinary experience is invaluable for team leadership. The practice owner often serves as medical director and should have a solid knowledge base. Most practice owners start as associate veterinarians and then move into an ownership role once they gain solid footing. If ownership is your goal, get as much varied experience as you can.

3. Evaluating the options and choosing a path

More than one path leads to veterinary practice ownership. Talk to other practice owners and think carefully about the options, which include:

-       Start-up — Building a clinic from scratch gives you control over your vision and direction, but establishing a client base takes time.

-       Acquisition — Buying a practice can be tricky, depending on the local competition. If you can find a practice whose existing culture fits your vision, a purchase can more quickly help you hit the ground running.

-       Partnership or group — Many partnership and group practice ownership options exist, including veterinarian-owned and partially corporate-owned hospitals.

4. Crafting a business plan

A well-thought-out business plan is essential for veterinary practice ownership success. A practice consultant or experienced business owner can help you write a plan that includes your mission and vision, services you’ll offer, market analysis, and financial projections essential to help you secure financing.

5. Securing financing

You’ll need significant capital, typically upward of $1 million, to start or acquire a practice, and you will need suitable sources for this considerable investment. First, discuss your options, such as a traditional loan, small business loan, or private investor, with your accountant and lawyer. Use your business plan to explain to investors how you’ll contribute to the community and why they should help you.

6. Navigating the purchase process

To start a business, you must comply with local legal and regulatory requirements. Before you open, ensure you understand zoning, permitting, licensing, and insurance needs. Including a lawyer on your advisory team is crucial to accomplish this step.

7. Building a dream team

A veterinary practice is nothing without great people. If you start a new practice, you’ll need to recruit an entire team to help you get off the ground. When you acquire a practice, you may need to invest in training and retention strategies that will help you build a team and create a positive culture that aligns with your goals. You may see some turnover during the transition and should be prepared with a hiring strategy to fill the gaps.

8. Implementing systems and technology

Modern practices need advanced technology to achieve efficient, client-friendly operations. Cloud-based practice management software helps you stay current with client needs, such as online scheduling, convenient billing, telemedicine, and communication tools. The right software also allows integration with additional technologies for a streamlined experience.

A note on non-veterinarian practice ownership

Veterinary practice ownership isn’t limited to veterinarians. In some states, non-vets who meet specific requirements can own practices. If you’re a practice manager or veterinary technician with ownership aspirations, look into the local and state rules and regulations and talk to others who have taken a similar path.

The road to veterinary practice ownership is long and winding and you may need months or years to achieve your ownership dream. But, taking your time and diligently following these steps can help you not only build a hospital you’re proud to call your own, but also show future generations of veterinarians how it’s done.