If you work in a veterinary practice or in the pet industry or in a business that supplies goods or services to the industry and you have something to say - why not become a 'Guest Blogger'?
For more information click here to read our: Guidelines for Guest Bloggers
With some veterinary practices selling for record amounts, the recent real estate boom, and the rise in the cost of building a practice from scratch due to material prices and the costs of the trades, there is a perception that it’s tough for young vet to own their own practice.
Although all these factors exist, there are still opportunities for practice ownership that are highly affordable, profitable, and get you on the road to wealth creation.
Before buying your first practice, there is some preparation work that should be done. Firstly, it’s essential to take the time to get comfortable and proficient in your role as a veterinarian before venturing into entrepreneurship. By immersing yourself in various veterinary settings, such as clinics, hospitals, or animal shelters, you’ll have the opportunity to refine your diagnostic abilities, treatment techniques, and patient management skills.
In addition to becoming comfortable as a practitioner, investing in acquiring some basic business skills is crucial. It’s a common mistake to excel in your field, whether treating animals or baking pies and assume that skill alone guarantees business success.
You need to learn business fundamentals, including mastering human resource management and understanding accounting and finance, to avoid finding yourself in a stressful situation. Start by reading the eMyth by Michael Gerber and then plot out a chart of required learning.
This can include mentoring by a successful practice owner, online courses, or you may even invest in doing a part-time MBA. At the end of this learning period, write a detailed business plan and show this to your advisors.
Talking of advisors, you need to build a team around you. Find an accountant you can relate to who has a great track record in helping small businesses and someone who has empathy for what you are doing. You will also need a good lawyer and financier.
So, you feel confident as a vet, you have invested in understanding the basic principles of running a business, and you have assembled your team of trusty advisors; now, you are ready to own and run your own practice.
The next step is to decide whether to open a practice from scratch or buy an existing one. Designing your practice from scratch can seem alluring, but the harsh reality of zero cash flow, zero customers and immediate overheads means you need deep pockets before you turn the corner to profitability.
Generally, it is a much safer option to buy a practice with a strong client base and predictable cash flow; plus, if you are smart with the practices you look for, they will cost less than setting up from scratch and can very often be expanded rapidly under new management.
Where will you find these affordable, predictable, low-overhead practices that can be expanded quickly? You will find them in lifestyle-friendly regional towns.
If you are in Victoria, I want you to imagine driving 180 kilometres northeast of Melbourne to find a stunning, fully refurbished practice in an area so underserviced that you could double the number of Vets in town and still not service the needs of the local population.
If you are in QLD, head south west, enjoy a rural community, and treat small and large animals.
If you are in NSW, head into the wine region to find another amazing opportunity to acquire a vibrant business with a great lifestyle to boot.
The demand for services in these areas means you don’t need to worry about your competition or marketing and advertising. The fees you can charge are comparable to capital cities, but your overheads are a fraction of the suburban sprawl, so more drops to your bottom line. Plus, if you are still of an age where the ‘big smoke’ has some appeal, you are no more than a couple of hours away, so you can spend your weekends getting your city fix.
So in the words of the often forgotten 90’s alternative rock band, ‘The Presidents of the United States of America’ “I’m moving to the country, I’m going to eat a lot of peaches” and you will find a ‘peach’ of a business opportunity in these stunning regions of Australia.
If you would like more information regarding affordable and profitable Vet Practices currently for sale, contact Carl at Ray White Practice Sales carl.burroughs@raywhite.com or call 1800 032 801
Carl Burroughs has been at the forefront of professional services business development in Australia since 2001. His marketing company, Integrated Dental Marketing (IDM), has helped hundreds of dental practices achieve their goals through proactive marketing and advertising campaigns. Carl has personally consulted with many of the dental corporations and groups that have emerged within the profession over the past 20 years. More recently, Carl co-founded Ray White Practice Sales, which is a brokerage service dedicated to helping the Veterinarian and Dental sectors. Since its inception, Ray White Practice Sales has consulted with dozens of Vet Practices around Australia and helped achieve outstanding outcomes for the Vet Practice owners they represent.
Connect with Carl:
It can be devastating to tell a dog owner that their pet has carcinomatosis and will likely pass away shortly after diagnosis. However, it’s not always an immediate death sentence. There are treatment options you can offer owners, which can help improve their quality...
