Establishing a branch practice as a JVP

Re: Establishing a branch practice as a JVP

David Mills — Fri, 19 Jul 2013 09:47:00 GMT

I'm not a partner, though have friends who are in JVPs with corporates in this country.

I suppose my main concern, were I to be looking as a potential partner/JVP would be the amount of clinical - and commercial - control one would have as either, and how that may vary depending on JVP/partner status. If the potential person is fully signed up to your ethos, then great, but often working with vets is like herding cats (possibly due to an almost religious reliance on anecdote as a definitive evidence source...) and so there may well be things that he/she would want to do differently (and in their eyes better). How much of this would you allow? Do you envisage a centrally-run clinical/commercial 'programme' or will the clinic be freestanding, as long as key criteria about image/branding/ethos was met? From someone who may go into partnership in the future, it is these things that would be key considerations from my perspective

My main experience is working in charities, and in my last job, there was a central 'message' with semi-independent clinics having significant clinical freedom as to what services they would offer and to whom. This was both interesting, and at times, caused significant tension.

Only other thing to add is that, in my experience, it is often the partners/principles who are the worst offenders when doling out discounts (arguably, as is their wont). Ms Richards' view is unique - so much as I can gather, she sacked her heavily-discounting assistant and now runs a clinic with a smaller number of clients paying higher prices. Whilst this model works for her, it is by no means a common one, as pricing high tends to act as a natural selection force, disenfranchising large swathes of the pet-owning public, so some of her views may not be directly applicable to your business.

Re: Establishing a branch practice as a JVP

Neal Palk — Fri, 19 Jul 2013 09:22:26 GMT

If 'brand and standards' are your prime concern why dilute the partnership equity instead of simply employing people? Moreover (although I don't know the geography involved) wouldn't you want flexible/mobile vets not linked/tied to one particular surgery.

Even if you do wish to extend the partnership - start with employees and consider equity/partnership status subsequently - there are very different laws/rules about partners than employees which should drive your initial position?

Re: Establishing a branch practice as a JVP

Anthony Todd — Fri, 19 Jul 2013 07:38:27 GMT

[quote user="Hannah Wynne Richards"]And if their pay isn't turnover-linked, they give unauthorised discounts.[/quote]

Our PMS picked up variances straight away.

Re: Establishing a branch practice as a JVP

Anthony Todd — Fri, 19 Jul 2013 07:36:22 GMT

[quote user="Braden Collins"]partners[/quote]

My sage accountant gave me advice to which I should have listened re partnerships:

"Think, think and think again, it's like marriage only a hundred times harder to get out of."

Re: Establishing a branch practice as a JVP

Braden Collins — Fri, 19 Jul 2013 01:14:40 GMT

Thanks. We are thinking we will get them to come and work for us for 6-12 months before establishing the branch so they can learn our systems. Our model is working now so we have confidence in it. Our main concern is if we are partners together in the branch, but any jvp's are not partners in the main clinic, dies that tend to cause tension or other problems with sharing resources?

Re: Establishing a branch practice as a JVP

Hannah Wynne Richards — Thu, 18 Jul 2013 15:26:19 GMT

And if their pay isn't turnover-linked, they give unauthorised discounts.

I would never put an employee to run a branch practice, unless pay was turnover related-so the JVP model sounds interesting.

Wynne

Re: Establishing a branch practice as a JVP

Alan Tevendale — Thu, 18 Jul 2013 15:16:54 GMT

My only reservation with having a partner at a new branch clinic would be if the buisness model there failed for whatever reason. Depending on exactly how you had set this up you could then be left in a situation with too many partners. I've never been a fan myself of salary directly linked to profits for employees as I think this can encourage certain people to be too sales motivated. Why couldn't you take on an employee but make it clear to them at interview that if the situation progresses as planned and they can make the branch successful then progression them to partnership at some point in the future would be likely.