Opening a new practice - advice please!

RE: Opening a new practice - advice please!

Glenn Hodgson — Sat, 02 Apr 2016 18:46:04 GMT

Also be careful not to do business with crooks. There are plenty out there. Look into all significant suppliers background prior to doing business. reviews, companies house etc. If they have 10 folded companies or ccjs look elsewhere.

Mainly trades/landlords/marketing etc. The well know vet suppliers are pretty honourable in general.

RE: Opening a new practice - advice please!

Tim Gooders — Fri, 01 Apr 2016 15:48:54 GMT

Glad to see you have had lots of great advice from Vets in practice and who have set up and run practices. What you need is very local knowledge, talking to suppliers such as drug reps and wholesalers (including van drivers) can get you a lot of good incite.

In the last twenty years I have seen cat only clinics close and some accept dogs.

What is key? That your offering is distinctive, consistent and values its staff & clients.

RE: Opening a new practice - advice please!

Jill Butterworth — Thu, 24 Mar 2016 14:07:05 GMT

If you have a dream, don't be disheartened, find a way to make it work. I would have loved to be a feline only vet, but agree will need far more clients. An average is that you need 1500 clients per vet to make a living. There is lot more work/money out of dogs, so you need more 'chimney pots'. In the centre of a big conurbation you should be fine for cats only, people will only drive a certain distance. For the same reason, don't place yourself in a waterfront property for example: instantly only half the potential business...Equally, you can keep your overheads really low and nurse much yourself, train your partner to raise veins etc, don't break the bank with staff overheads. You can pop a cat in the car and take it home at night, clients love that. Call cat only clinics owners in a non competing area to network and get advice. Or as someone suggested, start as mobile and make an op theatre at home in your garage, as long as clients dont visit, you should get round the planning issue as there will be no traffic or noise. Then, when you have enough clinets, search for premises. PS had a friend who did this who quickly realised that tho he thought he had a way with cats at the surgery, under the sofa is a bit different...;) But he now has a big, successful surgery, so don't be deterred. Main advice is work hard, keep your costs down, find a way to avoid spending money all the time. Start collecting second hand kit to get you started, it feeds your dream. Please go for it, we need more young vets prepared to do this. pm me if you like

RE: Opening a new practice - advice please!

Virginia Campbell — Tue, 22 Mar 2016 19:55:05 GMT

[quote user="Braden Collins"]Are you prepared to set up the clinic in the small city? I don't think it would work in a rural setting as has been said before, few clients would likely use a different vet for their cats to their dogs, and I imagine people in rural areas will generally have cats and dogs. In the city you will have a higher density of cat owners, and probably more cat-only owners.[/quote]

[quote user="John Flynn"]I think distance in car to vet is major determinant of choice of vet for cat-owners, with most selecting the closest unless there are a lot of vets in small geographical area (cat's don't like travelling in cars generally, so going an extra 20mins along bumpy country road for a nicer experience once get there might not be a strong enough incentive to owners). As such I think choice of location is absolutely critical and would guess that a highly populated (both cats and owners) area is likely to be best - I'm imagining high-rise flats with indoor cats?[/quote]

These are major points to consider. From experience working in both country and city, I agree with the thought that you are likely to get a higher % of cat-only owners in the city. Country people often have both and think "oh sure he's used to dogs anyway so might as well go to the closest /cheapest". Hating car travel is one of the major things that puts our city owners off coming in - even if there are no dogs in the waiting room and the cat is seen quickly, there is often pee or worse in the box and the owner says "oh he always does that, he hates the car" or mention bracing themselves for the yowling all the way home after the consult is over, and express relief that at least they only live 10 minutes away. Or exclaim at how happily the cat went back in the carrier and display the wounds they got getting the cat in the box. So I think the other suggestion of being well prepared for home visits is a good one. Just don't know if you'd have the population density to make it work.

If you don't set up in the city, or can't easily do housecalls there, it'll be tough to get the high-spending ultra dedicated cat clientele to come to you. Sorry to be the voice of pessimism but from experience the city clients do seem to be much more "into" their cats - going for workups, spending on expensive food, indoor-only as they're afraid to let their darlings outside. In country practice I saw a much bigger percentage of cats only presented in very end stage renal failure for euth ; and more ones that were not treated for conditions such as hypert4 and diabetes due to cost or lack of convenience (higher % of un-pick-upable, unpillable cats). More time outside and no litter trays also = less opportunity for O to notice V+, D+, overgrooming, dysuria and so more episodes that do not get presented and treated.

RE: Opening a new practice - advice please!

Martin Atkinson — Tue, 22 Mar 2016 19:08:14 GMT

[quote user="Lexy Recurt"]When you're nearer the time of the opening of your practice, contact KVP (KONG Veterinary Products). [/quote]This

RE: Opening a new practice - advice please!

Lexy Recurt — Tue, 22 Mar 2016 16:45:46 GMT

When you're nearer the time of the opening of your practice, contact KVP (KONG Veterinary Products). We can support you with free promotional material like carrier bags, posters, Metal Display stand offers with KONG, samples of soft recovery collars perfect for cats etc.. www.kvpeu.com or call 01308 867 020. Good luck!

RE: Opening a new practice - advice please!

grumpyoldman — Sun, 13 Mar 2016 00:56:41 GMT

[quote user="Gillian Mostyn"]Personally, I find juggling the demands of almost 20 staff very stressful. Individually they can be lovely people, but personnel management is always challenging.[/quote]

That is true , which is why the initial selection process is so important. Even so attending a meeting with nurses can be like negotiating with a wasps nest.

RE: Opening a new practice - advice please!

Gillian Mostyn — Sat, 12 Mar 2016 22:31:16 GMT

There are certainly lots of benefits to practice ownership. But it isn't stress-free. Personally, I find juggling the demands of almost 20 staff very stressful. Individually they can be lovely people, but personnel management is always challenging.That, plus the fact that everyone else gets to walk out of the door and immediately stop thinking about work. As the boss, that doesn't happen. If there is a problem, your phone will ring.

RE: Opening a new practice - advice please!

grumpyoldman — Sat, 12 Mar 2016 21:41:29 GMT

[quote user="Gillian Mostyn"]you could earn 50K just working for someone else! [/quote]

true ,but then there is toeing the party line and not treading on the cracks in the pavement when you feel like it, as well as choosing not to do business with people you do not like when you decide they are a potential liability . buying the toys you like when you want to , choosing your CPD, and picking your own staff. Nothing that has a direct value per se , but certainly makes day to day life better.

Its not just about numbers .

RE: Opening a new practice - advice please!

Gillian Mostyn — Sat, 12 Mar 2016 18:57:04 GMT

[quote user="grumpyoldman"]I have always worked on 20% after the VAT .[/quote]

Are you including your own salary in that? I think most practices would consider half of that to be about right, after wages.

[quote user="grumpyoldman"]I think its quite possible to earn £80k+ from a practice turning over £450k[/quote]

I agree. But you need to consider only about £30000 of that as profit- you could earn 50K just working for someone else!

And I agree- I have always preferred to employ help and have a better QOL but it can be easy to overlook the need for time off when doing a business plan!

RE: Opening a new practice - advice please!

grumpyoldman — Sat, 12 Mar 2016 18:30:22 GMT

geography may be a factor .

[quote user="Gillian Mostyn"]I doubt many established practices get anywhere near a 15 - 20% profit[/quote]

I have always worked on 20% after the VAT .

[quote user="Gillian Mostyn"]employing other vets is one of the big costs.[/quote]

That has never made me any money , but it has made me time ,which is probably more important for my health, particularly OOH . I think its quite possible to earn £80k+ from a practice turning over £450k and employ some help , as long as the fee structure is realistic . A waiting room full of PDSA refugees wanting something for nothing & cheap c/sections for their bulldogs is a really really bad idea. Looking busy and making money are not the same thing.

RE: Opening a new practice - advice please!

Gillian Mostyn — Sat, 12 Mar 2016 09:50:22 GMT

[quote user="grumpyoldman"] Its easy to turnover 180-200k yr1 300-350 yr 2 375-425 yr3 etc with profits of 15-20%. [/quote]

Go for it - as GOM says, with the correct research, good marketing (getting known will be your biggest problem) and hard work, you'll make it work. However, I think these figures are unrealistic for a new start up. In fact, I doubt many established practices get anywhere near a 15 - 20% profit. But obviously it depends on how many hours you work - employing other vets is one of the big costs.

I started a brand new SA practice 12 years ago. Feel free to PM me if you have any questions. And good luck!

RE: Opening a new practice - advice please!

Richard Carter — Sat, 12 Mar 2016 09:25:30 GMT

ooo - 10 years in and not reached your 3 year estimates but in a small market town, low overheads, in a buying group - supports 2.5 vets, 4 nurse/ receptionists.

I know rabbit only practices and parrot only practices where clients travel hundreds of miles to see the vet so don't think distance a problem for the dedicated cat owner.

RE: Opening a new practice - advice please!

grumpyoldman — Sat, 12 Mar 2016 00:02:01 GMT

What ever practice you open if your committed, work hard, and go for it you will be fine . Buying in anywhere usually involves borrowing to finance someone else's pension plans ,so best not too. Set reasonable achievable targets for yourself ,work out your break even point and keep it low . Its easy to turnover 180-200k yr1 300-350 yr 2 375-425 yr3 etc with profits of 15-20%. Avoid franchises and anyone wanting to take 15% and put you in a hamster wheel.

RE: Opening a new practice - advice please!

Mark Hedberg — Thu, 10 Mar 2016 21:27:17 GMT

Location, location, location - be easy to find and have good signage, as well as plenty of parking; the key is making it easy and convenient for your clientele to find you and use you. Increasing numbers of feline-only clinics out there, so it's not a doomed venture! Good luck!

RE: Opening a new practice - advice please!

Rob Loxley — Thu, 10 Mar 2016 14:48:36 GMT

[quote user="Bob Russell"]I don't understand why people consider a cat only practice that big a marketing benefit.[/quote]

Ask their clients? A lot of cat clients don't like waiting with noisy dogs, seeing vets who don't like dealing with cats, going to a practice which is not well set up for cats and are prepared to pay a premium for something different.

Plenty of practices seem to see value - including marketing value - in the ISFM Cat Friendly Practice schemes, and this is one step further.

[quote user="Michael Woodhouse"]Cat only finances would be rather different economics to normal small animal practice. They are smaller so require less pharmaceuticals (so lower margin). Less vaccines needed than dogs. Surgeries are cheaper (cat spay versus bitch spay).[/quote]

But you have clients who have chosen to come to a cat-only practice. That want and are prepared to pay a premium for a 15 or 20 minute routine appointment. That are happy to pay for you to investigate and treat to a high standard. I'd suggest they are more likely to be up for doing more, for complying with regular checkups and following your suggestions.
You just need to make sure you have enough of these clients rather than the vacc for £20 and spay for £30 and never see them again clients.

[quote user="Bob Russell"]Why have two vets to deal with simply because you have a dog and a cat?[/quote]

We have clients who have horses and they use a different vet to us - in no way would that ever make me consider opening up to a mixed practice here!

[quote user="Bob Russell"]do you have the expertise to be a specialist?[/quote]

I think you can succeed without being a Specialist or referral centre, but agree you need confidence that you are the right person as running a single person, niche, practice the bond is between you and the client.

RE: Opening a new practice - advice please!

Rob Loxley — Thu, 10 Mar 2016 14:28:51 GMT

There was a recent article in one of the glossy mags (VBJ?) written by a vet running a cat-only clinic which is worth a read

I'm not sure why people are dead against a startup cat-only clinic - as long as the business case adds up like any other venture. From this point my concern would be that most existing/successful cat-only clinics are in urban areas where there is a high density of cat owners - why aren't you opening up in the city?

As for looking at the business case there are a number of companies that can advise and help you make sure your business case if sound

RE: Opening a new practice - advice please!

Iain Richards — Thu, 10 Mar 2016 09:34:30 GMT

JW's suggestion is sound. Approach a local practice, and discuss the project in the same way as if you were setting up a clinical speciality. The down side would be that they would lose routine vaccinations, the up side they would attract more custom as the practice with the "cat lady". Managed correctly, this should work nicely. You could suggest that you work only on referral and don't do vaccinations/neuters to counter the lost work to the host practice. This means you'd be seen as a specialist by the local cat owners. You'd have a ready made nursing and admin set up and if sensible with negotiations, you could create a healthy OOH input.

All of this assumes that the vets involved are willing to consider a change that will be beneficial to all parties.

Iain

RE: Opening a new practice - advice please!

Bob Russell — Thu, 10 Mar 2016 09:22:28 GMT

Not sure why Michael has only got two stars as his post makes good sense. I don't understand why people consider a cat only practice that big a marketing benefit.

The risk is that you are likely to alienate a big chunk of the pet owners who have both dogs and cats. Why have two vets to deal with simply because you have a dog and a cat?

I could understand a cat referral centre having some theoretic benefit but do you have the expertise to be a specialist?

As a practice owner you can chose (to some extent) which patients you prefer to deal with.

Starting a new practice is tough enough without tying one hand behind your back!

RE: Opening a new practice - advice please!

Hannah Wynne Richards — Thu, 10 Mar 2016 08:50:30 GMT

Micheal. You might find that in a mixed practice a fewer % of cats than dogs are vaccinated. The dedicated cat owners An On is trying to attract will probably want to vaccinate, and vaccinate properly, including leukaemia, so the margin on cat vaccines will be greater.

A tip for someone wanting a cat only practice is be prepared to do house visits for minor probs.

You will need 2 kennel rooms, but they can be smaller, so the capital cost of the building may be less.

I think it could work, so good luck Jonathan's tip of buying into a small animal practice, becoming known as the person to go to for cats, and changing gradually to cat only sounds a good idea. Look around for a single-handed practitioner who's approaching retirement, and offer to buy 50% of the practice, with an undertaking to buy the other 50% in 2 or 3 years time. It will also be easier to borrow money in this case.

Wynne

RE: Opening a new practice - advice please!

John Flynn — Thu, 10 Mar 2016 08:29:01 GMT

I think distance in car to vet is major determinant of choice of vet for cat-owners, with most selecting the closest unless there are a lot of vets in small geographical area (cat's don't like travelling in cars generally, so going an extra 20mins along bumpy country road for a nicer experience once get there might not be a strong enough incentive to owners). As such I think choice of location is absolutely critical and would guess that a highly populated (both cats and owners) area is likely to be best - I'm imagining high-rise flats with indoor cats?

I dont' like the idea of taking over an existing clinic and trying to convert to cat only - I would rather build from scratch.

I don't like the idea of starting with all the bells and whistles, I'd start small and basic and build. People will come becuase of the personal service you offer to them and the better experience you offer their cats, not because you have an endoscope, 2.4mm plating-kit or whatever.

I have no experience setting up a clinic from scratch and have extremely limited experience with cat-only clinics, so don't pay too much attention to me - I'm just thinking out loud!

RE: Opening a new practice - advice please!

Braden Collins — Thu, 10 Mar 2016 05:00:36 GMT

Books: E-myth revisited. It's a must for any business owner. Also consider Influence: The Psychology of Persuasion.

In Asutralia there is probably less perceived value of cats compared to dogs, but for us we would go broke if we relied on cat clients.

You would probably attract some very dedicated cat owners, but I would struggle to attract a huge client base. You would have to do a lot of marketing to convince cat clients that taking them to a "normal" vet clinic is not in the cats best interest. You also need to convince them to drive past multiple other vets (if you are outside the city) to come to you. The bulk of people will simply chose their vet on the basis of who is closest, as they assume all vets are more or less equal.

I don't think you really need business planning software. You just need to be able to show how you will attract clients to you, retain them, differentiate yourself and make it pay.

You also need to ask yourself why you want to be a practice owner. Is it for the money, ego, a challenge, a vision of how things could be?

Your first 12-18 months will be really tough as you will be relying on new clients rather than new clients plus repeat clients. Make sure you have some money to lose for that first block of time.

As for how many clients you need - ask yourself how much you want/need to earn, how many hours you want to work, get some prices on rent, insurance, equipment etc and work out how much you need to earn per hour - remember that not all of your work time will be clinical if you own the practice, so allow for a lot of non-clinical time for marketing, staff management, etc. Have a look at your current workplace and see if you can work out the average transaction value of a cat consultation. Do all the numbers add up?

Are you prepared to set up the clinic in the small city? I don't think it would work in a rural setting as has been said before, few clients would likely use a different vet for their cats to their dogs, and I imagine people in rural areas will generally have cats and dogs. In the city you will have a higher density of cat owners, and probably more cat-only owners.

If you do give it a crack I wish you luck, but I honestly think it will be tough to make it work.

RE: Opening a new practice - advice please!

Michael Woodhouse — Thu, 10 Mar 2016 02:09:15 GMT

My advice would be to speak to some people who have set up similar practices in different areas and find out what their experiences have been. Cat only finances would be rather different economics to normal small animal practice. They are smaller so require less pharmaceuticals (so lower margin). Less vaccines needed than dogs. Surgeries are cheaper (cat spay versus bitch spay).

What proportion of cat owners are going to pass a perfectly adequate practice to come to you? We used to have a cat or two as a child and there would be no way I'd take it to a different vet to the other animals. If you are going for the cat friendly approach then you will have to run longer consultations (that will cost more). Are you going to let all your cat only clients down by putting phones to vets now, or maintain cats only 24 hours per day? If you are going to be 'the' place to go to then you need all the bells and whistles - right atmosphere and well equipped. You will attract a certain kind of client, I have no doubt.

You can do all the modelling and business planning you want - it's all a make believe paperwork exercise. I would speak to a good accountant who knows the vet market and see what they think. Ultimately it's your gamble - it could set you up for life or bankrupt you. If you think you work hard as an employee double it when running your own practice!

RE: Opening a new practice - advice please!

J G Wray — Wed, 09 Mar 2016 20:52:40 GMT

How about

1. Buy into or buy an existing viable practice and move to feline only over 5-10 years

2. Speak to someone who has already done this, perhaps by working with them for a couple of years, then 1. Or offer to buy the cat clinic owners out?

in other words, don't do it from (cat) scratch