As an established veterinarian, you have the clinical skills to care for animals. However, managing a successful veterinary practice requires that you master a whole other set of skills as well. Along with providing excellent customer service, you need to keep an eye on the bottom line and consider effective ways to grow your business.
Here are five tips that can help your practice thrive:
- Surround yourself with the right team
As a veterinary practice owner, you wear a lot of hats. Along with being a vet, you have to be knowledgeable in areas like human resources, accounting, marketing and finances. It’s therefore not surprising that a Canadian study of veterinarians found there is a high level of burnout in the profession.1
"One of the best strategies to help combat that stress is to surround yourself with the right people,” says Tom Apostolis, Regional Director, Healthcare & Professional Banking, Eastern Canada at Scotiabank. As a Director Apostolis leads a team of Specialists that provides financial advice to many veterinary clients. He recommends finding an accountant that specializes in the profession who can help set you up with a sound business plan and structure for your practice. In addition, a lawyer who can provide important advice around legal considerations in running the practice, including human resource matters or reviewing lease or purchase agreements. Getting sound practice financing advice from a Healthcare & Professional Specialist and having a solid financial plan will help give you peace of mind and reduce financial stress. “When you’re time starved, it’s easy to not pay enough attention to certain things,” says Apostolis. “Having the right team can help ensure that doesn’t happen.”
- Monitor your finances
Just as it’s helpful to get external legal and accounting advice, Lisa Nolan, Senior Healthcare Professional Specialist at Scotiabank, says it’s important for vets to get support with keeping a line of sight on revenue and expenses. Hiring a bookkeeper can ensure you’re managing your money wisely and monitoring billing and inventory costs in real time. For example, they can help determine if you are overstocked with supplies and whether the extra money spent on inventory could be put to better use elsewhere, freeing up cash flow.
“When it comes to finances, one thing we also learned during COVID was the importance of handling unpredictability as things can go astray. It’s crucial to keep a focus on paying down debt and maintaining revenue streams,” says Nolan. “You should always make sure to have a contingency fund set aside in a bank account or access to a line of credit to cover any unexpected expenses. Having a solid financial plan and reviewing it annually with your advisors is key to ensure you’re set up for success.”
- Be a great employer
Finding and retaining suitable staff has become particularly challenging for vets since the pandemic.2 Consider ways you can differentiate yourself from other veterinarians to attract and retain employees. For example, offer an enticing group benefits program, the option to work flexible hours or a signing bonus if your operating budget allows. It’s a very competitive labour market and signing bonuses are becoming more common as employers compete for vet technicians and newly graduated vets.
Being a great employer also means making sure you are familiar with employment laws. “Be knowledgeable of human resources legislation, as there are many laws designed to protect employees,” says Nolan. It’s why she counsels all vets to make sure they have signed employment contracts for all staff to enforce the agreements and protect both parties involved should challenges arise. Again, having legal counsel in your circle of professionals is invaluable.
- Differentiate yourself to help grow your business
In the current market environment it can be tougher to remain competitive. You may find yourself sometimes competing against businesses that have economies of scale and a streamlined capability to have lower costs for medicines and supplies. Nolan’s advice is to always try to differentiate yourself. “Consider how providing a very personalized level of care can positively impact your client experience, resulting in repeat business and even referrals. For example, you may be able to build flexibility into your schedule to provide more time to support your clients’ concerns.” Also consider the impact of warm and friendly office staff on prospective and existing clients. The welcoming environment staff creates for clients can have a positive impact on customer loyalty and the bottom line.
Lavern Stewart, Senior Healthcare Professional Specialist at Scotiabank, says branding yourself and your practice is important. Consider if there are certain services that you can offer to make your practice unique. For example, can you provide speciality services that other practices do not offer? Is there a local veterinary hospital you can partner with to triage your patients and provide an elevated customer experience? Find ways to market these differentiators and make your community aware of your unique services.
- Stay on track
Keeping your business on track requires that you have a sound, workable business plan that can evolve along with your business. While the business plan should allow you some flexibility to follow relevant trends, you will also need to make sure the new expenses are not throwing you off track. “That means ensuring you always consider your return on investment,” says Nolan. “You need to evaluate the costs of veering from your business plan and validate that your return is worth while.”
You can’t control fixed expenses (such as rent) but there are flexible expenses like marketing that you can control and manage within budget. Nolan cautions, “If not, expenses can quickly get out of hand.” A business plan is essential because you can set objectives and forecasts to help manage short-terms goals, which can ultimately help you determine how best to bring in new clients and grow your business. Reviewing your plan regularly is a crucial component to adjusting for changes in circumstances or in the economic environment.
For more information and customized advice and solutions to help manage a successful veterinary practice, contact us today.