Veterinary Practice Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Veterinary Practice Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Veterinary Practice business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
Your Business Planning Package will be immediately emailed to you after you make your purchase.
- Bank/Investor Ready!
- Complete Industry Research
- 3 Year Excel Financial Model
- Business Plan (26 to 30 pages)
- Loan Amortization and ROI Tools
- Three SWOT Analysis Templates
- Easy to Use Instructions
- All Documents Delivered in Word, Excel, and PDF Format
- Meets SBA Requirements
People love their animals and they’re willing to spend a substantial amount of money on their ongoing veterinary care. As such, veterinary practices are able to remain profitable and cash flow positive in any economic climate. These are medical doctors that specialize in treating animals, and as such the barriers to entry for owning and operating a veterinary practice are extremely high. A veterinarian is trained in a very similar manner to that of a physician that treats people, and as such these professionals are able to charge a substantial amount of money for their services. The startup costs for a new veterinary practice generally range anywhere from $100,000-$500,000 depending on whether or not real estate is being purchased as part of the veterinary practice acquisition or development. There are only a few risks beyond competitive issues that a visionary practice faces as it progresses through its operations.
A veterinary practice business plan should have all the necessary elements so that a bank or lender can properly render a decision as to whether or not to place capital with the practice. It should be immediately noted that most financial institutions are very much willing to provide as much capital as necessary to get a veterinary practice off the ground. Within the business plan, a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratio page should be properly developed in accordance with GAAP principles in order to provide the funding source with the information they need.
A veterinary practice marketing plan should also be developed so that clients can be found and come into the practice from the onset of operations. Within most cities and towns, there is a limited amount of competition as it relates to visionary services. There are not nearly the same number of veterinarians in the United States as there are physicians, and as such competition is somewhat limited in most markets. As such, it is still important to have a well-developed marketing plan that showcases the profiles of the owning and operating veterinarian, hours of operation, services rendered, preliminary pricing information, and how to obtain an appointment with the practice.
Beyond the veterinary practice business plan and marketing plan, a SWOT analysis should also be developed. This analysis should focus on the strengths, weaknesses, opportunities, and threats associated with this type of business. Relating to strengths, veterinary practices – again – have very high barriers to entry as the owner of this business must be licensed as a veterinarian. For weaknesses, the operating expenses for this type of practice are somewhat high. However, the gross margins generated from services rendered usually ameliorates these expense risks. As it relates to opportunities, most veterinarians will hire an associate doctor in order to increase the billings of the business through an increased client account. Relating to threats, there’s really nothing that is going to impact the way that a veterinarian practices medicine.
In short, if someone has obtained a veterinary degree and is properly licensed to practice this type of medicine – these practices can become extremely lucrative. This is especially true in areas where there are a lot of career driven people that have opted to own animals rather than having children. This is been one of the common trends within the veterinary practice industry over the past 30 years.
Veterinary Practice Business Plan
1.0 Executive Summary
The purpose of this business plan is to raise $150,000 for the development of a veterinary practice while showcasing the expected financials and operations over the next three years. Veterinary Practice, Inc. (“the Company”) is a New York based corporation that will provide general veterinary care to customers’ pets in its targeted market. The Company was founded by Dr. John Doe.
1.1 The Operations
Dr. Doe will render veterinary services to his customers’ pets. These services include the examination/treatment of medical conditions related to animal as well as dispensing pharmaceuticals. Dr. Doe, when needed, will also perform surgery on animals including neutering and spaying as well as other surgical procedures. Dr. Doe is properly licensed with the state to render these services while concurrently having the necessarily licensure to prescribe medicine when necessary.
The Company will also recognize revenues from the sale of appliances/medicine used to treat veterinary medical problems.
The third section of the business plan will further describe the services offered by the Veterinary Practice.
1.2 The Financing
At this time, Dr. Doe is seeking to raise $125,000 via bank loan for the development of the business. The terms, interest rate, and loan covenants are to be determined at the time of negotiation. However, this business plan assumes that the Company will receive a 10 year loan with a 5% interest rate due on the outstanding principal balance. The financing will be used for the following:
- Development of the Company’s practice location.
- Financing for the first six months of operation.
- Capital to purchase veterinary and surgical equipment.
1.3 Mission Statement
Dr. Doe’s mission is to become the recognized leader in its targeted market for general veterinary services.
1.4 Management Team
The Company was founded by Dr. John Doe. The Founder has more than 10 years of experience as a practicing veterinarian. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Revenue Forecasts
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Dr. Doe intends to implement marketing campaigns that will effectively target individuals with animals within the targeted market.
2.0 The Financing
2.1 Registered Name and Corporate Structure
Veterinary Practice, Inc. The Company is registered as a corporation in the State of New York.
2.2 Use of Funds
2.3 Investor Equity
At this time, Dr. Doe is not seeking an equity investment from a third party.
2.4 Management Equity
Dr. Doe will retain a 100% ownership interest in the Veterinary Practice, Inc.
2.5 Exit Strategy
If the business is very successful, Dr. Doe may seek to sell the practice to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the practice. Based on historical numbers, the business could fetch a sales premium of up to 2 to 3 times earnings. As an additional exit strategy, an associate veterinarian may be hired to take over the practice from the Owner.
3.0 Operations
3.1 Veterinary Services
Dr. Doe will render general and surgical veterinary services to his customer’s pets. These services include general examinations, treatment of veterinary ailments, neutering/spaying surgery, de-clawing of cats, and emergency medical care. The facility will be equipped so that Dr. Doe can perform surgery on site.
The Company will generate its revenues directly from customers as there are very few insurance programs available for pets and animals. However, in the future, the Company may accept payments from animal health insurance programs if a number of customers have this service for their pets.
3.2 Sales of Veterinary Appliances and Medicine
The secondary source of revenue for the practice will be the sale of appliances related to the treatment of veterinary medical issues. The Company will carry a limited inventory of these products, which will be provided to customers during their course of their pet’s treatment. Management expects that 15% of the aggregate practice revenues will come from this revenue center.
4.0 Market and Strategic Analysis
4.1 Economic Analysis
This section of the analysis will detail the economic climate, the veterinary industry, the customer profile, and the competition that the business will face as it progresses through its business operations.
Currently, the economic condition as a result of the COVID-19 pandemic is rapidly improving. Interest rates have remained low, which has led to substantial improvement in the economy. Although there are issues with inflation, the US Federal Reserve has indicated that they are willing to adjust monetary policy to combat this issue. The economy is moving back towards normal at this time.
However, veterinary practices operate with great economic stability as people with animals will continue to require services despite deleterious changes in the general economy.
4.2 Industry Analysis
Within the Untied States, there are currently 50,000 businesses that provide services rendered by veterinarians. Among these practices, aggregate revenues for the last five years have exceeded $50 billion per year. The industry employs more than 500,000 people.
This is a mature industry, and the future expected growth rate is expected to equal that of the general economy.
However, there has been a shift in the American culture, and people are waiting longer before having children. As such, many people have purchased dogs while they first pursue a career. As such, the growth of the industry may actually be hire than that of the general economy during the next ten to fifteen years.
4.3 Customer Profile
The Veterinary Practice’s average client will be a middle class man or woman living in the Company’s target market. Common traits among clients will include:
- Annual household income exceeding $50,000
- Lives or works no more than 15 miles from the Company’s practice location.
- Will spend $80 to $300 per veterinary appointment.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Veterinary Practice intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the practice.
5.1 Marketing Objectives
- Maintain an expansive presence online, which includes usage of search engine optimization (SEO) and social media market.
- Develop relationships with referring real estate agents in the market.
- Implement a local campaign with the Company’s targeted market via the use of print advertisements.
5.2 Marketing Strategies
Management intends on using a number of marketing strategies to promote awareness of the Veterinary Practice within its targeted market. Foremost, the Company is sourcing a highly visible practice location that will feature substantial signage. The Company is currently working with a commercial real estate brokerage to find a suitable location for the practice that will be seen by thousands of passers-by on a daily basis.
Through the life of the business, the Company will distributed mailed advertisements within a five mile radius of the practice’s location. This will include offerings for discounted first visits and deals on pet medications. The Company will also take out print advertisements among local newspapers and publications.
The Veterinary Practice will maintain an expansive presence on the internet via a proprietary website as well as through numerous social media channels. The Company’s proprietary website will showcase the practice, hours of operation, veterinarian biographies, and other information related to the operations of the practice. This website will be search engine optimized for the targeted market as well as being mobile friendly.
Beyond the Company’s own website, the Company will maintain pages among all major social media platforms including Facebook, Instagram (for pictures), LinkedIn, Twitter, and YouTube. The business will frequently post articles regarding specific pet care issues. The business will also have a number of professionally produced videos that showcase the practice. These videos will be uploaded to YouTube and shared among all social media pages.
The Company will also maintain pages among service review websites. Over time, the strong reviews will contribute to increasing the visibility of the practice coupled with increasing trust with potential clients.
The Veterinary Practice will also support charities and community organizations via co-branding opportunities.
6.0 Organizational Overview
6.1 Organizational Chart
6.2 Personnel Budget
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
- Veterinary Practice will have an annual revenue growth rate of 16% per year.
- The Owner will acquire $150,000 of debt funds to develop the business.
- The Company shall settle most short term payables on a monthly basis.
7.2 Sensitivity Analysis
In the event of an economic downturn, the Company will not see a major decline in revenues. People treat their animals as if they are part of their families, and as such, people will continue to pay for important veterinary checkups and care regardless of the general economic climate.
7.3 Source of Funds
7.4 Profit and Loss Statement
7.5 Cash Flow Analysis
7.6 Balance Sheet
7.7 Breakeven Analysis
7.8 Business Ratios
Substantial additional content is featured in the downloadable version of the business plan.