advice on practice ownership

[PaulS]

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after how many years of being an small animal associate is perfect time to open a practice assuming you are debt free? Is it better to buy an existing practice?

 

[PaulS]

after how many years of being an small animal associate is perfect time to open a practice assuming you are debt free? Is it better to buy an existing practice?

 

[CalliopeDVM]

There is no perfect time, even if you are debt free. I suspect it's kind of like having a child - there is no perfect time, and no one is ever really ready for the reality. That said, I think it takes at least 5-7 years of clinical practice to get comfortable with the medicine enough to take on the new challenge of running and managing a business.

Is it better to buy an existing practice or start one from scratch? That depends on the current market (is there room for a new practice?), the available properties (is there a clinic you want to own and will allow you to continue without making major changes?) and how particular you are about wanting something your way (do you want to design from scratch, or spend less but use someone else's design?).

 

[dyachei]

after how many years of being an small animal associate is perfect time to open a practice assuming you are debt free? Is it better to buy an existing practice?

It all depends on you. I think 3-5 years minimum because you need to have a decent knowledge base (unless the old vet is willing to mentor you and slowly step away).

there are pros and cons to existing practices
Pros
-defined client base
-no initial set up needed (you don't need to figure out all the licenses, etc. They already know and can inform you on their way out)
-may already have a good team (but they also might not)
-already have a revenue stream
-may have mentorship period/changing of the guard may overlap
-Equipment is usually lumped in
-if still in business, location is probably decent

Cons
-they may be mismanaging their money/practice
-team may need major overhaul
-medicine might not be similar enough to successfully incorporate clients
-higher cost
-equipment may be outdated

 

[orangecountyvet]

after how many years of being an small animal associate is perfect time to open a practice assuming you are debt free? Is it better to buy an existing practice?

Hi PaulS,
There really isn't a fixed number of years that will guarantee readiness for practice ownership. The general range is 3-10 years of practice experience. Banks like to see at least 3 years of practice experience. There main variables that you personally will have to work through are:
1. Are you comfortable performing MOST surgeries and medical work-ups independently?
2. Do you have finances in order, good credit, down payment, business plan?
3. Have you found a viable practice to buy or start-up?

I personally worked as a solo vet associate for about 3.5 years and purchased an existing practice recently. I became extremely proficient at surgery and handling a busy practice and that helped me decide to take the plunge. There are A LOT more things to consider, but I hope this will give you a start in the right direction.

 

[PaulS]

Hi PaulS,
There really isn't a fixed number of years that will guarantee readiness for practice ownership. The general range is 3-10 years of practice experience. Banks like to see at least 3 years of practice experience. There main variables that you personally will have to work through are:
1. Are you comfortable performing MOST surgeries and medical work-ups independently?
2. Do you have finances in order, good credit, down payment, business plan?
3. Have you found a viable practice to buy or start-up?

I personally worked as a solo vet associate for about 3.5 years and purchased an existing practice recently. I became extremely proficient at surgery and handling a busy practice and that helped me decide to take the plunge. There are A LOT more things to consider, but I hope this will give you a start in the right direction.

Thanks for your reply! Did you take any courses or classes to prepare for handling the business side of owning a practice? How did you prepare?

 

[orangecountyvet]

Thanks for your reply! Did you take any courses or classes to prepare for handling the business side of owning a practice? How did you prepare?

The business side of veterinary medicine is not even on the radar at most schools. There are business clubs, seminars you can attend but nothing substantive. The best resource for learning about real life veterinary medicine and business is VIN. If you're not on that forum currently, sign up ASAP and read it as often as you can.

 

[dyachei]

We had a business class as an elective where I went to school that was extremely useful. And there are a lot of business management courses at conferences these days. I think people are starting to notice the deficiency and are making opportunities for those interested.

 

[NStarz]

Ohio State has a business minor program.