Setting up an independent veterinary practice is not without its challenges, but with the right support, the experience can be immensely rewarding.
This sentiment resonated throughout a recent panel discussion at BVA Live, titled “Ready, set, launch: launching your first veterinary practice”. During the session, which was part of the New Practice Academy sponsored by NVS Group, several industry experts, including two vets who had first-hand experience of setting up their own practices, shared their insights. The discussion was chaired by Vicky Robinson, director and head of practice sales at Vet Dynamics.
This article will summarise the discussion, highlighting all you need to know about launching your first veterinary practice.
Location, location, location
Highlighting the changing veterinary landscape, Vicky noted that while 10 years ago they might have received one or two start-up enquiries a year, now the company gets the same number in a week. She started by asking the panel what factors should be prioritised when selecting a location for a new veterinary practice.
Rachel Simmons, MRCVS, practice director at Edhen Veterinary Surgery, said population size and the number of households in a particular area is really important when choosing a location for your practice but understanding the local population demographics is also crucial. Equally important, she said, was to find a location with good transport links and plenty of parking.
Director at Vets on the Common, Michael Lazaris, MRCVS, added that physical barriers should be considered as they can deter clients. He illustrated this by explaining that his practice is in London where the Thames can be a significant impediment.
Michael also stressed the importance of considering the whole picture, including staff needs: “An industrial unit might be in a good position from a client perspective, but your team may not be happy without green space and a café round the corner.”
Both Rachel and Michael also agreed that mapping out competitor locations and defining your USPs was crucial.
Legal landscape
But finding a suitable location is only part of the story. From change of use applications to deciding whether to lease or buy, navigating the legal landscape and planning regulations is another area where professional advice is invaluable.
From change of use applications to deciding whether to lease or buy, navigating the legal landscape and planning regulations is another area where professional advice is invaluable
Jason Sidney, partner at Rudlings Solicitors LLP, said that sometimes the decision to lease or buy will be driven by necessity. If settling on leasing, he recommended a minimum term of 10 to 15 years to avoid issues further down the line.
Suzanne Headington from Hazlewoods Accountants added that you should think about future needs, not just the immediate ones. While two consulting rooms might suffice in the early days, having room for expansion built into the business plan will set new practices in good stead.
Financial planning
Another key consideration is whether to set the practice up as a limited liability company (LLC) or a partnership. Suzanne explained that most potential practice owners opt for an LLC due to ease, flexibility around remuneration and limited personal liability.
Whatever the structure, securing funding can be challenging in the current financial climate. Setting out cashflow projections and a business plan is a must, but the panel discussed the fact that high street banks are still cautious when it comes to lending. Having some personal funds can make securing loans easier. In addition, a good broker can help overcome any financial hurdles.
Rachel suggested considering private investors, noting that previous practice owners have an emotional investment in the industry and are often keen to support new ventures. Michael added that there is no need to have everything from the start: “You will have to pay interest on loans, so start with the essentials on day one and add to it as you go. That’s true for equipment and staff.”
Equipment: new versus old
Rachel and Michael advised a balanced approach between new and second-hand equipment to kit out your premises. While kennels and consult room tables can be bought second-hand, there are advantages to buying new dental, laboratory and electronic equipment, such as reliability and ease of securing funding. Suzanne added that purchasing new equipment also allows for VAT reclamation upfront, providing a cashflow advantage. “But do what’s right for you and your business,” she advised
Building a talented team
Attention may turn to recruitment early on in the process. Rachel’s top tip is to build a good reputation as a workplace and create a culture where people sing your praises. “I have done a lot to invest in staff happiness, but you can’t feign it,” she revealed. “You genuinely have to care. It’s worth it, though – if you can’t recruit and retain staff, it will limit the growth of your business.” Michael added that you might not have your “A team” from day one, but a strong team will develop as the practice grows.
External support
The new practice team extends beyond the walls of the building; an external support network is essential. Providers such as NVS, NationWide Laboratories and VetIT (all members of the NVS Group) offer support for start-ups to help streamline operations and ensure a smooth launch:
- NationWide Laboratories offers comprehensive diagnostic services, helping new practices to deliver high-quality care from day one. NationWide Laboratories’ expert team is available to discuss individual cases over the phone
- NVS, a leading veterinary wholesaler, provides a wide range of products (from medicines and consumables to pet toys) at competitive prices, ensuring that your practice has access to everything it needs to run efficiently
- The user-friendly systems of VetIT’s practice management software free up the practice team to focus on clients and their pets while helping new practice owners understand and grow their business
As part of your practice team, NVS Group works closely with you, offering personal support whenever you need it most, including regular visits from a dedicated territory manager who can provide expert guidance and help you navigate any challenges that arise. You will enjoy a single point of contact for all your needs, reducing the complexity and administrative burden associated with managing multiple vendors.
Spreading the word
Encouraging clients to preregister and opening with some consults already booked in will help a new practice hit the ground running as well as motivate the team
Encouraging clients to preregister and opening with some consults already booked in will help a new practice hit the ground running as well as motivate the team. Michael recommends using social media platforms like Facebook and Instagram to create an online presence and engage with potential clients. Pet owners are often eager to be part of the journey, so involving them in the “behind the scenes” aspects helps build a strong client base.
Opening day
The first day sets the tone for the weeks to come. Rachel advised against over-staffing, emphasising that keeping costs down is crucial for cash flow: “You will be all things to everyone, but you need to look after yourself. I had a locum vet on standby, which took some of the pressure off.” Michael added, “Muck in, clean the floors – sharing responsibilities sets a positive example for staff and helps foster team spirit.”
Managing cash flow
Keeping a close eye on cash flow is vital, both in the early weeks and beyond. Suzanne stressed the importance of having a solid business plan and financial projections. She explained that using direct debits for payments and negotiating with suppliers can help. “Suppliers may offer preferential terms for new businesses,” she said. “It’s always worth asking.”
‘You absolutely must control costs – you can’t always control what’s coming in, but you can control what’s going out’
Rachel advised caution with companies that offer long contracts, noting that most will offer two- to three-year terms for start-ups. Initially, new practice owners are likely to check finances daily. This frequency may gradually reduce, but staying on top of the finances is essential. “A close relationship with the bookkeeper is vital,” Rachel explained. “Also, be fully aware of key dates like wholesaler, staff and HMRC paydays. You absolutely must control costs – you can’t always control what’s coming in, but you can control what’s going out.”
Michael added, “You also need to have a financial safety net as it may be some months before you earn a salary. Outsource things like payroll and HR so you can focus on running a successful practice and offering a good service. The rest will follow.”
A supportive industry
The veterinary profession is a friendly place and there are always people willing to offer support and advice
The first few years of practice ownership are extremely demanding. Rachel acknowledged that business ownership can feel very lonely at times, and Michael added that stamina is a must, as the work is never-ending. However, the panel agreed that the veterinary profession is a friendly place and there are always people willing to offer support and advice. Jason added, “Surround yourself with people who can help you grow your business and know when to let go.”
Don’t forget, expert support extends beyond the initial set-up, when the focus may be on business decisions. By partnering with NVS Group you can access wholesale products, laboratory services, industry-leading practice management software and NVS’s range of products – all under one roof. This streamlined approach ensures seamless communication and coordination, allowing you to focus on delivering care to your patients.
And finally… motivations
Attendees of the discussion at BVA Live shared their motivations for setting up their own practices. Almost without exception, the appeal lies in the autonomy and freedom to run their practice according to their own values and vision.
Helen, a small animal vet, had previously owned her own mobile practice and was now looking to set up a more permanent base, while Matt said opening his own practice was a dream for the future, but the session had given him lots of food for thought. Saskia was a little further down the line in her practice ownership journey – she had a good level of understanding already but the session had armed her with some really useful tips.
Final thoughts
Setting up a veterinary practice is a significant commitment that requires careful planning and a supportive team
Setting up a veterinary practice is a significant commitment that requires careful planning and a supportive team.
The New Practice Academy, in collaboration with NVS Group, is designed to empower veterinary professionals with the knowledge and skills needed to open their own veterinary practice. Feeling inspired? Check out NVS’s resources or register your interest for the New Practice Academy session (supported by NVS Group) at the London Vet Show 2024.