THE BUSINESS OF PRACTICE: TRANSITIONS FOR PRACTICE GROWTH
debt service, additional employees, and additional equipment. Seeing the budget and projections can be sobering. Draft a business plan to define the goal of the project. The Small Business Administration has several online tools and articles to help draft a plan.1 The business plan is a working document that will define a clear goal while providing a guide and timeline for the project as it progresses. A current market analysis will be part of the business plan. Several resources for companion animal market analysis are available. Information for quantita- tive large-animal market analysis can be difficult to find. The American Veterinary Medical Associa- tion (AVMA) Report on Veterinary Practice Busi- ness Measures is published every 2 years and can be purchased on the AVMA Web site.2 The National Agricultural Statistics Service is a free resource of animal population census that can be broken down by county.3 A market analysis should also include evaluation of competition. Mapping other existing veterinary practice locations, competing practice coverage areas, and your existing practice coverage area will help determine an ideal location for your haul-in location. Armed with this information, you can objectively evaluate the project. Is the project financially fea- sible? Can you afford to do this?
5. Now Make it Happen
Once you have made a decision to add a building, begin preparations for a loan application. We be- gan by paying off any debt and developing a cash savings. We re-evaluated our bookkeeping system to more easily separate and track new income sources and expenses.4 In addition, the current business structure was re-evaluated and the busi- ness was restructured from a sole proprietorship to a professional limited liability corporation. The ad- vantages and disadvantages of the various business structures will vary by state. I consulted both a lawyer and accountant to determine whether re- structuring was to my benefit. However, in my case, restructuring was of benefit mainly for liability reasons. Actively search out property and make inquiries
about potential real estate locations. In my area, good property rarely gets listed on the real estate market. I encourage you to look at both land and existing structures. Many existing structures can be easily converted to a suitable practice location with reduced cost compared with new construction. Beware of local ordinances and permitting when searching for a suitable piece of property. Many cities have restrictions against livestock, barking dogs, and other laws that may affect the suitability of certain locations. I actively searched existing listings and approached three unlisted properties. Ultimately, the property I chose was an unlisted existing commercial building with accessibility for trailers and suitable geographic location.
Design of the property can be done by you or you
may hire an architect. Given the overall budget of my project, I chose to design the property myself. This may or may not be the best decision for you, depending on your experience or availability to over- see the project. Regardless, you should research design ideas. There are several printed and online publications that are helpful to review for design ideas.5,6 Using an online design app7 will help you create to scale drawings and three-dimensional drawings of your project. My entire project was designed on a simple app with overlays for electric, plumbing, ventilations, and security/information technology as needed. The location was suitable for an equine haul-in facility and a small animal hospital. Does this all seem like “putting the cart before the horse?” Completing all of these pre-requisites is ex- hausting and time consuming. However, armed with a complete business plan, you will confidently approach the financing. In my case, a well- organized business plan resulted in several banks competing to finance the project and a quick 30-day closing.
6. The Transition
Marketing: Feed the Need for Information How you market this transition to clients is essen- tial to their retention. Create a marketing calen- dar that follows the construction/renovation timeline. It is important to provide appropriate in- formation in a timely manner. Our initial an- nouncements were specific about services but vague on time. We advertised the opening of our hospital location in the Spring and were careful to avoid specific dates. Overestimating the opening date or constant delays can deter from the excitement of the project.
Leak Information
Start by personally talking to your best clients while on routine farm calls. This builds loyalty as these clients are assured that you are not abandoning them and also honored that you let them know first. We began leaking information about location, plans, and additional services as soon as we closed on the property.
Formally Announce
Compose a letter to your top clients. Include the exciting news, location, and new services that will be offered and assure clients that farm service will remain available.
Create Buzz
Make an announcement in your practice newsletter or practice blog. Use social media to your advan- tage. Collect photos from day one of construction and planning. Within a few months of your move in date, post regularly (twice weekly) with photos
AAEP PROCEEDINGS Vol. 62 2016 387
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