The Pros and Cons of Practice Ownership

The Practice Ownership Dream…

Picture this: A stylish yet modern practice set in a quaint, picturesque town run by a highly respected veterinarian – a local hero – who is a devoted wife, mother, and community volunteer. 

Cue the happy animals milling about the hillside that said veterinarian keeps healthy.

Thanks to James Herriot, this was how I pictured my future after veterinary school. Once I achieved it, I would work hard, make a lot of money, and retire at 60, selling my practice for a hefty profit and vacationing my way into the sunset. 

In my dream, practice ownership was the penultimate goal of becoming a veterinarian.

Balanced With Reality.

End the dream scene. I wake up to my alarm clock, contemplating everything on my plate for the day. Payroll is due tomorrow, as are the quarterly taxes.

The new vet assistant has texted that she is sick and won’t be in, and I have to call an irate client back to discuss her terrorist terrier with a broken tail that she insists was broken at the clinic during his vaccine appointment.

The inherited X-ray unit is on its last legs and needs replacement. My kid is sick, so will stay home from school today. Oh, and appointments start at 8:00 am sharp.

This was my reality. And, as much as it stressed me out, I also loved it.

Why Ownership Is Awesome.

Practice ownership is wonderful in many ways. You get to have something that is all yours and reflects your values. You are the decider, choosing the business model, what the practice looks like, who works for you, and what type of clients you see.

You get to create and nurture a practice that reflects who you are as a veterinarian, human, and business owner.

You get to make a local impact, not only caring for patients, but also giving your time and resources to your community. You get to inspire current and future veterinary professionals.

Lastly, if all goes well, you get to make plenty of money – more than you would as an associate - and will have a very valuable asset to sell one day.

What’s not to love?

Business Ownership Comes With a New Skillset.

While I’m an optimist by choice, I’m also a realist, so let’s look at the challenges practice ownership brings.

Let’s start with the fact that while you’re a great doctor and your clients love you, that skillset is not the same as business management. It’s also unlikely you’ve taken many courses on how to lead and manage people.

Now, if I’m wrong and you have training and experience in these areas, that’s fantastic – you’re in a very small minority and it will serve you well.

But I’m talking to those of you that jumped into practice ownership because they wanted the autonomy it brings and the many things mentioned above, not because they had a hunger to be an expert in business management.

What Do Owners Do?

Once you’re a practice owner, here is some of what you’ll do when you’re wearing your owner/manager hat instead of your doctor hat. If you’re starting small with a startup or single doctor practice, you’ll do a lot of these tasks yourself, but I recommend bringing in expertise or delegating as soon and as much as you can.

To run a business, you’ll need knowledge about finances, including balance sheets, profit and loss statements, and cash flow, as well as how to pay the bills and taxes.

You’ll have to develop a mission, vision, values and create a strategy plan. You’ll develop policies, protocols, and processes.

On the people side, you’ll be recruiting, hiring, training, staffing, developing, and managing (which includes firing).

You’ll be pricing and marketing your services as well as managing your brand. You’ll manage client relationships and respond to crises.

You’ll ensure you’re complying with local, state, and federal regulations. You’ll maintain the facility, equipment, and inventory.

You’ll also be on call for the business 24/7/365. While you’ll have days you don’t go to work, there is rarely a time when you can fully check out and leave the business behind.

I’m probably leaving some stuff out, but I think you get the picture. 

It’s a Lot, but You Can Do It. You’ll Learn Along The Way.

As you can see, moving to owner comes with a steep learning curve that has little to do with being a good veterinarian and practicing veterinary medicine.

The good news is that you don’t need to have all this knowledge and skill before you become an owner. You just have to be willing to learn and be committed to success. And you can do it!

You made it through vet school, figured out how to practice confidently, and have become a successful associate. Those are all very hard things to do, and you’ve done them.  You can do this too. 

Start With A Plan.

If you’re considering ownership, set yourself up for success early. Bring like-minded peers and advisors into your life to help you understand the pros and cons, especially around the financial commitments you’ll make.

Write a business plan which is the roadmap to starting your practice. Learn as much as you can about practice management and seek expertise when needed. 

With the right preparation and start, you’ll reap significant rewards for your efforts and have a legacy that will live on for decades.

If you’d like to talk through the idea of owning your own practice or want one-on-one support with starting up your practice, we’re here to help.