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1.0 Executive Summary
The purpose of this business plan is to showcase the development of a veterinary practice based in West Hartford, Connecticut. Veterinary Practice, LLC (“the Company”) was founded by Heather Miller, DVM. The Company will offer a full range of veterinary services including diagnostics, surgery, and preventative care. At this time, the Company is seeking a $200,000 loan in order to commence operations.
1.1 The Services
The primary income for the business will come from the ongoing diagnostic and surgical services rendered to pet patients from the Company’s state-of-the-art facilities. At the onset of operations, the Company will employ Dr. Miller and two veterinary technicians. Moving forward, the practice will hire staff veterinarians in order to boost the revenues of the business.
In addition to the clinical and surgical services offered by the practice, the Company will generate substantial secondary revenues from pet care products including specialty pet food for animals that are on a diet, tick/heartworm/flea medications, and products that used during the course of care for a pet.
In order to operate as a community minded business, the Company will host free examination days once every three months while concurrently providing low cost rabies shots.
The third section of the business plan will further describe the services offered by the Veterinary Practice.
1.2 Financing
Management is seeking $200,000 via an SBA loan in order to develop the practice in West Hartford. This business plan assumes that the Company will receive a 15 year loan carrying an 8% interest rate. The funds will be used for the following purposes:
• Office development in West Hartford
• Clinical and surgical equipment
• General furniture, fixtures, and equipment
• Working capital
Dr. Miller will invest $50,000 into the business. The Company could easily secure additional capital as needed if the business establishes an additional location or requires capital to expand the operations of the initial facilities. This event is not expected to occur within the first three years.
1.3 Mission Statement
The practice’s mission is to provide comprehensive and cost-effective clinical and surgical veterinary care to its client base in West Hartford.
1.4 Management Team
Heather Miller is a highly qualified veterinarian that has been in active practice over the past six years. She will be able to effectively develop the operations of this veterinary practice once the capital sought in this document has been secured.
1.5 Sales Forecasts
1.6 Expansion Plan
Management will hire associate veterinarians that will boost the revenues of the business. The Company may also acquire existing practices that can be rebranded under the Company’s name.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Veterinary Practice, LLC.
2.2 Required Funds
Dr. Miller will need $200,000 in order to develop the operations of her veterinary practice.
2.3 Investor Equity
Equity capital is not required at this time.
2.4 Management Equity
Heather Miller, DVM is the sole owner of the practice.
2.5 Exit Strategy
In the event that Dr. Miller wishes to retire from active practice, she will work with an associate veterinarian to transition the business to their ownership. This event is not excepted to occur for at least ten years. In this event, a formal valuation will be completed in order to understand the fair market value of the practice. Generally, veterinary practices sell for the equivalent of one time the previous year’s revenue.
3.0 Veterinary Services
Veterinary Practice, LLC will provide a wide scope of services that will encompass all facets of a pet’s care. This includes regular checkups, routine surgical procedures (such as dentistry), substantial surgical procedures, and all other services that are common to veterinary clinics. The Company will typically charge $75 for an average patient visit. Surgical services will range from $300 to $5,000 depending on the type of procedure. Additional fees will be charged when overnight stays are required by a patient.
The Company will carry a broad range of veterinary medications that are commonly used among household pets. The business will generate gross profits of 40% on all medications and specialized food.
As discussed earlier, the business will frequently host community events that will include discounted vaccinations, discounted checkups, and other services for people that might not otherwise be able to afford veterinary care. In turn, this will increase the visibility of the practice.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
Veterinary practices are able to remain profitable in every economic climate. Pets will continue to get sick and require routine care on an ongoing basis.
The economic climate in the United States is strong. Unemployment rates remain near historical lows while the rate of inflation has declined substantially. Interest rates, while still somewhat high, are reducing as the rate of inflation further abates. As discussed above, these issues will have a negligible effect on the practice’s ability to generate revenue and remain profitable.
4.2 Industry Analysis
Nationally, the demand for veterinary services is over $60 billion. There are 115,000 practicing veterinarians. These individuals work at 30,000 veterinary clinics throughout the country.
The industry is poised for significant growth over the next decade. As a result of the pandemic and increasing housing prices, many people have put off starting a family and instead have adopted pets. During the pandemic, pet ownership increased substantially. This has led to substantial new demand for veterinary care services. The practice will be poised to grow as it markets its operations.
4.3 Customer Profile
Among individuals that will use the Company’s veterinary care services, the following profile will be implemented through the course of marketing:
• Annual household exceeding $80,000
• Will spend $200 to $500 per annum on routine veterinary care or medication
• Lives within 5 miles of the practice’s location in West Hartford
• Owns a dog or a cat
When you are developing a demographic profile, you will need to determine the number of people in your market, the number of pets per household, median income, and other relevant market statistics. Within the United States, approximately 52% of households own a pet (generally a dog or a cat). Here, you can also examine the number of lower income households that have pets that may need discounted care services as well.
4.4 Competition
As pet ownership is prevalent, there are almost always veterinarians in every city and town. In the competitive analysis, you will need to determine the number of practices in your market and their pricing. Here, you can discuss the competitive advantages and differentiating factors that you practice will have over other competitors in the market. You can use numerous online sources in order to cite this information in your business plan.
One of the ways that you can create a competitive advantage is by offering telemedicine services among pet owners who are having a mild pet related issue. Additional, emergency veterinary care and surgery can also provide a major differentiating factor for your firm.
5.0 Marketing Plan
Given the immense demand for veterinary care, the ongoing marketing required to develop a successful veterinary practice is limited. Primarily, you will need to maintain a website and basic community outreach in order to establish a brand name.
5.1 Marketing Objectives
• Host events at the practice to familiarize people with the location.
• Develop a search engine friendly online presence.
• Leverage multiple social media channels in order to further increase awareness for Veterinary Practice, LLC.
5.2 Marketing Strategies
The ongoing marketing required by the Veterinary Practice will be moderate in scope until the practice reaches maximum capacity. As the demand for these services has grown, one a practitioner establishes their operations, the ongoing marketing needs will decline.
The Company, to that end, will host a number of events that provide care for people that may have issues affording quality care for their pet. At the onset of operations, the Company intends to host two clinics every six months. The business will leverage social media in order to promote these events. This will not only increase awareness of the practice but it will facilitate a well recognized and trusted brand name.
The business’ website will showcase all veterinary services offered by the business while concurrently providing booking functionality so that pet owners can reserve times for care. The website will showcase Dr. Miller’s professional experience, information about pricing, contact information, and general information about the practice. The Company, in tandem with its web development firm, will implement search engine optimization strategies specific for the West Hartford market.
As it relates to social media, the Company will maintain pages on Facebook, Instagram, and review pages specific for veterinary practices. It is expected that the business will generate significant word-of-mouth referrals through these operations.
5.3 Pricing
Diagnostic and general veterinary care will range from $70 to $300. Medications will range from $10 to $200. Specialty food will cost $100 for a one month supply. Surgical care will range from $300 to $5,000+
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Payroll
6.3 Management Biographies
For the biography, you should list the items in your CV regarding your veterinary medical education, work history, publications, and relevant clinical/surgical experience.
7.0 Financial Plan
7.1 Underlying Assumptions
The Company has based its proforma financial statements on the following:
• Veterinary Practice will acquire $200,000 to launch operations.
• The Company will employ Dr. Miller and a staff veterinarian to launch operations.
7.2 Sensitivity Analysis
The demand for veterinary services remains stable even during economic recessions. People are going to continue to need care for their pets and the target market is a wealthy area. The practice will have highly controlled operating costs, which will ensure that the practice can satisfy its loan and other financial obligations.
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
