Veterinary Clinic Business Plan Sample

Veterinary clinic business plan for starting your own

Veterinary clinics exist to serve the medical needs of various animals such as dogs, cats, birds, fish, etc. According to the American Pets association statistics, there are more than 300 million pets in America. These pets at one time or the other require medical services usually provided for them by their owners, who take them to veterinary clinics. If you have medical expertise and are passionate about animals, a business plan for veterinary clinic might be something that interests you.

If you are unsure about how to open your own veterinary clinic, you can start by drafting a business plan that will give you an insight into the market. Here we have a business plan for Focused Pet Care. It is articulated by best business plan experts, hence can help you get a head start.

Executive Summary

2.1 The Business

Focus Pet Care is a standard veterinary clinic located in New York, USA. We intend to offer standard medical services such as medical examination, diagnosis, treatment, and surgery to pets such as cats, dogs, birds, iguanas, and other such pets and animals. We intend to offer consultancy and advisory services to our clients regarding their pets.

2.2 Management of veterinary clinic

While starting a vet clinic, it is essential to ensure that all aspects of the business are coherent. Hence, you must prepare a unique veterinary business plan.

A veterinary practice business plan will be somewhat like a business plan for dog kennel. It is essential to have a customized business plan in line with your resources and objectives for your startup.

2.3 Customers of veterinary clinic

While deciding your business planning services, you need to analyze your target market. Although Focused Pet Care will offer services to everyone with pets, running a veterinary practice in New York will particularly interest the following customer groups:

• Households
• Elderly
• Young, single adults
• Cooperate executives

2.4 Business Target

Starting a veterinary practice from scratch can be challenging. It requires streamlining of long-term objectives and goals. Our vision is to be recognized for the standard medical practices we offer and be the go-to clinic for all pet owners residing here in the vicinity and around the whole of New York.

Franchise Business Plan

Helps the franchisee get business case approval from the franchisor

Company Summary

3.1 Company Owner

Edward Miller is a veterinary doctor who has worked in several veterinary hospitals here in New York and has garnered administrative and practical experiences in surgery, dental care, reproductive issues, and skin disorders amongst animals.

3.2 Why the veterinary clinic is being started

Edward Miller noticed an increasing gap between demand and supply of veterinary care in New York City. This wedge results in high prices charged by vets and offering substandard services in return. To provide quality healthcare to animals in the vicinity, Edward decided to open a clinic of his own. Focused Pet Care is his first-ever veterinary practice start up.

3.3 How the veterinary clinic will be started

Step1: Planning the Business

Opening a veterinary practice start up can be a challenging task and requires proper planning that needs to be done ahead of time. A comprehensive business plan can help you analyze different strategies that suit your startup and do a much-needed cost-benefit analysis.

Step2: Branding

Step3: Find a Physical Space

Since running a veterinary clinic requires constant supervision and monitoring, Edward decided to have his corporate office in the same building as Focused Pet Care. This helps him visit the clinics in times of emergency.

Step4: Online Presence

Living in an age of social media and digitalization, having a web presence is imperative for a company’s success. Having an online website would help the potential customers understand the services offered by Focused Pet Care, and book appointments accordingly.

Step5: Promote and Market

When you start working on your vet clinic business plan, you get an idea of how much does it cost to open a vet clinic. The costs are similar to those in horse boarding business plan. To meet these costs and earn a profit, you must employ effective marketing strategies that align with your long-term goals.

Start-up Expenses
Legal	$145,600
Consultants	$0
Insurance	$26,540
Rent	$36,600
Research and Development	$10,000
Expensed Equipment	$56,400
Signs	$3,400
TOTAL START-UP EXPENSES	$278,540
Start-up Assets	$222,400
Cash Required	$245,600
Start-up Inventory	$39,000
Other Current Assets	$222,000
Long-term Assets	$265,400
TOTAL ASSETS	$994,400
Total Requirements	$1,272,940
START-UP FUNDING
Start-up Expenses to Fund	$278,540
Start-up Assets to Fund	$994,400
TOTAL FUNDING REQUIRED	$1,272,940
Assets
Non-cash Assets from Start-up	$1,255,800
Cash Requirements from Start-up	$145,600
Additional Cash Raised	$50,000
Cash Balance on Starting Date	$35,000
TOTAL ASSETS	$1,486,400
Liabilities and Capital
Liabilities	$16,500
Current Borrowing	$0
Long-term Liabilities	$0
Accounts Payable (Outstanding Bills)	$56,400
Other Current Liabilities (interest-free)	$0
TOTAL LIABILITIES	$72,900
Capital
Planned Investment	$1,272,940
Investor 1	$0
Investor 2	$0
Other	$0
Additional Investment Requirement	$0
TOTAL PLANNED INVESTMENT	$1,272,940
Loss at Start-up (Start-up Expenses)	$140,560
TOTAL CAPITAL	$1,413,500
TOTAL CAPITAL AND LIABILITIES	$1,486,400
Total Funding	$1,272,940

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Services of veterinary clinic

Starting your own veterinary practice can be daunting and confusing. The key behind building the successful veterinary practice is to identify your target market and understand their needs thoroughly. The business plan veterinary clinic for Focused Pet Care highlights the following services:

• General Examination

During a routine wellness examination, vets at Focused Pet Care will ask you questions about your pet’s diet, exercise, breathing, behavior, habits, elimination patterns (i.e., bowel movements and urination), lifestyle, and general health. Based on your pet’s history and physical examination, your veterinarian will then make recommendations for specific preventive medicine treatments such as vaccination, parasite control, nutrition, skin and coat care.

• Surgical Facilities

Our state-of-the-art surgical suite will offer various surgical procedures such as fracture repair, exploratory procedures, and routine surgeries such as spays and neuters.

• Internal Medicine

We will offer complete in-hospital diagnostic procedures, including blood work, endoscopic capabilities, and ultrasound.  Consultation with specialists nationwide can be arranged too if needed.

• Grooming Kits

Pet owners who are particular about what shampoos, wipes, and combs to use for their pets are cared for at Focused Pet Care. Our experienced vets offer consultancy services to pet owners and offer them customized grooming kits for their cats and dogs.

While working on your business plan for a mobile veterinary clinic, you will get an idea of how much does it cost to buy a veterinary practice and hence, can arrange for funding accordingly.

Marketing Analysis of veterinary clinic

5.1 Market Trends

The veterinary services industry’s life cycle has been described as being in its growth phase. The Industry Value Added (IVA), which is used to indicate industry’s contribution to the economy, has been pegged to grow at 2.9% between 2011 and 2022. The U.S economy, in comparison, is expected to grow at 2.2% in the same period.

The advent of new technologies has seen many of the professionals in the human healthcare sector migrate to veterinary medicine, as the industry continues to grow due to other factors such as pet ownership, availability of advanced diagnostic and surgical procedures, as well as the increasing awareness of animal health issues. Hence if you have some unique vet clinic ideas, this would be the right time for starting a veterinary business.

5.2 Marketing Segmentation

Defining your target market is essential before starting your own veterinary practice. In this sample business plan for veterinary clinic, the following are the customer groups catered by Focused Pet Care:

Business Plan for Investors

5.2.1 Households

Households with pets are the recurring customers of Focused Pet Care. Since pets are literally like a family member of a household, they deserve the best possible care, which Focused Pet Care promises to provide.

5.2.2 Elderly

This group is pivotal to the success of the clinic. They are the most proactive to the health of their pets and demand a strong relationship with their pet’s veterinarian. In return, they will become loyal customers who will refer both friends and neighbors.

5.2.3 Young single adults

This group is primarily reactive to the health of their pets and will usually only visit the clinic for emergencies, reproduction services, and shots. This is still a significant source of customers from the community.

5.2.4 Working people

Due to their tiring jobs, working people are heavily dependent on veterinary clinics for all sorts of health-related concerns related to their pets. They might not spend a lot of time with their pets and hence might not notice any changes in their health until it worsens. Cooperate lifestyle is quite mainstream in NYC. Therefore opening a veterinary clinic will be a good business opportunity for Focused Pet Care.

Market Analysis
Potential Customers	Growth	Year 1	Year 2	Year 3	Year 4	Year 5	CAGR
Households	34%	42,600	51,120	61,344	73,613	88,335	10.00%
Elderly	28%	32,600	39,120	46,944	56,333	67,599	10.00%
Young single adults	26%	21,200	25,440	30,528	36,634	43,960	10.00%
Working people	12%	26,400	31,680	38,016	45,619	54,743	11.00%
Total	100%	122,800	147,360	176,832	212,198	254,638	10%

 

5.3 Business Target

• Running a veterinary practice with profit margins of 25% after the first year of business
• Incorporate a dog daycare business plan in the operations of the veterinary clinic to expand the scope of services
• Capture a market share of 30% in the next three years of operations
• Have a customer satisfaction score of 98%

5.4 Product Pricing

Under this sample veterinary business plan, Focused Pet Care intends to lower its rates in the first 3 – 6 months of business. This will be seen as part of our promotion strategy to increase awareness about our veterinary clinic amongst potential customers.

Marketing Strategy of the veterinary clinic

In this veterinary clinic business plan pdf, you will find a veterinary marketing plan used by Focused Pet Care. Marketing for any business is vital as it generates money and ensures that the company gains publicity while making money. To have effective marketing strategies, we intend to conduct a market survey that will help us understand the market we are going into and how best to penetrate this market.

Provided that this veterinary business plan template is quite detailed, you can refer to the marketing strategies used by Focused Pet Care and see if any of them resonates with your business idea.

6.1 Competitive Analysis

• The services at Focused Pet Care would be offered by professional vets who have practice worth 7+ years.
• Building a veterinary clinic that has state-of-the-art and standardized medical facilities for our various customers
• On-the-job training will be provided to most of the employees at the clinic to ensure that your pet is in safe hands
• The introductory prices offered by Focused Pet Care Clinic would be lower than the market rates without compromising on the quality of services

6.2 Sales Strategy

• Ensure that Focused Pet Care is enlisted on offline and online directories
• Leverage on social media platforms such as Facebook and Twitter
• Engage in direct marketing
• Use direct word of mouth marketing

6.3 Sales Monthly

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6.4 Sales Yearly

6.5 Sales Forecast

Sales Forecast
Unit Sales	Year 1	Year 2	Year 3
General Examination	875	928	983
Surgical Facilities	345	366	388
Internal Medicine	450	477	506
Grooming Kits	525	557	590
TOTAL UNIT SALES	2,195	2,327	2,466
Unit Prices	Year 1	Year 2	Year 3
General Examination	$350.00	$406.00	$470.96
Surgical Facilities	$1,250.00	$1,450.00	$1,682.00
Internal Medicine	$300.00	$348.00	$403.68
Grooming Kits	$250.00	$290.00	$336.40
Sales
General Examination	$306,250.00	$376,565.00	$463,024.32
Surgical Facilities	$431,250.00	$530,265.00	$652,013.84
Internal Medicine	$135,000.00	$165,996.00	$204,108.68
Grooming Kits	$131,250.00	$161,385.00	$198,439.00
TOTAL SALES	$1,003,750.00	$1,234,211.00	$1,517,585.85
Direct Unit Costs	Year 1	Year 2	Year 3
General Examination	$90.00	$99.00	$103.95
Surgical Facilities	$300.00	$330.00	$346.50
Internal Medicine	$100.00	$110.00	$115.50
Grooming Kits	$85.00	$93.50	$98.18
Direct Cost of Sales
General Examination	$78,750.00	$91,822.50	$102,198.44
Surgical Facilities	$103,500.00	$120,681.00	$134,317.95
Internal Medicine	$45,000.00	$52,470.00	$58,399.11
Grooming Kits	$44,625.00	$52,032.75	$57,912.45
Subtotal Direct Cost of Sales	$271,875.00	$317,006.25	$352,827.96

Personnel plan of veterinary clinic

The average cost executing veterinary business ideas is like that mentioned in business plan of a dog training. It is important to account for different kinds of costs to forecast financial returns accordingly. These costs include the salaried employees at the pet hotels that are supposed to be discussed in a business plan for veterinary clinic.

7.1 Company Staff

This veterinary clinic business plan sample pdf for Little Paws hires for the following positions:

• 1 Managing Director
• 2 Veterinary Doctors
• 4 Veterinary Assistants
• 1 Accountant
• 1 Purchasing Manager
• 1 Driver

7.2  Average Salary of Employees

Personnel Plan
	Year 1	Year 2	Year 3
Managing Director	$40,250	$44,275	$48,703
Veterinary Doctor	$80,000	$88,000	$96,800
Veterinary Assistants	$100,500	$110,550	$121,605
Accountant	$22,500	$24,750	$27,225
Purchasing Manager	$22,500	$24,750	$27,225
Driver	$20,000	$22,000	$24,200
Total Salaries	$285,750	$314,325	$345,758

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Financial Plan of veterinary clinic

A sole focus on increasing sales does not ensure that your business has become successful and yields profits. It would help if you did a thorough analysis of the veterinary clinic start up costs and estimated the operations’ capacity for your business accordingly.

In your financial plan, you must identify when and how to cover your investment amount with the earned profits. Moreover, it would help analyze your yearly expenses to determine the possibilities of reaching an economy of scale. A veterinary clinic business plan consists of an in-depth financial analysis which gives an idea of how much does it cost to start a veterinary clinic and how much do you need to earn to sustain the business.

While analyzing how much does it cost to open a veterinary clinic, you must familiarize yourself with different business models such as a pet photography business plan. It will help you understand the industry better.

Here we’re providing a business plan used by Focused Pet Care for you to use as a reference.

8.1 Important Assumptions

General Assumptions
	Year 1	Year 2	Year 3
Plan Month	1	2	3
Current Interest Rate	8.12%	8.20%	8.26%
Long-term Interest Rate	8.40%	8.44%	8.47%
Tax Rate	24.03%	24.21%	24.60%
Other	0	0	0

8.2 Break-even Analysis

Break-Even Analysis
Monthly Units Break-even	5340
Monthly Revenue Break-even	$132,500
Assumptions:
Average Per-Unit Revenue	$231.00
Average Per-Unit Variable Cost	$0.62
Estimated Monthly Fixed Cost	$163,800

8.3 Projected Profit and Loss

Pro Forma Profit And Loss
	Year 1	Year 2	Year 3
Sales	$1,003,750	$1,234,211	$1,517,586
Direct Cost of Sales	$271,875	$317,006	$352,828
Other	$0	$0	$0
TOTAL COST OF SALES	$271,875	$317,006	$352,828
Gross Margin	$731,875	$917,205	$1,164,758
Gross Margin %	72.91%	74.32%	76.75%
Expenses
Payroll	$285,750	$314,325	$345,758
Sales and Marketing and Other Expenses	$145,000	$148,000	$156,000
Depreciation	$2,300	$2,350	$2,500
Leased Equipment	$0	$0	$0
Utilities	$2,900	$3,000	$3,100
Insurance	$2,100	$2,100	$2,100
Rent	$2,900	$3,000	$3,200
Payroll Taxes	$24,000	$25,000	$27,000
Other	$0	$0	$0
Total Operating Expenses	$464,950	$497,775	$539,658
Profit Before Interest and Taxes	$266,925	$419,430	$625,100
EBITDA	$266,925	$419,430	$625,100
Interest Expense	$0	$0	$0
Taxes Incurred	$53,385	$83,886	$125,020
Net Profit	$213,540	$335,544	$500,080
Net Profit/Sales	21.27%	27.19%	32.95%

8.3.1 Profit Monthly

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

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8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

Pro Forma Cash Flow
Cash Received	Year 1	Year 2	Year 3
Cash from Operations
Cash Sales	$51,000	$55,080	$59,486
Cash from Receivables	$22,000	$23,760	$25,661
SUBTOTAL CASH FROM OPERATIONS	$73,000	$79,570	$85,936
Additional Cash Received
Sales Tax, VAT, HST/GST Received	$0	$0	$0
New Current Borrowing	$0	$0	$0
New Other Liabilities (interest-free)	$0	$0	$0
New Long-term Liabilities	$0	$0	$0
Sales of Other Current Assets	$0	$0	$0
Sales of Long-term Assets	$0	$0	$0
New Investment Received	$0	$0	$0
SUBTOTAL CASH RECEIVED	$74,000	$79,000	$85,000
Expenditures	Year 1	Year 2	Year 3
Expenditures from Operations
Cash Spending	$42,000	$42,000	$45,000
Bill Payments	$27,000	$28,000	$31,000
SUBTOTAL SPENT ON OPERATIONS	$69,000	$70,000	$76,000
Additional Cash Spent
Sales Tax, VAT, HST/GST Paid Out	$0	$0	$0
Principal Repayment of Current Borrowing	$0	$0	$0
Other Liabilities Principal Repayment	$0	$0	$0
Long-term Liabilities Principal Repayment	$0	$0	$0
Purchase Other Current Assets	$0	$0	$0
Purchase Long-term Assets	$0	$0	$0
Dividends	$0	$0	$0
SUBTOTAL CASH SPENT	$69,000	$74,520	$80,482
Net Cash Flow	$21,000	$23,000	$25,000
Cash Balance	$27,000	$30,000	$33,000

 

8.5            Projected Balance Sheet

Pro Forma Balance Sheet
Assets	Year 1	Year 2	Year 3
Current Assets
Cash	$275,000	$308,000	$338,800
Accounts Receivable	$24,000	$26,880	$30,213
Inventory	$4,300	$4,816	$4,900
Other Current Assets	$1,000	$1,000	$1,000
TOTAL CURRENT ASSETS	$282,000	$315,840	$355,004
Long-term Assets
Long-term Assets	$10,000	$10,000	$10,000
Accumulated Depreciation	$19,400	$21,728	$24,444
TOTAL LONG-TERM ASSETS	$24,400	$27,328	$30,744
TOTAL ASSETS	$294,000	$329,280	$370,440
Liabilities and Capital	Year 4	Year 5	Year 6
Current Liabilities
Accounts Payable	$18,700	$20,944	$23,541
Current Borrowing	$0	$0	$0
Other Current Liabilities	$0	$0	$0
SUBTOTAL CURRENT LIABILITIES	$19,000	$21,280	$23,919
Long-term Liabilities	$0	$0	$0
TOTAL LIABILITIES	$15,000	$16,800	$18,883
Paid-in Capital	$30,000	$30,000	$31,000
Retained Earnings	$53,000	$57,770	$63,547
Earnings	$193,400	$210,806	$231,887
TOTAL CAPITAL	$285,000	$310,650	$341,715
TOTAL LIABILITIES AND CAPITAL	$300,000	$329,280	$370,440
Net Worth	$293,400	$319,806	$351,787

 

8.6            Business Ratios

Ratio Analysis
	Year 1	Year 2	Year 3	INDUSTRY PROFILE
Sales Growth	7.25%	8.03%	8.90%	3.00%
Percent of Total Assets
Accounts Receivable	9.21%	10.20%	11.31%	9.80%
Inventory	5.39%	5.97%	6.62%	9.90%
Other Current Assets	2.11%	2.34%	2.59%	2.40%
Total Current Assets	149.80%	151.00%	152.00%	158.00%
Long-term Assets	11.55%	11.60%	11.64%	12.00%
TOTAL ASSETS	100.00%	100.00%	100.00%	100.00%
Current Liabilities	4.90%	4.94%	4.98%	4.34%
Long-term Liabilities	0.00%	0.00%	0.00%	0.00%
Total Liabilities	7.59%	7.65%	7.72%	7.38%
NET WORTH	100.45%	101.25%	102.19%	110.00%
Percent of Sales
Sales	100.00%	100.00%	100.00%	100.00%
Gross Margin	94.60%	97.15%	99.87%	99.00%
Selling, General & Administrative Expenses	93.56%	96.09%	98.78%	97.80%
Advertising Expenses	1.52%	1.56%	1.60%	1.40%
Profit Before Interest and Taxes	41.50%	42.62%	43.81%	33.90%
Main Ratios
Current	34	35	36	32
Quick	33	33.8	34.645	33
Total Debt to Total Assets	0.18%	0.18%	0.17%	0.40%
Pre-tax Return on Net Worth	74.08%	74.89%	75.00%	75.00%
Pre-tax Return on Assets	96.30%	101.12%	106.17%	111.30%
Additional Ratios	Year 1	Year 2	Year 3
Net Profit Margin	33.56%	34.60%	35.67%	N.A.
Return on Equity	55.80%	57.53%	59.31%	N.A.
Activity Ratios
Accounts Receivable Turnover	7.7	7.8	7.8	N.A.
Collection Days	100	100	100	N.A.
Inventory Turnover	32.4	34.02	35	N.A.
Accounts Payable Turnover	15.6	16	16.3	N.A.
Payment Days	27	27	27	N.A.
Total Asset Turnover	2.5	2.5	2.6	N.A.
Debt Ratios
Debt to Net Worth	-0.04	-0.03	-0.04	N.A.
Current Liab. to Liab.	1	1	1	N.A.
Liquidity Ratios
Net Working Capital	$244,000	$257,664	$272,093	N.A.
Interest Coverage	0	0	0	N.A.
Additional Ratios
Assets to Sales	0.85	0.87	0.89	N.A.
Current Debt/Total Assets	1%	0%	0%	N.A.
Acid Test	29	29.12	29.16	N.A.
Sales/Net Worth	2.1	2.2	2.2	N.A.
Dividend Payout	0	0	0	N.A.

FAQ

1. Are veterinary clinics profitable?

Open vet clinics typically generate a profit of 10% to 15%, while specialty and emergency practices often earn 15% to 25%. The higher the profit, the more valuable the practice will be at selling time.

2.How do I set up a vet business plan?

a) To have a veterinarian business plan of your own, you need to:

b) Plan your Veterinary Practice

c) Form your Veterinary Practice into a Legal Entity

d) Register your Veterinary Practice for Taxes

e) Open a Business Bank Account & Credit Card

f) Set up Accounting for your Veterinary Practice

g) Get the Necessary Permits & Licenses for your Veterinary Practice

h) Get Veterinary Practice Insurance

i) Define your Veterinary Practice Brand

j) Create your Veterinary Practice Website

k) Set up your Business Phone System

3. How much money do you need to start a veterinary clinic?

For an average price of $1,000,000, you’ll be able to open a small animal clinic from the ground up. At $250,000, the cost of starting a mobile veterinary practice is much more affordable. It depends on what business plan veterinary clinic you follow.

4. Is a vet clinic a good investment?

To make an investment profitable, you need to have a strong veterinary clinic marketing plan. The investment required to set up a clinic is similar to that mentioned in a business plan for a dog walking. A vet clinic is certainly a great investment as it has high returns. The average full-time equivalent (FTE) veterinarian produces roughly $550,000 to $600,000 a year

Download Veterinary Clinic Business Plan Sample in pdf