Don't get lost in increased costs
Jun 01, 2006
VETERINARY HOSPITAL DESIGN
Estimate changes in your costs
First, consider your fixed costs. These expenses exist regardless of how many patients you see, and they'll increase the day you move into your new facility. Fixed costs include:
Explore strategies for boosting revenue
Here are some revenue-increasing ideas to consider:
1. New services. Additional dental suites; expanded treatment areas; and surgical suites offering endoscopy, laser, and ultrasound provide opportunities to expand your services. Also consider offering boarding, grooming, pet health, and behavioral training. Of course, you want to think through your investment in the facility compared to the income these areas will generate. To estimate the potential revenue, think about the number of additional invoices this service will generate and multiply that by the estimated average invoice amount.
Keep in mind, it may take some time to build a new revenue stream. So the practice's cash flow may suffer in the short term—typically up to two or three years.
2. New clients. New facilities tend to attract new clients. Construction makes your facility more visible and piques clients' curiosity. So think about how many new clients you may attract and plan for the growth. As a starting point, an average full-time practitioner sees 25 to 30 new clients a month and maintains a client base of 1,200 to 1,400 active clients.
Your potential to attract new clients depends on the demographics of your area. A demographic study shows you the number of existing veterinary practices, practicing veterinarians, households, and pet-owning households. You also want to know whether the number of pet-owning households is increasing, staying the same, or decreasing.