The nebulous term \u201cbusiness model\u201d is without one clear definition, but you know a business model when you see it. Essentially, it is a company\u2019s core plan for success and profitability. Important aspects include:<\/p>\n
You might look at the description above and say, \u201cThat\u2019s just a business strategy,\u201d \u201cThat\u2019s a business plan\u201d or \u201cThat\u2019s a value proposition.\u201d The concepts definitely overlap. Attempting to pin down precise and unique definitions is a waste of time. It is essential that veterinary practice owners engage in the thought process and clearly define why their hospitals are unique and why pet owners would want to pick their practices instead of a competitor\u2019s.<\/p>\n
It\u2019s just enough to define a business model for your practice, but you\u2019ll want it to be better than your rivals\u2019.<\/p>\n
One of the first questions that practice owners or soon-to-be owners ask is, \u201cWhy do I need to go through this process? I\u2019m a veterinarian; I know what I do. Pet owners need veterinarians.\u201d<\/p>\n
All true, but as the authors of \u201cFunky Business\u201d wrote, \u201cThe \u2018surplus society\u2019 has a surplus of similar companies, employing similar people, with similar educational backgrounds, coming up with similar ideas, producing similar things, with similar prices and similar quality.\u201d The veterinary profession has different practice models, but it also has an awful lot of very similar practices. When too many indistinguishable choices are present, consumers are either paralyzed with indecision and don\u2019t choose a business, or they select one based solely on price.<\/p>\n
Therefore, as Tom Peters wrote in \u201cRe-Imagine,\u201d \u201cIt is the foremost task \u2014 and responsibility \u2014 of our generation to re-imagine our enterprises, public and private.\u201d Re-imagine is the key word here. Determining your business model isn\u2019t something done just once. Pet owner desires change over time, and we have to keep up.<\/p>\n
The most successful businesses focus on fulfilling customer wants, a concept much more important than fulfilling customer needs. What\u2019s been clear for many years is that many pets \u201cneed\u201d more care than they get, but it doesn\u2019t work as a strategy. People have to \u201cwant\u201d the care, and they have to find value in it. Wants change over time, and consumers might not know they want something until the company demonstrates it. (Who would have known we\u2019d spend $1,000 on an iPhone?)<\/p>\n
Therefore, the primary focus in determining your practice\u2019s business model is knowing what pet owners want and value. One sign that consumers aren\u2019t getting what they want from a provider is the availability of alternatives in the market. If pet owners thought they were getting products at fair prices, the market for products sold elsewhere never would have opened. Look at the changes you see today when you define your business model.<\/p>\n
As we look toward the post-COVID era of veterinary business, what can we learn from the consumer demands and expectations of the past year and previous years? What business model changes can deliver a better client experience? Can we move from a doctor-centric model to one that is client- and patient-centric? And what changes can we make to work smarter, not harder, so that we generate sufficient profit in a time of rising costs?<\/p>\n
Veterinary medicine isn\u2019t devoid\u00a0of different business models. We have practices solely devoted to cats, exotic pets, house calls or end-of-life care. We have low-cost practices and pop-up vaccine clinics. Within more traditional models, we provide niche services such as behavior, hospice and telemedicine<\/a>.<\/p>\n However, the great majority of veterinary hospitals, whether large animal or small animal, mixed or equine, are jack-of-all-trades businesses. Think of a doctor, dentist, pediatrician, gerontologist, hotel, spa and nutrition center under one roof. That type can work and has worked as long as something differentiates the practice besides the specific products and services. Maybe the difference maker is the hours of operation, the exceptional client service or the amazing use of technology, but in the end, it has to be something.<\/p>\n Different types of clients have different needs, even within the same community. You don\u2019t have to attract every pet owner. Choose your clients and let them choose you based on a match between your vision and their wants.<\/p>\n Also, build a business that meets your life standards. Remember, though, that always doing something \u201cmy way\u201d might deliver professional satisfaction and be the fast route to bankruptcy if your vision doesn\u2019t correlate with what pet owners want and value.<\/p>\n Not all the ideas we outline below are guaranteed to work. Some failed on the first attempt. Some were hugely profitable. Thinking different can help you stand out in the community, keep your business energized and strengthen your profitability against the corporate practices engulfing the profession. Don\u2019t say something won\u2019t work until you think it through.<\/p>\n Access to care is arguably one of the most critical issues in veterinary medicine because of the unfortunately large percentage of pet owners who provide no health care or only limited care for their cats and dogs. Access can be limited by multiple factors, from a practice\u2019s location and hours to a client\u2019s lack of transportation to the cost of care. The last one is generally considered the most significant issue in access discussions.<\/p>\n Understanding the demographics of the community where you practice or want to establish a clinic is essential when addressing access to care. For example, double-income families might leave for work early and get home late. Traditional 9-to-5 business hours are a challenge for these pet owners. Can your practice open early for drop-offs and remain open late for pickups? Can you use virtual technology to connect with those clients during the day?<\/p>\n When it comes to hours, opening at 7 a.m. and closing at 6 p.m. might not be enough. Maybe the practice has to open at 6 a.m., close at 8 p.m. and provide weekend appointments.<\/p>\n Have you thought about opening a practice on the ground floor of an animal-friendly apartment complex? It worked wonders in Tokyo. Or what about regular office hours at an over-55 community and then offering complimentary transportation to the practice for pets needing X-rays or surgery?<\/p>\n How about special hours for senior citizens and longer appointments at non-rush-hour times?<\/p>\n Pop-up clinics like those seen at pet stores are popular across all income ranges, not just because of the lower cost but also because some pet owners eschew the traditional model of set appointment times and the veterinary team\u2019s sometimes guilt-inducing focus on the highest quality of care.<\/p>\n Language can be a barrier to access, too. If you practice near a large non-English-speaking population, consider hiring a team member who speaks the language or set specific days of the week when translators are available. In one California city, government announcements are recorded in English, Spanish, Cantonese and Mandarin to match the community demographics.<\/p>\n In lower-income areas, practices can be very profitable and professionally fulfilling as long as the services and prices appeal to the community. A typical middle-class business model might not work there. One blue-collar community once had a very profitable, well-thought-of practice that offered limited services. The clinic was sold to another veterinarian, who expanded the care and increased prices. The old practice\u2019s loyal clients didn\u2019t want the new level of care. The new owner filed for bankruptcy within a couple of years.<\/p>\n The takeaway: A practice has to have minimum standards of care, but not all pet owners want or can afford the gold standard. When it comes to lower prices, an added focus on efficiency and controlling expenses is particularly important. Can you build a veterinary practice with the following?<\/p>\n All those things help a veterinarian see more pets at a lower average cost and with a higher margin per visit, thus netting a greater profit level.<\/p>\n1. Access to Care Models<\/h3>\n
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