TG1 members regularly share practice management tips and philosophies in the Texas Veterinarian. These articles are reprinted here with permission.
- Three Strategies for Future Practice Success - Dale Lonsford, DVM
- Veterinary Workforce Pool - Who Decides? - Dale Lonsford, DVM
- The Heart of a Teacher can Grow Your Practice - Dale Lonsford, DVM
- A Vision of Disaster - Dale Lonsford, DVM
- Wellness Evaluation for the Practice - Culture and Marketing - Dale Lonsford, DVM
- Service and Product Metrics for Evaluating Veterinary Business Operations - Dale Lonsford, DVM
- Wellness Check for Your Practice - Dale Lonsford, DVM
- Team Up in 2018 - Dale Lonsford, DVM
- Leadership: Our Daily Work - Dale Lonsford, DVM
- New Employee On-Boarding - Michael Joyner, DVM
- Let's Take a Second Look at Ownership - Dale Lonsford, DVM
Three Strategies for Future Practice Success
By Dale Lonsford, DVM, June 2019
Business owners ponder and try to project the future for their business. Reviewing and celebrating the past is important but the future can only be concurred with planning and performance. The veterinary profession is exciting and dynamic avenue for business growth. There are many components to the profession, all dependent on one another, many complementing while others challenging one another. The local, state and national veterinary associations represent the veterinary profession/industry before the public and legislatures in efforts to prepare and secure the future on behalf of every veterinarian. TVMA has represented Texas veterinarians well during recent and turbulent legislative years. The future of the profession lies within the ability of independent veterinary practice owners, practice manages and veterinary organizations to adapt and overcome the challenges before them.
Independent practice owners are the backbone of the profession and these veterinary businesses must remain successful, or more specifically stated, must remain profitable. Profitable not only for the owners’ personal interests but for the team members, the community, the clients and the patients they serve.
The following three strategies utilize three of the components in the veterinary industry that help business to be profitable. Though these strategies do require investment of time and money, they give independent veterinary owners a level of control over the challenges and opportunities of the future.
Certified Public Accountants – Successful veterinary practice owners have found utilizing CPA’s with expertise in the veterinary industry as an excellent resource for improving the bottom line. Granted not all CPA offer or provide business consulting services. Most center their practice around filing personal and small business federal income tax. Typical expectations when hiring a CPA is that the CPA will save the business money on their annual tax return and they will represent that business before an IRS audit. However, consider challenging your CPA to find opportunities for the practice to improve the gross income and increase the profit by 1-2 percent. They have all the business’ numbers and those CPA’s that have the gift of teaching can guide the practice to greater profits.
Utilizing a CPA that has experience serving veterinarians is the best of both worlds. There are many accountants that have embraced the opportunity to serve veterinary practices as business consultants. Find a CPA that knows the veterinary business industry, that recommends utilizing the AAHA chart of accounts, and that utilizes veterinary industry economic statistics as a guideline for individual practice performance.
Find a CPA that recognizes they have the responsibility to not only reduce your tax payments and keep accounting records truthful and realistic as week as help the practice to be profitable. They can guide the practice owner on managing cash flow and establishing reasonable and acceptable depreciation levels for equipment and fixed assets. They can watch for evidence of embezzlement. They should be assertive and suggest ideas and systems to improve profitability. If they are not making business financial recommendations, the owner should be challenging them to provide these services as a business consultant.
When it comes time to prepare for transitioning the ownership of a veterinary practice, a “veterinary-wise” CPA will be an integral part of arranging the transfer of ownership to associates and documenting the practice value. Good accounting can improve the practice’s value especially when negotiating with potential buyers. There is a renewed interest in developing economic structures for practice associates to be able to transition into ownership. Whom better to provide guidance for such succession planning than a CPA that knows the veterinary industry.
Find a Certified Public Accountant that can help the practice’s growth and efficiencies rather than one involved only during the tax season.
Goal Setting and Budgeting – every successful business uses this component to develop actions plans. Budgeting is merely a way of developing an action plan based on goals established by the management team. It is the logical next step in moving a wishful hope to a reality. The performance of the practice is measured and held accountable by reviewing the financial statements monthly or at least a minimum of every quarter. These reviews enable management to take corrective actions such as increase prices, mange payroll, change the product mix – all of which become proactive changes rather than lost revenue.
Think Beyond the Conventional – there are times to hold fast and there are times to adapt to change. The veterinary industry has been and continues to be in flux with challenges from non-veterinary competitors seeking to answer the needs and concerns of pet owners. It is time for veterinarians to think beyond the conventional. Just as veterinarians seek the best diagnostic and efficient methods of patient care for their patients, veterinary customers are seeking ease of access, best pricing, interactive communication and information to make informed decisions. Veterinary practitioners need to consider methods of improving efficiency. These methods should include technical software improvements for medical records and the sharing of medical information with clients, use of templates and protocols, better utilization of well-trained team members, and facilitation of web-based marketing and telemedicine opportunities.
The full utilization of Certified Public Accountants as tax and business consultants, Goal Setting/Budgeting, and Thinking Beyond the Conventional will enable the veterinary practices to thrive in the coming years.
By Dale Lonsford, DVM, June 2019
Business owners ponder and try to project the future for their business. Reviewing and celebrating the past is important but the future can only be concurred with planning and performance. The veterinary profession is exciting and dynamic avenue for business growth. There are many components to the profession, all dependent on one another, many complementing while others challenging one another. The local, state and national veterinary associations represent the veterinary profession/industry before the public and legislatures in efforts to prepare and secure the future on behalf of every veterinarian. TVMA has represented Texas veterinarians well during recent and turbulent legislative years. The future of the profession lies within the ability of independent veterinary practice owners, practice manages and veterinary organizations to adapt and overcome the challenges before them.
Independent practice owners are the backbone of the profession and these veterinary businesses must remain successful, or more specifically stated, must remain profitable. Profitable not only for the owners’ personal interests but for the team members, the community, the clients and the patients they serve.
The following three strategies utilize three of the components in the veterinary industry that help business to be profitable. Though these strategies do require investment of time and money, they give independent veterinary owners a level of control over the challenges and opportunities of the future.
Certified Public Accountants – Successful veterinary practice owners have found utilizing CPA’s with expertise in the veterinary industry as an excellent resource for improving the bottom line. Granted not all CPA offer or provide business consulting services. Most center their practice around filing personal and small business federal income tax. Typical expectations when hiring a CPA is that the CPA will save the business money on their annual tax return and they will represent that business before an IRS audit. However, consider challenging your CPA to find opportunities for the practice to improve the gross income and increase the profit by 1-2 percent. They have all the business’ numbers and those CPA’s that have the gift of teaching can guide the practice to greater profits.
Utilizing a CPA that has experience serving veterinarians is the best of both worlds. There are many accountants that have embraced the opportunity to serve veterinary practices as business consultants. Find a CPA that knows the veterinary business industry, that recommends utilizing the AAHA chart of accounts, and that utilizes veterinary industry economic statistics as a guideline for individual practice performance.
Find a CPA that recognizes they have the responsibility to not only reduce your tax payments and keep accounting records truthful and realistic as week as help the practice to be profitable. They can guide the practice owner on managing cash flow and establishing reasonable and acceptable depreciation levels for equipment and fixed assets. They can watch for evidence of embezzlement. They should be assertive and suggest ideas and systems to improve profitability. If they are not making business financial recommendations, the owner should be challenging them to provide these services as a business consultant.
When it comes time to prepare for transitioning the ownership of a veterinary practice, a “veterinary-wise” CPA will be an integral part of arranging the transfer of ownership to associates and documenting the practice value. Good accounting can improve the practice’s value especially when negotiating with potential buyers. There is a renewed interest in developing economic structures for practice associates to be able to transition into ownership. Whom better to provide guidance for such succession planning than a CPA that knows the veterinary industry.
Find a Certified Public Accountant that can help the practice’s growth and efficiencies rather than one involved only during the tax season.
Goal Setting and Budgeting – every successful business uses this component to develop actions plans. Budgeting is merely a way of developing an action plan based on goals established by the management team. It is the logical next step in moving a wishful hope to a reality. The performance of the practice is measured and held accountable by reviewing the financial statements monthly or at least a minimum of every quarter. These reviews enable management to take corrective actions such as increase prices, mange payroll, change the product mix – all of which become proactive changes rather than lost revenue.
Think Beyond the Conventional – there are times to hold fast and there are times to adapt to change. The veterinary industry has been and continues to be in flux with challenges from non-veterinary competitors seeking to answer the needs and concerns of pet owners. It is time for veterinarians to think beyond the conventional. Just as veterinarians seek the best diagnostic and efficient methods of patient care for their patients, veterinary customers are seeking ease of access, best pricing, interactive communication and information to make informed decisions. Veterinary practitioners need to consider methods of improving efficiency. These methods should include technical software improvements for medical records and the sharing of medical information with clients, use of templates and protocols, better utilization of well-trained team members, and facilitation of web-based marketing and telemedicine opportunities.
The full utilization of Certified Public Accountants as tax and business consultants, Goal Setting/Budgeting, and Thinking Beyond the Conventional will enable the veterinary practices to thrive in the coming years.
Veterinary Workforce Pool - Who Decides?
By Dale Lonsford, DVM, December 2018
Who is responsible to build the veterinary workforce pool? There is one component of our veterinary practices that members of the profession have the power, duty and responsibility to develop. That component is the veterinary workforce pool.
Veterinarians do not have to develop the need for veterinary care or invent new diseases or pestilence? The medical and surgical needs and the challenges to animal health already exist. Thankfully, manufacturers develop equipment and computers and medical instruments for the profession. Thankfully, pharmaceutical companies research, patent and produce medications and vaccines for veterinary use – and fortunately veterinarians have the authority to dip into the realm of human pharmaceuticals to care for their patients. Veterinarians do not have to create new markets for their skills, though they have the agility to mold their talents for the benefit of other industries. They not have to create patients and consumers of their services- they already exist. The veterinary profession did not create the need for protein in the form of meat, eggs and milk, nor the human-animal bond or the cherished wildlife but their work sustains the lives of these animals.
Without an adequate quantity of qualified employees, veterinary medical practice cannot be successful at serving their patients and owners. It is the veterinary professional - as individuals, as business owners, as practitioners, as technicians and as members of the veterinary industry who must develop and produce the work force component needed for their business. If they fail to develop a pool of talented and capable employees, they cannot successfully fulfill the purpose of their calling.
Granted, high schools, colleges and universities produce an educated and trained people otherwise known as the workforce pool. Veterinary practices are the ultimate customer for the product that the education system is producing. Whether that product is good or bad, sufficient in number or overabundant, useful or burdensome, talented or unskilled, ethical or deviant, successful or incapable of succeeding, has a lot to do with their customer – the veterinary practice.
The veterinary professional has the option of complaining about the product that the educational system is producing or use its’ enormous influence to direct the educational requirements, the educational goals and the students that seek to join the profession. High schools and colleges cannot do it alone as the product will be lacking skills and practical experience. The businesses and profession cannot do it alone or the product will be lacking consistency and mobility within the industry. A trained and talented veterinary workforce is possible only through the cooperative efforts of the educational system and the veterinary profession. This is where the veterinary professional can decide to make a difference in the make up of the workforce pool.
According to the 2016 Demographic Survey by National Association of Veterinary Technicians of America (NAVTA) –
“As of 2016, there is a known shortage of credentialed VTs and the difficulty in finding qualified personnel to fill positions is a major complaint by veterinary practitioners. Measures to continue to drive interest in the field is needed. Attracting and retaining qualified individuals is critical to the growth or the VT/nursing profession”
https://cdn.ymaws.com/www.navta.net/resource/resmgr/docs/2016_demographic_results.pdf
Veterinarians and practices can decide to improve the quantity and quality of their workforce pool by getting involved with high schools and community colleges that are training students for positions in veterinary practices whether through the TVMA accredited Certified Veterinary Assistant program or the college level AVMA approved Veterinary Technology Programs.
David Sessum, LVT, Lone Star College says –
“When a veterinary practice takes the time to invest in training, whether that training be in the CVA level, allowing vet tech students to rotate through the clinic for practicum and clinical rotations, serving on advisory boards, or donating financial or time resources, the practice directly affects the quality of the student.”
Veterinarians, technicians and practices should consider promoting veterinary medicine as a career and provide learning opportunities for students in their local areas. They can partner with high school teachers using the CVA program, and partner with AVMA accredited Veterinary Technology programs. Veterinarians should decide to use their influence to develop the workforce pool – their level of success will depend on it. Be proactive and start building you own veterinary workforce pool – it makes good business sense.
By Dale Lonsford, DVM, December 2018
Who is responsible to build the veterinary workforce pool? There is one component of our veterinary practices that members of the profession have the power, duty and responsibility to develop. That component is the veterinary workforce pool.
Veterinarians do not have to develop the need for veterinary care or invent new diseases or pestilence? The medical and surgical needs and the challenges to animal health already exist. Thankfully, manufacturers develop equipment and computers and medical instruments for the profession. Thankfully, pharmaceutical companies research, patent and produce medications and vaccines for veterinary use – and fortunately veterinarians have the authority to dip into the realm of human pharmaceuticals to care for their patients. Veterinarians do not have to create new markets for their skills, though they have the agility to mold their talents for the benefit of other industries. They not have to create patients and consumers of their services- they already exist. The veterinary profession did not create the need for protein in the form of meat, eggs and milk, nor the human-animal bond or the cherished wildlife but their work sustains the lives of these animals.
Without an adequate quantity of qualified employees, veterinary medical practice cannot be successful at serving their patients and owners. It is the veterinary professional - as individuals, as business owners, as practitioners, as technicians and as members of the veterinary industry who must develop and produce the work force component needed for their business. If they fail to develop a pool of talented and capable employees, they cannot successfully fulfill the purpose of their calling.
Granted, high schools, colleges and universities produce an educated and trained people otherwise known as the workforce pool. Veterinary practices are the ultimate customer for the product that the education system is producing. Whether that product is good or bad, sufficient in number or overabundant, useful or burdensome, talented or unskilled, ethical or deviant, successful or incapable of succeeding, has a lot to do with their customer – the veterinary practice.
The veterinary professional has the option of complaining about the product that the educational system is producing or use its’ enormous influence to direct the educational requirements, the educational goals and the students that seek to join the profession. High schools and colleges cannot do it alone as the product will be lacking skills and practical experience. The businesses and profession cannot do it alone or the product will be lacking consistency and mobility within the industry. A trained and talented veterinary workforce is possible only through the cooperative efforts of the educational system and the veterinary profession. This is where the veterinary professional can decide to make a difference in the make up of the workforce pool.
According to the 2016 Demographic Survey by National Association of Veterinary Technicians of America (NAVTA) –
“As of 2016, there is a known shortage of credentialed VTs and the difficulty in finding qualified personnel to fill positions is a major complaint by veterinary practitioners. Measures to continue to drive interest in the field is needed. Attracting and retaining qualified individuals is critical to the growth or the VT/nursing profession”
https://cdn.ymaws.com/www.navta.net/resource/resmgr/docs/2016_demographic_results.pdf
Veterinarians and practices can decide to improve the quantity and quality of their workforce pool by getting involved with high schools and community colleges that are training students for positions in veterinary practices whether through the TVMA accredited Certified Veterinary Assistant program or the college level AVMA approved Veterinary Technology Programs.
David Sessum, LVT, Lone Star College says –
“When a veterinary practice takes the time to invest in training, whether that training be in the CVA level, allowing vet tech students to rotate through the clinic for practicum and clinical rotations, serving on advisory boards, or donating financial or time resources, the practice directly affects the quality of the student.”
Veterinarians, technicians and practices should consider promoting veterinary medicine as a career and provide learning opportunities for students in their local areas. They can partner with high school teachers using the CVA program, and partner with AVMA accredited Veterinary Technology programs. Veterinarians should decide to use their influence to develop the workforce pool – their level of success will depend on it. Be proactive and start building you own veterinary workforce pool – it makes good business sense.
A Vision of Disaster
By Dale Lonsford, DVM, August 2018
An important attribute of leading and managing a business is having a Vision. When one speaks of Vison in the realm of business leadership it usually connotes goal setting, the big picture and determined success. However, visionary leaders also look at the likelihood of business interruption, challenges and unforeseeable disasters.
Since this issue of the “Texas Veterinarian” is dedicated to preparing for disasters, travel with me as we view business disaster preparedness from the practice management perspective.
The five main priorities of a veterinary practice manager when dealing with the challenges of a natural disaster or any form of business interruption is for the practice to be able to safeguard:
Communications
Regardless of the disruption, whether a hurricane or simple extended electrical outage, communication is vital. Without communications you are unable to seek help, unable to inform staff members and clients and unable to know if others are aware of your situation. Without communications it will be virtually impossible to lead your business out of the chaos. Loss of communication is the one possession most people are surprised they have lost during a natural disaster. They tend to expect the loss of electric power but are unnervingly surprised to lose their cell phone capabilities. Be ready for it!
Ensure that your staff members have a type written list of every members’ telephone numbers and email addresses. When you can communicate with your team members and they with you, the challenges of a disaster will be mere difficulties rather than defeats.
Design a flow chart that prioritizes how to communicate. For example: 1st – cell phones, 2nd -landlines, 3rd- email, 4th – group web pages such as Facebook, Tweeter or the clinic website, 5th- designate a person or a “sister” clinic outside your geographic area that will act as your contact person, so the team can share messages and updates during the disruption.
Just like a fire drill where all the team knows to meet at a designated location after they leave the building, a line of communication allows the team to account of those missing and those needing assistance. Team members can know the availability of other members. They can then schedule their efforts to help care for the animals at the practice and hopefully return the practice to at least partial operation during the aftermath.
Client communication is more difficult during the disaster. Using signs at the clinic, postings on the clinic or public websites are ways to communicate with your clients during challenging events. Clients need to know information such as to when or if the hospital will be open. Public communication can provide information about animal rescue groups or your hospital’s ability to care for rescued pets. Communicate to your community if you have pet crates available for displaced clients that need crates for their pets.
Do not hesitate to communicate with veterinary organizations, humane organizations and government officials if your practice needs assistance with caring for displaced animals or you have need for medications or equipment during the recovery. There is a whole world of people and organizations that are willing and able to assist veterinarians who is trying to serve their communities’ needs for veterinary care. You must communicate and tell them your situation. You do not have to do this alone.
Communicating with other veterinarians in your area and those in areas more severely affected by the disaster can be very helpful. The level of devastation that can occur often overwhelms people to the point they fall into a state of mental shock and depression. But a communication from a fellow veterinarian or veterinary team member can provide hope for distraught individuals when they realize they are not alone.
Insurance coverage
In preparation for what might befall your practice, ensure you have sufficient insurance for your building and other assets. Granted, there is not anything you can do about insurance during the disaster, so do it before! Ensure you have coverage for all the usual perils as well as flooding, business interruption, professional extension to cover animal injuries or losses, loss of income, civil ordnance coverage in case the civil government closes access to your community, and coverage for interruption of power and sewer.
Medical and Financial Records
The medical and financial records are the backbone of the business’s ability to continue in the aftermath of a disaster. Whether an electrical service disconnect, a hard drive crash or the need to evacuate the premises, your practice will need to keep the medical and financial records safe. The safer these records are maintained the more assurance you have of your practice recovering following a critical event.
Be prepared for power outages by having a printed price list of the practice’s services and products. Develop and train your team members on procedures of how to record payments, charges and medical records when the computer software system is incapacitated. You do not have to be a visionary to realize that the loss of electrical power, whether temporary or several hours, can cause chaos and cost the practice hundreds of dollars when you do not have a system for staff members to continue transactions.
If the threat of an approaching disaster requires you to evacuate the practice location, be sure to take the computer server and at least one terminal that is loaded with the practice’s software system so that you will have access to your medical records. Offsite backups are great but without your server and a computer you will be unable to operate your practice in a remote location.
There are scores of important insurance and business files and records you would like to keep secure during an evacuation, but the server is the one item that can allow you to continue your business during the evacuation and in the aftermath of the recovery. Take the server!
For those with cloud-based practice management systems your server is off-site, and you will only need your computer and a Wi-Fi connection. Remember a Wi-Fi connection might be the difficult component to obtain during a natural disaster. However, with electric power and the Wi-Fi you can be up and running during the aftermath.
Written Contingency Plan
We all know that a written contingency plan is the best way for your practice to get through the difficult experience of a natural disaster or an extended business shutdown. If your business can return to function 2-4 days prior to other veterinary businesses in your area, your practice can help a lot of families in need of veterinary care. Your availability can result in a tremendous advantage for your practice financially and benefit to your customers and patients.
The AVMA has a great resource entitled “Disaster Preparedness for Veterinary Practices” that will guide you through developing a written contingency plan. This 5-page document can be printed or downloaded free of charge and guide you to take the actions needed to accomplish a plan of successful recovery following a disaster.
Support for Team Members and Community
As the leader and manager of your practice, you serve to benefit of the practice as a business endeavor. The business is the provider of income for your team members through the trusted care of the animals in your community. If your practice is devastated during a disaster, the impact of the loss on the team members and the community can be diminished greatly by your ability to prepare for a disaster. Planning will enable your team to know what to do when pets are in the clinic and there is a fire. They will know whom to call if they cannot get to work due to flooding. They will know how to advise clients to evacuate with their pets. They will know whom to call if the practice needs a generator to keep vaccines and medications refrigerated. Receptionist will know how to advise clients about medication refills during the threat of a natural disaster. You will know the Animal Rescue Group in your area to refer lost and displaced pets. You will know that you can contact TVMA if your practice needs support and how your practice can help other surrounding practices that are having a tougher time than your practice. Use your leadership vision of disaster to plan for a successful recovery.
By Dale Lonsford, DVM, August 2018
An important attribute of leading and managing a business is having a Vision. When one speaks of Vison in the realm of business leadership it usually connotes goal setting, the big picture and determined success. However, visionary leaders also look at the likelihood of business interruption, challenges and unforeseeable disasters.
Since this issue of the “Texas Veterinarian” is dedicated to preparing for disasters, travel with me as we view business disaster preparedness from the practice management perspective.
The five main priorities of a veterinary practice manager when dealing with the challenges of a natural disaster or any form of business interruption is for the practice to be able to safeguard:
- Communications
- Insurance coverage
- Medical and Financial Records
- Written Contingency Plan
- Support for the Team Members and Community
Communications
Regardless of the disruption, whether a hurricane or simple extended electrical outage, communication is vital. Without communications you are unable to seek help, unable to inform staff members and clients and unable to know if others are aware of your situation. Without communications it will be virtually impossible to lead your business out of the chaos. Loss of communication is the one possession most people are surprised they have lost during a natural disaster. They tend to expect the loss of electric power but are unnervingly surprised to lose their cell phone capabilities. Be ready for it!
Ensure that your staff members have a type written list of every members’ telephone numbers and email addresses. When you can communicate with your team members and they with you, the challenges of a disaster will be mere difficulties rather than defeats.
Design a flow chart that prioritizes how to communicate. For example: 1st – cell phones, 2nd -landlines, 3rd- email, 4th – group web pages such as Facebook, Tweeter or the clinic website, 5th- designate a person or a “sister” clinic outside your geographic area that will act as your contact person, so the team can share messages and updates during the disruption.
Just like a fire drill where all the team knows to meet at a designated location after they leave the building, a line of communication allows the team to account of those missing and those needing assistance. Team members can know the availability of other members. They can then schedule their efforts to help care for the animals at the practice and hopefully return the practice to at least partial operation during the aftermath.
Client communication is more difficult during the disaster. Using signs at the clinic, postings on the clinic or public websites are ways to communicate with your clients during challenging events. Clients need to know information such as to when or if the hospital will be open. Public communication can provide information about animal rescue groups or your hospital’s ability to care for rescued pets. Communicate to your community if you have pet crates available for displaced clients that need crates for their pets.
Do not hesitate to communicate with veterinary organizations, humane organizations and government officials if your practice needs assistance with caring for displaced animals or you have need for medications or equipment during the recovery. There is a whole world of people and organizations that are willing and able to assist veterinarians who is trying to serve their communities’ needs for veterinary care. You must communicate and tell them your situation. You do not have to do this alone.
Communicating with other veterinarians in your area and those in areas more severely affected by the disaster can be very helpful. The level of devastation that can occur often overwhelms people to the point they fall into a state of mental shock and depression. But a communication from a fellow veterinarian or veterinary team member can provide hope for distraught individuals when they realize they are not alone.
Insurance coverage
In preparation for what might befall your practice, ensure you have sufficient insurance for your building and other assets. Granted, there is not anything you can do about insurance during the disaster, so do it before! Ensure you have coverage for all the usual perils as well as flooding, business interruption, professional extension to cover animal injuries or losses, loss of income, civil ordnance coverage in case the civil government closes access to your community, and coverage for interruption of power and sewer.
Medical and Financial Records
The medical and financial records are the backbone of the business’s ability to continue in the aftermath of a disaster. Whether an electrical service disconnect, a hard drive crash or the need to evacuate the premises, your practice will need to keep the medical and financial records safe. The safer these records are maintained the more assurance you have of your practice recovering following a critical event.
Be prepared for power outages by having a printed price list of the practice’s services and products. Develop and train your team members on procedures of how to record payments, charges and medical records when the computer software system is incapacitated. You do not have to be a visionary to realize that the loss of electrical power, whether temporary or several hours, can cause chaos and cost the practice hundreds of dollars when you do not have a system for staff members to continue transactions.
If the threat of an approaching disaster requires you to evacuate the practice location, be sure to take the computer server and at least one terminal that is loaded with the practice’s software system so that you will have access to your medical records. Offsite backups are great but without your server and a computer you will be unable to operate your practice in a remote location.
There are scores of important insurance and business files and records you would like to keep secure during an evacuation, but the server is the one item that can allow you to continue your business during the evacuation and in the aftermath of the recovery. Take the server!
For those with cloud-based practice management systems your server is off-site, and you will only need your computer and a Wi-Fi connection. Remember a Wi-Fi connection might be the difficult component to obtain during a natural disaster. However, with electric power and the Wi-Fi you can be up and running during the aftermath.
Written Contingency Plan
We all know that a written contingency plan is the best way for your practice to get through the difficult experience of a natural disaster or an extended business shutdown. If your business can return to function 2-4 days prior to other veterinary businesses in your area, your practice can help a lot of families in need of veterinary care. Your availability can result in a tremendous advantage for your practice financially and benefit to your customers and patients.
The AVMA has a great resource entitled “Disaster Preparedness for Veterinary Practices” that will guide you through developing a written contingency plan. This 5-page document can be printed or downloaded free of charge and guide you to take the actions needed to accomplish a plan of successful recovery following a disaster.
Support for Team Members and Community
As the leader and manager of your practice, you serve to benefit of the practice as a business endeavor. The business is the provider of income for your team members through the trusted care of the animals in your community. If your practice is devastated during a disaster, the impact of the loss on the team members and the community can be diminished greatly by your ability to prepare for a disaster. Planning will enable your team to know what to do when pets are in the clinic and there is a fire. They will know whom to call if they cannot get to work due to flooding. They will know how to advise clients to evacuate with their pets. They will know whom to call if the practice needs a generator to keep vaccines and medications refrigerated. Receptionist will know how to advise clients about medication refills during the threat of a natural disaster. You will know the Animal Rescue Group in your area to refer lost and displaced pets. You will know that you can contact TVMA if your practice needs support and how your practice can help other surrounding practices that are having a tougher time than your practice. Use your leadership vision of disaster to plan for a successful recovery.
The Heart of a Teacher can Grow Your Practice
By Dale Lonsford, DVM - October 2018
Have you ever heard this statement about business, “if you’re not growing you’re dying”? As a member of the veterinary profession we are committed to growing in our clinical and scientific knowledge and skills. Should we expect anything less for our practice personnel? Should we not offer opportunities for our team members to grow in their value to the practice? Growth does not just happen. It happens by intention, by working hard and consistently, and by having a teacher.
Not everyone has the heart of a teacher but the practices that have, are growing practices that enrich the lives of their staff and clients. They give more than they receive. They challenge staff members and clients to learn more about good health care for the animals under their care. They provide a picture of what is possible.
We well know not all clients and staff members are good students, that is where the heart of a teacher makes the difference. As in the poem, “The Heart of a Teacher” by Paula J. Fox: “the heart of a teacher can sort them out ... and help the child to see the potential of greatness he has within, a picture of what he can be.”
A good teacher and you as the business leader know WHY staff training and development is important:
In the veterinary profession, we are fortunate to have many resources for work place training and staff development. TVMA’s Certified Veterinary Assistant training is available via internet modules by Animal Care Technologies www.4act.com . They provide three levels of on the job training for veterinary assistant (CVA) training as well as training for receptionists, technicians, pet caretakers and practice management.
Most of the veterinary distributors, reference laboratories, pharmaceutical manufacturers and veterinary buying groups have training modules available for staff training, many of which are accessible for free via the internet.
Utilizing your experienced veterinary assistants and Licensed Veterinary Technicians (LVT) as teachers, trainers and organizers for training programs at the work place can be great assets. Offering a variety of training menus will allow team members to benefit from their preferential way of learning. Having group training sessions with break out sessions seem to work well in the practice setting if you can designate the time out of the already busy clinical schedule. Having staff members send 15 -30 minutes each day or week on courses while at the practice or on their own time can be very rewarding for many. We have also found one on one training with our LVT is motivational and works well with those that learn by doing. We have individual staff member come in 15 minutes prior to their scheduled shift and train on specific skills with our LVT. Using a skill check list such as ones utilized in the TVMA CVA training program or a list customize for your clinic training needs is an effective way of recording skills each staff member has concord.
Finding that person on your staff that has the heart of a teacher, when given the opportunity and the time, can revitalize your practice, stimulate the quest for improvement, enrich work place engagement, and grow the individuals that ultimately grow your practice.
By Dale Lonsford, DVM - October 2018
Have you ever heard this statement about business, “if you’re not growing you’re dying”? As a member of the veterinary profession we are committed to growing in our clinical and scientific knowledge and skills. Should we expect anything less for our practice personnel? Should we not offer opportunities for our team members to grow in their value to the practice? Growth does not just happen. It happens by intention, by working hard and consistently, and by having a teacher.
Not everyone has the heart of a teacher but the practices that have, are growing practices that enrich the lives of their staff and clients. They give more than they receive. They challenge staff members and clients to learn more about good health care for the animals under their care. They provide a picture of what is possible.
We well know not all clients and staff members are good students, that is where the heart of a teacher makes the difference. As in the poem, “The Heart of a Teacher” by Paula J. Fox: “the heart of a teacher can sort them out ... and help the child to see the potential of greatness he has within, a picture of what he can be.”
A good teacher and you as the business leader know WHY staff training and development is important:
- Fulfillment - 74% of workers felt they were not achieving their potential at work due to lack of developmental opportunities
- Engagement – Gallop pole in 2014 demonstrated that only 13 % of all employees are highly engaged at work
- Retention – 7 out of 10 employees surveyed in a 2015 study said job-related training and development opportunities influence their decision to stay with a company
- Skills Advancement and Productivity Increase – investing in employee training increased productivity 8.6% compared to the same amount of money invested in upgraded equipment that increased productivity only 3.4%
- Work-place training improves customer/client service, improves patient care and team members sense of achievement
In the veterinary profession, we are fortunate to have many resources for work place training and staff development. TVMA’s Certified Veterinary Assistant training is available via internet modules by Animal Care Technologies www.4act.com . They provide three levels of on the job training for veterinary assistant (CVA) training as well as training for receptionists, technicians, pet caretakers and practice management.
Most of the veterinary distributors, reference laboratories, pharmaceutical manufacturers and veterinary buying groups have training modules available for staff training, many of which are accessible for free via the internet.
Utilizing your experienced veterinary assistants and Licensed Veterinary Technicians (LVT) as teachers, trainers and organizers for training programs at the work place can be great assets. Offering a variety of training menus will allow team members to benefit from their preferential way of learning. Having group training sessions with break out sessions seem to work well in the practice setting if you can designate the time out of the already busy clinical schedule. Having staff members send 15 -30 minutes each day or week on courses while at the practice or on their own time can be very rewarding for many. We have also found one on one training with our LVT is motivational and works well with those that learn by doing. We have individual staff member come in 15 minutes prior to their scheduled shift and train on specific skills with our LVT. Using a skill check list such as ones utilized in the TVMA CVA training program or a list customize for your clinic training needs is an effective way of recording skills each staff member has concord.
Finding that person on your staff that has the heart of a teacher, when given the opportunity and the time, can revitalize your practice, stimulate the quest for improvement, enrich work place engagement, and grow the individuals that ultimately grow your practice.
Wellness Evaluation for the Practice - Culture and Marketing
By Dale Lonsford, DVM, June 2018
Culture and Marketing of the Veterinary Practice are two important management functions the owner of a veterinary practice should evaluate when determining the success and well-being of the practice. Previous articles in the February and April issues of the “Texas Veterinarian” this year discussed evaluating the financial statements and the service/product metrics of the practice as the first two ways of evaluating the health of a practice. This article will concentrate on the culture of the practice and marketing.
There is a lot of discussion in today’s management circles about culture in a business. Culture seems to be the current buzzword for other words like: teamwork, work environment, job satisfaction, unity, values, workplace community, morale and compatibility. Culture has a broad connotation and encompasses all these words however the culture of a business begins with values and how the people in the business live out those values.
You have probably heard it said, “Business is easy …. until people get involved.” All businesses have people as employees and as customers and therefor all businesses have a culture. It is up to the leadership team to establish the culture and it starts by determining what is important to you.
How do you know if your practice has a great culture or a toxic culture? Ask yourself if you are happy about coming to work? Ask your staff members the same question. Listen to their comments and observe their attitudes when daily challenges arise. Do they feel their efforts are significant and purposeful?
Start with Values. Allow your staff members to participate in the development of your practice values. Come together and determine what values are important to you. Is loyalty more important than honesty, is accountability more important than getting the job done, is compassion for the pet owner as important as compassion for the pet, does advocacy for the pet surpass owners’ financial responsibility, is staff compliance more important than staff assertiveness, is sharing ones concerns with various teammates a higher priority than sharing those concerns with leadership? Values are not just a list of characteristics and qualities. It is a balance of those qualities that you and the team can feel good about as you work together to serve your patients and customers. Values guide decision making for the practice. Use the Golden Rule – “Do unto others as you would have them do unto you.” if you and your staff are having difficulty balancing the qualities.
Establishing team values is the first step, the next is living by them. It is important that leadership be the example and the enforcer of these values. Without leadership, the practice culture does not go away, it simply morphs in to a toxic culture. It behooves practice managers and owners to monitor the culture of the practice as this can be an early indicator of financial success or failure. Clients experience the practice culture every time they have an interaction with the practice. The culture and the values of the practice are reflected in everything from the cleanliness of the clinic to the explanation of the treatment and charges. Client loyalty typically does not trump a toxic clinical culture.
Now on to Marketing. There are basically two types of marketing – Internal (retention) and external (acquisition) marketing. External is what we tend to consider as advertising, street signage, goggle ads, community involvement, acquiring new customers and social media presence. Internal marketing involves client education, efforts to retain current customers, target marketing to specific groups of clients, data mining, compliance studies and continuing education for staff members. Hopefully management has budgeted a given amount for both external marketing, internal marketing and continuing education.
You are well advised to spend most of your marketing money on internal marketing compared to external marketing. The typical return on $1 of external marketing is about $4 compared to the return on $1 of internal marketing of $10. It is more economical to retain clients than to recruit new clients. However, if your practice’s rate of new clients is less than 300 new clients/year/full time veterinarian you will need to spend more time and money on external marketing.
How can you measure the bond you have with your newly acquired clients? Print a list of your new clients over the past 18 months. If less than 50 % have returned for more services during an 18-month period, your client bonding and retention needs to be aggressively addressed. Marketing money for internal marketing should be invested on staff training, continuing education for staff members, secret shoppers, telephone and communication training.
Many practice consultants recommend allocating 1-3% of your gross income to marketing with the majority for internal marketing. Internal (Retention) marketing is primarily educating your clients and staff members thereby strengthen the relationship you have already established. Use your practice software to identify patients that have specific diagnoses such as dental disease, obesity, thunderstorm phobia, allergies, etc. Target the marketing to the clients that own patients with these diagnoses. Provide educational information about the pet’s diagnosis, mention a treatment or solution available through the practice for the benefit of the pet’s quality of life. Be sure to ask your clients to take action by offering a time-sensitive discount and or participate in an on-line discussion of the diagnosis. Consider the discounts, mailings and follow-up staff time as part of your internal marketing budget. Record the increased income generated by the target marketing effort and celebrate your success.
Evaluation of the practice’s Marketing and Culture should give leadership ideas for improvements. Combining these ideas with information from the evaluation of the Financial Statements and Practice Operations will provide strategies for the practice. This Wellness Evaluation of the Practice will reward the practice leadership with improved profits, happy clients, staff satisfaction and a well-served patient population.
By Dale Lonsford, DVM, June 2018
Culture and Marketing of the Veterinary Practice are two important management functions the owner of a veterinary practice should evaluate when determining the success and well-being of the practice. Previous articles in the February and April issues of the “Texas Veterinarian” this year discussed evaluating the financial statements and the service/product metrics of the practice as the first two ways of evaluating the health of a practice. This article will concentrate on the culture of the practice and marketing.
There is a lot of discussion in today’s management circles about culture in a business. Culture seems to be the current buzzword for other words like: teamwork, work environment, job satisfaction, unity, values, workplace community, morale and compatibility. Culture has a broad connotation and encompasses all these words however the culture of a business begins with values and how the people in the business live out those values.
You have probably heard it said, “Business is easy …. until people get involved.” All businesses have people as employees and as customers and therefor all businesses have a culture. It is up to the leadership team to establish the culture and it starts by determining what is important to you.
How do you know if your practice has a great culture or a toxic culture? Ask yourself if you are happy about coming to work? Ask your staff members the same question. Listen to their comments and observe their attitudes when daily challenges arise. Do they feel their efforts are significant and purposeful?
Start with Values. Allow your staff members to participate in the development of your practice values. Come together and determine what values are important to you. Is loyalty more important than honesty, is accountability more important than getting the job done, is compassion for the pet owner as important as compassion for the pet, does advocacy for the pet surpass owners’ financial responsibility, is staff compliance more important than staff assertiveness, is sharing ones concerns with various teammates a higher priority than sharing those concerns with leadership? Values are not just a list of characteristics and qualities. It is a balance of those qualities that you and the team can feel good about as you work together to serve your patients and customers. Values guide decision making for the practice. Use the Golden Rule – “Do unto others as you would have them do unto you.” if you and your staff are having difficulty balancing the qualities.
Establishing team values is the first step, the next is living by them. It is important that leadership be the example and the enforcer of these values. Without leadership, the practice culture does not go away, it simply morphs in to a toxic culture. It behooves practice managers and owners to monitor the culture of the practice as this can be an early indicator of financial success or failure. Clients experience the practice culture every time they have an interaction with the practice. The culture and the values of the practice are reflected in everything from the cleanliness of the clinic to the explanation of the treatment and charges. Client loyalty typically does not trump a toxic clinical culture.
Now on to Marketing. There are basically two types of marketing – Internal (retention) and external (acquisition) marketing. External is what we tend to consider as advertising, street signage, goggle ads, community involvement, acquiring new customers and social media presence. Internal marketing involves client education, efforts to retain current customers, target marketing to specific groups of clients, data mining, compliance studies and continuing education for staff members. Hopefully management has budgeted a given amount for both external marketing, internal marketing and continuing education.
You are well advised to spend most of your marketing money on internal marketing compared to external marketing. The typical return on $1 of external marketing is about $4 compared to the return on $1 of internal marketing of $10. It is more economical to retain clients than to recruit new clients. However, if your practice’s rate of new clients is less than 300 new clients/year/full time veterinarian you will need to spend more time and money on external marketing.
How can you measure the bond you have with your newly acquired clients? Print a list of your new clients over the past 18 months. If less than 50 % have returned for more services during an 18-month period, your client bonding and retention needs to be aggressively addressed. Marketing money for internal marketing should be invested on staff training, continuing education for staff members, secret shoppers, telephone and communication training.
Many practice consultants recommend allocating 1-3% of your gross income to marketing with the majority for internal marketing. Internal (Retention) marketing is primarily educating your clients and staff members thereby strengthen the relationship you have already established. Use your practice software to identify patients that have specific diagnoses such as dental disease, obesity, thunderstorm phobia, allergies, etc. Target the marketing to the clients that own patients with these diagnoses. Provide educational information about the pet’s diagnosis, mention a treatment or solution available through the practice for the benefit of the pet’s quality of life. Be sure to ask your clients to take action by offering a time-sensitive discount and or participate in an on-line discussion of the diagnosis. Consider the discounts, mailings and follow-up staff time as part of your internal marketing budget. Record the increased income generated by the target marketing effort and celebrate your success.
Evaluation of the practice’s Marketing and Culture should give leadership ideas for improvements. Combining these ideas with information from the evaluation of the Financial Statements and Practice Operations will provide strategies for the practice. This Wellness Evaluation of the Practice will reward the practice leadership with improved profits, happy clients, staff satisfaction and a well-served patient population.
Service and Product Metrics for Evaluating Veterinary Business Operations
By Dale Lonsford, DVM, April 2018
In the February 2018 issue of the Texas Veterinarian we discussed using financial statements to evaluate the wellness of your practice. Looking at the income and expenses was a great place to start, however there is more to the story. Do you wonder if your practice is maximizing its potential? Looking at the way the practice operates can open your eyes to improvement in efficiency, better patient treatment outcomes, client and staff member satisfaction and yes; even a greater profit margin.
Veterinary practices operate by providing services and products to clients and customers who value their animals. As a business person your ability to provide these services and products efficiently, ethically, legally and timely for as many clients as possible will depend on the leadership of your team. Leadership is not just motivation and dedication. There are a lot of decisions to be made regarding these services and products as well as how your team is to provide them.
Collecting data on how your practice operates will allow you to evaluate and decide which services and products to provide, how much to charge and how to market them. Consistency and efficiency are attainable through a designated effort to improve the operation of your veterinary business. Gathering and evaluation this data allows you to determine trends, allows you to compare your data with other practices or established veterinary industry standards. Using service and products metrics will ultimately improve patient care and increase income.
Most of the data you will need to collect is not available from the financial statements but is available through your practice management software. It can also be gathered using time studies and tallying interactions with clients, phone calls and medical records. That is why they call it teamwork – this is not something you can do without a team. And you guessed it – a team needs a leader and you are it.
The following chart gives examples of some of the data that successful practices and various practice management study groups use. This list depicts some of the data that needs to be collected, the source of the data and the multitude of ratios and comparisons that can be used to evaluate the operation of a practice.
Scorecard Spreadsheet for Veterinary Practice Operations
A few of these numbers come from the financial statements while most come from the practice management and payroll systems. These numbers are best utilized when they are paired with income, expenses, and or compared with previous number. They can be entered in a spreadsheet and mathematical formulas can be designated to yield various ratios that have a greater meaning than just stand-alone numbers.
For example: Using the number of Full Time Equivalent Doctors and Support Staff and the number of total hours worked for Doctors and Support Staff, one can get a ratio of the number of support staff per doctor. This ratio can be compared to national averages.
Another example: Our hospital likes to evaluate the ratio of the number of dental cleanings to the number of physical examinations. Another good ratio is the number of dentals performed per week per veterinarian. Why dedicate only 4 weeks as dental month? Every day should be dental day and measuring the number of dentals performed per week per number of veterinarians yields a ratio than can be used to set goals and drive greater awareness and success.
Doctor’s Average Client Transaction is very commonly used, however if the total invoice number is not also considered, one could get the wrong impression of a doctor’s efficiency and case load.
Identifying the 10 top services and prescription products can be very useful. Typically, the higher the frequency of a specific service the more value the clients and the staff place on the service and the resulting health benefits for the patients. The reverse can also be true. If during the review of the Service and Products data metrics you find a service absent from the top ten list, you can intervene. Staff training may need to be increased to convey the value and benefits of such services as mid-year physical examinations or weight control. When pricing services consider the value from the eyes and heart of the client. Services that are high on the frequency list but low on the income list probably have a high client value and you could decide to increase the price.
If your practice cannot convey the value to the client, either the client has different priorities for their money or the doctors and staff are not convinced of the value. If a service has a greater need in your patient population and is low on the frequency list, you can act to increase clients’ awareness of the benefits of the service resulting in an increase in the service being offered and purchased.
Making decisions on how to lead your practice to the next level can be greatly facilitated by using Services and Product metrics. This is just another example of how better business management can provide better medicine and raise the potential for practice success.
By Dale Lonsford, DVM, April 2018
In the February 2018 issue of the Texas Veterinarian we discussed using financial statements to evaluate the wellness of your practice. Looking at the income and expenses was a great place to start, however there is more to the story. Do you wonder if your practice is maximizing its potential? Looking at the way the practice operates can open your eyes to improvement in efficiency, better patient treatment outcomes, client and staff member satisfaction and yes; even a greater profit margin.
Veterinary practices operate by providing services and products to clients and customers who value their animals. As a business person your ability to provide these services and products efficiently, ethically, legally and timely for as many clients as possible will depend on the leadership of your team. Leadership is not just motivation and dedication. There are a lot of decisions to be made regarding these services and products as well as how your team is to provide them.
Collecting data on how your practice operates will allow you to evaluate and decide which services and products to provide, how much to charge and how to market them. Consistency and efficiency are attainable through a designated effort to improve the operation of your veterinary business. Gathering and evaluation this data allows you to determine trends, allows you to compare your data with other practices or established veterinary industry standards. Using service and products metrics will ultimately improve patient care and increase income.
Most of the data you will need to collect is not available from the financial statements but is available through your practice management software. It can also be gathered using time studies and tallying interactions with clients, phone calls and medical records. That is why they call it teamwork – this is not something you can do without a team. And you guessed it – a team needs a leader and you are it.
The following chart gives examples of some of the data that successful practices and various practice management study groups use. This list depicts some of the data that needs to be collected, the source of the data and the multitude of ratios and comparisons that can be used to evaluate the operation of a practice.
Scorecard Spreadsheet for Veterinary Practice Operations
A few of these numbers come from the financial statements while most come from the practice management and payroll systems. These numbers are best utilized when they are paired with income, expenses, and or compared with previous number. They can be entered in a spreadsheet and mathematical formulas can be designated to yield various ratios that have a greater meaning than just stand-alone numbers.
For example: Using the number of Full Time Equivalent Doctors and Support Staff and the number of total hours worked for Doctors and Support Staff, one can get a ratio of the number of support staff per doctor. This ratio can be compared to national averages.
Another example: Our hospital likes to evaluate the ratio of the number of dental cleanings to the number of physical examinations. Another good ratio is the number of dentals performed per week per veterinarian. Why dedicate only 4 weeks as dental month? Every day should be dental day and measuring the number of dentals performed per week per number of veterinarians yields a ratio than can be used to set goals and drive greater awareness and success.
Doctor’s Average Client Transaction is very commonly used, however if the total invoice number is not also considered, one could get the wrong impression of a doctor’s efficiency and case load.
Identifying the 10 top services and prescription products can be very useful. Typically, the higher the frequency of a specific service the more value the clients and the staff place on the service and the resulting health benefits for the patients. The reverse can also be true. If during the review of the Service and Products data metrics you find a service absent from the top ten list, you can intervene. Staff training may need to be increased to convey the value and benefits of such services as mid-year physical examinations or weight control. When pricing services consider the value from the eyes and heart of the client. Services that are high on the frequency list but low on the income list probably have a high client value and you could decide to increase the price.
If your practice cannot convey the value to the client, either the client has different priorities for their money or the doctors and staff are not convinced of the value. If a service has a greater need in your patient population and is low on the frequency list, you can act to increase clients’ awareness of the benefits of the service resulting in an increase in the service being offered and purchased.
Making decisions on how to lead your practice to the next level can be greatly facilitated by using Services and Product metrics. This is just another example of how better business management can provide better medicine and raise the potential for practice success.
Wellness Check for Your Practice
By Dale Lonsford, DVM, January 2018
How healthy is your veterinary business? Begin this new year by looking back before looking ahead. There are three areas that will reveal the health and wellness of your practice. Reviewing the past will help you to diagnosis issues needing improvement as you plan for your growth in the coming year. Reviewing these three areas will give you a holistic view of the practice’s successes and weaknesses- measurements that can be used in the coming year for re-enforcing or re-considering the way your practice is operating. These three areas are Financial Statements, Services/Product Metrics, and Marketing and Culture. This article will concentrate on the Financial Statements.
Financials – Is your practice Thriving, Surviving or Fading?
Review your year-end financial reports. If you receive these from your CPA, accountant or produce them from you own financial management software program, they are a great place to start the wellness examination on your practice. If you are like most of us, your eyes quickly scan to the all-important bottom line for the net profit. However, there is so much more information in the Balance Sheet and the Profit and Loss Statement that can be used for improving the coming year’s bottom line.
Three figures that are often inaccurately counted in veterinary practices are the owner’s salary, the inventory and the facilities cost. Most CPAs will account for these important financial factors. Even if there is no physical inventory count, or an account for the veterinary owner’s services (clinical and managerial), or rent when the facility is owned by the veterinary owner – these numbers must be incorporated into the financial statements to have an accurate evaluation of the cost of doing business.
Grab your previous and current annual financial statements so you can follow along as we discuss the Balance Sheet and the Profit and Loss Statement.
The Balance Sheet is a static picture of all the assets (what your practice owns) and the liabilities (what your practice owes) on a given day. The Balance Sheet is expressed in the equation: Assets = Liabilities + Owner’s Equity. The Balance Sheet should show that your practice is solvent if the Assets are greater than the Liabilities thereby yielding a positive Owner’s Equity. Current Assets should be greater than the Current Liabilities, this conveys that your practice can pay its bills. Look at the Equity by comparing the previous Balance Sheet with the Current Balance Sheet. One should see the Equity increasing. All these confirm the healthy status of your practice. Be watchful of the Inventory on the Asset side of the Balance Sheet. A rising Inventory number ties up your available cash and can give you a false sense of value. Many veterinary practices do not physically count their inventory and use an outdated or unrealistic value which can lead to faulty conclusions. Remember, inventory is your dollars setting on the shelves losing value unless product is moving off the shelve when sold or when used for the performance of a money- making procedure.
BALANCE SHEET
A Picture of Today
ASSETS = LIABILITIES + EQUITY
Practice Owns = Practice Owes + Value Retained
The Profit and Loss Statement (or Income Statement) – is the income and expense record of your operation as a veterinary practice over a designated period of time. Printing your Income Statement with a column that shows each line item as a percentage of the Gross Income is vital for comparing one statement to another and for comparing one category of income to the same category of expense. If we look at the following five important numbers on the Income Statement we can quickly tell how well your practice is operating. The first number we look at is the 1) Total Gross Income – hopefully it is a larger number than it was last year and using the Percent Income column it’s value is 100%. Next go down to the 2) Told Cost of Goods Sold – this number should be about 25 % or less of the Gross Income. The larger that percentage becomes the less money you will have to pay your staff, your monthly bills and yourself. The next number is the product of Total Gross Income less the Total Cost of Goods Sold which equals 3) Gross Profit. The goal is to have that number at about 75% of the Gross Income. All the other expenses have to be paid out of the Gross Profit. Gross Profit is a key number to watch. Without a healthy Gross Profit your veterinary business cannot pay the operating expenses and your company will not be able to survive.
Expenses typically are divided into Administrative, Compensation/Benefits, and Facility Expenses. Look for Administrative Expenses to be about 7%-10% of the Gross Income, Compensation (Professional and Lay Staff Salaries) to be about 45-50%, and Facilities from 5-10%. As you can see, and you probably already know, salaries and benefits for you and your staff take up about half of all the gross income.
PROFIT and LOSS STATEMENT
A Picture over a Period of Time
1. Total Gross Income 100%
2. Cost of Goods Sold 25%
3. Gross Profit 75%
Administrative 7-10%
Compensation 45-50%
Facilities Exp. 5-10%
4. Operating Profit goal of 10-18%
5. Net Profit goal of 8-16%
If the Cost of Goods Sold are greater than 25 % - there is very little you can do except reduce your inventory or raise your prices. If your practice has a Gross Profit of less than 75% you have much more opportunity to reduce Administrative and Compensation cost when budgeting than anywhere else on the Profit and Loss Statement. For example, if your Gross Profit is 74% and your Administrative Expenses are in the 7% range, the Compensation is in the 49% range and the Facilities fall in the 9% range; the math will work out as 74% Gross Profit minus (7% Adm. + 49 % Comp. + 8 % Facility) leaves 10% Net Ordinary Income or Operating Profit. Most would like to have the 4) Net Ordinary Income (Operating Profit) to be at least 10% to 18%.
Another name frequently used for Operating Profit is Earnings Before Interest and Taxes and Depreciation or EBITDA. This is a significant figure because taxes, interest and depreciation have little to do with the efficiency of how your practice operates. Administrative, Compensation and Facilities Expenses are the areas you have the most opportunity to improve by budgeting for a better Operating Profit. Operating Profit (EBITDA) is also one of the main figures that appraisers use to value your practice. Get this one in the 14-20 % and your practice will be thriving even if your Gross Income does not increase but a mere 2 or 3%.
The path for getting to 5) Net Profit from Operating Profit is pretty much out of your hands. Operating Profits are reduced by Interest Expense, Depreciation and Taxes – not much you can do with these. Net Profit is the bottom line. Net Profit is the Return on your Investment in your company. The question to ask yourself - “Is my veterinary practice being managed well enough to produce a sufficient return on my investment?”
If the answer is Yes – carry on and continue to improve that bottom line. If the answer is No – seek help from a CPA that will guide you in your business as well as the typical income tax preparations. Also seek a veterinary study group that you can join and with whom you can share your confidential information. They can help you improve your business and your life.
There is a lot of hope that 2018 will be a booming year. Be prepared to take full advantage by reviewing how well your practice has performed last year and set a budget using your Profit and Loss Statement on how you want it to perform this coming year.
By Dale Lonsford, DVM, January 2018
How healthy is your veterinary business? Begin this new year by looking back before looking ahead. There are three areas that will reveal the health and wellness of your practice. Reviewing the past will help you to diagnosis issues needing improvement as you plan for your growth in the coming year. Reviewing these three areas will give you a holistic view of the practice’s successes and weaknesses- measurements that can be used in the coming year for re-enforcing or re-considering the way your practice is operating. These three areas are Financial Statements, Services/Product Metrics, and Marketing and Culture. This article will concentrate on the Financial Statements.
Financials – Is your practice Thriving, Surviving or Fading?
Review your year-end financial reports. If you receive these from your CPA, accountant or produce them from you own financial management software program, they are a great place to start the wellness examination on your practice. If you are like most of us, your eyes quickly scan to the all-important bottom line for the net profit. However, there is so much more information in the Balance Sheet and the Profit and Loss Statement that can be used for improving the coming year’s bottom line.
Three figures that are often inaccurately counted in veterinary practices are the owner’s salary, the inventory and the facilities cost. Most CPAs will account for these important financial factors. Even if there is no physical inventory count, or an account for the veterinary owner’s services (clinical and managerial), or rent when the facility is owned by the veterinary owner – these numbers must be incorporated into the financial statements to have an accurate evaluation of the cost of doing business.
Grab your previous and current annual financial statements so you can follow along as we discuss the Balance Sheet and the Profit and Loss Statement.
The Balance Sheet is a static picture of all the assets (what your practice owns) and the liabilities (what your practice owes) on a given day. The Balance Sheet is expressed in the equation: Assets = Liabilities + Owner’s Equity. The Balance Sheet should show that your practice is solvent if the Assets are greater than the Liabilities thereby yielding a positive Owner’s Equity. Current Assets should be greater than the Current Liabilities, this conveys that your practice can pay its bills. Look at the Equity by comparing the previous Balance Sheet with the Current Balance Sheet. One should see the Equity increasing. All these confirm the healthy status of your practice. Be watchful of the Inventory on the Asset side of the Balance Sheet. A rising Inventory number ties up your available cash and can give you a false sense of value. Many veterinary practices do not physically count their inventory and use an outdated or unrealistic value which can lead to faulty conclusions. Remember, inventory is your dollars setting on the shelves losing value unless product is moving off the shelve when sold or when used for the performance of a money- making procedure.
BALANCE SHEET
A Picture of Today
ASSETS = LIABILITIES + EQUITY
Practice Owns = Practice Owes + Value Retained
The Profit and Loss Statement (or Income Statement) – is the income and expense record of your operation as a veterinary practice over a designated period of time. Printing your Income Statement with a column that shows each line item as a percentage of the Gross Income is vital for comparing one statement to another and for comparing one category of income to the same category of expense. If we look at the following five important numbers on the Income Statement we can quickly tell how well your practice is operating. The first number we look at is the 1) Total Gross Income – hopefully it is a larger number than it was last year and using the Percent Income column it’s value is 100%. Next go down to the 2) Told Cost of Goods Sold – this number should be about 25 % or less of the Gross Income. The larger that percentage becomes the less money you will have to pay your staff, your monthly bills and yourself. The next number is the product of Total Gross Income less the Total Cost of Goods Sold which equals 3) Gross Profit. The goal is to have that number at about 75% of the Gross Income. All the other expenses have to be paid out of the Gross Profit. Gross Profit is a key number to watch. Without a healthy Gross Profit your veterinary business cannot pay the operating expenses and your company will not be able to survive.
Expenses typically are divided into Administrative, Compensation/Benefits, and Facility Expenses. Look for Administrative Expenses to be about 7%-10% of the Gross Income, Compensation (Professional and Lay Staff Salaries) to be about 45-50%, and Facilities from 5-10%. As you can see, and you probably already know, salaries and benefits for you and your staff take up about half of all the gross income.
PROFIT and LOSS STATEMENT
A Picture over a Period of Time
1. Total Gross Income 100%
2. Cost of Goods Sold 25%
3. Gross Profit 75%
Administrative 7-10%
Compensation 45-50%
Facilities Exp. 5-10%
4. Operating Profit goal of 10-18%
5. Net Profit goal of 8-16%
If the Cost of Goods Sold are greater than 25 % - there is very little you can do except reduce your inventory or raise your prices. If your practice has a Gross Profit of less than 75% you have much more opportunity to reduce Administrative and Compensation cost when budgeting than anywhere else on the Profit and Loss Statement. For example, if your Gross Profit is 74% and your Administrative Expenses are in the 7% range, the Compensation is in the 49% range and the Facilities fall in the 9% range; the math will work out as 74% Gross Profit minus (7% Adm. + 49 % Comp. + 8 % Facility) leaves 10% Net Ordinary Income or Operating Profit. Most would like to have the 4) Net Ordinary Income (Operating Profit) to be at least 10% to 18%.
Another name frequently used for Operating Profit is Earnings Before Interest and Taxes and Depreciation or EBITDA. This is a significant figure because taxes, interest and depreciation have little to do with the efficiency of how your practice operates. Administrative, Compensation and Facilities Expenses are the areas you have the most opportunity to improve by budgeting for a better Operating Profit. Operating Profit (EBITDA) is also one of the main figures that appraisers use to value your practice. Get this one in the 14-20 % and your practice will be thriving even if your Gross Income does not increase but a mere 2 or 3%.
The path for getting to 5) Net Profit from Operating Profit is pretty much out of your hands. Operating Profits are reduced by Interest Expense, Depreciation and Taxes – not much you can do with these. Net Profit is the bottom line. Net Profit is the Return on your Investment in your company. The question to ask yourself - “Is my veterinary practice being managed well enough to produce a sufficient return on my investment?”
If the answer is Yes – carry on and continue to improve that bottom line. If the answer is No – seek help from a CPA that will guide you in your business as well as the typical income tax preparations. Also seek a veterinary study group that you can join and with whom you can share your confidential information. They can help you improve your business and your life.
There is a lot of hope that 2018 will be a booming year. Be prepared to take full advantage by reviewing how well your practice has performed last year and set a budget using your Profit and Loss Statement on how you want it to perform this coming year.
Team Up in 2018
By Dale Lonsford, DVM, December 2017
Wouldn’t it be great if your veterinary practice staff members worked together as a unified team, striving together to achieve their monthly goals while benevolently appreciating one another’s efforts and accomplishments? But deep down you know it want last more than a couple of weeks. It has been said, “running a business is easy, until people get involved.”
Do you remember the 1980 Olympic Ice Hockey gold medal victory by the unassuming United States Ice Hockey team? For those too young to know about this historic flag waving event, google “Miracle on Ice”. The story will make you proud.
When Herb Brooks was gathering the members to be on the US Olympic ice hockey team he was ridiculed for passing over some of the most talented players. He merely commented that he was looking for the right players and not necessarily the best players. He was looking for players that had a hunger to play, that were humble and would place more value on the team’s accomplishments than their own personal accomplishments. He wanted a team that would answer challenges with unity. Their unified effort is recorded as one of the greatest victories in sports.
Serving the public as a veterinary care professional is not a game but it does take teamwork, and no just a team but a unified team. John Maxwell, in his book The 17 Indisputable Laws of Teamwork, describes the importance of the team sharing the same values. If your practice has not yet discussed and come to an agreement on what values define your practice, get started today. This will allow you to start the New Year with a word-picture of the values important to your team. Values statements help the team be accountable to and supportive of one another. Values give the team standards to live by. They act as a compass to guide your team through challenges and customer service issues. Values statements help answer the “why” of your business; not only for the owner but for the whole team.
There is a lot of wisdom in Herb Brooks’ statement on getting the “right” people. Patrick Lencioni, in his book entitled, The Ideal Team Player , wrote about recruiting, hiring and training staff to be team players. You will need to read the book to get his take on hiring people that have the three virtues of hungry, humble and smart. As leaders in your business – whether owner, manager or employee – getting the right people will make running your business much easier. Even with having the right people, unity can be fragile.
Dave Ramsey in his book, EntreLeadership, identifies five enemies of Unity:
Fight Poor Communications by developing intentional and effective communication. Owners - share your dream for the veterinary practice with the staff. Talk about when you started, where the company has come from and where you would like to see it grow. Give them why it is important to grow and how the future of the practice is in their hands. Veterinary business is not just a commodity that people need, we make life better for animals and people.
Develop strong and reliable communications through your computer systems, through scheduled staff meetings, through praising and corrections, do the annual reviews, develop job descriptions and let them know what success looks like when they do their job right. Leaders – remember that there is no better way to communicate than in person. Be available, be a listener and take the temperature of your practice by just walking slowly through the clinic while absorbing vibes, conversations, issues and demonstrating that you are in touch.
Fight Lack of Shared Purpose by utilizing your leadership team to develop weekly, monthly and quarterly goals all of which are miniaturized versions of the practice mission statement and the owner’s short and long-term vision. Do not forget to share these goals and the benefits of reaching the goals with each staff member through your intentional and effective communications.
Fight Gossip. The nature of gossip is the anthesis of unity. Gossip destroys trust -“if he will say that about her, you know he will say that about you.” Fight gossip by having staff members take their problems and frustrations to their supervisors. Do not allow members to share their frustrations or gripes downstream or laterally. They need to go upward where something can be done positively to help solve the issue rather than sharing discontent with no intent of a resolution. Fight gossip by making your practice a gossip-free zone and staff members will get to where they will self-police and help redirect conversation to talking about ideas rather than bad-mouthing other staff members, leadership and clients.
Fight Unresolved Disagreements by leadership taking an active role in resolving disagreements and hurt feelings between employees. Advise employees to go directly to the offending employee and describe the hurt feelings or disagreement. Help employees to understand we do not all have the same personality styles but we should have the same commitment to truth and respect for one another. Many people are fearful of conflict and they should be encouraged to ask a supervisor or other leadership member to assist in scheduling a meeting with the two employees and work on a resolution. Employees do not have to like one another but they do have to respect and be truthful with one another. Here again is where gossip or sharing frustrations about an employee with another employee will destroy unity. Sharing with a supervisor or leader will maintain unity as the resolution can be handled.
Fight Sanctioned Incompetence. When an employee is no competent and leadership does nothing, the other employees become demoralized. Incompetence can be due to lack of training, lack of learning, lack of trying, or the person may be struggling with illness or a personal loss. Either way, leadership must intervene. If there is a lack of training, provide more training. If there is a personal hardship allow them some time to recover by asking the other staff members to pitch-in during a reasonable recovery period. If there is a lack of capability or unwillingness to learn – this employee needs to be set free to work somewhere else. Lack of action on the part of the leadership will sanction incompetence and incompetence will spread as disunity worsens. Fight incompetence with training, recovery or removal.
Fight these five enemies of Unity and Teamwork. Any one of the five can hinder your success. Any two can cause you to fail. However, if you develop a culture where leadership and members of the team learn to fight these enemies, you will have a tremendously satisfying practice that will stand out to your clients, to potential employees and to your colleagues.
By Dale Lonsford, DVM, December 2017
Wouldn’t it be great if your veterinary practice staff members worked together as a unified team, striving together to achieve their monthly goals while benevolently appreciating one another’s efforts and accomplishments? But deep down you know it want last more than a couple of weeks. It has been said, “running a business is easy, until people get involved.”
Do you remember the 1980 Olympic Ice Hockey gold medal victory by the unassuming United States Ice Hockey team? For those too young to know about this historic flag waving event, google “Miracle on Ice”. The story will make you proud.
When Herb Brooks was gathering the members to be on the US Olympic ice hockey team he was ridiculed for passing over some of the most talented players. He merely commented that he was looking for the right players and not necessarily the best players. He was looking for players that had a hunger to play, that were humble and would place more value on the team’s accomplishments than their own personal accomplishments. He wanted a team that would answer challenges with unity. Their unified effort is recorded as one of the greatest victories in sports.
Serving the public as a veterinary care professional is not a game but it does take teamwork, and no just a team but a unified team. John Maxwell, in his book The 17 Indisputable Laws of Teamwork, describes the importance of the team sharing the same values. If your practice has not yet discussed and come to an agreement on what values define your practice, get started today. This will allow you to start the New Year with a word-picture of the values important to your team. Values statements help the team be accountable to and supportive of one another. Values give the team standards to live by. They act as a compass to guide your team through challenges and customer service issues. Values statements help answer the “why” of your business; not only for the owner but for the whole team.
There is a lot of wisdom in Herb Brooks’ statement on getting the “right” people. Patrick Lencioni, in his book entitled, The Ideal Team Player , wrote about recruiting, hiring and training staff to be team players. You will need to read the book to get his take on hiring people that have the three virtues of hungry, humble and smart. As leaders in your business – whether owner, manager or employee – getting the right people will make running your business much easier. Even with having the right people, unity can be fragile.
Dave Ramsey in his book, EntreLeadership, identifies five enemies of Unity:
- Poor Communication
- Lack of Shared Purpose
- Gossip
- Unresolved Disagreements
- Sanctioned Incompetence
Fight Poor Communications by developing intentional and effective communication. Owners - share your dream for the veterinary practice with the staff. Talk about when you started, where the company has come from and where you would like to see it grow. Give them why it is important to grow and how the future of the practice is in their hands. Veterinary business is not just a commodity that people need, we make life better for animals and people.
Develop strong and reliable communications through your computer systems, through scheduled staff meetings, through praising and corrections, do the annual reviews, develop job descriptions and let them know what success looks like when they do their job right. Leaders – remember that there is no better way to communicate than in person. Be available, be a listener and take the temperature of your practice by just walking slowly through the clinic while absorbing vibes, conversations, issues and demonstrating that you are in touch.
Fight Lack of Shared Purpose by utilizing your leadership team to develop weekly, monthly and quarterly goals all of which are miniaturized versions of the practice mission statement and the owner’s short and long-term vision. Do not forget to share these goals and the benefits of reaching the goals with each staff member through your intentional and effective communications.
Fight Gossip. The nature of gossip is the anthesis of unity. Gossip destroys trust -“if he will say that about her, you know he will say that about you.” Fight gossip by having staff members take their problems and frustrations to their supervisors. Do not allow members to share their frustrations or gripes downstream or laterally. They need to go upward where something can be done positively to help solve the issue rather than sharing discontent with no intent of a resolution. Fight gossip by making your practice a gossip-free zone and staff members will get to where they will self-police and help redirect conversation to talking about ideas rather than bad-mouthing other staff members, leadership and clients.
Fight Unresolved Disagreements by leadership taking an active role in resolving disagreements and hurt feelings between employees. Advise employees to go directly to the offending employee and describe the hurt feelings or disagreement. Help employees to understand we do not all have the same personality styles but we should have the same commitment to truth and respect for one another. Many people are fearful of conflict and they should be encouraged to ask a supervisor or other leadership member to assist in scheduling a meeting with the two employees and work on a resolution. Employees do not have to like one another but they do have to respect and be truthful with one another. Here again is where gossip or sharing frustrations about an employee with another employee will destroy unity. Sharing with a supervisor or leader will maintain unity as the resolution can be handled.
Fight Sanctioned Incompetence. When an employee is no competent and leadership does nothing, the other employees become demoralized. Incompetence can be due to lack of training, lack of learning, lack of trying, or the person may be struggling with illness or a personal loss. Either way, leadership must intervene. If there is a lack of training, provide more training. If there is a personal hardship allow them some time to recover by asking the other staff members to pitch-in during a reasonable recovery period. If there is a lack of capability or unwillingness to learn – this employee needs to be set free to work somewhere else. Lack of action on the part of the leadership will sanction incompetence and incompetence will spread as disunity worsens. Fight incompetence with training, recovery or removal.
Fight these five enemies of Unity and Teamwork. Any one of the five can hinder your success. Any two can cause you to fail. However, if you develop a culture where leadership and members of the team learn to fight these enemies, you will have a tremendously satisfying practice that will stand out to your clients, to potential employees and to your colleagues.
Leadership: Our Daily Work
By Dale Lonsford, DVM, April 2017
Whether we recognize it or not, we are all leaders. Our day is full of leadership events with influential results. If we live in a household, if we have children, if we have a friend, if we clean stalls or kennels, if we are new on the job or if we own the practice – we are all leaders and influence the lives of others. The question is not, “Are we a leader?” The real question is, “Are we the best leader we can be?”
Often it is difficult for employees of a veterinary practice or any business to recognize they have a role as a leader. It is also difficult for some employees to understand the level of their personal success and the success of the company they work with is directly related to their success as a leader.
We all have a choice. We can be a good leader, a mediocre leader or a bad leader. It all begins with realizing every one of us have a leadership role in someone else’s life. The good news is leadership is a learned and experiential skill. Like most skills we have learned by practice, trial and error, and increments of success. Leadership is not a position of authority or a title bestowed on anyone. It is a skill that begins with a willingness to serve and help others. Your ability to lead adds value to the people you serve, the people that willing follow you, the people you influence.
Practice owners and managers are seeking members of their staff that want to improve their leadership skills. They are looking for employees that realized their contribution to the success of the company is not merely doing tasks. They are looking for employees that can influence other staff members, guide clients and pet owners to make wise decisions regarding their animals’ health care, and contribute to the practice culture of service and accountability.
Leadership skill is a key ingredient to career advancement just as technical skills are necessary for successful patient care and client relations. Leadership is impactful. Your leadership skills will determine your level of success in relationships, in life and in your career.
For practice owners and managers wanting to promote leadership skills in their team members, consider sharing your personal story of your travel on the path of leadership development. Convince your team members that leadership is not about being the boss; rather it is about vision, sacrifice, service and influence. Practice owners and managers should take a good look at their own leadership skill level. Remember John Maxwell’s “The Law of the Lid”. It is his first law of leadership of which he simply states as, “Leadership ability is the lid that determines a person’s effectiveness”. Even experienced leaders can improve their leadership skills especially if they are hitting the lid of their effectiveness.
For employees – veterinarians, technicians, receptionists, assistants, pet care, students and managers – realize you are a leader and you are influencing others. So choose to grow your leadership skills and lead well. Be willing to work on your skills because leadership develops with practice. A great place to start is by reading “How to Win Friends and Influence People” by Dale Carnegie. Applying the teaching of his book will make you a better team member and you will quickly gain a following. Then move on to John Maxwell’s “The 21 Irrefutable Laws of Leadership”. Both are classic leadership books worthy of studying and re-reading.
Have impact, have influence, make a difference for leadership is our daily work.
By Dale Lonsford, DVM, April 2017
Whether we recognize it or not, we are all leaders. Our day is full of leadership events with influential results. If we live in a household, if we have children, if we have a friend, if we clean stalls or kennels, if we are new on the job or if we own the practice – we are all leaders and influence the lives of others. The question is not, “Are we a leader?” The real question is, “Are we the best leader we can be?”
Often it is difficult for employees of a veterinary practice or any business to recognize they have a role as a leader. It is also difficult for some employees to understand the level of their personal success and the success of the company they work with is directly related to their success as a leader.
We all have a choice. We can be a good leader, a mediocre leader or a bad leader. It all begins with realizing every one of us have a leadership role in someone else’s life. The good news is leadership is a learned and experiential skill. Like most skills we have learned by practice, trial and error, and increments of success. Leadership is not a position of authority or a title bestowed on anyone. It is a skill that begins with a willingness to serve and help others. Your ability to lead adds value to the people you serve, the people that willing follow you, the people you influence.
Practice owners and managers are seeking members of their staff that want to improve their leadership skills. They are looking for employees that realized their contribution to the success of the company is not merely doing tasks. They are looking for employees that can influence other staff members, guide clients and pet owners to make wise decisions regarding their animals’ health care, and contribute to the practice culture of service and accountability.
Leadership skill is a key ingredient to career advancement just as technical skills are necessary for successful patient care and client relations. Leadership is impactful. Your leadership skills will determine your level of success in relationships, in life and in your career.
For practice owners and managers wanting to promote leadership skills in their team members, consider sharing your personal story of your travel on the path of leadership development. Convince your team members that leadership is not about being the boss; rather it is about vision, sacrifice, service and influence. Practice owners and managers should take a good look at their own leadership skill level. Remember John Maxwell’s “The Law of the Lid”. It is his first law of leadership of which he simply states as, “Leadership ability is the lid that determines a person’s effectiveness”. Even experienced leaders can improve their leadership skills especially if they are hitting the lid of their effectiveness.
For employees – veterinarians, technicians, receptionists, assistants, pet care, students and managers – realize you are a leader and you are influencing others. So choose to grow your leadership skills and lead well. Be willing to work on your skills because leadership develops with practice. A great place to start is by reading “How to Win Friends and Influence People” by Dale Carnegie. Applying the teaching of his book will make you a better team member and you will quickly gain a following. Then move on to John Maxwell’s “The 21 Irrefutable Laws of Leadership”. Both are classic leadership books worthy of studying and re-reading.
Have impact, have influence, make a difference for leadership is our daily work.
New Employee On-Boarding
By Michael Joyner, DVM, October 2016
Your staff reminds you with regularity that you are short-staffed. You sift through the job applications. After the telephone interview, a formal interview and a working interview, you finally pick the candidate that meets your practice requirements. Previous employer references check out, and with due diligence you discover your new employee is eligible for rehire at his/her previous employers. You're now confident that you have found the right person!
After the long process of carefully weeding out candidates, you wonder how long will this new person stay? We've heard of incidents when the new employee decides not to return to work after lunch. You may have had hired someone in the past that did a no call/no show number on you after the first day. What do you do to develop a long term employment relationship?
Begin working on employee retention from the very first day! Do something simple like bringing breakfast for the entire team to welcome the new member. It does not have to be elaborate, just a gesture that conveys everybody is celebrating that the new employee is joining the team. But no amount of celebration can replace organization. Develop a formal on boarding process for new employees. Schedule an orientation day to fill out employment documents. Go over the job description, the employee handbook and the training schedule. Take this opportunity to re-introduce the new employee to the staff. Give a tour of the entire facility, where to place personal belongings, and where employees park their vehicles. This will considerably reduce stress on the first day of work.
No matter what the level of experience, assign your best staff the role of trainer/mentor to your new hire. Showing someone how you do things at your practice will slow you down. Consider scheduling an extra staff to help during the busiest time of the day. The mentor/trainer should remain the "go to person" for your new employee for the first 90 days. Every new hire is an investment you hope to turn into an asset.
To ensure and document proper training, use a training schedule. Both trainee and trainer initial successfully completed tasks and responsibilities. The checklist tracks the training progress and builds a strong foundation. A good management practice is to reference the practice core values for your policies and base the training schedule on the job description. The following are tips for a more successful new employee on boarding process.
1. Avoid making your busiest day, the first day of work. Schedule on a day where the team will have time to extend a warm welcome to the new employee.
2. Consider a short or a half day schedule to reduce "first day overload."
3. Get all hiring documents out of the way prior to the first day.
4. Review practice policies during orientation. To avoid surprises, so go over the practice’s attendance policy and professional appearance.
5. Provide a job description.
6. Provide a training checklist.
7. Invest a few minutes to regularly check how your team members are doing.
Once your new staff is fully trained, consider the possibility of cross training. A cross trained staff offers the practice more work schedule flexibility, and makes the employee more valuable. Cross training also keeps work interesting. New skills contribute to personal growth and development which increase job satisfaction. As your new team member shows more initiative, delegate more responsibilities to keep the employee engaged. Every staff member represents a capital investment to the practice. A strong and loyal support staff makes your practice more attractive to buyers. It would behoove management to proactively cultivate longevity of your well trained staff. It all begins with on boarding a new employee.
By Michael Joyner, DVM, October 2016
Your staff reminds you with regularity that you are short-staffed. You sift through the job applications. After the telephone interview, a formal interview and a working interview, you finally pick the candidate that meets your practice requirements. Previous employer references check out, and with due diligence you discover your new employee is eligible for rehire at his/her previous employers. You're now confident that you have found the right person!
After the long process of carefully weeding out candidates, you wonder how long will this new person stay? We've heard of incidents when the new employee decides not to return to work after lunch. You may have had hired someone in the past that did a no call/no show number on you after the first day. What do you do to develop a long term employment relationship?
Begin working on employee retention from the very first day! Do something simple like bringing breakfast for the entire team to welcome the new member. It does not have to be elaborate, just a gesture that conveys everybody is celebrating that the new employee is joining the team. But no amount of celebration can replace organization. Develop a formal on boarding process for new employees. Schedule an orientation day to fill out employment documents. Go over the job description, the employee handbook and the training schedule. Take this opportunity to re-introduce the new employee to the staff. Give a tour of the entire facility, where to place personal belongings, and where employees park their vehicles. This will considerably reduce stress on the first day of work.
No matter what the level of experience, assign your best staff the role of trainer/mentor to your new hire. Showing someone how you do things at your practice will slow you down. Consider scheduling an extra staff to help during the busiest time of the day. The mentor/trainer should remain the "go to person" for your new employee for the first 90 days. Every new hire is an investment you hope to turn into an asset.
To ensure and document proper training, use a training schedule. Both trainee and trainer initial successfully completed tasks and responsibilities. The checklist tracks the training progress and builds a strong foundation. A good management practice is to reference the practice core values for your policies and base the training schedule on the job description. The following are tips for a more successful new employee on boarding process.
1. Avoid making your busiest day, the first day of work. Schedule on a day where the team will have time to extend a warm welcome to the new employee.
2. Consider a short or a half day schedule to reduce "first day overload."
3. Get all hiring documents out of the way prior to the first day.
4. Review practice policies during orientation. To avoid surprises, so go over the practice’s attendance policy and professional appearance.
5. Provide a job description.
6. Provide a training checklist.
7. Invest a few minutes to regularly check how your team members are doing.
Once your new staff is fully trained, consider the possibility of cross training. A cross trained staff offers the practice more work schedule flexibility, and makes the employee more valuable. Cross training also keeps work interesting. New skills contribute to personal growth and development which increase job satisfaction. As your new team member shows more initiative, delegate more responsibilities to keep the employee engaged. Every staff member represents a capital investment to the practice. A strong and loyal support staff makes your practice more attractive to buyers. It would behoove management to proactively cultivate longevity of your well trained staff. It all begins with on boarding a new employee.
Let’s Take a Second Look at Ownership
By Dale Lonsford, DVM, August 2016
You’re living the dream. You’ve accomplished a lot. You’ve made it into and completed veterinary college. You like your career and it is going quite well. It is stressful at times but it is a joy when you make a difference in a family’s life. The challenge of making the diagnosis and returning the family’s pet to health is fun and you get paid for it. You are making more money than ever before. You are comfortable. But do not let comfort and contentment lull you to think your mission is completed. Is owning your own veterinary practice your next dream? If not, maybe you should take another look.
You may have thought briefly about owning you own practice. But you dismissed the thought while focusing on graduating or on starting your family. You may lack business knowledge and experience. You still have the debt that your previous dream accumulated. Or perhaps you just did not think it was worth the effort. You may fear owning a practice would diminish the balance between your career and your personal life. These are all worthy concerns but now let’s consider the values and opportunities of ownership.
Do you realize why many national and regional corporations are buying veterinary practices? They see ownership of veterinary practices as a great opportunity for profits and here is why.
Veterinary practice is typically a cash base business –many businesses get paid 30-60 days later. Veterinary medicine is not paid by a third party. Ask physicians how well third party- pay is working for them.
Veterinary medicine is relatively recession proof. The US pet care/pet product industry topped 60 billion dollars in 2015. Of that $60 billion, veterinary care was $15 billion, second only to pet foods which was $23 billion. Predictions are that the pet care/pet products industry in the US will reach $91 billion in 2019.
As a health profession, veterinary medicine has less legal risk and definitely lower mal-practice insurance costs.
There is an abundance of retiring veterinarians hoping to sell their practices. You can see why the MBA’s and the venture capitalists see the advantages in owning veterinary practices.
Do you hear the knocking on the door? That is opportunity knocking! – especially for veterinarians that own the practice and are willing to ensure their practice competes and delivers excellent health care that is consumer driven.
If you are frustrated by your efforts to institute ideas and changes in your practice because the owner is not listening, you are probably starting to wonder how the practice would do under your ownership. If you are developing a sense of “should I go or should I stay” you may be starting to dream of ownership. If you know successful veterinary practice owners who are happy and have been able to have a balanced work and family life, and you know if they could do it you can do it too – be careful because you are beginning to believe in your dream of ownership. If you appreciate the opportunity that the veterinary profession offers you as a business – then you have taken the second look at ownership. Your new dream of owning a veterinary practice is becoming a BHAG –“big audacious hairy goal” as described by James Collins in his book, “Built to Last: Successful Habits of Visionary Companies”
Your second look at practice ownership should include:
By Dale Lonsford, DVM, August 2016
You’re living the dream. You’ve accomplished a lot. You’ve made it into and completed veterinary college. You like your career and it is going quite well. It is stressful at times but it is a joy when you make a difference in a family’s life. The challenge of making the diagnosis and returning the family’s pet to health is fun and you get paid for it. You are making more money than ever before. You are comfortable. But do not let comfort and contentment lull you to think your mission is completed. Is owning your own veterinary practice your next dream? If not, maybe you should take another look.
You may have thought briefly about owning you own practice. But you dismissed the thought while focusing on graduating or on starting your family. You may lack business knowledge and experience. You still have the debt that your previous dream accumulated. Or perhaps you just did not think it was worth the effort. You may fear owning a practice would diminish the balance between your career and your personal life. These are all worthy concerns but now let’s consider the values and opportunities of ownership.
Do you realize why many national and regional corporations are buying veterinary practices? They see ownership of veterinary practices as a great opportunity for profits and here is why.
Veterinary practice is typically a cash base business –many businesses get paid 30-60 days later. Veterinary medicine is not paid by a third party. Ask physicians how well third party- pay is working for them.
Veterinary medicine is relatively recession proof. The US pet care/pet product industry topped 60 billion dollars in 2015. Of that $60 billion, veterinary care was $15 billion, second only to pet foods which was $23 billion. Predictions are that the pet care/pet products industry in the US will reach $91 billion in 2019.
As a health profession, veterinary medicine has less legal risk and definitely lower mal-practice insurance costs.
There is an abundance of retiring veterinarians hoping to sell their practices. You can see why the MBA’s and the venture capitalists see the advantages in owning veterinary practices.
Do you hear the knocking on the door? That is opportunity knocking! – especially for veterinarians that own the practice and are willing to ensure their practice competes and delivers excellent health care that is consumer driven.
If you are frustrated by your efforts to institute ideas and changes in your practice because the owner is not listening, you are probably starting to wonder how the practice would do under your ownership. If you are developing a sense of “should I go or should I stay” you may be starting to dream of ownership. If you know successful veterinary practice owners who are happy and have been able to have a balanced work and family life, and you know if they could do it you can do it too – be careful because you are beginning to believe in your dream of ownership. If you appreciate the opportunity that the veterinary profession offers you as a business – then you have taken the second look at ownership. Your new dream of owning a veterinary practice is becoming a BHAG –“big audacious hairy goal” as described by James Collins in his book, “Built to Last: Successful Habits of Visionary Companies”
Your second look at practice ownership should include:
- The number of associate veterinarians are increasing while associate pay has been rather stagnate.
- Ownership does not have to be a lonely trek and partnering with a like-minded veterinarian or veterinarians is called “shared risk, shared success.”
- Running a business is a challenge well worth the risk – owners have higher incomes and are the last ones to get fired.
- You get to pick the people you want to work with and leadership skills can be learned.
- There are professionals eager to help – practice managers, veterinary owners willing to mentor, Certified Public Accountants, business coaches, veterinary study groups and veterinary purchasing groups, as well as veterinary pharmaceutical, pet product and veterinary distribution companies. These professionals and business associates can provide the business skills and support needed to keep your practice profitable.
- There are multiple avenues to ownership such as a) establishing a new practice, b) buying into or c) buying out an established practice, d) leasing an established practice with a predetermined buy out, and e) shared ownership.
- Bankers, Veterinary Practice Purchasing Consultants and Small Business Administration loans are readily available.
- The Baby-Boomer generation veterinarians needs buyers that will succeed and they have a vested interest in the buyers’ success.
- Ownership of a veterinary practice by the veterinarian is the key attribute that provides the quality, trust and accountability that the public values and loves about our veterinary profession. If you are going to work hard – why not build a legacy?