Veterinary Clinic Business Plan

The Southwest Veterinary Clinic will be located in southwest Richmond. The clinic will offer a full range of medical services to the area’s pet owners. Southwest Richmond is a mixture of industrial and residential property. There are approximately 20,000 moderate-income residents in the area. Many of these residents are elderly with multiple pets.

Currently, the three closest veterinary clinics are a fifteen minute drive for most southwest Richmond residents. Southwest Veterinary Clinic will be a five minute drive from most locations in southwest Richmond.

Edward Anderson, DVM, and Michelle Johnson, DVD, have seven years of veterinary experience. Edward has four years of experience with the Richmond Emergency Veterinary Hospital. Michelle has been a staff veterinarian at Blue Cross Hospital for three years.

Both Richmond Emergency and Blue Cross Hospitals serve residents in southwest Richmond. Edward and Michelle have treated numerous pets from the southwest section of town over the years. Most of these customers praised the service they received. Thirty customers have already confirmed that they will be using the new hospital services.

1.1 Mission

Our goal is to help customers’ pets live long, happy and healthy lives. We believe that a key element to a healthy pet is a great relationship with your veterinarian. Everyone at Southwest Veterinary Clinic is committed to professional, caring, personalized service. Southwest Veterinary Clinic takes pride in our dedication to the highest standards in veterinary medicine. We have a full service clinic offering state-of-the-art veterinary medical technology.

1.2 Keys to Success

• We treat our patients as if they were our own pets and try to offer customers the service that they desire and deserve.
• We take an individualized approach to the long-term care of each of our patients and are dedicated to providing our clients with enough information to make appropriate decisions concerning the health care of their animal companions.

The Southwest Veterinary Clinic will be located in southwest Richmond. The clinic will offer its customers the full range of medical services to the area’s pet owners.

2.1 Company Ownership

Edward Anderson, DVM, and Michelle Johnson, DVD, are co-owners of Southwest Veterinary Clinic.

2.2 Start-up Summary

Southwest Veterinary Clinic’s start-up costs consist of medical, surgical, and lab equipment. In addition, there will a $30,000 interior remodeling cost for the clinic. Edward Anderson and Michelle Johnson will invest $80,000. In addition, they will secure a $70,000 SBA loan.

2.3 Company Locations and Facilities

Southwest Veterinary Clinic will be located on the corner of 7th and Stewart, two of the busiest streets in southwest Richmond.

Southwest Veterinary Clinic will offer the following services:

• Internal medicine and surgery;
• Orthopedics;
• Dental care;
• Skin disorders;
• Geriatric care;
• Endoscopy;
• Reproductive services.

Southwest Richmond is a section of the city that, in recent years, has become primarily industrial. There are approximately 20,000 residents in the area who are currently underserved in a number of basic services. The area’s residents can be put into three groups:

• Elderly;
• Moderate-income families;
• Young single adults.

All three groups own pets but find it difficult to find local veterinary resources when needed. Southwest Veterinary Clinic will fill the community’s need for reasonably priced local veterinary services.

4.1 Market Segmentation

Southwest Veterinary Clinic will focus on three significant customer groups:

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

• Moderate-income Families: The second tier of critical customers are the area’s families. This group is important for the sustained growth of the clinic. A veterinary service relationship with a family can last 10-20 years over which time the family can own numerous pets.

• Young, Single Adults: This group represents the third tier of customers that the clinic will focus on. This group is primarily reactive to the health of their pets and will usually only visit the clinic for emergencies, reproduction services, and shots. This is still a significant source of customers from the community.

The key to the clinic’s success is its visibility in the community.  The location is crucial. Southwest Veterinary Clinic will be located on the corner of 7th and Stewart, two of the busiest streets in southwest Richmond. The clinic will be visible in the community. The name “Southwest” will communicate that the clinic is local to residents who are scanning the phone book for veterinary services.

Edward Anderson and Michelle Johnson will meet with both the three Southwest Seniors Organizations and the five Southwest Neighborhood Associations to introduce the veterinary hospital to the community. At these meetings, Edward and Michelle, will distribute invitations to the clinic’s grand opening.

In addition, Southwest Veterinary Clinic will reward customers who refer friends and neighbors to the clinic with 15% off their pet’s next visit.

5.1 Competitive Edge

The competitive edge of Southwest Veterinary Clinic is:

• Location:  Southwest Veterinary Clinic is located on the corner of 7th and Steward. The traffic on those two streets is very strong. The closest veterinary clinic to the Southwest area is a fifteen minute drive.

• Southwest Area Focus: Currently there are no southwest-focused veterinary clinics in the area. Southwest Veterinary Clinic will the only one in the area.

5.2 Sales Strategy

The Southwest Veterinary Clinic’s sales strategy will be to grow the clinic through referrals. These referrals from satisfied customers will be the most important component to the success of Southwest Veterinary Clinic. To promote referrals from existing customers,  Southwest Veterinary Clinic will offer 15% off the next visit for referrals.

5.2.1 Sales Forecast

The following is the sales forecast for three years.

Edward Anderson and Michelle Johnson will co-manage the clinics daily operation.

6.1 Personnel Plan

The Southwest Veterinary Clinic will have a staff of three.

• Receptionist;
• Veterinary assistants (2).

Personnel Plan
	Year 1	Year 2	Year 3
Edward Anderson	$45,600	$50,000	$55,000
Michelle Johnson	$45,600	$50,000	$55,000
Receptionist/Clerical	$24,000	$30,000	$33,000
Veterinary Assistants (2)	$52,800	$53,000	$55,000
Total People	5	5	5
Total Payroll	$168,000	$183,000	$198,000

The following is the financial plan for Southwest Veterinary Clinic.

7.1 Break-even Analysis

The monthly break-even point is $30,000.

7.2 Projected Profit and Loss

The following is the projected profit and loss for three years.

7.3 Projected Cash Flow

The following is the projected cash flow for three years.

7.4 Projected Balance Sheet

The following is the projected balance sheet for three years.

7.5 Business Ratios

Business ratios for the years of this plan are shown below. Industry profile ratios based on the Standard Industrial Classification (SIC) code 0742, Veterinary Services, are shown for comparison.