An operating budget and strategic plan are the backbone of a business. Achieving success without a plan is possible, but it’s dangerous and rare.
Bain and Company, an executive consulting firm, has been conducting the “Management Tools Survey” every year since 1993. They have collected over 7,000 responses on the subject of what management tools company executives’ use. Every year since 1993, executives have overwhelmingly identified strategic planning as the management tool they most often use and the one with which they are most satisfied.
What are the advantages of planning?
Developing an annual operating budget goes hand-in-hand with strategic planning. There is no reason why you do not know a year in advance how much it will cost you to do business every month and how much you will earn. You have all the information you need from your strategic plan to develop an operating budget that is accurate to within a few percentage points, consistently.
At Veterinary Best Practice we are experts in the areas of budget and strategic planning
Outside of clinical activities, human resource management probably consumes the greatest amount of your time and energy. And, as we all know, it can be a very stressful area. Recruiting and retaining good staff is absolutely essential to growing a practice and increasing revenue.
The high cost of employee turnover is talked about often and cannot be emphasized enough. The greatest threat to your business is the loss of continuity in services and the institutional memory and momentum that naturally follows long time employees.
Employee turnover is the silent killer of business productivity and growth.
Although working with people will always be challenging and rewarding, there are tools to help reduce some of the stress involved. Veterinary Best Practice will help you establish policies and processes that will assist you in retaining qualified staff. And, if needed, help you with letting poor performers go.
Support areas include:
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'width' is a duplicate attribute name. Line 1, position 37.Financial Analysis
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| Review and analysis of current financial documents including Profit and Loss Statements and Balance Sheets. We will identify potential operational problems evident in these reports and make recommendations for targeted areas of improvement. We will also provide on-going review of your business reports with feedback and recommendations. | ||
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A business practice study conducted by the AVMA and Pfizer concluded that those practices who regularly reviewed their financial reports increased revenue by an average of $42,500 per year. | |
| In depth review of practice expenses including cost of goods sold (COGS), administrative expenses, merchant services, inventory, salaries and wages, and accounts receivable. | ||
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Not only is it possible to get nickel and dimed to death, it is possible to overlook or ignore seemingly insignificant areas as being “too much trouble” to deal with. Examples include: merchant services, A/R management, leasing vs. buying office equipment, payroll services, etc. Many small areas of neglect can equal considerable unnecessary expense. | |
| Review current inventory management practices. | ||
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Did you know that improvements in inventory management can save thousands of dollars each year but is one of the most neglected areas in small businesses? Here’s an example of the financial impact that improvement in this area can have. |
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| Review of current fee schedule and make recommendations for changes and processes for updating. | ||
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Most veterinarians’ passion for the industry doesn’t extend to a passion for setting fees and dealing with clients about those fees. We will help you establish objective step-by-step processes for setting and maintaining fees that will help ease the anxiety around this critical aspect of practice management. | |
Satisfied clients equal a profitable business. Acquiring and maintaining a strong client base is the foundation of every veterinary practice. The culture, policies and behaviors presented by your business tell your clients how much you value them.
People do business with people they trust and like.
Veterinary Best Practice will evaluate your current procedures and make recommendations for improvement where indicated. Where the need for new or different processes appear necessary, we will work with you to develop an implementation plan, project revenue improvements and monitor your progress.
| Purchasing a new piece of equipment | ||
| Starting or expanding a program or service | ||
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Everyone has probably heard of a breakeven analysis, but how many veterinary practice owners actually use it as a decision-making tool? Have you ever purchased an expensive piece of equipment for any of the following reasons? | |
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A breakeven or cost/benefit analysis forces you to look at the big picture involved in an equipment purchase (or other large purchase) including: projected volume; fees; staffing; remodel implications; accessory equipment; training costs; marketing; client education, and that most difficult assessment, opportunity costs. An opportunity cost is the value of all the other things (such as goods or services) that must be given up in order to purchase a new item or deliver a new service. | |
| Upgrading or replacing equipment | ||
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Maintaining your equipment assets is critical to both operational efficiency and cash flow. We will help you establish a replacement and update schedule for all of your clinical and office equipment allowing you to budget for necessary upgrades in technology and replacement of aging equipment. | |
| Changing hours/days of operation | ||
| Adding or reducing staff or changing employee benefits | ||
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As one of the most expensive areas in your business, any change will most certainly require a lot of consideration. Having the right staff doing the right thing at the right time is one of the most important business decisions you will make. We will help make this process less stressful by providing a thoughtful, objective analysis of the implications of making a change, or not. | |
| Cost effectiveness of bundling services | ||
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Sometimes it makes good business sense to bundle services. It can improve efficiency in invoicing, reduce missed charges, and help promote treatment protocols. However, it’s very possible to lose money on a bundled fee if a careful review of what it actually costs to deliver the service has not been done. The problem gets worse every time staff salaries increase or supply costs go up and you don't re-evaluate every bundled fee for accuracy. | |
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Veterinary Best Practice will help you determine if bundling is a cost effective decision and will provide you with a tool so you will be able to re-evaluate bundled fees as needed. | |
What do the client handouts at your practice say about you? Are they well produced? Do they have cartoon pictures of cats and dogs? Do they speak to your actual treatment philosophies or are they manufacturer created pieces that are clearly product driven? Client literature is a significant source of marketing.
Veterinary Best Practice will help you identify marketing opportunities, price out options and help you integrate them into your business.