Table of Contents

• About the Authors xi
• Acknowledgments xii
• Introduction xiv
• 1 First Things First 1
• 1.1 Why … Do You Want to Be a Practice Owner? 2
• 1.2 Understanding the Pros and Cons of Practice Ownership 4
• 1.3 Industry Options Abound; Have You Considered Yours? 8
• 1.4 Self- Assessment: Are You Practice Ownership Ready? If Not Now, Will You Ever? 12
• 1.4.1 What Does It Take to Be a Practice Owner? 12
• 1.4.2 Life Stage Considerations 13
• 1.4.3 What If You're Not Ready – Yet? 16
• 1.4.4 Will You Ever Be Ready? 16
• 2 Define Your Vision, Define Your Dream 18
• 2.1 Purpose 21
• 2.2 Value 23
• 2.2.1 Patient and Client Experience 23
• 2.3 The Importance of Clearly Defined Boundaries 25
• 3 How to Start 27
• 3.1 Healthy Habits 27
• 3.1.1 Work–Life Balance Healthy Habits 27
• 3.1.2 How About a Little Honest Self- assessment? 28
• 3.1.3 Business Healthy Habits 29
• 3.2 What's Your Business Plan 32
• 4 Cash and Finance 36
• 4.1 Options for Financing the Practice 37
• 4.1.1 Self- Financing 37
• 4.1.2 Traditional Financing (Bank Loans and SBA Loans) 39
• 4.1.3 Owner- Financed Purchases 41
• 4.1.4 Partnerships (Co- Ownership or Equity Partners) 41
• 4.1.4.1 Which Path Is Right for You? 44
• 4.2 Steps to Become Loan- Ready for a Startup Veterinary Practice 45
• 4.2.1 Build a Solid Financial Foundation 45
• 4.2.2 Understand the Lending Process 46
• 4.2.3 Prepare Your Documentation 47
• 4.2.4 Create a Vision, Not Just a Dream 47
• 4.2.5 Act Like a Business Owner Before You Are One 47
• 4.3 Working Capital 49
• 5 Starting from Scratch or Buying an Existing Practice? 51
• 5.1 Pros and Cons 51
• 5.1.1 Starting from Scratch: Pros 52
• 5.1.2 Starting from Scratch: Cons 53
• 5.1.3 Buying an Existing Practice: Pros 54
• 5.1.4 Buying an Existing Practice: Cons 54
• 5.2 Align Your Goals 55
• 5.2.1 Financials 55
• 5.2.2 Location Strategy 56
• 5.2.3 Staffing Considerations 56
• 5.3 Check Your Emotions at the Door – Learn from Actual Case Studies 60
• 6 Budget and Projections 62
• 6.1 Basic Understanding of Budgets 62
• 6.2 Five Steps to Budget Development 62
• 6.3 Basic Understanding of Projections and Why You Need Them 67
• 7 Building Your Team 74
• 7.1 Developing a Professional Team – Who Do You Need and How to Find Them 74
• 7.1.1 Startup Consultant 75
• 7.1.2 Attorney 75
• 7.1.3 Certified Public Accountant (CPA) 76
• 7.1.4 Marketing Expert 77
• 7.1.5 Real Estate Broker/Agent 77
• 7.1.6 Architect 78
• 7.1.7 Practice Management Consultant 78
• 7.1.8 Vendors 79
• 7.1.9 IT Specialist 79
• 7.1.10 Lender 80
• 7.2 How to Pick an Advisor That Is Right for You? 81
• 7.3 Basics of Hiring Your Internal Team 82
• 7.3.1 Define Your Perfect Team 82
• 7.3.2 Calculate the Cost 86
• 7.3.3 Post the Job 86
• 7.3.4 Hire Your First Superstar 87
• 7.3.5 Onboarding 89
• 7.3.6 Training and Support 89
• 7.3.7 Stay Interviews and Performance Reviews 92
• 7.4 When to Hire 97
• 7.4.1 How Do You Know You Do Not Have Enough People? 99
• 7.5 Employee Handbook 100
• 7.6 Organizational Chart 107
• 8 Legal 112
• 8.1 When Do You Need an Attorney 115
• 8.2 What to Expect 116
• 9 Entity Selection 118
• 10 How to Choose Practice Management Software 121
• 10.1 How Do You Pick One? 121
• 10.2 What If There Is No Perfect Choice? 124
• 10.2.1 Business Considerations 125
• 10.2.2 You've Selected the Winner 125
• 10.2.3 When to Switch PIMS? 126
• 11 Financial Data 128
• 11.1 Accounting Basics 129
• 11.1.1 Desktop Accounting Software 136
• 11.1.2 Cloud- Based Accounting Software 136
• 11.2 What Should You Be Looking At? 137
• 11.2.1 How Do You Know You Have Good Data and Sound Information? 139
• 11.3 Cash Flow Issues 141
• 11.3.1 Build a Cash Reserve 142
• 11.3.2 Cash Flow Projection 143
• 11.3.3 Implement Strict Accounts Receivable and Discount Policies from Day One 143
• 11.3.4 Manage Inventory Like Your Practice Depends on It (Because It Does) 144
• 11.3.5 Control Your Personal Draw 144
• 11.3.6 Implement Financial Controls from the Start 144
• 11.3.7 Build Flexibility into Your Staffing Plan 145
• 11.3.8 Warning Signs Your Cash Flow Needs Immediate Attention 145
• 11.3.9 The Light at the End of the Tunnel 146
• 12 Inventory 147
• 12.1 Inventory Management Basics 149
• 12.1.1 Putting the Concepts Together 149
• 12.1.2 Putting It All Together 151
• 12.2 How to Start 152
• 12.2.1 Develop a List of Products 152
• 12.2.2 Classify Your Inventory 153
• 12.2.3 Set up the Initial Stocking Level 154
• 12.2.4 Establish Reorder Triggers 155
• 12.2.5 Build Vendor Relationships Early 155
• 12.2.6 Develop SOPs 155
• 12.2.7 Set up Your Online Pharmacy 158
• 12.2.8 Group Purchasing Organizations 159
• 12.2.9 A Place for Everything and Everything in Its Place 160
• 12.3 How to Delegate Inventory Management 164
• 12.3.1 Create Job Descriptions and Inventory SOPs 164
• 12.3.2 Choose the Right Person 166
• 12.3.3 Provide Training 166
• 12.3.4 Establish Accountability 166
• 12.3.5 Delegate 167
• 13 What Is There to Know About Laboratory Contracts 168
• 13.1 Types of Laboratory Contracts 168
• 13.2 Key Components to Understand 169
• 13.2.1 Contract Duration 169
• 13.2.2 Financial Commitments 169
• 13.2.3 Benefits and Incentives 169
• 13.2.4 Important Contract Terms to Examine 171
• 14 Payroll 173
• 14.1 Payroll Schedule 175
• 14.1.1 Weekly – How Does It Work? 176
• 14.1.2 Bi- weekly – How Does It Work? 176
• 14.1.3 Semi- monthly – How Does It Work? 177
• 14.1.4 Monthly – How Does It Work? 178
• 14.2 Associate Veterinarian Pay 178
• 14.3 How Do You Get Paid 181
• 14.4 Payroll Related Pitfalls to Avoid 185
• 14.5 Understanding Worker by: Employee vs. Independent Contractor 187
• 14.5.1 Common Examples and Gray Areas 187
• 14.5.2 Responsibility for Classification 188
• 14.5.3 Consequences of Misclassification 188
• 14.5.4 Determining Worker Classification 189
• 14.5.5 Real- World Veterinary Scenarios 190
• 14.5.6 Financial Implications of Classification 191
• 14.5.7 Administrative Differences 192
• 14.5.8 Let's Put It all Together 192
• 15 Benefits 194
• 15.1 Timing of Benefits 195
• 15.2 Paid Time Off 196
• 15.3 Employee Discounts – Pet Care Benefits 198
• 15.4 Bonus – Incentive Plan 199
• 15.5 Pitfalls to Avoid 200
• 16 Fraud 206
• 16.1 Internal Controls 207
• 16.1.1 Separation of Duties 208
• 16.1.1.1 Billing and Accounts Payable 208
• 16.1.1.2 Cash Handling 210
• 16.1.1.3 Accounts Receivable and Payment Collection 211
• 16.1.1.4 Inventory Management 212
• 16.1.1.5 Payroll 212
• 16.1.2 Technology Solutions 214
• 16.1.2.1 Practice Management Software 214
• 16.1.2.2 Payroll Systems and Timecards 215
• 16.1.3 Implementation of Internal Controls for Smaller Practices 216
• 16.1.3.1 Owner and Manager Oversight 216
• 16.1.3.2 Part- Time Financial Oversight 217
• 16.1.3.3 Outsourcing and External Oversight 217
• 16.1.3.4 Scheduling Rotation and Cross- Training 218
• 16.1.4 After the Internal Controls Are in Place 218
• 16.2 Red Flags 219
• 16.2.1 Financial Red Flags 219
• 16.2.1.1 Unexplained Changes in Financial Metrics 219
• 16.2.1.2 Transaction Irregularities 220
• 16.2.1.3 Inventory Anomalies 220
• 16.2.2 Employee Behavioral Red Flags 221
• 16.2.2.1 Changes in Work Patterns 221
• 16.2.2.2 Attitudinal Changes 221
• 16.2.2.3 Change in Personal Circumstances 222
• 16.3 Detection Techniques 222
• 16.3.1 Primary Detection Methods 222
• 16.3.1.1 Effective Detection Strategies 223
• 16.4 SOPs for Minimizing Employee Fraud 224
• 16.4.1 Minimize Risk SOPs 224
• 16.4.2 Response SOPs When Fraud Is Suspected 225
• 16.4.2.1 Don't React Prematurely 225
• 16.4.2.2 Consult Professionals 225
• 16.4.2.3 Build Your Evidence 225
• 16.4.2.4 Report to Authorities When Appropriate 226
• 16.4.2.5 Follow Through with Prosecution 226
• 16.4.3 Creating a Culture of Integrity 226
• 17 Marketing 235
• 17.1 Marketing Basics 236
• 17.2 When to Start 239
• 17.3 Marketing Ideas 241
• 18 The Grand Opening, Your Time to Shine 246
• 19 Congratulations, You Are Open. What Now? 250
• Bibliography 252
• Index 253