Veterinary Practice Broker Business Plan, Marketing Plan, How To Guide, and Funding Directory
The Veterinary Practice Broker Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Veterinary Practice Broker business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.
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From time to time, veterinarians are going to want to sell their established practices. One of the things most people don’t realize is that most medical professionals – including veterinarians – develop a substantial amount of equity in their practices as they have establish them usually over several decades. A veterinary practice typically sells anywhere from three times to five times the previous year’s earnings or about two times revenue. Is can be a substantial source of equity for most practicing veterinarians. As such, business brokers that specialize in the sale of veterinary practices tend to do very well given the fact that they operate within a highly specific niche. Most importantly, the gross margins generated from the brokering of a business are extremely high. Usually, a veterinary practice broker will charge a fee equal to 10% of the total amount of the sale. Although this may sound like a very substantial fee, the amount of work that goes into securing a practice for a third party is significant. As such, these businesses are able to generate substantial fees on a sporadic basis which may be an issue for some business brokers that require a continuous stream of income. One of the other ways that that veterinary practice brokers generate revenues is by providing valuation services to a veterinary practice.
The startup costs associated with the new veterinary practice broker are relatively low. Usually, these businesses can be started for as little as $10,000 was much as $100,000 depending on the underlying capital needs of the business. It should be noted that many veterinary practice brokers to require a significant amount of upfront capital to fund their day-to-day payroll while the business is establishing its initial contacts. In some cases, a veterinary practice broker will acquire a working capital line of credit to finance the underlying expenses during the time when a client is having their practice marketed for sale.
A veterinary practice broker business plan is typically developed in order to showcase the three-year profit and loss statement, cash analysis, balance sheet, breakeven analysis, and business ratios page. Most financial institutions are willing to provide a moderate working capital line of credit in order to fund the underlying expenses associated with a vendor practice brokerage. As it relates to the industry, there are approximately 5,000 companies that offer business brokerage services within the United States and these businesses generate about $8 billion a year from business intermediary fees. It should be noted that a qualified attorney should be hired in order to determine whether or not the state in which the veterinary practice broker is located within requires the individual owner to have a license. In some states, business brokers must maintain a specific business brokers license or related real estate agency license. However, some states do not require any licensure at all. Only a properly qualified attorney can make a determination as to what appropriate licensure would be needed in order to operate the vendor practice brokerage.
A veterinary practice broker SWOT analysis is typically developed as well. As it relates to strengths, veterinary practice brokers operate within a very specific niche and usually do not face a significant amount of competition from third parties. The gross margins from business intermediary fees are substantial.
For weaknesses, there are only a handful of veterinarians are looking to sell their practice at any given time. As such, the demand for business profile listings is significant within this field. One of the ways that many entrepreneurs enter this field remedy these issues is by maintaining an expansive online presence so that practicing veterinarians can very quickly find practices they may be interested in buying.
For opportunities, greatly expanding the number of business brokers on staff while concurrently being able to expand the marketing budget is typically the way that these businesses grow. There is really no other methodology of expanding revenues outside of acquiring additional listings and hiring an associate brokers that can market these veterinary practices for sale.
For threats, outside of any major economic recession where a veterinarian may decide not to sell their practice there’s really nothing about this industry that is going to change. There may be some modest changes to rules and regulations regarding vendor practices but this is limited.
A veterinary practice broker marketing plan should also be developed and is usually done in conjunction with both the business plan and SWOT analysis. For most, a veterinary practice broker needs to maintain an expansive website that is thoroughly search engine optimized and engages in pay per click marketing. This website to showcase the biographies of all of the staff brokers as well as listings that are available to third-party veterinarians. This website to be featured on all major search engines. One of the nice things about developing this type of marketing apparatuses that there is very little competition within this very specific market niche. As such, a new veterinary practice brokerage can very quickly find an audience for listings that are for sale. One of the other ways of these businesses quickly develop a brand name is by taking out advertisements in the popular veterinary medical journals. This ensures that veterinarians are seeking to sell their practice or are seeking to relocate can quickly find the business given that many veterinarians stay abreast of all new medical information specific to their practice. Although this is a very expensive for marketing, by having highly targeted advertisements the risks relating to having a true broadly-based marketing campaign ardor reduced.
People are always going to have pets and these pets are always going to require specific medical care. As such, veterinarians are always going to exist and these businesses are always going to be owned by their practitioners. As such, there is a substantial opportunity for a veterinary practice broker to enter a market where people are frequently buying and selling their practices. The highly lucrative fees from transactions allows these businesses to typically remain profitable and cash flow positive at all times. Although a major economic recession can impact the number of people looking to sell their veterinary practices, there are always going to be people that want to divest these assets on an ongoing basis. The outlook for this specific industry is very strong.