To start a practice or buy: what's the best option? (Proceedings)

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To start a practice or buy: what's the best option? (Proceedings)

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Aug 01, 2011

Practice ownership

Practice ownership allows an individual to control one's destiny over financial matters, management matters and medical matters. Practice owners should expect a financial reward from ownership that encompasses a reward or pay for the provision of providing veterinary services, a pay for management duties and an ROI (return on investment) for the privilege of ownership. Ownership helps a practitioner build wealth and financial security.

Starting a practice

Start-up practices are those in their infancy. They begin when the basic planning for them begins to take place. Moreover, the goals and dreams of the practice owner who wants to start their practice will vary. Some may want to open small practices providing only routine services and some may want to have practices offering specialty services, ancillary services or 24 hour care. Regardless of their differences, start ups generally share certain needs:
     1. Assessing the practices potential for success
     2. Choosing the most advantageous legal form
     3. Developing a business plan
     4. Obtaining financing
     5. Set up operations

Attributes of a successful start-up

Another way to reduce the risks associated with practice start-up services is to pick winners (that is, choose those start-ups that appear to have an above average chance of succeeding).

Invest in people

Experiences investors will tell you there are three keys to a successful start-up – management, management, and management. They invest in people, and their investment decisions are based on how experienced the start-up owner is and how the start-up owner carries himself or herself. This, of course, involves many intangibles, including whether the start-up owner:
     • Is driven by a need to succeed.
     • Follows through on commitments.
     • Is positive and optimistic.
     • Can make decisions objectively.
     • Looks on money as a tool to be managed rather than an end in itself.
     • Has the ability to be proactive rather than reactive.
     • Shows resourcefulness.
     • Has good interpersonal and communication skills.
     • Is a self starter.
     • Is capable of working independently to plan, organize, and carry out projects.
     • Recognizes the benefits of experienced business advice.
     • Is in good health.