To Build or to Buy: Which Path is Right for Your Veterinary Dream?

You’ve decided you could be a practice owner. That’s amazing news. Now it’s time to decide what path you want to take – build or buy?

Let’s look at whether purchasing an existing clinic or starting your own is best the way to go by comparing the pros and cons.

Weigh the pros and cons.

Here are some key areas of consideration:

Startup Time: Purchasing a practice allows you to skip the time-consuming process that comes with startups.

This involves numerous tasks and decisions, such as finding and building out a location, obtaining permits, purchasing equipment, hiring staff, and developing policies and protocols, just to name a few.

This can be a very stressful process with tight deadlines compared to making changes over time in an existing practice.

Control: Purchasing a practice means you have less control over location and facilities, which may not be ideal for your needs or preferences.

With a startup you have full control over the location, facilities, and equipment of your new practice and you’re not inheriting known and hidden problems or liabilities. 

Purchase Costs: Purchasing an existing practice requires a larger initial investment because you’re not only purchasing hard assets and potentially real estate, but also proven revenue-generating capability of the business.

Alternatively, depending on location and setup, a startup can have lower upfront costs because you won’t have the client base yet to create steady revenue.

Cash Flow: With an established practice, you’ll start generating revenue from day one, where it may take time before your new practice generates a steady income stream.

This is an important factor to consider based on loan repayment schedules or rents to be paid.

Culture: When you purchase an existing business you inherit another leader’s culture - which might be amazing, toxic, or somewhere in between - and which you will change as the new leader.

With a startup, you create the culture, tailoring your mission, vision, and values from the beginning.

Both require intentional planning, communication, and execution.

Other factors to consider.

Reputation: An existing practice is known and has a reputation in the community, which could help attract and retain clients.

As a startup, you’ll have to establish your presence and build a positive reputation in the community which takes time.

Clients: An existing practice comes with built-in clients who provide immediate income, word-of-mouth marketing, and cash flow, but some of those existing clients may be resistant to change.

Obtaining clients in a startup takes effort and focus and it will take time to establish a steady base of loyal clients that know and love your hospital. 

Staffing: An existing practice comes with experienced staff familiar with clinic operations and active clients.

However, you may inherit problem staff.

With a startup you select and train up your own team which takes time and can be costly when you don’t have the cash flow.

Regardless of the path you take, understand that you’ll have people management issues because learning to hire, work with, and lead people well is a challenging skill to master.

Ultimately, the decision between purchasing an existing veterinary practice or starting your own depends on your personal preferences, financial situation, and long-term goals as a veterinarian.

I did it. You can do it too.

I purchased an existing practice myself and experienced all the pros and cons of that choice, but everything was manageable.

I’m glad I settled into a small town and continued the legacy the prior veterinarian had built and be part of the community.

While at times I envied those sleek, new startup hospitals, I was very happy I chose an established practice and could make changes over time with less pressure.  

Whichever you choose and before you choose, make sure you’re clear on the vision you have for your life and career.

That is what will set you on the path to ownership that is right for you so you can create that practice that you dream about.

Next week, we’ll discuss how to develop that vision that embodies the life and career journey that you desire.