SmartStart Practice

Getting Inventory Under Control

2011-04-29T10:39:00.000-07:00

Managing inventory can be difficult to discuss concisely but here are a few starting points.

Most practices can keep their cost of goods sold (associated with inventory) in the range of 18 to 20% of gross revenue. Meaning everything that has to be constantly reordered (pills, vaccine, gloves, needles, etc...) is the inventory. Not equipment (monitors, forceps, clippers). If you devide the cost of goods sold by the revenue you will get a percentage. Since it’s a percentage, two things can change that percentage up or down. Either the revenue goes up and expenses stay the same or revenue stays the same and expenses go down. You may need to work on both since getting a big change in either independently may take time.

Tips to getting it in the 20% range:

Revenue:
Not all practices have the same cost of doing business. Certainly the sales clerks at Nordstroms are going to be a bit more costly to hire than those at TJ MAXX or some other discount clothing store. The best locations have a higher rent cost, so restaurant menus have to take that into account as well. In some instances you will need to adjust your fees reflective of your cost of doing business. Not only accounting for these costs but possibly management's inefficiency in adhering to good management policy.

Prices:
Need to raise revenue? Three ways, more client visits, more invoice items or higher fees. Getting more clients can be costly and will take time, better client education will increase invoice item count, and a few well placed fee increases automatically increase revenue even with the same volume of sales.

Price Increases and Discounts:

Be careful in this economy with price increases. Shoppable items (spay, nail trim, vaccines) should be off limits, but non-shoppable items (in house hematocrit, second view of radiograph, IV catherization) are all fair game. Who is going to ask you what the second view costs for their dog's broken leg, then rush down to the competition to shoot that second view if it's a bit cheaper?

Discounting is dangerous. It immediately reduces income, and it can be difficult to raise the bar later. Lower prices too much and clients may pschologically reclassify your practice, making a return to higher prices nearly impossible. The time to discount other than a quick sales campaign is only when you've reached survival mode (need cashflow drastically) otherwise its best to go easy with discounts and specials.

Where do COGS amounts increase?

There are three zones in the practice that affect inventory costs.

1. Front door 2. Treatment and Surgery 3. Backdoor

1. Products leave the frontdoor without contributing to revenue either by clients not paying for an item (misbilled) or embezzlement. If Mary carries a bag of catfood out to the client's car but Bill at the front desk doesn't get it on the invoice, the practice pays the supplier the cost of the food but never collected the corresponding revenue. If the client pays Bill, and he slips it in his pocket, same effect.

Think embezzlement can't happen at your practice? Think again. It happened at mine, its commonly the most trusted employees. Every year practices tell me about the discovery of embezzlement, sometimes after I've helped them discover the high percentage amount spent on inventory, prompting them to look harder.

2. Two common occurances in the middle part of the hospital causes loss of revenue. Busy practices often forget to put a treatment or service on an invoice, especially vulnerable is the multi-day hospitalization case or complex surgery. The second common cause is discounting. Generally the doctors should never complete the computer invoice other than identifing procedures completed. Doctors adjusting the invoice total or giving away services means no revenue but overhead expenses are still present.

3. Products leave the backdoor two ways, the trash (expiration/breakage) and theft (backpacks/purses). An otherwise well meaning employee might think a few doses of flea preventative or bandage material is not going to make an impact on the practice but it does. Large practices with a big staff are greatly affected even if each staff member only steals occassionally. Expiration and breakage is also a cause of lost revenue. Be very wary of the buy 8 get 2 free deals. You've just now committed to selling 10 units, have likely paid for those up front, and the responsiblity of warehousing those items was just transfered from the distributor to you. To prevent inventory swell and potential loss of sales on excess products, don't let specials cause your inventory turn over to extend. In otherwords, buy close to the amount of units you normally would for any period and enjoy the cost savings. If you sell 30 units in 90 days, order 30 units, you'll get 6 free. Becareful about ordering 60 units to get 12 free if it means you'll have some units on the shelves twice as long as you normally would.

Theft can be reduced with the use of cross checks, inventory counts, and security devices like security cameras.

You'll need to work on all three areas, front, middle and back to be effective. a 15% improvement in each zone has a 45% net effect, so small wins can lead to big victories.

Urgency Guide:

If your inventory costs consume 20% or less of your revenue, just keep working to fine tune it, but right now you are doing fine.

22-25% - set up a monitoring plan and get busy, loosing extra profits can hurt in a bad economy, and luckily the correction back to 20% isn't going to be a big one.

26-30% - If high inventory costs were a cumbustable item, someone would be ringing the fire bell. This is certainly getting to a level where it should become a top management priority. Too long at this level and other areas of the practice will suffer.

>30% - unless your practice is doing a large amount of retail sales on very low profit items (ie. bovine practice that sells a lot of vaccine and other OTC items) you need to sound the alarm. Next to payroll, inventory is the second largest cost in your practice. No other expenses savings can make up for high payroll and/or inventory costs because these two categories are just so large. If your inventory costs are 30% or more, and its not a result of retailing a large amount of low cost products, then the practice is at risk of financial failure. Loosing an additional 10% of gross revenue can mean thousands of dollars annually. If you're in this category look to these three areas first a) embezzlement b) doctor discounting c) product or services mis-pricing.

On more than on occasion, practices investigating high inventory costs have found they had inadvertently failed to adjust their prices reflective of new manufacturer or provider costs. Failure to increase fees in step with fee increases from other providers (lab fees following a referral lab pricing increase, failure to reset pet food prices subsequent to price hikes from the manufacturer, failure to adjust fees when insurance costs increase), and failure to insure quantity or size correctly matches your prices (new shipment of 500mg tabs put under the 250mg tabs code) in the computer are commonly found mistakes.

Byron Farquer, DVM, AVA

Author:
Dr. Farquer is a recognized expert in practice valuation, published author and national lecturer on ownership transition and practice management/marketing. He is currently on a year-long national tour speaking on inventory related issues including product sales within and outside of the veterinary hospital.

photo courtesy of geekologie

Independent Contractors vs. Employees: Keeping Them Straight

2010-02-23T15:31:00.000-08:00

When the IRS looks at the contractors your business works with, it's looking for any signs that a contractor is misclassified. If there's even a sign that someone you're paying as a contractor might actually be classified as an employee, the IRS will reclassify him as such. That sort of decision can prove very expensive for a business owner: there are fines and penalties associated with the process, as well as a requirement that the business owner pay back payroll taxes.

Contractors Versus Employees

For the IRS, telling the difference between a contractor and employee is a matter of determining just how independent the individual is from the company he's working for.

An independent contractor is not under the 'employer's' control. An independent contractor negotiates their rate of pay, can set their own schedule, can refuse work or projects, provides an invoice on their letterhead for services performed, often works for other people, uses their own supplies, may get reimbursed for expenses, usually works on a project by project basis rather than for an indefinite period. When an independent contractors services are terminated, they are not eligible for unemployment benefits. To keep out of trouble and learn more (click here).

Good fees, bad fees - By Mark Opperman

2009-11-10T12:13:00.000-08:00

In my opinion, there's a fine line between overitemization and underitemization on your invoices. Break out every IV set and suture pack as a separate line item—like a human hospital does—and clients will feel they're being nickel-and-dimed. Hand over an invoice that simply reads, "For services rendered: $825," and you're again facing a fuming client. But you don't want to—nor can you afford to—fail to charge for services rendered and costs incurred. The solution is ... (read more).

Equipment and Furnishings For Your Practice

2009-01-08T09:30:00.000-08:00

Equipping a new practice can be a daunting task. Luckily there is a good list outlining the most common needs of every room in the practice. A partial list is below, but you can find the entire list if you click here.

An example of the list follows and you can use this not only as a guide but I suggest you place the list items in a spreadsheet. Create columns for notes like source, price, importance etc... Because spreadsheets give you unlimited sort options and "what if" scenarios, you can use the list to help build a budget. This is especially useful when working with your lender. It's a convenient way to go back and revise your list quickly to stay within budgets imposed by your business plan and lender requirements. Happy shopping!

List by Hospital room - Provided by Hospital Design/DVM360/Advanstar.

Exam rooms

Desktop computer central to all exam rooms
Exam tables
Rolling chairs or stools
Side chairs
Dog treats
Magazines
Cabinets
Waste receptacles
Chart holders
Sharps containers
Nail trimmers
Stethoscopes
Styptic powder or pencils
Reflex hammer
Eye wash
Cotton-tip applicators
Assorted gauze
Alcohol
Lubricating jelly
Storage jars
Gloves
Feline scale
Small exotics or gram scale
Otoscope
Otoscope cones
Ophthalmoscope
Indirect viewing lens
Radiography view box
Exam lights
Binocular head loupe magnifier
Thermometers
Video otoscope
Schirmer tear tests
Fluorescein dye
Assorted syringes
Penlights
Anatomic models and posters

Treatment area, pack prep, and lab

Rolling stools
Side chairs
Refrigerator for samples
Walk-on scale
Wet table
Waste disposal container (general)
Waste disposal container
(infectious)
Dental unit: scaler, drill, polisher
Dental instruments and supplies
Safety goggles
Endoscope and supplies
Blood pressure monitor
Portable O2 unit
Electrocardiograph
Test tube rack
Hematology, chemistry, and coagulation analyzers
Centrifuge
Hemocytometer
Unopettes
Manual cell counter
Calculator
Timer
Ultrasound machine and supplies
Refractometer
Glucometer
Radiography machine and film cassettes or digital radiography equipment
Lead gloves and aprons
Patient positioning devices
Radiograph developing supplies
Gloves
Masks
First aid kit
Crash cart
Resuscitation bag
Clippers
Tonometer
Ear lavage equipment
Tongue depressors
Thermometers
Splinting equipment
Culture media
Diagnostic reagent strips
Microscope
Microscope slides, coverslips, stains, and holders
Bacterial incubator
Inoculation loops
Lab mailing supplies
Sterility indicators
Laryngoscopes
Biopsy jars
Formalin
Ethylene glycol test kit
FeLV/FIV test kits
Heartworm tests
Elizabethan collars
Muzzles
Autoclave and trays
Autoclave tape
Ultrasonic cleaner
Endotracheal tubes, stylets, and cleaning brush
Endotracheal tube rack
Feeding tubes
Chest tubes
Tracheostomy tubes
Stomach tubes
Stomach tube speculum
IV fluid warmer
IV poles and stands
Fecalizer, centrifuge, and flotation solution
Fecal loops, sample collection containers
Nonabsorbent cat litter
Urine collection containers
Activated charcoal
Gastric lavage supplies
Barium
Wood's lamp
Surgical pack wraps
Surgical caps, masks, gowns, and gloves
Disinfectants
Surgical scrub brushes and soak trays
Surgical instrument cleaner
Suture scissors
Staple removal forceps
Vaginal speculum

Start‐Up or Acquire?

2008-12-10T10:33:00.000-08:00

Start‐Up or Acquire? A Very Important Decision the Aspiring Practice Owner Must Make
David Lucht
President COO & CCO
Live Oak Bank
Are you an associate veterinarian with plans to eventually own your practice? Have you thought about owning the clinic where you practice? Or maybe you’ve thought about building your own state‐of‐the‐art veterinary facility in hopes of reaching out to an underserved market? We at Live Oak Bank specialize in the financing of veterinary practices and witness each of these scenarios on a daily basis. The veterinary industry has historically allowed for the practicing DVM to venture out into the entrepreneurial arena and become extremely successful.
While practice ownership may not be for everyone, if you are so inclined, the following tips may be of interest when approaching the hurdle of acquiring or starting your own practice. Maybe the first, and most important decision you will make, will be to purchase an existing practice or start your own from “the ground up.” I spoke to a veterinarian recently, practicing in a fairly rural market, facing this task. She felt very strongly that her specific market, where she has practiced for the last five years, could support an additional single doctor practice. This area was home to her, and she had been with the only other practice in the area for five years. In conversations with our potential borrower, I recall that after careful consideration, she went forward with her decision to build a new clinic, although if circumstances had allowed she would have liked to purchase an existing practice. After researching different resources, including the Simmons and Associates Web service, she was not able to find a practice for sale that met her geographical requirements (Simmons and Associates is a brokerage and consulting company that assists veterinarians in valuating, managing and selling their practices). After careful market analysis Live Oak Bank decided to assist this particular veterinarian in financing the purchase of a one acre track of real estate and the construction of a new veterinary facility. The key to a successful start‐up from a financial perspective is not to over‐build your cost structure and payments to a level where the market can’t support them in a reasonable time frame.
The alternative to starting from scratch is obviously to buy an existing practice. If a practice is for sale in an area where you would like to work and live, we generally consider this to have less risk. The start‐up project requires an uncertain construction period as well as an opening phase, often characterized by low revenues (and lower compensation to you) in the early years of operation. Because of these risks, more up‐front equity is often required of the borrower and you may receive a slightly higher interest rate.
Why is the other example, the practice acquisition from the retiring owner, often significantly less risky than a start‐up? The answer is that an existing practice generally has a solid base of customers with an ongoing stream of revenue and cash flow. It is extremely important to make sure you understand the nature of the customer base, but assuming the practice is generating a quality stream of revenues, you have cash flow and customers the minute you open for business.
Hopefully, you may also find that that the existing employees are well‐trained and competent. You need to very carefully investigate any practice you are buying, making sure the practice has a good reputation, attracts the customers you want to service, etc.
If you can then grow this existing customer base by providing new services, or extending hours, etc., you can create a lot of value very quickly. Our experience in the industry has revealed a very interesting yet practical result; we believe that your energy level and desire to provide the best services in your market will immediately increase revenues to provide for continued growth over your first few years as the practice owner.

The direction you take regarding start‐up or acquisition may be the most important decision you’ll ever make. Each future practice owner is unique, and not every market has a practice for sale that would suit you. At Live Oak Bank, we finance both start‐ups and acquisitions, but believe that existing practices carry slightly less financial risk.

Vets Fare Relatively Well During Current Credit Pinch

2008-12-05T09:38:00.000-08:00

Vets Fare Relatively Well During Current Credit Pinch
By Jessica Tremayne
Reprinted from Veterinary Practice News

Despite the upheaval in the U.S. financial landscape, veterinarians remain one of the top three most reliable professions to lend to, joining dentists and physicians.

Experts say the availability of veterinary business loans has stayed stable as well.

Working off the concern of member veterinarians, the American Animal Hospital Assn. conducted a study of the economic impact on practice revenues.

Of the veterinarians polled, 93 percent said they were working off of actual data as opposed to a gut feeling. Fifty-six percent reported a revenue increase in the first six months of 2008 compared to 2007, while 28.4 percent said their revenue had fallen.

About 79 percent of those polled in the AAHA Rocky Mountain Market Research survey said they do not anticipate a decrease in total revenue in the last six months of 2008.

“We had received a number of inquiries, both from the media and from companies in the animal health industry, asking whether economic conditions had resulted in pet owners seeking less veterinary care for their pets,” says John W. Albers, DVM, executive director of the AAHA. “We only had anecdotal information, so we conducted the study.”

Although results may vary by region, the profession’s integrity has remained intact, veterinary lenders report.

Pet Owners Wary
Practitioners’ financial concerns are valid, considering that 68 percent of pet owners polled last December for a pet-spending survey said they believed their finances would be the same or worse in 2008 compared to 2007. The Fleishman Hilliard International Communications survey of 665 pet owners was initiated to obtain a better understanding of the ideology of the pet-owning population in trying economic times. read more

IRS changes vehicle milage rates in 2009

2008-12-03T11:51:00.000-08:00

In a recent article on SmartStart Practice, we published the tax rate changes affecting veterinarians in 2008 vs. 2007. Recently the IRS changed the vehicle mileage rates again. During the second half of 2008 mileage rates were increased to 58.5 cents per mile in response to increased fuel costs. This rate will be downgraded to 55 cents per mile for 2009. When tracking your mileage expenses for 2008, you should be using 50.5 for the first 6 months, 58.5 for the last 6 months of 2008 and then 55 for 2009.

Additionally you should be aware that as of January 1, 2009 the following apply:
55 cents per mile for business miles driven
24 cents per mile driven for medical or moving purposes
14 cents per mile driven in service of charitable organizations

As always, we recommend you check www.irs.gov for the most current recommendations.

Getting it Right in Writing

2008-11-14T09:10:00.000-08:00

Having a good written document, whether it be for employee evaluation, client education or simple planning purposes is the first step to organization and a successful outcome. The SmartStart Practice Resource CD found in the Success Kit, is loaded with useful forms and tools. You can also find more than 300 more including, Cat Owner Fact Sheet: Arthritis, Client Consent Form: Ivermectin, Job Appicant Evaluation Form, and many others right here.

Denver Broncos embarrased by the New England Patriots

2008-10-21T16:16:00.000-07:00

What does Denver Bronco's loss to the Pats have to do with SmartStart? Nothing directly except what you think you know last week isn't necessarily what will happen this week. So too is the veterinary lending market. For years we have seen very methodical although sometimes frequent alterations in lending requirements. This week however we are seeing an almost fly-by-the-seat-of-your-pants approach to cooking up new lending terms. A recent practice borrower who inquired with 4 prominent veterinary lenders receive vastly different proposals, including large down payment requests, seller guarantees and requests for deposits, and other new lending terms. According to the borrower one lender has refused to provide details on the exact interest rate, loan fees and other important terms as though they themselves remain unsure. If you had a chance to buy a veterinary practice earlier this year and didn't you might be kicking yourself now. One thing we know from the past month is fear runs amuck in all lenders currently, and turbulent borrower times will progress for a number of months. There is a lot of bait and switch going on with loan proposals. Borrowers be very cautious right now and GET IT IN WRITING!

Turbulent Times for Veterinary Borrowers?

2008-09-24T12:38:00.000-07:00

Although Wall Street is in a melt down, and financial institutions are scrambling, many core veterinary lenders are "business as usual" and they are alive and well.

On Monday, two of SmartStart's key advisors spent the day at Matsco, one of the industries leading veterinary lenders. With more than 2 decades of experience Matsco has witnessed considerable good and bad economic changes and lending challenges. The good news for Matsco is its key relationship with Wells Fargo, currently still rated AAA by Moody's and the S&P. Wells Fargo has strong finacial asset reserves and less exposure to the sub-prime mortgage mess than other lenders. Matsco reports its portfolio is in excellent shape and they intend to continue to increase lending not decrease it as we complete the 2008 year.

In trouble times two things are known facts. Animals need medical services and veterinary practice ownership is the best option for job security.

Super Collection of IRS Forms

2008-09-08T13:35:00.000-07:00

Need Publication 15, or 521? How about the publication for Corporations or Pension and Annuity publication 575? Find all of these and more in one easy to navigate list at moneycentral.com.

Just click on the link http://moneycentral.msn.com/taxes/taxinfo/fedpub.asp

No more searching endless pages of the IRS.gov website. Now you have time to grab that cup of coffee you've been meaning to get since you got to work this morning!

New Tax Laws Means New Savings For You

2008-09-08T13:28:00.000-07:00

Published from moneycentral.com.

Every year, the Internal Revenue Service adjusts the standard deduction to account for inflation. This is the basic deduction that all taxpayers get.

But don't just take the standard deduction. Total up all your deductions every year. If the total of your itemized deductions exceeds the standard deduction, then, by all means, itemize. It will save you money.

If your deductions don't exceed the standard deduction, then don't itemize.

2007 standard deductions Filling status Amount
Married filing jointly or qualifying widow or widower
$10,700

Head of household
$7,850

Single
$5,350

Married filing separately
$5,350

2008 standard deductions Filling status Amount
Married filing jointly or qualifying widow or widower
$10,900

Head of household
$8,000

Single
$5,450

Married filing separately
$5,450

Also the standard mileage rate for automobile use for business purposes or charitable activities, or for moving or medical expenses has increased for 2008.

For 2007, the standard mileage rates are:

48.5 cents a mile for business use.

20 cents a mile for medical or moving expenses.

14 cents a mile for driving in charitable activities.

For 2008, the standard mileage rates will be:

50.5 cents a mile for business use.

19 cents a mile for medical or moving expenses.

14 cents a mile for driving in charitable activities.

Great Learning with VBMA

2008-08-20T12:47:00.000-07:00

What is the VBMA?

The Veterinary Business Management Association is a student-driven organization dedicated to advancing the profession through increasing business knowledge, creating networking opportunities, and empowering students to achieve their personal and professional goals.

The goal of the National VBMA was to provide a support network among students with common interests and goals. These students believed that in order to practice quality medicine, veterinarians needed to possess subsidiary skills to enhance client compliance and personal success. These beliefs were rooted in the results of industry research of the time, most notably the KPMG Mega Study but also the Brakke and AVMA-Pfizer studies that followed. These studies showed the importance of business education as factors in improving the quality of veterinary service and the amount veterinary income. The founding students of the VBMA felt like this element of their education was not being addressed and moved to fill the void.

One of the founding principles and greatest attributes of the VBMA is that it has always been lead, managed, and organized entirely by veterinary students. The VBMA considers itself to be “independent” primarily because it does not have, and was not created or directed by any type of parent organization. Our organization is founded on the determination, innovation, and entrepreneurial spirit of future veterinary leaders who desire a higher level of business education than what is being offered through veterinary colleges. This allows us to pursue their own educational interests through lectures and hands-on experiences.

Become a member today. www.vbma.biz

Be Memorable, Be Consistent, Be Clear

2008-08-18T16:17:00.000-07:00

Create ONE Remarkable Marketing Message for Consistency, Clarity and Results
by Leslie Hamp, Certified Marketing Spitfire™

Visit www.gmarketing.com and www.gmarketingblog.com for more helpful articles and information.

What’s the first thing that pops into your mind with the mention of the word marketing? Do you get excited about all of the possibilities…or do you freeze at the thought of developing strategies and tactics?

90 percent of small business owners do not have a marketing plan, yet most know that it takes seven to 10 impressions to make an impact and inspire a prospect to take action. Repetition is critical, but what is the best way to proceed?

The surefire way to ensure success is to pre-determine your marketing and the action required to reach seven to 10 impressions. Here are 7 strategies to focus your efforts:

1. Be remarkable. Identify your goals, your strengths, and your target audience. Define ONE quality that sets you apart from your competition and turns your customers into loyalists buying from you again and again. What are you willing to stake a claim on? Focus on that ONE remarkable quality, develop a clear, consistent marketing message, and repeat that ONE marketing message in everything you do. If you repeatedly launch new marketing messages, you are starting all over each time and will be spinning your wheels for naught.

2. Maximize word of mouth. When you have a business identity or brand that inspires, fascinates, engages and rewards customers and employees, you are going to be talked about. There is no denying that the opinions of trusted family and friends play a key role in influencing the purchase behavior of others. Can you come up with a creative campaign that will get lots of people talking? Are you encouraging referrals? Do you have testimonials in your print, web and on-site displays that reflect the ONE remarkable quality that is the basis of your business and marketing?

3. Free Media. There’s a great big world of media available online and off, and a lot of it is free. If you provide newsworthy information, your news releases will be published or aired. So what’s your hook? Are you launching a new event, releasing a new book or announcing a new program? Is there newsworthy information to highlight about you, an employee or a customer? Think big, develop a hook, and reinforce your ONE marketing message along with the who, what, when, where and why of your news release. Distribute online and off.

4. Knock Your Socks-Off Service. Be sure you and your employees are delivering unbelievably great service under every circumstance. Answering the phone with enthusiasm, putting paperwork on the back burner to assist a customer, and listening to each customer should be a no-brainer, but sometimes a hectic day puts good intentions on hold. Focus on your ONE remarkable quality and give customers knock-your-socks-off service. They’ll likely have something very good to say about you to others.

5. Get in the Limelight. One of the best ways to spread your ONE marketing message is to speak to organizations, associations, clubs, and radio audiences. Keep in mind that Rotary Clubs, local business groups, school foundations, radio networks and other organizations are always looking for program ideas. Make their job easy by offering your expertise. Determine where your target audience spends his/her time, select an organization that’s a good fit, contact the program coordinator, and offer a presentation targeted to the audience. You’ll be positioning yourself as an expert while reaching new prospects.

6. Collaborate. Also called fusion marketing by Jay Conrad Levinson, the Father of Guerrilla Marketing, collaboration is a tool that many small business owners overlook. Yet research shows that working with others increases productivity, motivation and results. Collaborations combine the efforts of two or more entities to explode joint marketing efforts. The keys: Identify potential collaborations, determine what each of you brings to the table, and create a win-win situation where you can shout out your ONE marketing message.

7. Hire a marketing coach. If you are stuck, it may be that you are overwhelmed, at “a fork in the road” and unsure of your next step. Enlist support. Hire a professional coach and consultant to help you redefine your unmistakable brand identity, your ONE marketing message, and action steps to ensure success.

While there are many more ways to guarantee you will make an impact, these seven strategies will get you started with a solid foundation for strengthening your ONE marketing message. Be sure to put it all on paper so you have a map guiding your efforts and ensuring that you focus on the ONE quality that sets you apart from your competition and makes you truly remarkable in the eyes of your customers and prospects. Be consistent. Be clear. Be ready to skyrocket results.

Certified Marketing Spitfires™ Leslie Hamp and Holly George are creators of the Business Boost In A Box. To learn more about the step-by-step program, and to sign up for their free Marketing Mastery Success Kit, visit www.boostyourbottomline.com

http://www.gmarketingblog.com

2008-08-18T13:28:00.000-07:00

Timely Tips

2008-06-13T07:50:00.000-07:00

In a recent post on VIN, veteran marketing expert Donald Erceg (VetMark - Portland, OR) has this to say about marketing in today's tough economy.

(Today), marketing dollars are the most likely to feel the pinch of hard times. It may be counterintuitive to some, but marketing is even more important in difficult times. That being said, the marketing most likely to yield immediate results is internal marketing to one's existing client base. Pet owners are looking for ways to offer the best care for their pets and are looking to the pet's veterinarian for advice and leadership. For external marketing, assuming that the hospital is already marketing in the yellow pages and internet, the most important thing the veterinarian can do is improve the existing marketing. The phone company's yellow page artists and most web page designers know little to nothing about corporate image and brand development. Try to find a designer or marketing strategist who is accomplished at brand development and understands lifestyle marketing. Good advertising has to reach out and touch the potential client. Finally, there is no substitute for good location and a great sign. If you have a poor sign in a great location, change it immediately--this can yield results from day one. If you have a crummy location, bite the bullet and relocate if at all possible. Sorry, this is not the quick fix that your question implied but veterinary medicine is not a widget business and you can't promote it like the latest iPod gadget. Good marketing is a long term investment.

Loan Updates

2008-06-11T12:12:00.000-07:00

In a conference call today with a leading home mortgage company, the sub-prime and foreclosure fiasco was discussed to see what is driving lending changes. Confirmed were the assumption that at least 40% of the changes in lending parameters is fear based from lenders themselves. Veterinary lenders are not experiencing the same pull back.

Live Oak Lending now Live Oak Bank

2008-05-16T11:05:00.000-07:00

Live Oak Lending is now, Live Oak Banking. Nothing has changed in management, however with the approval of FDIC, the company is now an official state chartered bank in North Carolina. Unlike commerical lenders offering financial services for a range of businesses, Live Oak Bank is focused exclusively on helping veterinarians start-up, grow or refinance their practices.

The bank is self-owned which means the most important employees are principal owners in the business. That increases the level of importance each borrower has to each bank employee. The borrowers success is truely the bank employee's success as well.

New Website

2008-04-23T11:24:00.000-07:00

In just a couple of weeks, SmartStart Practice will be launching our new website.

Live Oak Lending offers special rates to SmartStart Practice graduates

2007-11-27T09:48:00.000-08:00

Just a few short months ago, Vince Daily and Brian Faulk made the move from Vine Street Financial to Live Oak Lending. SmartStart Practice has been able secure a lending relationship with Live Oak Lending, enabling graduates of the SmartStart Practice Advanced program, to become eligble for reduced fees and/or rates from Live Oak Lending.

Hospital Design

2007-09-21T07:39:00.000-07:00

At www.hospitaldesign.net you can find lots of useful information to help with your project. Here is just a partial listing of architects available on the list.

ANIMAL ARTS GATES HAFEN COCHRA
735 Walnut St, #A
Boulder, CO 80302
800-332-4413
www.animalarts.biz

B D A ARCHITECTURE
901 Lamberton Place
Albuquerque, NM 87107
505-858-0180
www.bdaarc.com

COPICH AND ASSOC
314 Churchill-Hubbard Rd.
Youngstown, OH 44505-1327
330-759-0226
www.copich.com

CROSBY LONGO ARCHITECTURE
3403 Jefferson Ave
New Orleans, LA 70125
504-885-4520
www.crosbylongo.com

DESIGN LEARNED INC
116 Main Street
Monument, CO 80132
860-889-7078
www.designlearned.com

Protect what you have

2007-06-19T19:50:00.000-07:00

Well we are back over to Trump again, because like so many times before, there is a pearl of wisdom to be gained. I'd recommend you look into their services, as there are a number of great articles in the members section.

Essential Steps to Protect Your Business Assets
by J. J. Childers

Vital information from the new book Trump University Wealth Building 101: Your First 90 Days on the Path to Prosperity

You spend years building a company and then one day a visitor falls in your parking lot, breaks her hip and sues you. Is it a problem you can settle out of court, a problem that your insurance policy will cover - or a problem that will cost you your business?

The answer to that question is really up to you. Protecting your assets depends upon the strength of the “asset security system” you design and install. Recognize this, and take these five steps to insure that any lawsuit you face won’t wipe out your personal and business assets:
Formulate a strategy. Realize that no matter how carefully and ethically you conduct yourself and your business, it is highly likely that you may be sued.
Recruit and organize professionals who can help you accomplish this goal. Most likely, you’ll need an attorney and an accountant who are both skilled at asset protection structures and methods.
Prioritize your objectives. Evaluate your overall financial situation, but in a way that doesn’t negatively affect your other financial planning objectives. Consider how a transfer of assets from one entity to another may affect your tax and/or estate planning. If you put your personal residence into a limited partnership, you’ll gain asset protection - but lose the tax exemption.
Measure your wealth. What assets do you have at risk, and how do you expect your wealth to change in the future?
Be proactive in your planning. You can’t put an asset protection system in place after you’ve been sued. Unfortunately, people often think about how to protect their assets when it’s too late.
And one last word . . .

A secure asset protection system in place is a lifelong process. Regular review of your assets and their vulnerabilities can ensure that you have the protection you need.

J.J. Childers is an attorney dealing primarily with the topics of asset protection, estate planning, and tax reduction. He travels the country extensively working with individuals and companies to help them with their small business wealth structuring. He is one of the authors of the new book Trump University Wealth Building 101: Your First 90 Days on the Path to Prosperity.

Two Marketing Mistakes that Kill New Businesses

2007-04-10T10:34:00.000-07:00

by Michael Sexton

Visit Trumpuniversity.com for more articles similar to this one.

What are the most disastrous marketing mistakes that new entrepreneurs make?

The two marketing problems that most new entrepreneurs need to overcome are cockiness and laziness. Let’s take a closer look.

Cockiness - You can hear this attitude in the words of one student who told Professor Don Sexton, “I don’t need to worry about marketing. People would be crazy not to buy my product.” That’s backwards thinking - or worse. People will never be crazy about your product or service until you make them feel that way. And that demands great marketing. You can also hear cockiness in the words of another student who said, “I spent so much time and money to develop this great product that it just cannot fail.” Great products do fail. Only good marketing makes them succeed.

SSP NOTE: This equally applies to the attitude expressed by many doctors in the past. "I'm a great doctor, people will beat my door down due to my skill and equipment". "Not So" says Donald Erceg of VetMark, in Portland. "Today, its about meeting the client's needs, 'She', who must be obeyed!". Although trite, the saying "No one cares how much you know until they know how much you care" still applies in today's medical field.

Laziness - You can hear this attitude in the words of the student who said, “I’m too busy raising money to get to know my customers. Can’t I just hire a sales staff and turn them loose?” The fact is, marketing is hard work. You can’t hide from it. You need to study your competition and find ways to differentiate yourself. You need to talk with your customers and understand how your business can serve their needs. You need to identify targeted marketing channels and use them to reach your customers. And in the early stages of building a company, doing it all well is your job. You can’t just push one magic button and expect the money to start rolling in.

SSP: Here we might see a variation in the veterinary industry, where we have to truly search to find laziness of a physical nature. On the other hand one need not search far to find a certain laziness lurking in every practice, laziness to learn other than medical topics. Marketing requires study and application, and you won't be sucessful with a 'shoot from the hip' approach or entrusting Susie the buding artist in kennel services to do the next advertising campaign. You have to spend smart money and invest quality time to be sucessful.

According to the U.S. Small Business Administration, more than 550,000 small businesses will close their doors this year and give up. If you don’t want to join their ranks, learn the skills you need to succeed in The Marketing Mastery Program from Trump University.

Alternative Entrance and Exit Strategies

2007-03-28T11:49:00.000-07:00

Recently, Dr. Byron Farquer lectured at the annual AAHA convention held in Denver, Colorado. One of the lectures outlined a series of case study conclusions on alternative strategies for entering and exiting practice ownership. The powerpoint slides are available at www.avpmca.org.

Resource CD Update 3.0

2007-03-26T08:28:00.000-07:00

SmartStart Practice released version 3.0 of its resource CD. Third in the series, this CD contains more forms, planners, articles, and how-to related subjects. Previously some areas were not populated with information, but all folders have useful data as of this release. "The building and rebuilding of this CD is an on-going process, and by design will be updated periodically" says co-founder Byron Farquer, DVM "The goal is to continue to develop more useful tools and enrichen the content" he said in a brief phone interview.

2007-01-04T09:53:00.000-08:00

The Harder I Work, The Luckier I Get"
by Donald J. Trump

"Diligence is the mother of good luck." - Benjamin Franklin

I've always been big on quotes, whether they're mine or someone else's, because very often they distill ideas down to their essence. What Ben Franklin said many years ago could have been said today, because it's relevant and right on. We've all heard about doing our "due diligence," which is another way of being thorough. It's also the first step to bringing yourself some good luck. What Gary Player, the great golfer, said "The harder I work, the luckier I get" (the title of this essay), remains solid nutshell advice that can apply to everyone......

Read the rest of his article at www.trumpuniversity.com

BE A LEADER, NOT JUST A BOSS

2006-12-28T09:46:00.000-08:00

Good leaders are made not born. If you have the desire and willpower, you can become an effective leader. All you have to do to become a boss is buy a practice. to become a good leader you must develop through a never-ending process of self-study, education, training, and experience. To inspire your team into higher levels of teamwork, there are certain things you must be, know, and, do. These do not come naturally, but are acquired through continual work and study. The best leaders are continually working and studying to improve their leadership skills.

Leadership is a complex process by which you influence others to accomplish a mission, task by the application of your beliefs, values, ethics, character, knowledge, and skills. Ownership gives you the power to accomplish certain tasks and objectives in the practice but this power does not make you a leader. It simply makes you the boss. Bosses tell staff what to do, leaders inspire a desire to doit. Leaders make people want to achieve high goals and objectives.

Your staff will evaluate your leadership skills not by what you say but by what you do. They will watch to see if you walk your talk. They can tell immediately if you are an honorable and trusted leader or a self-serving tyrant who misuses your authority of ownership. Self serving leaders can force employees to obey but can’t force them to follow.

What makes a person want to follow a leader? People want to be guided by those they respect and who have a clear sense of direction. To gain that respect, be ethical above all else. Then develop and communicate a clear vision for the future of the practice.

The complete guide to Leadership and Team Leadership is available to SmartStart Practice members. To receive your member's PDF copy of this manual contact Info@SmartStartPractice.com.

KUDOS to Todd McCoy DVM, Texas A&M 1997

2006-12-28T09:34:00.000-08:00

Congratulations to SmartStart student, Todd E. McCoy DVM, a graduate of College Station. Thanks to his SmartStart training and the assistance of the SmartStart Acquisition and Merger team, Dr. McCoy was able to obtain funding for an important acquisition and to successfully transition from a $400K to a $1.4M practice. Thanks to his training and hard work, he has posted nine successful months in the combined practice now called NASA Pet Hospital in Houston. Working closely with the SmartStart Transition Team, Dr. McCoy is quickly acquiring the financial management skills that will help carry his practice into the multi million dollar level and realize his longer term dream of building a new, state-of-the-art facility in three years.

SmartStart at North Carolina State University

2006-12-28T09:22:00.000-08:00

The Business Management principles and focus on creating client-centered practices will soon be part of the veterinary curriculum at Nort Carolina State University. Donald Erceg, a co-founder of SmartStart Practice, has been invited by the school of Veterinary Medicine to teach a day-long Seminar on Practice Marketing in its eight day concentrated Business Management curriculum in April 2006.

Mr Erceg's daylong seminar based on the SmartStart materials will focus on:

I. Brand marketing: creating your brand and making your brand promises.
II. Keeping your brand promises with a client-centered practice.

VETERINARY ECONOMICS

2006-12-22T22:09:00.000-08:00

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The Hospital Design Package includes:
Building a Practice
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The Floor Plan Book
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2006 Hospital Design Proceedings
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Click Here: http://vmpgstore.com/veechodepa.html

What you should know about traveling with your pet

2006-12-22T20:59:00.000-08:00

Offering helpful advice to clients is an important value added service. Like the article shown below, client information is abundant and easy to obtain for your practice. You likely belong to many associations and organizations, and they often have tools for you to use. Reach for these and others to quickly build up your file of client education information. It makes you look good, and it certainly helps clients and pets alike.

From the article -

Planning and Preparation
Planning and preparation are necessary when traveling with family pets. Consider whether your pet is comfortable when traveling. Some animals, like some people, function better in familiar surroundings. A car-sick animal can make a trip miserable for everyone. Some ill or physically impaired dogs and cats cannot withstand the rigors of travel. If this is the case, discuss options such as using a reliable pet-sitter or a clean, well-managed boarding facility with your veterinarian.
If you will be staying with friends along the way, be considerate. Find out in advance if the pet is welcome. The same goes for hotels, motels, parks, and campgrounds. Always check whether pets are allowed or ...........

Read the rest of this information at: http://www.avma.org/communications/brochures/traveling/traveling_brochure.asp

You can print a nice .pdf document for clients also.

Great Place to find Advisors

2006-12-22T20:41:00.000-08:00

The AVPMCA is a great organization (www.AVPMCA.org)

This is a collection of consultants and advisors in the field of veterinary medicine that subscribe to the objectives shown below. Many of our Key Advisors belong to and/or helped establish the organization as Charter Members. If you need an advisor, this is a great place to look. There is a searchable database that shows each advisor's specialty and expertise. Happy hunting!

The AVPMCA strives to:

To increase the knowledge of veterinary practice consultants and advisors in the fields of veterinary business management and veterinary practice valuations.
To elevate the profession's understanding of veterinary business practice management and practice valuations through educational programs.
To cooperate with veterinary, legal, accounting, appraisal and other allied professional organizations to enhance the public benefit in the application of veterinary practice management, consulting, advising and practice valuations.
To communicate with veterinarians, veterinary related parties and veterinary students to improve the profession's understanding of business principles.
To create and maintain a member code of ethics.

2006-12-22T20:37:00.000-08:00

Mandatory New Posters for 2007 Available from the CVMA

Order yours today at http://www.cvma.net/, Shop the Mall!
The minimum wage in California is going up to $7.50 an hour on January 1, 2007 and veterinary practices are required to post this new minimum wage, along with other required California and Federal postings. The CVMA is selling an Employee Posting set, new for 2007, consisting of two laminated posters. In addition to the new minimum wage (which will go up to $8 an hour on Jan. 1, 2008), the posters have new Whistleblower Protection required information and new Uniformed Services Employment & Re-employment Rights Act information.
Go to http://www.cvma.net/and order yours now! And check out the other regulatory compliance service products the CVMA has to offer:

Meet one of our Key Advisors - Jim Guenther, DVM MBA MHA CVPM

2006-12-22T10:30:00.000-08:00

Jim Guenther, DVM provide expertize and consulting in Practice Management for the Smart Start Practice Program.

Dr. Guenther graduated from The Ohio State University College of Veterinary Medicine in 1970 and later owned and managed Biltmore Veterinary Associates in Asheville, NC for 25 years. He completed a dual degree (MBA/MHA) program through Pfeiffer University in Charlotte, NC in 1999 and also became the Administrator of REACH (Regional Emergency Animal Hospital). At the same time he joined Brakke Consulting, Inc. of Dallas, Texas as part of the practice management team.Through his experiences in the development of REACH Hospital, Dr. Guenther understands mergers, acquisitions, and the marketing of a new practice. His knowledge of equine, small animal, and emergency medicine has allowed him to better understand the art of practice and the science of management. As administrator of a 24/7, he understands and utilizes the principles needed to create a successful practice in the new millennium.

Expertise: Practice management consulting including specialty referral practices, practice merger and acquisitions, strategic planning budgeting, financial analysis, and problem-oriented challenges.

SmartStart Practice and Fair Fees Solutions

2006-12-22T10:14:00.000-08:00

SmartStart Practice anounced December 12th news that it had developed a working arrangement and co-assistance program with Fair Fees Solutions. Both companies seek to improve the business success of veterinarians through business knowledge education and through proper fee structuring that creates a profit, respectively. The companies share great respect for the impact and effort each is making and has chosen to work together on a series of joint seminars in 2007. Look for announcements soon. Expect them to be associated with major veterinary conferences throughout the US.

First Year Comes to a Close

2006-12-22T10:13:00.000-08:00

Its the holiday season, one of thankfulness and cheer. Thankful that we made it through the most trying of times launching a new venture and cheerful that we've had so many good comments from student-clients and the industry. We have a lot of improvements to make and we will be finishing many of the components that were not yet ready as well as making replacements and revisions to items that needed updating.