By: Kirsten Poppen, JD CVA
Simmons & Associates Midwest, Inc.
Decision by Information, Not Default – Veterinary Practice Valuation to Assist with Informed Decision Making
High profitability. Top managed practices. No-lo practices. Industry standards. Improving your practice’s cash flow. Bottom line.
There’s no shortage of resources—and many good resources at that—to aid the practice owner in improving practice profitability.
We see much of the focus on being bigger and better; maximizing profitability. These are good things and often the needed focus in working with your practice’s financial health.
But is there another side here? Can a practice appraisal—or valuation—provide a different tool for the practice owner equally as valuable?
I talk with many practice owners, and for some, their goal isn’t necessarily to change their practice into becoming a top level financial performer. With some, there’s a level of comfort or pride in decisions they’ve made to create the practice culture or environment that they choose.
The key however is making that by choice…
How you choose to run your practice is the awesome power of it being YOUR practice. As a valuator, it’s not my role to dictate that you make changes to your practice unless that’s your goal as well.
A practice valuation is an excellent resource in understanding the impact of your financial decisions and choices:
– Providing extra benefits to your staff.
– Expanding your equipment.
– Offering a large variety of heart worm preventatives.
These might be the right decisions for your practice if consciously made with an understanding of the impact they may have on your bottom line. What does my practice look like with this scenario? If I were to make changes in an expense area, how would that change my practice’s financial picture?
What’s congruous with my goals?
It’s the dawn of new fiscal year for many practices. What has your profitability been? And more importantly, why? Whatever your practice goals, now is a good time to have this year be the product of intentional expense decisions. However that may look for you.