Veterinary Clinic Business Plan Template
If you want to start a veterinary clinic or expand your current veterinary practice, you need a business plan.
The following Veterinary business plan template gives you the key elements to include in a winning Veterinary business plan. In addition to this template, a solid plan will also include market research to help you better understand the veterinary services industry, veterinary medicine trends, and how to target pet owners. It will also help you craft your mission statement, marketing plan and strong financial projections.
Veterinary Clinic Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a new veterinary clinic located in [Location]. The clinic treats dogs, cats, small mammals, and birds for a variety of issues and conditions. We provide many services for our animal friends, including wellness checks, diagnostic services, and minor surgeries/operations. We aim to be the #1 clinic in the area by providing high-quality services, friendly customer service, and compassion and empathy during each visit.
[Company Name] is founded by [Founder’s Name] who has been a veterinarian for twenty years. She loves working with animals, but found that the previous clinics she worked for had high stress environments and lacked the compassion needed to work with animals and their humans. Therefore, she was inspired to create her own clinic that would provide a more positive experience for local pet owners.
Products Served
We provide an extensive range of veterinary services. These include wellness checks, nutrition counseling, diagnostic services, minor surgeries, dentistry, and end of life care. We provide these services to dogs, cats, birds, hamsters, and guinea pigs.
Customer Focus
[Company Name] will primarily serve the residents within a ten mile radius of our location. The demographics of these customers are as follows:
- 89,022 residents
- Average income of $82,000
- 45.2% married
- 61.2% in Mgt./Professional occupations
- Median age: 38 years
- 53% pet ownership
Management Team
[Company Name] is founded by [Founder’s Name] who has been a veterinarian for twenty years. She has previously worked at several local veterinary clinics, but disliked their high stress environments and lack of compassion for their clients. Therefore, she was inspired to create her own clinic that would provide a more positive experience for [Location]’s pet owners.
Success Factors
[Company Name] is uniquely qualified to succeed due to the following reasons:
- Our location is in a high-volume area with easy access from multiple residential and commercial district areas. This will make it easier for our clients to reach us during urgent or emergency situations.
- The management team has a track record of success in the veterinary industry.
- Veterinary clinics are a proven business and have succeeded in different communities throughout the United States.
Financial Highlights
[Company Name] is currently seeking $450,000 to launch. Specifically, these funds will be used as follows:
- Clinic design/build: $200,000
- Equipment and supplies: $100,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Top line projections over the next five years are as follows:
| Financial Summary | FY 1 | FY 2 | FY 3 | FY 4 | FY 5 |
|---|---|---|---|---|---|
| Revenue | $560,401 | $782,152 | $1,069,331 | $1,379,434 | $1,699,644 |
| Total Expenses | $328,233 | $391,429 | $552,149 | $696,577 | $776,687 |
| EBITDA | $232,168 | $390,722 | $517,182 | $682,858 | $922,956 |
| Depreciation | $7,000 | $7,000 | $7,000 | $7,000 | $7,000 |
| EBIT | $225,168 | $383,722 | $510,182 | $675,858 | $915,956 |
| Interest | $6,016 | $5,264 | $4,512 | $3,760 | $3,008 |
| Pre Tax Income | $219,152 | $378,458 | $505,670 | $672,098 | $912,948 |
| Income Tax Expense | $76,703 | $132,460 | $176,985 | $235,234 | $319,532 |
| Net Income | $142,449 | $245,998 | $328,686 | $436,864 | $593,416 |
| Net Profit Margin | 25% | 31% | 31% | 32% | 35% |
II. Company Overview
Who is [Company Name]?
[Company Name]’s mission is to care for the pets of [Location] with the greatest warmth and empathy possible. [Company Name] is a large veterinary clinic that will help treat dogs, cats, birds, and small mammals for a variety of concerns. We offer wellness checks, diagnostic services, minor surgeries, and end of life care. Local pet owners can depend on us to care for their animal companions and restore them to perfect health.
[Company Name] was founded by [Founder’s Name] who has had considerable experience as a veterinarian. She has worked for several clinics but did not like their working environments nor how poorly they would treat their clients. Therefore, she decided to create her own veterinary clinic that was devoted to helping animals with the greatest empathy possible.
[Company Name]’s History
After surveying the local customer base, and finding a potential location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [Date of Incorporation].
Currently, the business is being run out of [Founder’s Name] home office, but once the lease on [Company Name]’s location is finalized, all operations will be run from there.
Since incorporation, [Company Name] has achieved the following milestones:
- Found a commercial space and signed Letter of Intent to lease it
- Developed the company’s name, logo, social media accounts, and website located at [website]
- Determined equipment and fixture requirements
- Began recruiting key employees
[Company Name]’s Products/Services
[Company Name] treats the dogs, cats, domestic birds, and domestic small animals that live in the [Location] area. We offer numerous services to treat these animals and restore them to perfect health. These services include:
- Wellness Checks
- Vaccinations
- Health Certificates
- Microchipping
- Spay and Neuter Services
- Nutritional Counseling
- X Ray Services
- Dentistry
- Parasite Control
- Ultrasounds
- Diagnostic Services
- End Of Life Care
III. Industry Analysis
Just like humans, animals are susceptible to injuries, disease, and other problems. Therefore, they need specialized professionals that can help them get treated or prevent these issues altogether. Veterinarians are the doctors of the animal world and are the primary reason why we get to enjoy our animal friends for as long as we possibly can.
Veterinarians treat a wide range of animals, including dogs, cats, snakes, domestic birds, horses, and more. They provide a variety of services for these animals including wellness checks, vaccinations, microchipping, diagnostic services, and surgeries. These are all essential services that extend the lifespan of our animal friends as well as improve their quality of life.
According to Grand View Research, the veterinarian industry was valued at $11.03 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 8.7% from now until 2030. This is substantial growth and shows just how important this industry is for the domestic animal kingdom. Therefore, veterinarians will continue to thrive, making this a great time to start a new veterinary clinic.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the community residents of [Location] and its surrounding areas. The area has a high pet ownership rate and is in need of a good veterinary clinic.
Customer Segmentation
[Company Name] will primarily target the following customer segments:
- Dog owners: Dogs are the most popular pet in America and are particularly popular in the [Location] area. Therefore, we expect most of our patients to be dogs of all ages and breeds.
- Cat owners: Cats are the second most popular pet, meaning we will see them almost as much as our canine friends.
- Small mammal owners: Those who don’t want a dog or cat typically own a small mammal such as hamsters and guinea pigs. Therefore, we believe this will be the third largest target demographic for our clinic.
V. Competitive Analysis
Direct & Indirect Competitors
The following establishments are located within a ten mile radius of [Company Name], thus providing either direct or indirect competition for customers:
Wagging Wellness
Wagging Wellness is a new veterinary clinic located on the east side of [Location]. It is a small clinic that offers wellness checks, diagnostic services, and other routine services. They do not handle urgent or emergency situations, focusing their services primarily on basic wellness and prevention.
The Doggy Clinic
The Doggy Clinic is a veterinary clinic that exclusively works with and treats canines. They offer a full list of services from wellness checks to simple and more complex operations. Dogs of all ages and breeds are welcome at the clinic, but pet owners that own different pets will have to go elsewhere.
Downtown Pet Hospital
The Downtown Pet Hospital is a large and popular animal hospital located in the heart of downtown [Location]. They offer every service you can imagine from wellness checks to emergency operations. However, since it is an animal hospital, most of their money and resources are dedicated to more severe operations and procedures. The hospital services many types of animals including dogs, cats, snakes, birds, small mammals, and more.
Competitive Advantage
[Company Name] enjoys several advantages over its competitors. These advantages include:
- Client-oriented service: [Company Name] will have multiple receptionists available to check guests in and answer all of their questions. [Founder’s Name] will keep in touch with clients through a monthly newsletter with basic pet care tips.
- Management: [Founder’s Name] has been extremely successful working in the veterinary clinic business. Her unique qualifications will serve customers in a much more sophisticated manner than [Company Name]’s competitors.
- Relationships: Having lived in the community for 25 years, [Founder’s Name] knows many of the local leaders, newspapers, and other influencers. This will help her build the brand quickly and gain widespread recognition.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the company’s unique value proposition:
- Convenient location
- Expert veterinarian staff
- Excellent customer service based on compassion and empathy
- Moderate price point
- Warm and welcoming customer-focused environment
Promotions Strategy
[Company Name] expects its target market to be individuals living within a ten mile radius of its location.The following are [Company Name]’s promotions strategy to reach these individuals:
Website/SEO
[Company Name] will develop a professional website that displays images of the clinic and the list of our services. It will also invest in SEO so that the company’s website will appear at the top of search engine results.
Social Media
[Founder’s Name] will create the company’s social media accounts and invest in ads on all social media platforms. The company will use targeted marketing to appeal to our target demographics.
Direct Mail
[Company Name] will blanket neighborhoods surrounding its locations with direct mail pieces. These pieces will offer discounts and/or provide other inducements for people to try out our clinic.
Local Publications
[Company Name] will announce its opening several weeks in advance through publicity pieces in multiple local newspapers and publications. Advertisements will also run to maintain exposure to relevant markets. Community newspapers and similar channels will be a major promotion effort.
Ongoing Customer Communications
[Company Name] will maintain a website and publish a monthly email newsletter to tell customers about new services and provide basic pet care tips.
Publication Materials/Noticeboards
Posters and flyers will be posted on public notice boards. To target a more specific audience, [Company Name] will also contact companies for permission to hand out flyers in their vicinity. These companies may include kennels, shelters, and pet stores.
Pricing Strategy
The pricing for our services will be moderate so that our clients feel they are receiving great value when getting their pets treated with us.
VII. Operations Plan
Functional Roles
In order to execute [Company Name]’s business model, the company needs to perform many functions, including the following:
Administrative Functions
- Bookkeeping
- Marketing
- Website maintenance
- Hiring and training staff
Service Functions
- Appointment setting
- Wellness checks
- Diagnostics
- Vaccinations
- Microchipping
- Nutritional counseling
- Minor surgeries and procedures
Milestones
The following are a series of steps that lead to our vision of long-term success. [Company Name] expects to achieve the following milestones in the following [xyz] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
VIII. Management Team
Management Team Members
[Company Name] is founded by [Founder’s Name]. [Founder’s Name] graduated from [University] with a Doctorate in Veterinary Medicine and has worked as a veterinarian for twenty years. She has considerable experience working with all common pets, including dogs, cats, and small mammals and can provide a variety of prevention, diagnostic, and treatment services.
[Founder’s Name] has worked for several veterinary clinics but was disappointed in their unwelcoming and high-stress environments. She also didn’t like how poorly these clinics treated their animal patients and human clients. Therefore, she was inspired to start her own clinic that focused on warmth and compassion to provide a better experience for local pet owners.
Though [Founder’s Name] has never run a clinic of her own, her experience working in several other clinics has given her knowledge of how to run the operations and management aspects of the business. [Founder’s Name] will hire several other staff members to help her run the clinic.
Hiring Plan
[Founder’s Name] will be the owner of [Company Name] and work as one of the veterinarians. In order to launch, the company needs to hire the following staff:
- Veterinarians (3 to start)
- Receptionists (2 to start)
- Veterinarian technicians and assistants (4 to start)
IX. Financial Plan
Revenue and Cost Drivers
[Company Name]’s revenues will come from the fees charged for providing veterinarian services.
The major cost drivers for the company will include equipment purchasing and maintenance, supplies costs, labor expenses, overhead, and marketing expenses.
Capital Requirements and Use of Funds
[Company Name] is currently seeking $450,000 to launch. Specifically, these funds will be used as follows:
- Clinic design/build: $200,000
- Equipment and supplies: $100,000
- Working capital: $150,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of clients per day | Per location |
|---|---|
| FY 1 | 10 |
| FY 2 | 15 |
| FY 3 | 20 |
| FY 4 | 25 |
| FY 5 | 30 |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
