If you're interested in an investment you may not have considered before, think about this fact: you can start a small animal clinic from the ground up for just $1 million (per the Independent Veterinary Practitioners Association). Buying an already existing practice will cost even less. So here are five tips if you're interested in getting a veterinary practice loan to expand your investments and produce a more balanced and successful portfolio for your needs.
While you might think it would cost more to buy an existing practice, there are many benefits to doing so. First of all, building up a new clinic may cost as much as buying a practice. Just as importantly, you'll already have a good client base if you buy an existing animal clinic.
When looking for a veterinary practice loan, it is important to find teams that understand your needs and who are willing to work with you. These financing specialists can give you an insight into how to set up a veterinary loan and how to use it to start your unique practice.
When buying an existing practice, you need to ensure the veterinarians are up to your quality needs. Read reviews online, talk to their past customers, and read about their qualifications and awards. Doing so will make it easier to decide who you want to hire and fire later.
Get the tax reports and financial information from the veterinary practice and see how much money they make every year. Do they have a steady stream of return clients or many people who never return? Try to make sure there's a strong bottom line whenever you invest here.
What kind of competition does your practice have in the area? Do they provide general practice, or are there more specialized groups? Try to find a practice that has minimal competition in the area to ensure that you don't run into potential financial loss along the way.
If you follow these simple steps, your veterinary practice loan will go towards a business that you can trust to have your back when things are tough. Just as importantly, you can avoid serious financial struggles by minimizing potential lawsuits, such as malpractice, if a vet is not careful with their surgical methods. As with any investment, research is your friend here.