The veterinary landscape is constantly evolving, but over the last two decades, this change has felt more rapid than ever. Growing corporatisation, expanding pet populations and staff shortages in recent years have all contributed, perhaps surprisingly, to an increasing number of new practices.
With the traditional partnership model no longer feasible for many vets, those looking to move into practice ownership are having to take a different approach.
So, how is this changing landscape affecting new practices, and what can we do to support them?
The need for new veterinary practices
Any new business relies on the demand for its services, and veterinary practices are no exception. While the cat and dog population dropped slightly from 2022 to 2023 (UK Pet Food, 2023), this hasn’t made up for the pandemic pet-acquisition boom. Smaller pets are also becoming more popular, with the total number of pets up from 35 million in 2022 to 38 million in 2023 (UK Pet Food, 2023). With so many new pets in the last few years and existing practices often facing staff shortages, demand for new practices isn’t slowing down.
‘Opening a new practice may be a challenge, but with the right guidance and support, we see these practices flourish’
More pets aren’t the only thing fuelling new practices, however. Clients appreciate choice in veterinary care, creating space for practices that occupy specific niches. Rightly or wrongly, some clients favour independent practices over corporate-owned ones. Other clients may go out of their way to visit a cat-only clinic or one with an exotics focus. Practices may also offer different services and cater to different demographics, focusing on providing easily accessible care, for example, or offering specialist services such as CT scanning and more advanced surgeries.
David Charvill, director of laboratory services at NationWide Laboratories, works with vets across the country and has identified that new practices are in need of support. He comments: “The veterinary sector has changed dramatically in the last few decades. We’ve had to adapt to that, and we’re proud to offer services to clients of all different sizes and types, from established corporates to mobile vets and small practices just starting out. Opening a new practice may be a challenge, but with the right guidance and support, we see these practices flourish.”
A personal perspective
The need for new practices doesn’t only stem from increased demand by pet owners. Veterinary professionals are also looking for new career paths, often for a multitude of reasons. Financial reward is one motivator, whether from the practice’s profits or its eventual sale, but it’s far from the only factor. Vets often report a desire to be their own boss and have greater influence over the services and care offered. Opening a practice also offers career progression for those not aiming to specialise or diversify.
With rates of stress and burnout high and staff shortages driving up wages, increasing numbers of vets have also begun to locum. Anecdotally, this may also be fuelling the rise in new practices; these vets have already stepped out of standard employment and are managing their own finances and exploring how different practices operate. The step to opening a new practice, or perhaps starting up as a limited-service provider, is subsequently smaller.
Vets often report a desire to be their own boss and have greater influence over the services and care offered. Opening a practice also offers career progression for those not aiming to specialise or diversify
Finally, the growth of out-of-hours (OOH) outsourcing has made opening a small practice more viable for some vets. Offering 24/7 care as part of a one- or two-vet practice can be daunting, and the normalisation of OOH outsourcing has made this a feasible option for new practices.
Challenges of starting a new practice
Whatever the reason for opening a new practice, it remains a challenging process. Funding is often the first hurdle, but the good news is the same changes that have allowed for corporatisation have created opportunities for individuals, too.
Practice ownership is now open to nurses, practice managers and others in the veterinary sector – either alone or in partnership with vets – while joint venture partnership with corporate backing is another possible route into practice ownership. Partnering with another individual or company can significantly assist with securing funding for veterinary start-ups.
Beyond funding, there are also decisions to be made about premises, recruitment, marketing, suppliers and more. Tony Houghton, managing director of VetIT, comments: “Starting a new practice is a huge undertaking, and it can easily feel like an overwhelming task. Breaking down the decisions that need to be made so you can take it one step at a time is crucial. Running a new practice can be stressful, so one thing that’s especially important is to find service providers and suppliers you trust to build long-term working relationships.”
‘Running a new practice can be stressful, so one thing that’s especially important is to find service providers and suppliers you trust to build long-term working relationships’
One of the major challenges facing those preparing to set up a new practice is the administration and planning process itself. “Finding cohesive guidance is a challenge in itself,” remarks Martin Riley, managing director of National Veterinary Services (NVS).
He continues, “NVS has supported hundreds of vet practices over the years and continues to support vets opening their own new practices. That’s why we’ve developed a free, comprehensive guide that covers the whole process, from picking the right business structure and premises to finding the perfect practice management software.”
Supporting new practices with the New Practice Academy
NVS’s new guide is a step in the right direction, but there remains a lack of significant support for those starting new practices. This is where the London Vet Show’s New Practice Academy (NPA) comes in.
In the wake of the recent COVID-19 pandemic and with the veterinary sector facing challenges such as rising burnout and staff shortages, the NPA initiative was born. The NPA launched as a set of added-value event activities for members, along with a wider open session at London Vet Show 2023, supported by the NVS group and designed to guide and inspire individuals considering setting up new practices.
The session featured a live panel discussion bringing together experts and successful practice owners to examine “What I wish I’d known when I started my business”. The discussion covered topics ranging from practice legal structures and picking premises to marketing, leadership and management, and was hugely popular with delegates. For those interested in setting up a practice, the New Practice Academy is anticipated to return at BVA Live in June 2024.
NVS Group’s support for new practices isn’t limited to guidance and resources. Those looking to start a practice can also take advantage of their special offers, including complimentary set-up and up to six months’ free with the VetIT PMS.
