How Much Does Starting A Veterinary Practice Cost?
The cost of opening a new veterinary practice can vary from hundreds of thousands to over a million dollars, depending on location, size, and services offered. Prospective practice owners can better prepare for this significant investment by carefully evaluating expenses and developing a detailed financial plan.
What Goes Into the Cost of a Brand-New Veterinary Practice?
Starting a veterinary practice involves significant financial planning. From real estate to staff salaries and essential equipment, here are some of the main expenses when starting a new veterinary practice:
Real Estate Price of Veterinary Office Location
Real estate costs can vary significantly depending on the size, city, and client proximity. Each has pros and cons: urban areas typically have higher prices but offer more significant customer traffic, while rural locations might be more affordable but draw fewer clients. Leasing a property may cost less upfront than purchasing, but owning a building provides long-term equity and stability.
Differences in Cost Between Building a New Office or Renting a Building
Building a new office can be expensive—ranging from $100 to $200 per square foot—but it allows you to customize every inch to suit your office’s needs. On the other hand, renting a building involves lower initial costs but may require compromises on layout and long-term flexibility, since lease agreements often have modification restrictions, impacting the practice’s setup.
Price of Veterinary Equipment
Veterinary equipment is a significant investment. Diagnostic machines (X-rays, ultrasounds), surgical tools, anesthesia equipment, and laboratory testing devices can cost tens of thousands of dollars. A fully outfitted practice may spend over $100,000 to $250,000 on equipment, depending on the services offered.
Cost of Furniture
Beyond medical equipment, a veterinary practice will need furniture for waiting rooms, exam rooms, and staff areas. Chairs, desks, tables, cabinets, and shelving typically cost $10,000 to $50,000, depending on the quality and style chosen.
Staff Salaries
Hiring skilled veterinarians, technicians, receptionists, and support staff requires a budget for competitive salaries. Annual costs can vary but might range from $300,000 to $600,000 or more, depending on the size of the practice and local wage rates. Don’t forget to consider additional costs for benefits and training.
Price of Veterinary Licensing and Permits
Every veterinary practice must comply with state and local regulations, requiring various licenses and permits. These costs typically range from $500 to $5,000, including business licenses, Drug Enforcement Administration (DEA) registration, and professional veterinary licenses.
Price of Building Renovations
Renovations are necessary if you convert an existing building into a veterinary clinic, and costs depend on the scope of work, such as installing exam rooms, kennels, or specialized ventilation systems. Renovation expenses typically range from $50,000 to $200,000, depending on the building’s condition and customization needs.
Is it Better to Buy an Existing Veterinary Practice?
Both options have distinct advantages and challenges when deciding whether to open a new veterinary clinic or buy an existing practice. Your goals, financial resources, and willingness to take on risk will determine the best path.
Advantages of Buying an Existing Veterinary Practice
One of the almost instant benefits of acquiring an existing veterinary practice is having immediate access to an established client base and a steady revenue stream–including existing financial records and historical performance metrics.
Challenges of Buying an Existing Practice
Purchasing an existing practice can help speed up the acquisition and transition processes, but these benefits can come at a cost. Purchasing a profitable practice can require significant capital, ranging from hundreds of thousands to millions of dollars, often requiring financing options, such as loans. Existing practices may come with outdated equipment and systems that require additional investment funds. Changing existing systems, infrastructure, equipment, and organizational structure could be costly and disruptive.
Advantages of Starting a New Clinic
A new clinic allows complete freedom to design the space, select equipment, and implement business practices that reflect your unique goals and preferences. Starting fresh means you can invest in up-to-date equipment, technology, and systems, avoiding the need to overhaul older infrastructure. Although building a client base takes time, you have the opportunity to grow at your own pace, shaping the practice as you go without inheriting legacy problems.
Challenges of Starting a New Clinic
Launching a new clinic involves significant effort to secure licenses, find a location, hire staff, and build a reputation, which can take years before profit. Additionally, the early phase is financially risky since initial costs for real estate, equipment, and marketing can be high, and there’s no guaranteed client base.
How Much Does it Cost for a Mobile Veterinary Practice?
Startup costs for a mobile veterinary practice vary widely depending on location, the type of services offered, and the scale of operations. Initial startup costs typically range between $50,000 and $250,000, including purchasing or retrofitting a vehicle, medical equipment, licensing, and insurance. Retrofitting a vehicle to meet veterinary standards, such as installing refrigeration for vaccines, surgical tables, and proper ventilation, can cost $20,000 to $100,000 alone.
Once a mobile veterinary practice has been established, ongoing expenses include fuel, vehicle maintenance, medical supplies, marketing, and staff salaries. While mobile veterinary practices often save on overhead costs like renting a clinic space, careful budgeting is essential to ensure profitability. Many veterinarians find mobile practices are a cost-effective way to offer personalized, convenient care while reaching underserved areas.
Where Can You Get Help Establishing a Veterinary Practice?
It can be a complex process to establish a veterinary practice, but there are some helpful resources for starting a veterinary practice:
- Professional Associations: Organizations like the American Veterinary Medical Association (AVMA) and state veterinary medical associations offer resources, guidelines, and networking opportunities to assist with starting a practice. They may provide access to business management tools, legal advice, and continuing education.
- Consultants and Practice Management Firms: Veterinary-specific consultants, such as Suveto, specialize in helping veterinarians establish and manage their practices. These firms often assist with business planning, location selection, financial analysis, and marketing strategies.
- Financial Institutions: Banks and lenders specializing in veterinary practices – such as Calico Financial – can provide financial solutions for veterinarians who want to get into private ownership, expansion, and renovation.
- Veterinary Schools and Alumni Networks: Many veterinary schools guide graduates on establishing practices, including workshops, mentoring, and connections to experienced practitioners who can offer advice.
Suveto is here to help veterinarians at all stages of their careers. Whether you’re a new veterinarian graduate looking for jobs, a veterinary professional interested in ownership opportunities, or looking to get into private practice ownership, find out how Suveto is helping veterinarians through every step.
