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Chapter 2: The Business Plan and the Real Numbers

Roughly months 2-4 of your timeline.

What your business plan needs to include

Downloadable: Business Plan Template

What it actually costs to open a practice

Cost categorySolo-vet2-3 vet4+ vet
Buildout$150K-$300K$350K-$650K$700K-$1.4M
Diagnostic equipment$50K-$100K$100K-$200K$200K-$400K
Initial inventory$10K-$20K$20K-$35K$35K-$60K
PIMS + IT setup$10K-$20K$20K-$35K$35K-$60K
Licensing & legal$5K-$15K$10K-$20K$15K-$30K
Working capital$50K-$100K$100K-$200K$200K-$350K
Total$275K-$555K$600K-$1.14M$1.19M-$2.3M

A solo-vet practice with $45,000/month in fixed costs and an average transaction value of $180 needs roughly 250 client visits per month to break even.

Related: How Many Clients Can Vets Handle Daily?

Financing, compared honestly

Options include SBA loans, equipment financing, a business partner, personal savings, and business credit cards. Worth knowing by name: Live Oak Bank, Bank of America Practice Solutions, U.S. Bank, and Huntington Bank.

Common pitfalls

Undercapitalization, overbuilding for day-one volume, and underpricing out of competitive pressure.

Typical practice revenue mix

Examinations ~20%, lab services ~15%, in-house pharmacy ~12.5%, preventive care ~12%, surgical ~10%, vaccinations ~7.5%, dentistry ~3%, other/specialty ~20%.