Opening of a Veterinary Clinic
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Veterinary Clinic Business in the United States
In a veterinary clinic, services are provided to offer medical assistance to animals. In large cities, the number of domestic animals is quite significant. However, the number of veterinary establishments is limited.
Challenges and Economics
One of the main challenges in setting up a clinic is the high cost of services provided, accounting for at least 70% of the total expenses. This is why a veterinary clinic takes a long time to become profitable, with a payback period sometimes stretching up to ten years. Not every entrepreneur is willing to wait that long.
Many people, even affluent individuals who can easily afford private veterinary services, believe that pet treatment should be inexpensive. From their perspective, human healthcare is more cost-effective than animal care.
In a private clinic, a doctor's visit costs around $5, while in a public facility, the examination fee is $50. Most people are unwilling to pay more. This is not about clothing or gadgets; hence, veterinarians find it challenging to raise prices. Excessive profits are rare in the veterinary business.
Successful clinics earn around $1,200 to $1,500 monthly, after minimizing all expenses. There are clinics generating higher revenue, but they are scarce in the country. Typically, these are clinics that originated from public medical facilities, benefiting from various cost-cutting strategies.
Firstly, there is no need to find a suitable location. Secondly, there is an existing customer base.
Financial Calculation and Requirements
To achieve a monthly profit of $1,200, a clinic must serve a minimum of 35 visitors. Each visitor should pay $7 for a consultation.
The biggest hurdle in establishing a veterinary clinic is finding the right property. The clinic should be located in a residential area for easy access by clients. Moreover, a short distance between the client's home and the clinic facilitates animal transport, adding to the convenience factor. The property must meet specific requirements, making it challenging to find.
The health department mandates a minimum distance of 50 meters between residential buildings and medical facilities, further complicating the property search.
If such regulations didn't exist, there would be more clinics. However, since rules are in place, compliance is necessary. Sometimes, it takes years to find the optimal property.
To equip the clinic with necessary facilities, an 80m² space is required. While a reception area can fit in 20m², renting such space in a non-residential building is complex.
Licensing and Approval Process
Prior to launching, several permits and approvals are essential. A separate entrance must be constructed. Initially, a license permitting the provision of veterinary services is required. The license is obtained from the licensing chamber, where the businessman needs to submit an application in a specific format along with copies of operating permits and tax-related documents. Additionally, proof of the medical staff's qualifications must be provided. These documents are valid for five years, after which qualifications need re-validation.
Following the license acquisition, clearance from the sanitary and epidemiological station and fire department is necessary. These departments inspect the premises and equipment for compliance with regulations. Approval from the office of internal affairs is also crucial to determine if the premises are suitable for storing medications.
A veterinary clinic must have an X-ray room. Installing an X-ray machine requires the development of a room plan meeting specific requirements. Only licensed specialists are allowed to conduct the setup, which must be approved by health authorities before operation. Installation must be performed by qualified professionals.
Equipment and Expenses
After dealing with paperwork, the next challenging step is equipment procurement and installation. This phase is often the most expensive. Basic equipment costs start at $450, which may exceed the budget of many veterinarian-business owners.
While quality equipment is essential, professional and skilled veterinarians are irreplaceable. Currently, finding true experts in the field is quite challenging.
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