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Veterinarian Creates a Low-Cost, High-Margin Practice

This profile features Ben Character and his creative approach to designing his own successful and highly-profitable veterinarian practice after working for -- and studying -- the operational issues with typical veterinarian practices

Name:

Ben Character

Family Description:

We are a family of eight, with our seventh child due soon. 

Business Name:

Mobile Veterinary Service

Business Description:

I am a veterinarian and I work from home.  My practice is 100% ambulatory (no brick and mortar building).  The bulk of my work is on horses, dogs, and cattle, but I see all species of animals.  I have no employees.  My nine-year old son often rides with me and is fast becoming very helpful while on calls.

Location:

West Alabama

Formal education/training:

Doctorate of Veterinary Medicine.   My wife and I both graduated from vet school the same year.  She worked part-time until our first son was born and has never worked since - except at home where she is a very busy mom of six, going on seven, including one set of twins.

Prior work experience:

I worked for a multi-doctor practice in Kentucky and then went back to school to do an internship in preparation for specializing in surgery.  However, the Lord turned my heart back to my family and after finishing the internship I gave up the chance to continue in academics and began performing "relief" services and doing some specialized surgeries for other veterinarians. In 2006 I started Mobile Veterinary Services.

Forming the Idea:

After working in the multi-doctor practice and then working for single doctor practices doing relief services I began to understand and appreciate the large volume of overhead associated with those setups.  Since I did not really desire to be "trapped" in a clinic all day with my livelihood dependent on having constant work flow through such a high-overhead environment, I decided to "create" a practice that was extremely lean and focused on high customer service and services that had high margins of returns (most low-return services I refer to other practices).

How you got started:

Since I already had the credentials needed, I built a customized "box" for my SUV to hold my equipment and supplies based on the models that I had used previously, ordered about $5k in supplies and inventory, and began putting out the word that I was in business.

What was it like in the beginning:

Before I decided to start I had already finished up my last relief stint about 4 months previously.  My only other source of income was some freelance writing that I did for hunting dog magazines.  Initially after getting all my equipment and supplies in order, I ran a few ads in the local papers and started putting put fliers around town in the Coop's, feed and tack stores, etc.  Calls started trickling in.  I had designed and printed fliers so that whenever I would go out to do a call I would put them in any mailboxes of farms or residences where I saw animals outside.  I required payment at the time of service and started with relatively low prices.

What stage the business is at now:

Over the last three years my gross receipts have grown slowly but steadily - mostly due to price increases.   I have been able to raise prices up to a level so that my focus is on low volume/high quality. My number of calls per year is relatively stable, with new clients replacing those that move on for one reason or another.  I do very little advertising now - mostly I get clients by word of mouth.  I "work" (this means I leave the house to make at least one call) an average of 3 days per week.  I am trying to focus on time and schedule management so that I am more efficient.  I utilize "just-in-time" delivery and keep my inventory very low.  My net income, when I consider only "necessary" expenses, is about 68%.

The biggest challenge you’ve faced:

This start-up has been relatively easy compared to some of the stories that I have heard.  The biggest challenge right now is to determine in what direction to head next.  I believe that this business was perfect for our needs initially, but with our family growing and the regulatory limitations that are inherent in any medical profession, I am looking to the future needs of our growing family - especially my, soon to be, five sons.   I am becoming increasingly aware that I cannot do it all myself.   I will either need to find a way to out-source some back-office duties, grow the business large enough to restructure (hire another vet?), or sell-out and focus my attention in another direction.

Key steps that made the difference:

1. We have been debt-free for 8 years now - including our house and land.  This made a HUGE difference during periods when income was very small (i.e. start-up phases). 
2. Starting small and not trying to "do it all".  If I had tried to offer all the services of a regular hospital, it would have required much more capital for equipment (e.g. radiology equipment) that experience has shown me now would not have been a very high profit center in the context of this business model.

Lessons Learned:

• Communication is key in a service business.  You can make a lot of mistakes, but if you will just take the time to communicate with your clients they will forgive you.
• Businesses grow in spurts and during the growth phases it hurts.

The best advice you received:

One general piece of advice from my wife's grandfather who was an entrepreneur in the gas/oil business was:  stay small.   This turned out to be good advice for this venture.  I would modify that advice to: stay the "right size", where the right size is one that does not over extend you; it is a manageable size given your abilities and God given responsibilities at a particular season of life.

What your work and family life was like before:

Before I started doing my own thing my family was very small and young.  My wife did her thing and I did mine in terms of work, but we have always been each others’ best friends so we did not drift too far apart.  However, my focus then was on "enjoying" my work.  I had no vision for a family or a family dynasty.  I was more interested in the "doing" to gain my own personal fulfillment.  I was also at the beck and call of my employer and my beeper.

What your work and family life is like now:

Now every decision is made with a focus on the future while also considering the now.  I strive to balance my time.   Instead of sitting in a clinic all day, I am constantly in and out of my home.  I see my wife and children constantly and we share our lives.  It helps me to not blow-off areas of my children's lives in which I need to train them because I am with them so much.  When you are with them a lot you can't just put off areas that need attention.   I can structure my day as I deem best and can turn off the phones when I need to give my family my attention.  I depend on God to a greater degree instead of putting my trust in an employer to supply my needs.