In the realm of veterinary practices, discussing net profits—particularly healthy ones ranging from 20-30% after paying the owner’s salary—often remains a taboo.
However, it’s alarming to note that one in eleven practice owners fail to earn a sufficient income to pay themselves adequately, let alone secure a profit.
I’d like to share with you today a case study from Dr Sally Rekers, owner of Mansfield Vets and how she overcame her financial challenges in her mixed animal practice.
Before the Turnaround
“When we took over Mansfield Vets in 2002, it was very much a traditional country mixed practice.
As the town and practice evolved over the years, we found ourselves investing more and more money into the business with very little return on investment.
Our turnover started to plateau, but our costs continued to increase.
We had tried to get help from a business adviser, who helped us understand the figures, but we weren’t able to change them.
We had considered selling the business to a corporate, but after looking at our figures, they wouldn’t touch it.
I was feeling completely overwhelmed, run down and alone and I started to question my own capabilities and worth, feeling more like an imposter than a practice owner.
What were the top three strategies you used to turn it around?
The turning point came when I realized that to change our situation, I needed to first change how I viewed myself and our practice’s potential. This shift started with the AMG Program, which was unlike any other business advisory service we had tried.
Firstly, I had to change my mindset around money. I had a deeply ingrained belief that I didn’t deserve to make a lot of money as a vet. I actually felt guilty making money and would work long hours and not pay myself properly to avoid that guilt.
This showed up in the clinic as undercharging, underestimating and even underservicing. Of course, my team followed suit!
We were making less than 5% profit.
Changing this belief pattern and focusing on standards of care has improved not only practice profitability but my mental health as well.
This was hard to overcome, but I learned how to value myself and how much better we could service our clients, and our team, if I allowed us to make a profit.
By the way, this is not just a case of raising prices! You need to have the mindset, systems and client delivery to allow this to work. If you do it right, you are unlikely to lose a single client.
Secondly, I learnt how to fully engage the whole team, so they were equally invested in changing our results. I identified those that could see the true value in the vet work (not the vets!) and enlisted their help in developing better pricing estimates and strategies.
Thirdly, we worked hard on creating an amazing workplace culture. While you might think, “How does this improve profitability?” it 100% does.
When you have a team that truly loves what they do and the workplace they are in, it shines through to the clients, helps build their trust, and keeps them coming back.
We have created a culture of “How can we create a 10/10 client experience, everytime?” As it turns out, this is a process that you can develop with your team to ensure consistency of delivery.
How your situation is different now, compared to what it was?
Honestly, I think I am a completely different person. I’ve come from feeling like an impostor to now being a confident business owner. The feelings of panic and overwhelm have completely gone and even if we have a bad month or two, I feel calm in the knowledge that, “I’ve got this” and it will turn around.
I also used to worry about what other practice around us were doing, Now I don’t.
Oh, and I make a LOT more profit and I’m comfortable with that. We make over 20% after owner salary as an average.
Advice to My Peers
To my fellow practice owners feeling trapped by financial woes or impostor syndrome, my advice is straightforward:
Seek help, but make sure it’s the right help.
Change starts with believing you deserve better and taking steps to achieve it. Don’t underestimate your worth or the impact you have like I did.
Sounds simple but it’s not easy. I found I needed to have someone help me with my change of mindset.
The AMG Program was instrumental in transforming our practice not just financially, but emotionally and operationally.
Concluding Thoughts
Turning around Mansfield Vets has been one of the most challenging yet rewarding experiences of my life. It’s evidence that with the right support and a willingness to change, it’s possible to transform not only your practice but also how you see yourself and your role within the community.
If I can do it, you can!”
Want to see where the biggest opportunities in your practice are? Click the link to take the free Practice Diagnostic Assessment https://acceleratepracticeacademy.scoreapp.com and you’ll receive an assessment of the four pillars of a successful practice: Personal, Financial, Marketing and Leadership.
Warmly,
Sam
