BUSINESS - Veterinary Business Model

Question 1

What are the five steps within the veterinary business model?

Answer 1

1. Make phone ring
2. Call convert
3. Consult convert
4. Charge for work done
5. Get recommended

Question 2

What are the four key cost elements within a typical veterinary practice?

Answer 2

VAT
Cost of people (wages)
Cost of goods
Cost of establishment

Question 3

How is VAT calculated?

Answer 3

Divide the value by 1.2

Question 4

In a typical veterinary practice, what proportion of revenue is required to cover wages (vets, nurses and employment costs)?

Answer 4

20%

Question 5

What is an excellent net profit for a veterinary practice?

Answer 5

More than 18%

Question 6

What is a good net profit for a veterinary practice?

Answer 6

15 - 18%

Question 7

What is the average net profit for a veterinary practice?

Answer 7

12 - 15%

Question 8

What is the below average net profit for a veterinary practice?

Answer 8

8 - 12%

Question 9

What is a poor net profit for a veterinary practice?

Answer 9

Less than 8%

Question 10

What does EBITDA stand for?

Answer 10

Earnings Before Interest Tax Depreciation and Amortization