• Hero Banner
  • ACVCACVC
  • DVM 360
  • Fetch DVM 360Fetch DVM 360
DVM 360
dvm360 | Veterinary News, Veterinarian Insights, Medicine, Pet Care
dvm360 | Veterinary News, Veterinarian Insights, Medicine, Pet Care
By Role
AssociatesOwnersPractice ManagerStudentsTechnicians
Subscriptions
dvm360 Newsletterdvm360 Magazine
News
All News
Association
Breaking News
Education
Equine
FDA
Law & Ethics
Market Trends
Medical
Products
Recalls
Regulatory
Digital Media
dvm360 LIVE!™
Expert Interviews
The Vet Blast Podcast
Medical World News
Pet Connections
The Dilemma Live
Vet Perspectives™
Weekly Newscast
dvm360 Insights™
Publications
All Publications
dvm360
Firstline
Supplements
Top Recommended Veterinary Products
Vetted
Clinical
All Clinical
Anesthesia
Animal Welfare
Behavior
Cardiology
CBD in Pets
Dentistry
Dermatology
Diabetes
Emergency & Critical Care
Endocrinology
Equine Medicine
Exotic Animal Medicine
Feline Medicine
Gastroenterology
Imaging
Infectious Diseases
Integrative Medicine
Nutrition
Oncology
Ophthalmology
Orthopedics
Pain Management
Parasitology
Pharmacy
Surgery
Toxicology
Urology & Nephrology
Virtual Care
Business
All Business
Business & Personal Finance
Buying or Selling a Practice
Hospital Design
Leadership & Personal Growth
Personnel Management
Practice Finances
Practice Operations
Technology
Wellbeing & Lifestyle
Continuing Education
Conferences
Live Conferences
Conference News
Conference Proceedings
Resources
CBD in Pets
Contests
Veterinary Heroes
Partners
Spotlight Series
Team Meeting in a Box
Toolkit
Top Recommended Veterinary Products
Vet to Vet
  • Contact Us
  • Fetch DVM360 Conference
  • Terms and Conditions
  • Privacy
  • Do Not Sell My Information
  • About Us

© 2023 MJH Life Sciences and dvm360 | Veterinary News, Veterinarian Insights, Medicine, Pet Care. All rights reserved.

Advertisement
By Role
  • Associates
  • Owners
  • Practice Manager
  • Students
  • Technicians
Subscriptions
  • dvm360 Newsletter
  • dvm360 Magazine
  • Contact Us
  • Fetch DVM360 Conference
  • Terms and Conditions
  • Privacy
  • Do Not Sell My Information
  • About Us
  • MJHLS Brand Logo

© 2023 MJH Life Sciences™ and dvm360 | Veterinary News, Veterinarian Insights, Medicine, Pet Care. All rights reserved.

Top 9 reasons small businesses fail

January 19, 2011

Look out for these signs of failure in your veterinary practice.

One of the least understood phenomena is why small businesses fail, and there’s a simple reason for the confusion: Most of the evidence comes from the failed business owners themselves—who are often in denial—making it hard to get an unbiased opinion. So, from the New York Times, here are the top 9 reasons small businesses fail, veterinary edition:

1. The math doesn’t work. Simple enough: There’s not enough demand for your veterinary services at a price that will produce a profit for the business.

2. A practice owner who can’t get out of his own way. He may be stubborn, risk adverse, or conflict adverse. Or he may be a perfectionist, greedy, self-righteous, paranoid, indignant, or insecure. Sometimes, you can even tell this type of owner that he is the problem, and he will recognize that you’re right—but not do anything to change.

3. Out-of-control growth. This is a successful business that is ruined by over-expansion. This would include moving into markets that aren’t profitable, experiencing growing pains that damage the business, or borrowing too much money.

4. Bad accounting. You can’t be in control of a business if you don’t know what’s going on. With bad numbers, or no numbers, you’re flying blind. There’s a common misconception that an outside accounting firm hired primarily to do the taxes will keep watch over your business. In reality, that’s the practice owner or manager’s job.

5. Lack of a cash cushion. Business is cyclical and bad things can and will happen over time. This can stress the finances of a veterinary practice. If you’re already out of cash—and borrowing potential—you might not be able to recover.

Advertisement

6. Operational mediocrity. Chances are, you’ll never meet a practice owner who described his business as mediocre. Repeat and referral business is critical for most businesses, as is some degree of marketing.

7. Operational inefficiencies. Paying too much for rent, labor, and materials and your practice will hurt. Now more than ever, the lean companies have an advantage. Not having the stomach to negotiate terms that are reflective of today’s economy may hurt your pracitce.

8. Dysfunctional management. This includes lack of focus, vision, planning, standards of care and anything else that goes into a well-managed practice. Throw fighting partners or unhappy relatives into the mix, and you have a disaster.

9. Lack of a succession plan. Nepotism, power struggles, significant players being replaced by people who are in over their heads—all reasons many family businesses don’t make it to the next generation.

If you feel like your practice is on the verge of failure, it’s time to reflect on where you’ve gone wrong. Chances are, the above factors are at least part of your shortcomings.

Related Content:

Business
CityVet names new chief strategy officer
CityVet names new chief strategy officer
Hannah Pet Hospital names new CEO
Hannah Pet Hospital names new CEO
CityVet Celina opens in Prosper, Texas
CityVet Celina opens in Prosper, Texas

Advertisement

Latest News

Study reveals most pet parents wouldn't leave home to escape disaster if they couldn't bring pets

New ASAP Vet urgent care opens in Austin, Texas

This week on dvm360.com: dvm360® continues to celebrate Pride Month, and other veterinary news

3 must-sees on creating an inclusive work culture

View More Latest News
Advertisement