Productivity, Porfitability, and Practice Value

Secure your future

Sometimes it's not about what you can do with your software, but rather, what can your software do for your business?

Think the practice you own (or the one where you work) is worth big bucks? Are you sure? How much? How do you know? This is a major concern for practice owners, especially now.

If you doubt the unease out there, go to http://www.dvm360.com/ and search "no value practice." Check the results! Or go to http://www.avpmca.org/ , click the link for the No-Lo Practice Worksheet, and then download " The No-Lo Practice: Avoiding a Practice Worth Less." What is this value thing? Why bother? What goes into it? What does it measure? How is it represented?

Value, or worth, is a measure of a practice's profitability. There are many practices that pay good salaries and benefits, have lots of practice "toys," but have no profit at year-end. That becomes extremely important if the owner wants to, or needs to, expand, plan his or her estate, sell the business, or take in a partner. After all, why would anyone want to buy outright or buy into a business that can't pay back the purchase price of save money for expansion?

The good news is, you have the information you need to deal with this issue, right in AVImark. You can measure and manage your practice from several angles, using computer reports to determine profitability, appraise the value of your practice, and see different approached to influence the numbers.

Taking the time to learn the value of your business, even if you're not ready to sell, will mean planning a secure future. And AVImark makes it easy.

By Dr. Martin Miller

Dr. Martin Miller, a veterinarian and banker, had a presentation designed for practice owners and managers addressing this important issue. He can be reached at drmartinmiller@gmail.com