Focus on Practice Finance 2017: Workshop Streams
For those that attended this event, please click here to download the speaker presentations.
Chair: George Hills, VPMA
The data you need to have, how to effectively manage it, and what, practically you can do with it. This stream will be ideal for practice managers who want a better understanding of what makes up turnover and how to both measure and influence productivity and efficiency. It will start with an introduction to the most important KPIs such as turnover per vet and salary as percentage of turnover. There will then be some very practical sessions on such things as how to read your monthly management accounts; how to ensure your vets and nurses are charging correctly and how to use internet marketing to effectively drive new client acquisition. There will also be a quick fire session with a selection of exhibitors giving their top tips to improve practice profitability.
The Figures you Need: Essential KPIs to monitor and improve productivity and efficiency
Brian Faulkner, Colourful Consultancy
The essential practice and client performance indicators to help you understand your business and what is really happening. From turnover/vet to new client retention rates, Brian will explain what to measure and how to track them. These then provide the evidence base for you to put in place some forward thinking action plans for your team
How to Read your Monthly Management Accounts
Matt Horobin, Operations Manager, Woodcroft Veterinary Group
Do you know your gross profit from your operating profit? Can you tell your COGS from your EBITDA? And do you understand why any of this is important in day to day practice management and business planning? An experienced Practice Manager takes you through some of the common acronyms with easy to understand definitions and explains which ones matter and why. He will also run through the basics of a Monthly Management Account and explain how this differs from a P&L. He will send you away with a one page crib sheet so you can impress the practice accountant at the next meeting!
Practical tips to Improve Profitability
Exhibitors share some top tips, to include:
- 5 figures to improve profitability: John Sheridan, SPVS Profitability Survey
- 5 reasons why compliance is essential to the health of your practice’s finances: Jamie Crittall, Virtual Recall
- 5 ways to decrease your bad debt: Mike Aldred, Carefree Credit
- 5 people touchpoints that drive your bottom line: it’s all about people, those you pay and those who pay you: Alison Lambert, Onswitch
- 5 digital marketing line items that will transform your P&L: Andrew Rastall, Connected Vet
How to ensure your vets charge without resorting to violence
Richard Rowe, DotVet
In a 5 vet practice, if each vet charged an extra £30 more per day, this would add almost £30K to the bottom line. In many practices this could be achieved purely through vets charging accurately. Even in a routine consultation, small consumable items are easily forgotten when it comes to totting up the bill, and for more complicated procedures, everything from buster collars to that 3rd x-ray plate can be missed. Add to that out of date or incomplete price lists and Richard Rowe shares some tips from 30 years of experience both running his own first opinion and referral practice and now as a PMS provider of systems and protocols to ensure your clinical team are charging correctly.
New Client Acquisition
Susie Samuel, Vet Help Direct
To increase practice profitability you need to increase the number of clients and/or increase the yield per client. But even if you are happy with your current client numbers, every practice needs a strategy to acquire new clients to replace those who are lost. Internet marketing allows you to be very specific and efficient in how you target and market to new clients. A good internet marketing strategy will also allow you to measure the success of your campaign in terms of money and potential value to your practice as well as the cost in terms of time and money. In this session Susie Samuel will summarise the available data on the value of a new client and how to tailor that to your particular practice model. She will then describe how to plan, execute and evaluate an internet marketing campaign aimed specifically at new client acquisition.
Chair: Nick Stuart, SPVS
This stream is tailored for practice bosses, partners/directors/JVPs or managers who have more responsibility for their practice finances. It will start from the assumption that you have done all the obvious quick fixes to improve profitability; your prices are as high as they can be or you want them to be and you’ve tied down the best deal possible with your suppliers. So what can you do now to drive your profitability to the next level? The day will start with a quick benchmark exercise, showing you the 5 figures you can measure your performance against in the SPVS Profitability survey. It will then consider a strategy for improving profitability through your people and processes and look in depth at the importance of cash flow in business growth. A panel of experts and experienced vets will discuss how to invest for growth and there will be a session on protocols and systems to ensure maximum efficiency in estimating and charging.
Does Practice Profitability Actually Matter?
Alan Robinson, Vet Dynamics & John Sheridan, SPVS Profitability Survey
John Sheridan will share early results from the SPVS Profitability Survey which suggests that as many as 15% of UK Veterinary Practices could be operating at a loss. That’s the bad news. But what do we actually mean by profitability and is it always a true reflection of the long-term health of your business? Alan Robinson will discuss the meaning and misunderstandings around Profit and how it fits into the mix of a successful practice.
People, Processes and Productivity
Julie Ross, Commercial Director, Vets4Pets
In a service business, productivity will be largely (although not entirely) about people. If your total people cost as a percentage of turnover is above average, then you need to look at improving productivity. At a time when nurses and vets are in short supply, it is more important than ever to ensure your team are working as efficiently as possible. In this session, Julie Ross looks at how you might do that. She will define productivity and make some comparisons with other businesses. She will also look at the important ‘must do’s’ around systems and protocols and show how improving these will not only help productivity, but also ensure a happier, more empowered team.
Managing Working Capital and Cash Flow
Nick Lawrence, Moore Scarrott
If your business plan says you should be making money but you never seem to have any cash in the bank, you need to look more carefully at your working capital and cash flow. Are you under-funded or over-borrowed? Are you very profitable but just spending too much? In this session, Nick Lawrence will discuss how to plan for the right working capital and share his tips for cash flow management. He will also demonstrate how much turnover you need to sustain your spending plans. He will also touch on how much of this you should consider sharing with your team; do you explain to them exactly how much needs to be earned before the practice shows a profit?
Growing Medical Value
Paul Wilson, Business Development Director, VetPartners
So you’ve increased your productivity, tightened up your charging protocols, updated your pricing list and freed up some cash… how are you going to invest it back into the business? In this session, we look at the ways you can increase your medical value. For instance are you making the most of dentistry and is the whole team bought in? Should you buy a CT scanner? More practices are, but do you have the skills in house to make it cost effective? Should you employ an orthopaedic surgeon (if you can find one of course). And before you consider any of that, do you have consistent protocols among your vets re diagnostic testing and how cases are worked up?
Investing for Growth
Tim Gammon, Lease UK; Nick Lawrence, Moore Scarrott; Paul Wilson, VetPartners
Once you’ve decided where to invest, how do you finance it? To cover such things as what to spend your money on (ie diagnostic equipment vs refurbs), the business plan to estimate how to charge to recoup the investment; how you afford it (leasing etc); how to measure and track the return on investment and how to ensure your purchase is as tax efficient as possible.