Four Legged Friends Clinic (FLFC) is a new veterinary practice, in Arlington Heights, Illinois. FLFC will be distinguished from other veterinary practices by its focus on farm animals and house pet issues as well as expertise in alternative treatments.

It aims to be the first choice for farm animals and house pet owners in Arlington Heights that want the best for their farm animal or pet.

Veterinary care in the greater Chicago area is a $2,000,000 sized market and it’s growing. Positioned as a good choice for Arlington Heights farm animals and pet owners, FLFC will offer owners care of older farm animals and house pets. These customers are likely to visit veterinarian more than once a year and make veterinary care decisions based on quality rather price. We will have promotional efforts set up to attract customers.

Company History

Born and raised in Arlington Heights, I studied veterinary at Northwestern University. After my education I worked for the college for two years, and then went off to work at a large local veterinarian in Chicago. Since this I noticed a need for more veterinary clinics in Arlington Heights. There were a couple of reasons. Over the past five years, there has been about a 36 percent increase in the number of farm animals in a 60 mile radius of Arlington Heights. In addition to this increase, the population of Arlington Heights has increased by 22 percent, therefore increasing the amount of potential pet owners. The final reason is that the existing vet clinics cannot keep up with the business.

Growth Strategy

Four Legged Friends Clinic will be profitable by the end first of its year. By the end of its third year, it will likely grow to include another veterinarian. I am currently investing $45,000 in start–up funding to supplement my father’s $18,000 investment in the business. These additional funds will primarily be used to buy veterinary equipment.

Management Summary

Patricia Pugh: After working with a successful veterinary practice in Chicago, I decided to return to my hometown of Arlington Heights to establish a veterinary practice to serve the region’s farm animals and house pet owners especially.

OBJECTIVES

Personal Objectives

Re–establish myself in my hometown of Arlington Heights.
Undertake the challenge of creating a profitable and respected practice.
Achieve balance between my work and personal life, as I plan to have children in the next few years.
Earn sufficient income to pay off my personal debt within two years.

Company’s Short–Term Objectives

Secure office and kennel space by September 2006.
Obtain start–up financing of $100,000 by July 2006.
Open for business by October 2006.
Hire a technician and an assistant by October 2006.
Have 200 active patients by the end of the first year.
Volunteer with the local Zoo, in order to make contacts.
Talk with the local newspaper, to see if they would print a weekly pets column that I write.
Offer a pets tips series for the local radio station to play.
Be profitable by the end of the first year.

Company’s Long–Term Objectives

Have 500 active patients by the end of the second year.
Have 700 active patients by the end of the third year.
Hire another veterinarian by the end of the fourth year.

Mission

Offer best service as well as conventional and non–traditional veterinary services in a way that stresses compassion, and quality–of–life for pets and owners.

SERVICES

General treatment for pets and farm animals, preventative vaccination, diagnosis, treatment, surgery and kennel facilities for domestic pets. The kennel portion of our business will be larger than traditional veterinarian offices. We will have a year round service open 7 days a week. This will allow for clients to drop off their pets for either a day or a week. We feel this kennel will add extra revenue to our office and allow for clients to become comfortable with us, while we build long term clients.

By focusing on farm animals and house pets, The Four Legged Friends Clinic will offer a variety of expertise, experience, and high–quality operation unmatched by other traditional veterinary clinics located in Arlington Heights. Also, no other area veterinarian has the well rounded training that we will offer to our clients.

MARKET ANALYSIS

Demographic Factors and Trends

Dog pet population is in a slow down over the past few years, this however is being offset by higher growth in the number of farm animals & other household pets.
Baby Boomers are getting older and tend to have more disposable income to spend on their pets, therefore we will see more visits by boomer clients with the money to spend.
According to the Arlington Heights Economic Department, Arlington Heights has been the third fastest growing city in Illinois since 2005 and Arlington Heights has now over 125,000 residents.

Social Factors and Trends

Pet owners are embracing veterinary service like preventative dental care.
The city also now passed a bylaw stating all cats must be neutered and licensed. This has greatly increased the amount of cat neutering that is required.

Such products and services will probably be offered more if interest continues to increase.

Economic Factors and Trends

The current economic hot market has positively affected market the for essential veterinary services
The market for “non–traditional” veterinary product and services may grow even more quickly as the economy continues to grow.
The Arlington Heights economy continues to grow while it shifts more toward oil and gas business.

Technological Factors and Trends

New veterinary technologies are constantly emerging. Forinstance, using laser therapy to treat tissue disorders in small animals is gaining acceptance. As technologies continue to be designed, I anticipate upgrading my practice’s equipment and skills.
Many veterinarians are using practice management software to help run their businesses. We will want to invest in this specialized software.

Regulatory Factors and Trends

Veterinarians in Canada must study for at least two years at a university, and then graduate from a 4–year program at an accredited college of veterinary medicine. To qualify for a provincial license, veterinarians must pass the North American Veterinary Licensing Exam.
According to the American Veterinary Medical Association, American veterinary colleges only graduate 400 new veterinarians each year.

Environmental Factors and Trends

Veterinary medicine involves handling chemicals that could potentially harm humans. Special steps must be taken in the administration, storage, and disposal of medicines, vaccine needles, and blood samples, resulting in additional costs.
With the spread of West Nile and similar viruses, veterinarians today must adhere to strict guidelines for reporting any infection that is listed in the federal government database. These controls are in place for the betterment of humans as well as protection for the animals.

The Arlington Heights population and the Baby Boomers’ disposable income are causing an increase in the amount of money spent on pet care in Arlington Heights that will probably continue to increase in the coming years. At this time, the number of veterinarians remains restricted by the number of veterinary colleges. As a result, the demand may exceed the supply, and practicing veterinarians will likely enjoy a steady rise in business. Specialty treatments like preventative dental care will become more popular and will represent significant sources of income for veterinarians.

Arlington Heights, Illinois demographic profile 2002

(Primary trade area)

July 1, 2002 Population (Primary): 62,129
% change 1996 > 2002: +7.07%
Average annual growth rate: 1.15%
Average household income: $51,133
Retail sales: 42% above national avg.
Average family income: $55,527.00
Per capita income: $20,497.00
Private households: 24,905
Family size: 3.0
Housing starts (2000): 413

Market Size

According to Research Inc., 24 percent of American households have at least one pet. Based on the most recent American census data, this suggests that about 45,000 pet owners live in the greater Arlington Heights area. The average pet owner spends about $230 per year on pet health care. As a result, the market for veterinary services in the Arlington Heights area is estimated to be over $5 million.

Competition

Goodland Animal Clinic:

Strengths: Large staff (at least 12 full–time veterinarians); strong relationships with area kennels
Weaknesses: Aging equipment and higher than average pricing

Arlington Heights Pet Palace:

Strength: Reasonable prices
Weaknesses: Young staff; small, crowded kennel facility

Lakefront Vet Clinic:

Strength: In business in Arlington Heights since 1947
Weaknesses: Limited parking; expensive vaccines

Windy City Clinic:

Strengths: Excellent reputation for dog–specific care; services include preventative dental care; also sells dog food and other products
Weaknesses: Higher than average pricing

CUSTOMERS

At FLFC, my primary target customers are farm animals and house pet owners, specifically owners of older farm animals and house pets. Owners of older farm animals and house pets tend to:

Visit the veterinarian more than once a year, due to the age of their pet.
Make veterinary care decisions based on quality of care, rather than on price.
Encounter more pet health problems that can be treated using alternative methods, in conjunction with conventional treatment.

These customers will choose FLFC because as their farm animals and house pet’s age, my clinic can offer an unparalleled range of animal–focused expertise in treating both the common and rare ailments that afflict farm animals and house pets.

Sales & Mark Position

FLFC Client Benefits

The sense of community and the comfort that comes with using a veterinarian that specializes in treating the species they love.
The exclusivity that comes with knowing that their pet is being cared for by the only veterinarian in the area with alternative pet care expertise.
The security that comes with knowing that everything is being done to prolong and improve the quality of their pets’ lives.

BUSINESS STRATEGY

Customers will be required to pay immediately by cash, check, debit card, VISA or MasterCard.

Except in the case of checkups, farm animals & house pet owners will receive follow–up calls from my assistant within 24 hours after their appointment, to check on their pet’s well–being. Premises permitting, kennel facilities will also be offered. Existing customers will be able to leave healthy pets in the overnight facility for a small fee.

As the Veterinarian and owner of FLFC, I will be responsible for running the business and providing veterinary care to customers’ pets.

Advertising

Planned promotional efforts are in keeping with the American Veterinary Medical Association Advertising Guidelines.

A free workshop for farm animals and house pets owners in “Feline Health and Happiness” to be conducted at a busy local bookstore, Professor’s Books, several weeks before the opening of the practice. Attendees’ names will be collected, and I will send them an announcement of the practice’s opening.
A listing in the Yellow Pages.
Meetings with area veterinarians, to build relationships and channels for referrals.
An article about the practice in the Lifestyles section of Arlington Heights’ local newspaper.
Birthday cards sent to customers’ pets.

New clients will either be referred by other veterinarians and pet businesses, or they will choose my practice based on promotional efforts. All services will be rendered in FLFC offices.

Alliances

Our business and strategic alliances include:

Grooming Gods is a high–end grooming company
Arlington Animal Hospital, which has agreed to help offer me 2–hour on–call veterinary service clinic, will be the only “Approved Referral”

When I’m away from my practice for short periods of time, Dr. Alfred Benito at the Arlington Animal Hospital has agreed to care for my patients.

Operations

Premises: I am buying a free–standing building close to major streets, in residential neighborhoods that are appropriately zoned and can be easily converted into a veterinary practice and kennel space. To maximize exposure to the under–served community, I am specifically looking in neighborhoods. Cost: $1,500–$ 2,500 per month, paid for initially from the $30,000 equity investment I’ve made from the business.
Renovation of space: I expect I will have to convert the premises into a more suitable veterinary practice. Cost: Approximately $15,000, including furniture
Veterinary start–up package: I will order this package from Animal Supplies Inc. It includes digital walk–on scale, treatment tub, hydraulic table, machine, feline spay pack, x–ray machine, film and supplies, a blood chemistry unit, used kennel cages, and other equipment. Cost: Approximately $48,000, financing required.
Computer hardware and software: To manage the practice’s front office, I intend to buy a computer from Computer Associates and management software from Veterinary PDM Inc.

I am seeking $65,000 in bank loans to finance the purchase of veterinary equipment.

Risk Factors

I already have life and disability insurance and need to obtain critical illness insurance. My employees will be covered by workers’ compensation insurance.

I have a will. While I don’t have anybody in mind to take over my practice if I become unable to work, I have given my parents’ contact information for competitors who would be potential buyers if something should happen to me.

If my supplier fails to deliver a shipment, suddenly raises its prices, or goes for business out of town, I have established a relationship with a back–up supplier of animal and house pets equipment in Chicago.

If I am unable to find a full–time assistant with practice experience, I will consider part–timers with only administrative experience.

If I need legal advice, I will retain the services of Robert Smith, a partner at the law firm of Smith and Smith Law Firm and one of the leading law firms in Arlington Heights. I will arrange a small line of credit or overdraft protection to cover any unforeseen expenses or to accommodate slow payment by a client.

Management Summary

Advisors

Fred Brown, a chartered accountant
Cindy Blum, Manager of a consulting firm

Administrative Assistant

Responsibilities: Making appointments, ordering supplies, managing files, processing bills and payment, other clerical duties
Required experience: At least three years of employment at another veterinarian clinic or health care practice.
Salary: $21,000
Start date: February 2007

Veterinary Technician

Responsibilities: Assisting with physical examinations, surgery, immunizations, extracting teeth, and caring for in the farm animals and house pets’ kennels
Required experience: A Veterinary Technician or Health Technician diploma from a nationally–recognized college, plus at least four years working with companion animals (preferably farm animals and house pets) at another veterinarian practice
Start date: February 2007

Through referrals, I already have leads on a number of qualified candidates for both positions.

I will also use the following methods to acquire potential employees:

Place want ads in the Arlington Heights shopper
Post listings at online job sites
Contact employment agencies.

Staff training will be ongoing.

By the end of my third year of operation, I expect to hire a second veterinarian to grow the clinic and give me more flexibility to be away from the clinic when necessary. The new hire’s areas of expertise will depend upon the needs of the practice at that time, but I expect to pay them around $55,000 per year.

PRODUCTS & SERVICES

Services

In general, FLFC’s prices for conventional diagnostics and treatment will be relatively high, in line with its exclusive positioning. Here are the clinic’s intended prices for representative veterinary services.

For non–traditional treatments like acupuncture, FLFC will charge $57 per forty–minute session. Kennel services will cost $19 per night.

We will offer the following services in our clinic:

Walk–in service
Overnight care
Seven days a week, 24 hours a day, call–in service
Off–site service (the Vet will go to your farm)
Routine animal care services
Surgeries
Neutering
GPS Tagging for tracking animals

Veterinary On–Call Services

A veterinarian is on call 24 hours a day, 365 days a year (366 in a leap year) to provide veterinary services to animals involved in research projects. During working hours, a veterinarian may be contacted by the university telephone system or by cell phone. After hours and on holidays the cell phone number should be used. Veterinary Services is committed to responding to emergency calls within ten minutes. Telephone numbers are available from facility managers and should be posted in a prominent location. If you use the cell phone system and your call is not immediately answered, please leave a message including your telephone number and remain by the phone. If your call is not answered within 10 minutes please call again. We also request that you notify the department of any call which is not answered in a timely fashion.

Drugs and Supplies

The Department of Animal Care and Veterinary Services maintains and keeps inventory of commonly used veterinary drugs and supplies. Drugs are only sold in accordance with an approved “Application to Use Animals in Teaching and Testing”. Restricted drugs are only dispensed in small amounts. Accurate record keeping and suitable storage facilities are prerequisites. Buprenorphine is a commonly used analgesic that is available from ACVS.

Items are sold on a cost plus basis and are charged directly to the investigators account number. Items may be ordered specifically for an investigator. There is no additional charge for this service unless immediate delivery is required. In such instances, shipping and handling will also be applied.

Veterinary Consultation

Veterinarians are available to discuss such topics as anaesthetic and analgesic regimes, animal models, surgical methods etc. There is no charge for this service.

It is recommended that investigators, technicians and other research staff take advantage of this service prior to the submission of invasive animal use protocols. The veterinarian will attempt to identify problems which may arise during the review process. This may expedite the review process.

In addition, information is available on animal handling equipment, zoonotic diseases, specialized surgical instrumentation and other topics related to animals in research.

Consultations may be made over the telephone, or in person, either in the animal laboratory or in the offices of Animal Care and Veterinary Services.

Rent–Vet Services

A full-time licensed Veterinary Technician is available to perform animal procedures based on an hourly rate. Time should be booked as soon in advance as possible. Examples of techniques commonly performed include:

antibody raising procedures
blood collection
anaesthesia
post–operative care and monitoring
surgical assistance
haematology
biochemistry

Licensed veterinarians are also available to perform surgical or other experimental procedures.

Veterinary Rounds and Veterinary Health Checks

University veterinarians make routine visits to all holding facilities. This provides research staff with the opportunity to discuss problems with animal care or research methods. The veterinarian discusses the visit with the facility manager and research staff and prepares a brief report, which is sent to the facility manager and members of the Animal Use Subcommittee. In addition, on a less frequent basis, visits are made to research laboratories.

In addition to the above visits, arrangements can be made to have a veterinarian observe procedures, examine animals or perform post–mortem procedures. You may contact the department directly, or have the facility manager make the necessary arrangements.

Loans and Rentals

The Department of Animal Care and Veterinary Services makes a number of items available to investigators. There is usually a daily stipend applied. The income from this charge is used to maintain the various items. A partial list of some of the items is included below. If you are interested in obtaining additional information, please have the facility manager make the necessary arrangements.

rodent induction chambers
circulating water heating pads
glass bead instrument sterilizers
ultrasonic instrument cleaner
surgical instruments
restraints
mice
rabbits
gas anaesthetic machines
heat lamps
surgical drape packs
surgical greens

Reference Library and Handouts

The Department of Animal Care and Veterinary Services maintains a departmental library. The library is available for ‘in–house’ use. Subjects covered include Anaesthesia and Analgesia, Medicine, Surgery, Animal Models and Animal Husbandry. In addition to texts there are also instructional and informative video and audiotape presentations which may be viewed in the library. Journals specifically related to Laboratory Animal Medicine are also available for use within the library.

In addition to the above, handouts on animal diseases and procedures are available. Some of these are available on the website.

Pathology Services

A clinical veterinarian is available to perform post–mortem evaluation of animals where the cause of the animal’s demise is unknown. There is no charge for this service. Additional testing such as histology or bacteriology is charged out on a cost plus basis. In addition the veterinarian performs routine necropsies as part of facility health surveillance. There is no charge to the investigator for any costs involved in these procedures.

A veterinarian is available to perform necropsies as part of a research protocol, however in this case the procedure would be charged out as a rent–a–vet service.

FINANCIAL ANALYSIS

Throughout the first twelve months of business, FLFC will have a steady cash flow.

In its first year of business, FLFC is projected to do $347,000 in sales, with $44,000 profit.

Start-up requirements

Start-up expenses
Legal	$ 2,900
Stationery, etc.	$ 1,800
Brochures	$ 4,500
Consultants	$ 5,000
Insurance	$ 4,000
Rent	$ 2,500
Equipment	$ 57,000
Other	$ 23,000
Total start-up expenses	$100,700
Start-up assets needed Cash balance on starting date	$ 67,000
Other current assets	$ 0
Total current assets	$ 67,000
Funding
Investment
Current liabilities
Accounts payable	$ 0
Current borrowing	$ 0
Other current liabilities	$ 0
Current liabilities	$ 0
Long-term liabilities	$ 65,000
Total liabilities	$ 65,000