One of the biggest decisions future veterinary practice owners face is whether to purchase an existing practice or build a new one from the ground up. Both paths can lead to a successful practice—but the financial risks, timelines, and opportunities are very different.
Buying an Existing Practice
Purchasing an established practice gives you something incredibly valuable: immediate cash flow. You may inherit an existing client base, trained team, operational systems, equipment, and a recognizable presence in the community. Financing may also be easier because lenders can evaluate the practice’s historical financial performance.
However, you are not simply buying revenue. You may also inherit outdated equipment, inefficient systems, staffing challenges, unfavorable contracts, or a culture that does not match your vision. Thorough due diligence is essential. The practice’s profitability, client retention, facility needs, team dynamics, and dependence on the selling veterinarian should all be carefully evaluated.
Starting From Scratch
Starting a practice allows you to build your vision from day one. You can choose the location, design the facility, select the technology, develop the culture, and create the client experience you want. You are not paying for someone else’s goodwill or trying to change systems that have been in place for years.
The tradeoff is that revenue does not begin immediately. A startup requires careful budgeting, sufficient working capital, and realistic expectations about how quickly the client base will grow. Construction delays, equipment purchases, hiring, marketing, and the cost of operating before reaching break-even must all be considered.
Which Option Is Better?
The right choice depends on your goals, financial position, timeline, risk tolerance, and local market.
Buying may be the better option if you value immediate revenue and find a healthy practice that aligns with your vision. Starting from scratch may be more appealing if you want greater control and are prepared financially for a gradual ramp-up.
Most importantly, do not make the decision based only on the purchase price or the excitement of ownership. Evaluate the complete financial picture, understand the risks, and make sure the opportunity supports both the practice you want to build and the life you want to live.
Mira Johnson, CPA, CVPM, MBA, recently joined a podcast conversation about this important decision, including the benefits, risks, and financial considerations of each path. If practice ownership is in your future, I invite you to listen to the full episode and consider which road is the best fit for your vision.
Watch or listen here: https://go.veterinarybusinesinstitute.com/ep-124