Flashcards
Principles of Veterinary Business
Cards in this deck (37)
- 1What is meant by context?Surrounding environment within which a business operates
- 2What are the 3 types of context?Internal
Near External
Far External - 3What is the internal environment?Business itself
- 4What is the near external environment?All stakeholders in a veterinary business:
Clients
Competitors
Suppliers
Local community
Local government - 5What is the importance of the relationship of a veterinary practice with its suppliers?Affects speed and reliability of service
Affects price of products - 6What is the role of the veterinary practice manager/owner in terms of the near external environment?Role in balancing the conflicting interests of various stakeholders
- 7Why is it beneficial for a veterinary practice to have a good relationship with the local community?Factors such as providing jobs and skillful marketing increase positive perception of the practice
- 8Define a stakeholder in a veterinary practicePeople and organisations in the internal/ near external environment that have a legitimate interest in the activities of the practice and have a direct impact on it - the relationship is mutual as the practice can also influence or impact these people or organisations
- 9What are the 5 main factors in the far external environment?Sociological
Technological
Environmental
Economic
Political/Legal
Remember using acronym STEEPL - 10Give 2 examples of sociological factors that affect veterinary practicesPet ownership trends e.g. number of pet owners in the UK remaining static so veterinary practices increase prices to make a profit
Humanisation of pets becoming more common - 11Give 3 examples of technological factors that affect veterinary practicesNew drugs and pet foods
New equipment
Digital technologies such as Facebook changing how practices market themselves - 12What is the difference between disposable and discretionary income?Disposable income is money left after legal and formal costs such as taxes and loan repayments
Discretionary income is money left after all legal, formal and living costs - 13Give 4 examples of environmental factors that affect veterinary practicesClimate change - increased risk of flooding
New diseases and viruses such as Schmallenberg
Antibiotic and wormer resistance
Environmental protection measures such as waste disposal, recycling and water metering - 14Give 5 examples of political/legal factors that affect veterinary practicesCompulsory microchipping
Health and safety legislation
Fire safety legislation
Radiation protection legislation
Employment laws - 15What are the 3 types of veterinary business?Sole principal/proprietor
Partnership
Limited company - 16What is a sole principal veterinary practice?Holds all responsibility i.e. suffers all risks and keeps all profits
Can be a single premise, several surgeries or a veterinary group - 17What is the legal identity of sole principal veterinary practices?Unlimited liability company
- 18What is a partnership?Two or more vets at a single premise or many branches
Shared decision-making and profit - 19What is meant by joint and several liability within a traditional partnership?Individual liability of partners plus group liability for the business as a whole
- 20What is meant by a Limited Liability Partnership?Partners' liability is limited to their investment in the business
- 21What are the 2 possible legal identities of a partnership?Ordinary Partnership
Limited Liability Partnership - 22What is a Joint Venture partnership?Board of elected joint venture partners direct the business and make key decisions
Administrative aspects centrally managed - 23What is the legal identity of Joint Venture partnerships?Limited Company
- 24What is meant by a limited company?Publicly registered charter recognising it as a separate legal entity - no individual liability for debts
Owned by shareholders - 25What is the difference between a public and private limited company?Privately limited companies have shares not available to the public - usually shareholders are a small group of employees/partners
- 26What is meant by a cooperative veterinary practice?Owned and operated by employees
Shared profits and risks, shared ownership and decision making - 27What is the legal identity of not-for-profit veterinary practices?Limited Company
- 28How is practice income usually measured?Turnover or total revenues (income) over a specified period of time, usually one financial year
- 29Give 6 examples of direct costs for a veterinary practiceDrugs
Surgical materials
Lab tests
Clinical waste disposal
Cremations
Locums - 30What are overheads?Staff costs (salaries, pensions, training and CPD)
Fixed costs such as rent, water, insurance and Internet - 31Give the equation to calculate gross profitGross profit = sales - direct costs
- 32Give the equation to calculate net profitNet profit = sales - total costs (direct costs + overheads)
- 33How is return on investment calculated?Expresses profit as a percentage of the capital invested in the business at the start
(Net profit/ capital invested) x 100 - 34How is average transaction fee calculated?Average transaction fee = total revenues/ number of transactions
- 35How can average transaction fee be increased?Only way to increase average transaction fee is to increase prices
Clients may accept a price increase in line with inflation but unlikely to if it is greater than inflation - 36How is average transaction volume calculated?Number of visits/number of clients
For example, if 100 clients visit a practice 120 times the average transaction volume is 1.2 - 37How can average transaction volume be increased?Encouraging the same clients to visit the practice more often, for example through pet health schemes
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- BVSc Year 1 (Professional Studies) Flashcards on Principles of Veterinary Business, created by Florence Edwards on 15/04/2016.
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- Florence Edwards
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