Wednesday, January 30, 2008

Swimming Upstream for Profits


It sucks when you invest loads of money in becoming NYC's only doggie swim center, and then your landlord jacks up your rent 64%. The owner was forced to shut down two days before Christmas and layoff 15 staffers.

According to the Jan 14 New York magazine article by Andrew Adam Newman (Newman!), there currently are no canine swim centers in the 5 boroughs, and the Big Apple pet scene appears to be shaking out other pet businesses too.

"I think everyone thinks, 'Boy this dog business will be a lot of fun to be in,' but the economics are really tough," said one Manhattan-based dog walking service owner.

Lesson here? Make sure when you make large investments into infrastructure (like a pool and special filtration systems) that you lock your landlord into a rent-increase structure that limits the annual increases. Even better? Set the term of your lease to equal the payback period for the cost of the infrastructure investment. Example: If it is going to take 3 years of profits to pay off the equipment costs, then set your lease for 4 yrs. This will ensure you make back your money from the equipment, with a little profit left over in case you are forced to move out at the end of the lease.

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Monday, January 28, 2008

I know what I'm NOT having for dinner


Everyone hates spam. You do. I do. The media does. Politicians do. Everyone hates spam.

But, the reason spam is....everywhere.... is because it is effective and really really cheap for the producer. But if we choose to take a lesson from (but not sink to the depths of) all things-spammy, then we will quickly realize that there are innovative ways to leverage the cost-effectiveness of electronic marketing without making your customers cringe.

According to MarketingSherpa, here are the top viral marketing techniques used by the businesses today, with the percentage of those companies implementing that method.

  • encouraging e-mail forwarding (91%)
  • "tell-a-friend" boxes on websites (80%)
  • online games, quizzes or polls (69%)
  • cool microsites (54%)
  • offering e-cards (47%)
  • videocasts (46%)
  • audiocasts (29%)

The number of videocasts will surely only increase over time, as more and more consumers adopt high-speed internet. Look for videocasts to reach 75% in the next 12 months, with audiocasts on the decline accordingly.

(Source: Entrepreneur magazine)

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Friday, January 25, 2008

He said, She said

"I am not judged by the number of times I fail, but by the number of times I succeed. And the number of times I succeed is in direct proportion to the number of times I can fail and keep trying."-- Tom Hopkins

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Wednesday, January 23, 2008

How to price your services


During my time at the Northwest School of Animal Massage (NWSAM), I was often asked by students how much they should charge for an animal massage session. Since we had students from all over the world, a single numeric answer wouldn't have sufficed. Instead, we would always counsel new grads to charge the same hourly rate as a "human" massage session would garner in the same geography.

But what if there is no analog for your industry? If no similar product or service exists, pricing can be a challenge.

"One of the most common reasons small and home-based businesses struggle is that they chronically undercharge," say Paul and Sarah Edwards, specialists in the home-based business field. "Don't discount your prices for fear of not getting enough business. Establish yourself in a specialty where you can excel at what you offer and charge accordingly."

Other pricing tips offered by the Edwardses:
  • Don't forget to cover out-of-pocket and indirect expenses.
  • Don't forget to add on a reasonable profit.
  • Do post your fees openly.
  • Don't surprise clients with a bill for unexpected charges.
  • Discuss cost increases before implementing them.
  • Never sell yourself short.
"Remember, the only surprise your clients should have when they get the bill is what an outstanding product or service they got for the agree-upon price," say the Edwardses in the December 2007 of "The Costco Connection".

Monday, January 14, 2008

H2SAB: Loyal Companion Animal Care

We here at the cozy and snow-covered offices of Animalcareerist.com are pleased to announce an new feature here called H2SAB (or How to Start an Animal Business). This series will include interviews with actual business owners who are in the process of launching a new animal venture. Books can provide a wealth of information, but the stories from people actually in the process of opening a business are invaluable to others who are considering an animal business.


Today, we start the feature with Dr Craig Miller of Loyal Companion Animal Care of Redmond WA. Dr. Miller was kind enough to take time out of his holidays and last-minute preparations (his clinic opened on Jan 7) to share some of his thoughts about starting a new business.

Animalcareerist: Dr Miller, why did you decide to open your own practice?

Dr. Miller: I have wanted to own my own veterinary practice for almost 5 years now. Owning my own practice allows me to combine my love for medicine with my interest in business. Now originally I planned to buy an established practice. However, I found after 2 years of searching that there were few practices for sale that met my criteria. I realized after a while that if I wanted the practice I was envisioning, I was going to have to build it.

AC: How did you choose the location?

Dr. Miller: I chose Redmond Ridge Washington for several reasons. Personally, I like the area - its an attractive area with its own community. Business aspects also made sense. It's a newly developed area with great growth potential without a veterinarian, so the demand is there. I was looking for a highly educated community which it has as well. And it's near my home, so I have a short commute which was important to me.

AC: What is the focus of the practice, in regard to species, types of clients, services, etc?

Dr. Miller: We will be a full service small animal (dogs and cats) hospital. Our services will be general medicine and surgery, what I like to consider as a family practice. This includes pediatrics, geriatrics, wellness, parasite control, dentistry, and access to a full service reference laboratory. I have contacts with emergency hospitals and specialty practices (dermatology, ophthalmology, specialist surgeons, internal medicine specialists) in addition to regular case discussions with other veterinarians. Our focus on clients will be our surrounding community, providing care as if each patient were our own pet, and in educating owners. (Click "Read more!" for the full interview.)

AC: Over time, as your practice develops, what other projects or plans do you have for the practice?

Dr. Miller: I have built some flexibility into the floor plan of the hospital as I hope to expand it to a 3-doctor practice eventually.

AC: What are some of the hot trends that you are embracing in your practice?

Dr. Miller: Medicine is a continuously evolving field as new knowledge and new technologies emerge. The biggest trend in veterinary medicine is that people consider their pets a part of their family, and demand high quality veterinary care. We will always strive to provide our owners with options for the best care. For example, I have a variety of equipment to provide safe anesthesia, from fluid pumps, monitors of blood pressure, heart rate, and oxygenation of the blood, to warm air blankets. In addition, we have digital medical records, which hold numerous advantages to paper records. Over time I think more clinics will convert to computerized records, but that transition for an established practice can be quite a hurdle.

AC: What are some of the trends that don't really fit into your vision of the practice?

Dr. Miller: Veterinary medicine has several corporations that own chains of veterinary clinics/hospitals. These corporations are buying more and more private veterinary hospitals. I will not be a corporate clinic, and will strive to set myself apart from them with more personal touch.

AC: You are building a new facility within a shopping center. On the plus side, you have a clean slate to work with, but someone also has to do the design. Who designed your facility and how long did it take?

Dr. Miller: It IS a plus to have a clean slate, but it is also a lot more work. My facility was designed by a veterinary-specific architect based in Louisiana who knows the unique demands of a veterinary practice in terms of odor control, cleanliness, equipment, and that there are certain things that dogs will do! Because the shell of the building was already built, we had a tight time line to try and get everything built. Since my architect was in Louisiana, I also had to hire a local architect to oversee that the project met state and county requirements. Our third input was from a veterinary specific general contractor, which was key, as they understand what works and doesn't work in a veterinary facility. All in all, the design phase took about 3 months, but the entire negotiation of lease to completion of construction took about 8 and 1/2 months, which is very quick compared to industry average.

AC: Were there any unexpected issues that have come up during the construction process?

Dr. Miller: There are always issues that come up during construction, and that is why it was key to have a veterinary-specific construction firm. Right off the bat, our first subcontractor who bid on the plumbing dropped out, so that delayed the start of construction by two weeks. Another issue that developed was a large piece of equipment I was purchasing, a lifting wet table for dentistries, was taller that the cabinets. Luckily, the construction supervisor caught this issue early in the construction process, and so we were able to redesign our cabinets around the table.

AC: Any problems with permitting or zoning since this is an animal business?

Dr. Miller: We were very nervous about the permitting process because I had heard it could take a very long time. We had even written an addendum to our lease that if we got held up by the county for more than 6 months, or if they would not permit a veterinary hospital, then we could get out of our lease. Luckily, the permit process went smoothly.

AC: What is your initial staffing plan for the practice?

Dr. Miller: I will be the only doctor to start with, and I have hired a licensed veterinary technician, a full and part-time veterinary assistant, and a receptionist.

AC: Have you started hiring?

Dr. Miller: They are all hired and eager to start.

AC: Working with animals requires a special breed of person (pun intended). Describe the perfect candidate for your office.

Dr. Miller: The perfect candidate has an eagerness to learn, a love of animals with a stomach for blood and diarrhea, respect for clients, the ability to multi-task and work in a team environment, and a great sense of humor.

AC: How does someone get your attention to get put on top of the very large pile of resumes?

Dr. Miller: Experience is huge, and a well-written cover letter that addresses any potential holes in their resume. I look specifically for why someone wants to come work at my hospital, versus someone who is looking for "a job".

AC: Have you started marketing?

Dr. Miller: Yes, we have multiple forms of marketing. I have been writing educational articles for the Redmond Ridge newsletter, our website, we have a flyer in Valpak and in front of our hospital, we hung a banner in front of our space from the beginning, we are listed in the yellow pages, and we held an open house.

AC: What plans do you have for marketing in the future?

Dr. Miller: Word of mouth is huge in the veterinary industry, so I hope as time goes by, we will become a well-known service in the community. We will also track how clients find us so we are able to quantitatively measure what are the most effective methods of marketing.

AC: How important will the internet be in your marketing efforts?

Dr. Miller: Because we are located close to Microsoft, and many in our community work there, the internet will be important. It is difficult to quantify it at the moment, but I think it will be third in importance, behind location and word of mouth. I also plan to continue to update my website with educational information and links. So it will be important not only for marketing, but also for education.

AC: Opening a new practice is very time-consuming, capital-intensive and a great deal of hard work. Yet, once the doors open, and your lobby is full of smiling customers, wagging tails and purring kitties, it'll all be worth it. That said, what have been the biggest thrills so far in building your new practice?

Dr. Miller: This has been a dream of mine for almost 5 years now, to own my own practice, so finding the location and deciding that now was the time and place to do it was very exciting. Also watching the building transform from a shell, to studs, to painted walls, has been very exciting. Recently, getting my first appointment request through my website was a compliment.

AC: What has been the biggest disappointment so far?

Dr. Miller: Having the heating not shut off and run the clinic up to 95 degrees 4 days after the final walk through was disappointing. But the problem has been identified and fixed. Luckily no one (but me) had to work in those conditions. I did not move to Florida to open a veterinary hospital for a reason!

AC: What has been the biggest surprise you've encountered?

Dr. Miller: When I contacted a technician whom I had worked with before to ask her if she knew any techs who might be interested working for me, and she replied "Yes, me!"

AC: Lastly, do you have any advice for entrepreneurs interested in opening their own animal business?

Dr. Miller: Do your due diligence. You will need it for the bank to loan you money, and also so you can sleep at night when you have time. Consider how to set yourself apart. It is a lot of hard work, and many things you will have to learn about that you probably never knew (nor cared to) before.

AC: Thank you for your time and good luck with your new practice, Dr Miller.

Dr Craig Miller recently opened Loyal Companion Animal Care in the Redmond Ridge area of Redmond WA. He is currently taking new patients, by appointment. Contact Dr Miller at (425)868-7000 or via his website at http://loyalcompanionanimalcare.com. The clinic is located at 22330 NE Market Place Drive, Suite 115, Redmond WA 98053.

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Tuesday, January 8, 2008

Lesson learned


So I was skipping along merrily in my pre-holiday bliss last month. It was shaping up to be a great holiday...personal stuff had blown over, the businesses were taking shape, friends were friendly, neighbors were neighborly.

Heck, even the cocoa was tasting.... more cocoa-y.

Then, upon my return from a football game on Dec 23, I walked in the office to check email and there sat my laptop displaying the "blue screen of death".

After a re-boot, it was apparent that it was gone. Because it was the holidays, no shop was open to look at it, and in the meantime, I knew that there were lots of people trying to contact me regarding some projects, the holidays, etc.

It wasn't until Jan 4 that I was able to fully restore my data on another computer. A quick tally of the actual costs I incurred:
  • $949 for new laptop
  • $199 for new Quickbooks software
  • $49 for new Quicken software
  • $25 for adapter for connect my old laptop hard disk to the new computer
  • $79 for new mouse (Vista is not compatible with a lot of old hardware and generally pretty awful.)
The money can be recuperated over time, but the time cannot. I estimate that I spent over 70 hours over the holidays on setting up the new computer, restoring the old files, and updating software where needed.

It's been a LONG time since I've faced losing ALL of my data. Admittedly, I had gotten complacent. I hadn't backed-up files in a long time and EVERYTHING was on that laptop--work files, legal documents, photos, addresses, email, logos, and all the rest.

So when I picked up the new laptop, I also picked up a new item which I should have bought years prior-- an external storage drive. And I've set all of my accounting software to automatically backup once a month. My most important documents now reside on discs tucked away in my safe.

Call it a lesson learned in how to prevent wasting another holiday in computer limbo.

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