Tuesday, May 13, 2008

Bone marrow transplants for dogs

Washington State Univ is now offering bone marrow transplants for canines. The cost runs $25-35k. No mention of the cost of after-care, rehab, etc. Seems like a new specialty career related to this field would be a logical next step.

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Wednesday, March 12, 2008

Revenue stream potential

Based on a recent study, the average horse owner spends between $200-300 dollars PER MONTH on veterinary care.

This is a huge cashflow for any animal business owner to tap into.

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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 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, December 11, 2007

Someone to watch over me


The first business I ever owned was a dog biscuit bakery and espresso truck. Along with all the pots, pans, ovens and coffee cups that came with the business we bought in 1999 were a couple of boxes of bizarre stuff. A fish bowl, a box of tennis balls, 30 rubber stamps, etc. One of items that started a buzz was the network video camera, still in the box. "Oh yeah" said the original owner. "We were going to rig it up on the truck so people could see the weather at the park, how busy it was, etc, but we couldn't figure out how to get an internet connection to it."

Well that was then. Now, only 8 years later, WiFi is old-school and internet video is all the rage.

In the October 2007 Wired magazine, Lisa Katayama writes about her experience with network cameras at the local dog spa/hotel.

The overnight suites have "Wag Cams" which allow pet owners view their pets via the Internet. But Katayama learns that too much access can be a good thing.

"But back home, instead of checking the webcam only sporadically, I find myself glued to the computer screen," writes Katayama. "I cancel dinner with my cousin because I want to make sure Ruby's masseur comes at 6:15 sharp to deliver the belly rub. (He does.) And for the next six hours, I wander no more than a few feet from my MacBook Pro. The live video stream has me transfixed. Around 8 pm, a pretty brunette appears in Ruby's room. About 15 minutes later, after their rooftop stroll, she shuts the door and promises: "I'll be back to see you, OK?"

In the middle of the night, Katayama retrieves her little Ruby after checking in to find that neither of them were getting a good night's sleep. Ruby was standing on her hindlegs howling at the camera at 2:30 AM and Katayama was sleeping at her desk in order to watch the cam.

Excessive or not, technology is becoming more and more a part of our lives. And technology is also becoming an important part of our business models. So how might network cameras be incorporated into an animal-related business?

Horse trainers might set up a camera at a show ring, so that friends' and families of clients can watch the riders. And the video can be captured for later analysis of the rider's technique. Same is true at dog shows, too.

Stables/kennels might offer cameras in stalls and cages of their client's animals, charging an extra fee for the service.

Breeders may install cameras in the pens of animals in late stages of pregnancy, so that clients miles away can watch their puppy/foal/kitten being born. This will also save the breeder from having to respond to the constant emails/phone calls/visits about how their little critter is doing.

As businesses become more and more sophisticated, the use of network cameras can help owners create value and differentiate themselves from the competition. And when they are away on vacation, they too, can sit at their laptop and obsess about their animal family back home, just like Lisa Katayama.

(Illustration: Jessica Hische)

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Tuesday, November 27, 2007

Spot the Trend!


Our local paper, the Seattle Post-Intelligencer, has a feature article about the growth of do-it-yourself dog washes in our area. This time of year, business really picks up at these establishments, since our pets are now inside most of the time due to inclement weather. Also, a stinky dog can really put a damper on a family gathering during the holidays. So these businesses are doing really well.

"Like most self-service facilities, The Wash Dog offers several private rooms, each equipped with a standing-height stainless steel sink, a board that older or smaller dogs can use to enter and exit the sink and steps that younger dog washers can stand on. Aprons are available for those doing the washing." Rates start at $15 for 30 mins, and most shops offer all sorts of extras like nail clipping, and anal gland expression.

It's a good business model. Provide a service in a fast, efficient way. Set the price point where most people won't hesitate to make the purchase, then offer extras which will push up the total order amount.

However, one point jumped out at me and in the context of starting a NEW animal business. They are turning away business.

The article tells us "an informal count reveals 11 such facilities in the Puget Sound region, and "there are definitely new ones opening up," said Mike Ruffo, 33, co-owner of GroomingSPA Greenlake. "We send others our business if there's too much. There's enough to go around.""

So they get so busy they are turning customers away. And the demand is growing. So in the future, they'll be turning away even MORE customers.

How to fix this? Raise prices. Music to every accountant's ears, but most owners are really reluctant to implement a price increase, for fear of alienating their customers. But if they are turning away customers, aren't they alienating them then too? (Sorry. You have to load your dirty dog back in the car and drive to the ABC dog wash. We are too busy for you. But come back soon, ok?)

But there are ways to raise prices without alienating your customer. How? Add value.

I remember reading over the weekend that a 15-minute shower uses 60 gals of water. I thought that seemed high, so I found this water consumption calculator online. It's true. The average shower head has a rated flow of nearly 4 gallons per minute. So add in a customer using the toilet while at the shop (5 gals), and another 5 gals for washing the towels, and that 15-min dog wash session used a whopping 70 gals of water. At only 8 customers a day, a dog wash uses over 200,000 gallons of water annually.

Anyone who has driven around the Whole Foods parking lot looking for an available space knows that anything green or organic is HOT. So why not merge green and dog washes and create a green dog wash? Install a gray-water recycling system, use green shampoos and cleaning products, install low-flow showerheads, install compact flourescent light bulbs, and whatever else will save water and energy.

Then equally important: TELL EVERYONE! Every media outlet is clamoring for any type of story that has a "green twist". Send out a letter/email to every media outlet. Send emails to your customers. Post signs in your shop (and maybe even add some photos of the rainforest, polar bears, etc to your shop). Add "green" words to your ads.

Here are the messages you want to get across: 1) we are the area's first and only green dog wash, 2) we use XX% less water than our competitors, 3) a green dog is a healthy dog.

So now that you have differentiated your business from all the others AND created a perception of added value over those competitors, you can raise your prices accordingly. How much? Considering the significant barriers to your customers to make the modifications necessary just to meet your business model, I would suggest charging at least 15-20% more than the competition in your area. Call it the Green Premium.
(Photo credit: Meryl Schenker / P-I)

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Monday, October 22, 2007

Have you met our sister?


We're happy to introduce our sister company, Chew Toy Holdings. The purpose of Chew Toy Holdings is to provide a resource for helping people start businesses, especially animal-related businesses. Chew Toy Holdings will provide financing, assist in product or service development, help create a business/marketing plan, and all the other tasks necessary to help a new business thrive.
Current projects include this site, a media company for animal-related businesses, and 3 patent projects. Chew Toy Holdings is also in discussions with a group to develop and market stylish office supplies to career-minded women.
Have you had an idea that you've wanted to bounce off someone? Do you have a really great skill, but not sure how to translate that into money? Are you looking to grow your business?
Contact Chew Toy Holdings today!

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Tuesday, October 9, 2007

3-2-1 Liftoff!

Welcome to Animalcareerist.com! Join us on a journey into the business side of the animal industry. We'll be covering all aspects of the animal business world: planning your new business, sales and marketing, industry news, products, services, success stories. We'll also incorporate interviews, book reviews and funny stories along the way.

Obviously, every species of animal is different. However, we believe there are common threads to every successful animal business, regardless of the animal or breed specialty. In fact, you can learn a great deal about your area of specialty or interest just by looking at how other markets are being served. (More on this subject later.) So just because a topic is related to a different area of interest, don't click away. Instead, consider how that idea might be incorporated into YOUR own business.

In the meantime, we welcome any comments, tips, and stories you would like to share.

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