How do you analyze the net profit in your practice?
A.re you a good driver? Research indicates that greater than 90 percent of us would answer “Yes.” And yet, the truth is that a lot fewer of us are as good at driving as we think we are. We can ask the same question about our businesses: Are you a good practice owner and are there good business processes in your practice? My guess is that most equine practitioners would say, “Yes; we have a nice practice and do fairly well.”
But how does your practice compare to those of your peers? Most practitioners don’t know. Comparisons made over drinks at meetings may help you feel as though you’re on the right track, but they don’t help you increase your revenue, improve patient service or retain clients in a quantifiable way. As individual veterinarians, our practices are as unique as the veterinarians running them. We may convince ourselves that our knowledge, skill levels, experience and business acumen are better than those of anyone else in the marketplace, but how do we really know?
This is where the concept of benchmarking comes into play. Benchmarking allows us to compare our practices to others in a real and...