Why Business Education is Important

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Why Business Education is Important

• Presented by

PROUDLY SPONSORED BY
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Q A

• How many of you have a degree in Business? Or
  know what I am talking about when I say
• Revenue performance
• Pretax profits
• Cash Flow
• Return on Equity

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THATS OK!!

• Less than 10 of veterinary students surveyed
  could answer 3 or more of these financial terms
  correctly
• BUT
• Business education is imperative to success in
  the veterinary profession!!

Source Brakke Management and Behavior Study.
JAVMA vol 217, 2000.
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Tuition, fees, expenses by Class Year
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Lets compare that our starting salaries
Average Student Debt
Private Practice
Advanced Study
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Debt-to-Salary ratio
Year Debt Private Practice Salary Debt/Salary
1983 18,897 19,872 95.1
1995 45,251 31,925 141.7
2007 106,959 58,106 184.1
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Starting Salaries 2007(per Specialty)
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The trickle down effect

• Veterinary Technicians
• 1998 20,520
• 23,630
• 2007 27,970

Source US Department of Labor, Bureau of
Statistics
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How do we fix this?

• Two options
• Decrease our debt load
• (Cost of tuition go down? Unlikely.)
• Increase business profitability
• .. so we can be paid more

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Money is NOT a four letter word!!

• Why Not?
• 1) We are worth more than the current average!
• 2) We need it to support our profession
• - improve veterinary teaching facilities
• - fund research that improves veterinary
  medicine
• 3) There is a difference between charging what we
  are worth and gouging people.
• Knowing the difference takes education!

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Everything is fixable!!

• The Brakke study showed that veterinary incomes
  are negatively impacted by
• 1) Failure to use standard management practices
• 2) Poor service environment at the clinic
• 3) Low financial acumen of clinic owners
• 4) Veterinarians tendency to offer and price
  services to clients based not on the diagnosis
  and value of treatment rendered on perception of
  a clients economic status.

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The Art of Business
Business Practices Utilization vs. Income
Conclusion There is a direct relationship
between utilizing more business practices and
higher income!
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The Art of Businesscont.

• What were the top 3 business practices that
  demonstrated the largest average income
  differential between users and non-users
• HR RELATED!
• Practice actively pursues strategies to promote
  employee longevity (staff retention)
• Practice measures employee satisfaction
• Employee reward programs are tied to the clients
  satisfaction and loyalty
• Average Income
• Use 3 Practices Above 64,280 16
• Do Not Use 3 Practices 55,300 Increase!!

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Other Income Influencers
Factor Importance Index
Years in practice 100
Gender (male) 92
Clinic Ownership 58
High Self-Esteem 49
Hours Worked in Week 45
Low Client Waiting Time 43
High Socio-Economic Level Area 41
Low Use of Advertising 38
Weeks Worked/Year 31
Size of Community 30
Uses Standard Business Practices 20
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Male vs. Female

• The average woman clinic owner makes about 33
  less than her male counterpart, regardless of
  years of experience.

Median Annual Incomes of Veterinarians in 1997
Male Female Difference
Large Animal Exclusive 71,500 49,000 32
Mixed Animal 52,354 40,300 23
Small Animal Exclusive 68,500 44,500 35
Equine 74,500 41,500 44
Reference Felsted, Karen and John Volk,
Veterinary Economics, October 2000, p. 33-38
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• So
• How do we start to fix the problem?
• Education!

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Business Education
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What do I Mean by Business Education?

• Numbers
• Finance
• Accounting
• Valuation Demographics
• Concepts
• Client Service
• Leadership
• Personnel Management
• Marketing
• Life
• Personal Finance
• Contract negotiation
• How money works in the real world

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Public Relations

• Learn to skillfully ask for referrals
• Your clients are your best form of advertisement
• Learn how to keep your clients happy
• It costs 5 times as much to get a new client as
  it does to keep an old one
• For every client that complains there are 20 more
  that have a problem but did not say a word!

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Food for Thought

• Do you know how to maintain good relations with
  your employees?
• Do you know how to communicate effectively?
• Do you know how to design and implement HR
  programs that prevent employee turnover?
• How is your business acumen?

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How am I Going to Educate Myself?

• Attend business education courses at conventions
• Check out offerings on VIN.COM
• Veterinary business and practice management books
• Join the VBMA!!

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Veterinary Business Management Association

• The VBMA is a national student-driven
  organization dedicated to advancing the
  profession through
• increasing business knowledge
• creating networking opportunities
• empowering students to achieve their personal
  and professional goals.

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What Is the VBMA?

• The fastest growing veterinary student group in
  the United States
• 28 chapters at every veterinary school across the
  country and multiple international chapters
• Over 2,500 student members worldwide!
• Founded on the determination, innovation, and
  entrepreneurial spirit of future veterinary
  leaders who desire a higher level of business
  education than what is being offered through
  veterinary colleges

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What Do I Learn from the VBMA?

• Veterinary students develop following skills
  through membership of the VBMA
• Communication ? Finance
• Customer service ? Banking
• Negotiation ? Marketing
• Leadership ? Human Resources
• Managerial skills
• The VBMA enables students to pursue their own
  educational interests through lectures and
  hands-on experiences

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What Are the Perks?

• Receive free subscription to Veterinary Economics
• Scholarships
• Win 1,000 cash each year (one from each school)
  from VPI
• Simmons Educational Fund scholarship for 2,000
  to one 3rd-year student each year at each school
• Discounts on legal/ business texts published by
  Priority Press
• Business Internship Opportunities
• Opportunities for leadership on a local and
  national level

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Chapter Perks

• Receive the VBMA monthly mailing with articles of
  interest and suggested reading
• Giveaways for members at each event
• Access to speakers and their notes

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Semester Events

• Sept. 26th Speed Networking
• Sept. 28th NCVEI WebTools Training
• Early-Mid Oct. Dinner with Speakers
• Dr. Jim Wilson, Mr. Mark Opperman, Mr. Fritz
  Wood
• Oct. 28th Business Management of Large Animal/
  Ambulatory Practices Dr. Rob Lynch of Pfizer
• Early Nov. Business Dinner Etiquette Event
• Nov. 19th New Officer Interviews
• Dec. 5th Business Philosophies and
  Opportunities National Veterinary Associates
  Dr. Nate Cockle
• Early Feb. Dr. Ernie Ward!!!

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JOIN THE VBMA!!

• Impress future employers
• Demand the higher salary
• Receive VBMA Perks Gifts
• Prepare for life after vet school
• Get a head start at being the best veterinarian
  that you can be
• Invest in your future!
• LEARN TO WORK SMARTER-- NOT HARDER!!

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Become a Member

• Membership forms are available now
• Completed forms can be turned in to any officer
• Its never too late to join!

Just Do It!!
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Chapter Officers

• President H. Groch
• VP Tori Long
• Secretary Amy Revenis
• Treasurer Lauren White
• Operations Manager Michelle Larsen
• Speaker Liaison Cyndie Johnson
• Public Relations Chair Shalyn Crawford
• Congratulations to Cyndie
• our new National VBMA Marketing Chair

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More information

• Our website(s)
• National
• www.vbma.biz
• Chapter
• http//www.vetmed.vt.edu/students/vbma/index.html
  

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Thank you!