Veterinarian Practice

Veterinarian Practice

Younify Consulting Financial Strategies for Small Businesses, Law, Accounting-financial-vet-colorado-springs

Project Description

Client

A Veterinarian Practice, a two-practitioner office (one owner) with 11 full time employees, doctor – age 40. He has gross receipts of $1.8mm and a Simple IRA. Provider wants to retire at age 65 and sell his half of the practice to the younger provider. Also wanting to ensure that future needs were identified and planned for, including updating equipment as needed, as he expanded his practice. Taxes paid in 2009 – $80,000; in 2010 – $110,000 (prior to implementing business efficiency structure).

Business Challenge

High employee turnover was constantly slowing down productivity and office morale. The current employee benefit program was confusing and ineffective. The practice was accumulating debt as it started expanding into a second location.

Goals

The goal of this Vet practice was to create an employee benefit program that was enticing to new recruits and compelling for current employees to stay on. The practice also wanted to figure out a way to finance their expansion plans without taking out another bank loan.

Action and Result

A business efficiency structure was implemented that created a program where employees would directly benefit from strong company performance. Recaptured funds of $80,000 were acquired in year one and could be loaned back to the Veterinarian to finance the real estate, marketing, and equipment costs needed for the practice expansion. In addition, the Vet will be able to retire at age 65 with approx. $6mm in his tax-free retirement account due to the repurposed funds going directly towards his retirement income.