Who Needs a Market Study?

By E. John Knapp, AIA

What is a demographic market and competition analysis? Why would I need one?

Many veterinarians who are contemplating starting a new practice ask these questions. Rather than raise more questions by answering, we ask you! If you can answer all the questions below accurately, then you do not need a market or financial feasibility study.

1. How do you know there is a need for your veterinary services?
2. How many new clients can you count on?
3. How many families that own pets are within easy driving time of your location?
4. Is your market area:
   -growing?
   -steady with little growth?
   -declining in population?
5. What size is your market area?
6. How many competing veterinary practices are within your market area?
7. How many veterinarians are working in each competing practice?
8. What is the size of each competing practice?
9. How from from our proposed site in distance are competing practices?
10. How far from your proposed site in drive time are competing practices?
11. Are there any new practices within three miles of your proposed site?
12. What Gross Annual Receipts (GAR) can you expect in the first year of practice in a new facility? In the second and third years?
13. what is the pent-up potential GAR of your site?
14. Do you have any idea how much GAR the existing veterinary practices in your market are making?

Starting a new veterinary practice takes plenty of courage and hours of thinking about these subjects. It takes more than luck to succeed at business, even if you offer the most tender loving care and state-of-the-art facilities.

KSA can help you answer some difficult questions about how to create a viable practice with its business planning services, leaving you time to think about how to deliver the best possible veterinary medical services.