How To Properly Benchmark Your Veterinary Practice

Veterinarians in an office

As the owner of a veterinary practice, you care for animals day in and day out. You must also run a functional business and follow best practices optimization, like benchmarking, for success. Benchmarking is one of the best performance comparison techniques for the industry.

How can you use benchmarking to improve your practice? Continue reading to learn how to achieve veterinary practice improvement through benchmark analysis.

Why Is Benchmarking Your Veterinary Practice So Important?

Benchmarking compares specific aspects of your veterinary business with other practices with a similar size and revenue. You should already track your practice’s profitability, expenses, income, customer satisfaction, and other key points. With that data, you can see how your business measures up.

Benchmarking offers performance metrics enhancement because it pinpoints potential areas for growth and improvement. For instance, optimizing processes with benchmarking can reveal your practice’s spending habits or lack of team morale.

The difference between benchmarking and key performance indicators (KPIs) is what you measure your practice’s data against. With KPIs, the data shows how well your business is performing in relation to specific business objectives. On the other hand, benchmarking shows how your business performs against competitors.

How Can Benchmarking Help Veterinary Practices Improve Performance?

When you benchmark your veterinary practice’s financials against competitors, you gain more insight into your business’s strengths and weaknesses in performance, finances, daily operations, productivity, company morale, objectives, and more.

How can you use benchmarking to improve your practice? You should focus on meaningful benchmarks in your competitor comparisons.

Not all benchmarks will apply to your practice. Assess data that will give you the most insights about your practice, like customer satisfaction, employee retention, and company morale.

Because benchmarking relies on data, it’s imperative to make sure your data is up-to-date. If the data is accurate, use various benchmarking tools to search for veterinary businesses with similar sizes and revenue. Compare your figures to theirs.

What Are the Four Major Veterinary Benchmarking Tools?

Benchmarking as a tool in managing a veterinary practice involves using multiple data-collection tools. Here are the top tools to help with veterinary practice benchmarking strategies:

  • AAHA Vital Statistics Series: This series includes three publications on veterinary practice fees, productivity, and compensation.
  • AVMA Profit and Loss Calculator: This interactive online tool compares revenue and expenses with other practices.
  • VetSuccess: Performance and Compliance: This data company has a suite of benchmarking tools for optimizing performance.
  • VHMA KPI and Management Trends and Compensation and Benefits Survey: The VHMA offers benchmarking tools for KPIs and benefits and compensation through monthly Insiders’ Insight reports.

Expand Your Veterinary Practice With Help From Total Practice Solutions Group

If you’re ready to sell or buy a veterinary practice after learning the answer to, “How can you use benchmarking to improve your practice?” turn to Total Practice Solutions Group. Our team has over a century of combined experience owning, selling, buying, and appraising veterinary practices as licensed real estate brokers. We can answer questions like, “What’s the one thing a practice can do today to make the biggest difference in their financial performance?” Schedule a consultation with Total Practice Solutions Group at (844) 908-2967 today.

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