BizQuiz: Where does the money go?
Veterinary practices are rolling in money, right? It often seems like it to clients—and sometimes even to team members. But unfortunately, that is often not the case since most of the money that comes into the practice goes out as the expense of running a business. Test your financial knowledge with this short quiz, based on an article by consultant Micheal Cross, DVM, MBA, and find out if you really know where the money goes.
1). What is the biggest expense for any veterinary practice?
2). The cost of drug and medical supplies should not exceed what percentage of practice revenue?
3). What is the minimum percentage of revenue that should go to the practice’s owner?
4). Using all the information you learned above and assuming a practice grosses $1 million in revenue, has two veterinarians one of whom is the practice owner, and is open 300 days a year, how much in the hole does the practice start every day?
5). Final question: To generate $1 million in revenue over 300 days, the practice needs clients to pay how much daily on average?