Veterinary Economics Editorial Advisory Board member Gary Glassman, CPA, says that some products or services may be easier to offer than others, depending on the time commitment and financial resources it takes to get them up and running.
He recommends asking yourself these three questions before you get started:
1. What resources are necessary? How much will it cost? Will staff need to be trained or will you need to hire additional staff to support the activity? For a new service to be financially successful, the benefits must outweigh the costs—both in human capital and in dollar amount.
2. What is the additional revenue possibility to the practice? You should always consider not only the sales potential of the activity but also the profitability. Will it be a profitable activity and how does the activity improve the quality of medicine for the practice?
3. Are my associates and staff in favor of adding the new service or product? It’s best to survey all members of the medical team to make sure everyone is on board. Too often practices add a piece of equipment that one associate has an interest in, but when that associate leaves, the service disappears and the practice is stuck with equipment that no one has an interest in or knows how to use.