RSS feedsFor a fledgling company trying to take the next step, it's a bit like a rock band writing a killer second album - how do you follow up your initial success?
Vets Will Walker and Helen Wikeley are no strangers to adversity - they were dealt a cruel blow after fighting their way onto the commercial property ladder. The pair had to recover from the major setback of having their application to obtain change-of-use planning permission knocked back.
Incredibly, they managed to transform a tyre and exhaust garage into their practice and set about building their customer base, opening Walker & Wikeley Veterinary Surgeons in March 2006.
The vets met in 2002 while working for the RSPCA Animal Hospital in North London, but after starting out on their own soon found that the business climate was decidedly frosty.
'Ten years ago, if you opened a surgery, it was almost a licence to print money. Today, pets are thought of as a luxury item and people tend to spend a lot less than before,' says Walker.
'From our point of view we'd like to increase our client base and increase turnover. We've tried everything and we're not doing badly, but it would be lovely if we could open another branch. When it comes to the crunch, it's a question of finding the cashflow.'
Since meeting, Walker and Wikeley's vision has been to open a local veterinary practice in the Telford area that offers high-quality treatment, personal service and a clean, modern and comfortable environment, but they have found that practice is a lot harder than the theory.
Unless we spend a fortune, we're not going to do a lot better than we already are.'
Running a surgery is a massive operation with a lot of moving parts. If you factor in the range of veterinary equipment including kennels, anaesthetic circuits, piped oxygen systems, x-ray machines, consulting tables and an IT system, the situation comes into sharp relief.
For Walker and Wikeley, maintaining cashflow and keeping hold of clients in an industry that relies on word-of mouth and reputation is key. The vets have got past the stage of securing money for the building, but finding a cost-effective method of funding the practice's equipment, while preventing any disruption to cashflow, is at the top of their list.
The pair have a basic knowledge of the tax advantages of leasing compared to cash and hire purchase, but knowing more about how to shore up their tax position would also be a major fillip.
'I don't think that businesses are necessarily given the tax breaks they should be, especially in the first few years of opening. There could be better VAT incentives, for instance,' says Will.
'It's been tougher than we thought it was going to be.' Even with our advertising, we base it around current events as opposed to offering discounts.' The practice has been designed to meet the expectations of veterinary practitioners and customers alike, but the key point is business efficiency. 'It's not just having the latest and greatest technology,' says Walker. 'It's about having equipment that helps us to offer a superior level of service and treatment, without breaking the bank.'
The lease arrangement they have set up with finance company Syscap shows that the pair are trying to get the best from their business. 'I needed a finance provider that knew what it was talking about and a company that I could lease everything I needed through. I didn't want to shop around or have to manage more than one lease payment a month,' he says.
The pair insist that they don't want to fall into the trap of under-cutting competitors, but are hoping to get their business strategy fine-tuned.
Walker adds: 'The last year has been an experience and I'm delighted that our hard work has finally paid off, but it would be lovely if we could increase our turnover.'
The main challenges:
• To maximise turnover and improve cashflow
• Expanding the business by opening another branch
• How to increase their client base
• Find funding to buy equipment
