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Why Business Education is Important Presented by: PROUDLY SPONSORED BY:

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Presentation on theme: "Why Business Education is Important Presented by: PROUDLY SPONSORED BY:"— Presentation transcript:

1 Why Business Education is Important Presented by: PROUDLY SPONSORED BY:

2 Q & A How many of you have a degree in Business? Or know what I am talking about when I say: –Revenue performance –Pretax profits –Cash Flow –Return on Equity

3 THATS OK!! Less than 10% of veterinary students surveyed could answer 3 or more of these financial terms correctly BUT… Business education is imperative to success in the veterinary profession!! Source: Brakke Management and Behavior Study. JAVMA vol 217, 2000.

4 Tuition, fees, expenses by Class Year

5 Lets compare that our starting salaries… Average StudentDebt Average Student Debt Private Practice Advanced Study

6 Debt-to-Salary ratio YearDebt Private Practice SalaryDebt/Salary 1983$18,897$19, % 1995$45,251$31, % 2007$106,959$58, %

7 Starting Salaries 2007 (per Specialty)

8 The trickle down effect… Veterinary Technicians 1998$20, $23, $27,970 Source: US Department of Labor, Bureau of Statistics

9 How do we fix this? Two options: 1)Decrease our debt load (Cost of tuition go down? Unlikely….) 2)Increase business profitability ….. so we can be paid more…

10 Money is NOT a four letter word!! Why Not? 1) We are worth more than the current average! 2) We need it to support our profession - improve veterinary teaching facilities - fund research that improves veterinary medicine 3) There is a difference between charging what we are worth and gouging people. Knowing the difference takes education!

11 Everything is fixable!! The Brakke study showed that veterinary incomes are negatively impacted by: 1)Failure to use standard management practices 2)Poor service environment at the clinic 3) Low financial acumen of clinic owners 4) Veterinarians tendency to offer and price services to clients based not on the diagnosis and value of treatment rendered on perception of a clients economic status.*

12 The Art of Business Business Practices Utilization vs. Income Conclusion: There is a direct relationship between utilizing more business practices and higher income!

13 The Art of Business cont. What were the top 3 business practices that demonstrated the largest average income differential between users and non-users –HR RELATED! 1.Practice actively pursues strategies to promote employee longevity (staff retention) 2.Practice measures employee satisfaction 3.Employee reward programs are tied to the clients satisfaction and loyalty Average Income Use 3 Practices Above $64,28016% Do Not Use 3 Practices $55,300 Increase!!

14 Other Income Influencers FactorImportance Index Years in practice100 Gender (male)92 Clinic Ownership58 High Self-Esteem49 Hours Worked in Week45 Low Client Waiting Time43 High Socio-Economic Level Area41 Low Use of Advertising38 Weeks Worked/Year31 Size of Community30 Uses Standard Business Practices20

15 Male vs. Female The average woman clinic owner makes about 33% less than her male counterpart, regardless of years of experience. MaleFemale% Difference Large Animal Exclusive$71,500$49,00032% Mixed Animal$52,354$40,30023% Small Animal Exclusive$68,500$44,50035% Equine$74,500$41,50044% Median Annual Incomes of Veterinarians in 1997 Reference: Felsted, Karen and John Volk, Veterinary Economics, October 2000, p

16 So… How do we start to fix the problem? Education!

17 Business Education

18 What do I Mean by Business Education? Numbers –Finance –Accounting –Valuation & Demographics Concepts –Client Service –Leadership –Personnel Management –Marketing Life –Personal Finance –Contract negotiation –How money works in the real world

19 Public Relations Learn to skillfully ask for referrals –Your clients are your best form of advertisement Learn how to keep your clients happy –It costs 5 times as much to get a new client as it does to keep an old one –For every client that complains there are 20 more that have a problem but did not say a word!

20 Food for Thought… Do you know how to maintain good relations with your employees? Do you know how to communicate effectively? Do you know how to design and implement HR programs that prevent employee turnover? How is your business acumen?

21 How am I Going to Educate Myself? Attend business education courses at conventions Check out offerings on VIN.COM Veterinary business and practice management books Join the VBMA!!

22 Veterinary Business Management Association The VBMA is a national student-driven organization dedicated to advancing the profession through –increasing business knowledge – creating networking opportunities – empowering students to achieve their personal and professional goals.

23 What Is the VBMA? The fastest growing veterinary student group in the United States 28 chapters at every veterinary school across the country and multiple international chapters –Over 2,500 student members worldwide! Founded on the determination, innovation, and entrepreneurial spirit of future veterinary leaders who desire a higher level of business education than what is being offered through veterinary colleges

24 What Do I Learn from the VBMA? Veterinary students develop following skills through membership of the VBMA: Communication Finance Customer service Banking Negotiation Marketing Leadership Human Resources Managerial skills The VBMA enables students to pursue their own educational interests through lectures and hands-on experiences

25 What Are the Perks? Receive free subscription to Veterinary Economics Scholarships –Win $1,000 cash each year (one from each school) from VPI –Simmons Educational Fund scholarship for $2,000 to one 3 rd - year student each year at each school Discounts on legal/ business texts published by Priority Press Business Internship Opportunities Opportunities for leadership on a local and national level

26 Chapter Perks Receive the VBMA monthly mailing with articles of interest and suggested reading Giveaways for members at each event Access to speakers and their notes

27 Semester Events Sept. 26 th – Speed Networking Sept. 28 th – NCVEI WebTools Training Early-Mid Oct. – Dinner with Speakers Dr. Jim Wilson, Mr. Mark Opperman, Mr. Fritz Wood Oct. 28 th – Business Management of Large Animal/ Ambulatory Practices – Dr. Rob Lynch of Pfizer Early Nov. – Business Dinner Etiquette Event Nov. 19 th – New Officer Interviews Dec. 5 th – Business Philosophies and Opportunities – National Veterinary Associates Dr. Nate Cockle Early Feb. – Dr. Ernie Ward!!!

28 JOIN THE VBMA!! Impress future employers Demand the higher salary Receive VBMA Perks & Gifts Prepare for life after vet school Get a head start at being the best veterinarian that you can be Invest in your future! LEARN TO WORK SMARTER-- NOT HARDER!!

29 Become a Member Membership forms are available now Completed forms can be turned in to any officer Its never too late to join! Just Do It!!

30 Chapter Officers President – H. Groch VP – Tori Long Secretary – Amy Revenis Treasurer – Lauren White Operations Manager – Michelle Larsen Speaker Liaison – Cyndie Johnson Public Relations Chair – Shalyn Crawford Congratulations to Cyndie – our new National VBMA Marketing Chair

31 More information Our website(s): National: Chapter:

32 Thank you!

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