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9 2022 | Equipment & Technology Product & Services Guide Find more products online at northamerica.covetrus.com This drawing will show the space and how it can be configured, equipped, and accommodate growth. The layout will let you know just how much of the space can be used for clinical work, surgery, lab work, grooming, boarding, and workflow, which plays an essential role in the potential outfitting of equipment. This is all valuable information to understand before moving forward with a letter of interest, lease, or purchase. Do your demographic research Since most people choose veterinarians near their homes, it is essential to understand the makeup of the population around your potential location. Conduct some demographic research before and during your clinic search; it will help define the type of practice you create. Go through your veterinary vendor network to find market research companies that sell this data. This information will provide a snapshot of the pet clientele you will treat within your geographic area, including statistics on: 1. Median household income 2. Average household size 3. Population growth projections 4. Pet population 5. Households with pet insurance; these grew 26% in 2020 to become a $2.17B industry. According to the North America Pet Health Insurance Association 2 , California stands first in the US with 19.2% of insured pets, New York is second at 8.7%, and Florida is third at 5.8%. You can purchase expanded demographic reports with even greater detail. Familiarize yourself with the community around your potential space. For example, families with young kids typically correlate with the purchase of dogs. Likewise, there is a strong connection between money spent on toys, games, youth sports, and new pet ownership. Demographic research is an integral part of the process and can help make landing on your first space easier. Get a look at your competition To make a strategic choice about location, do some competitive research to determine if the site is ideal for a new vet practice. If you are a member of the American Veterinary Medical Association (AVMA), you can find many up-to-date economic studies and market research that can be helpful. 3 Some questions you should answer before you secure space include: 1. Is there a need for a veterinarian in the area? 2. Are the current veterinarians overflowed with the current pet population? 3. Is the current competition aging out? 4. What percentage of the competition is corporate-owned? 1. All programs subject to credit approval and loan amounts are subject to creditworthiness. Some restrictions may apply. Bank of America may prohibit use of an account to pay off or pay down another Bank of America account. 2. North American Pet Health Insurance Association https://naphia.org/ Accessed June 28, 2022. 3. AVMA Reports and Statistics. https://www.avma.org/resources-tools/reports-statistics. Accessed June 28, 2022. * Bank of America Practice Solutions is a division of Bank of America, N.A. Bank of America and Bank of America logo are registered trademarks of Bank of America Corporation. ©2022 Bank of America Corporation. MAP: Bank of America, N.A. provides informational articles for your discussion or review only and not responsible for the information and materials third parties present. Please consult your financial, legal and accounting advisors, as neither Bank of America, its affiliates, nor their employees provide legal, accounting and tax advice. The market today Today's market offers veterinarians more opportunities with both lease and purchasing options. Since some businesses have stepped away from brick-and-mortar locations during the pandemic, the direct result is an increased supply of commercial space. As supply increases, so can the incentives landlords offer future tenants in leased spaces. We have seen some increases in tenant improvement allowances, with lower escalations on leases, and in flexibility, with free rent concessions, and — most importantly — favorable pricing and terms. It's time to make the decision. You've done your due diligence if you've thoroughly researched your potential population and competition and relied on experts to help with the location and outfitting of your space. Then, bring all the facts together to make an informed choice on where your first veterinary practice will be. Contact the specialists at Bank of America Practice Solutions if you are looking to lease or purchase space for your practice*. Business Tips About the author Tapan Patel is a Regional Sales Manager with Bank of America Practice Solutions, the bank's healthcare financing division. Tapan and his team have provided billions of dollars in financing to companies in the veterinary industry. Tapan has more than 10 years of financing experience and his in-depth understanding of all aspects of healthcare financing allows him to create a practice solution that fits the needs of practice owners in the veterinary industry.