Beginner’s Guide on Starting a Veterinary Business in the United Kingdom
If you’re here, you’ve probably already made the decision of starting your vet practice and driving your career path independently. The road will not be an easy one. It will take a lot of planning, hard work, and support. But starting a veterinary business is a rewarding endeavor- it earns sufficient income, and you get to provide healthcare and services to animals. We want to help you successfully start a veterinary business, so here’s a beginner’s guide for you.
This article provides an overview of the sector and the tips you need to remember when planning the business. It also provides a quick guide to company registration, licenses, permits, and other legal matters. Start your veterinary business on the right track with these startup tips and support.
What is a Veterinary Business?
A veterinary business is a professional practice of providing medical needs to animals. The practice is usually a small business offering a wide range of services. Typical veterinary services include diagnostic, therapeutic, surgical, anesthesia, radiology, dentistry, pharmacy, laboratory, and others. Some veterinary services also specialize in a particular service or animal. Veterinary businesses are critical in societies as they diagnose and control animal diseases, treat injured animals and look after their welfare.
To practice this profession in the United Kingdom, the veterinary business must be a member of the Royal College of Veterinary Surgeons (RCVS). Practitioners accredited with the organization have the initials MRCVS or FRCVS after their name. Moreover, there are also other qualifications veterinarians can hold, which are granted by other organizations in the United Kingdom and overseas. Some veterinary businesses may have one or more veterinary surgeons, associates, nurses, and EMS (Extra Mural Studies) students.
The veterinary sector has been continually growing for the past year. And like any other sector, technology-enabled improvements in veterinary businesses. Discoveries in animal medicine and developments in the veterinary healthcare system further strengthen medical treatments and efficiency in care delivery. Advancements in big data, cloud computing, biotech, genomics, and artificial intelligence resulted in tighter competition between companies.
As a result of the growing competition, the industry has witnessed notable mergers and acquisitions between large companies. One example would be Boehringer Ingelheim’s acquisition of GST Biotech company. But the industry faced challenges still with the pandemic reducing clinic visits for months. But on a positive note, a veterinary business will always be in demand as long as animals and pets are needing their care.
How to Start a Veterinary Business
Research if There is Demand
No matter how good your skills and marketing strategy is, if there is no demand for your services, there’s no point in your business. Therefore, from the start, get to know the market and the locality and estimate the demand for veterinary services. Research about the demographics, the usual types of animals people keep, and the competition. Don’t overlook businesses that may be related to yours, like boarding kennels, breeders, or livery stables. You may get useful information from their performance to add to your research.
Create Customer Profiles
The services you will choose to offer will determine the types of customers you will have in your clinic. List down the potential customer groups you may have so you can use them as a guide in your operating and marketing strategies. Additionally, creating customer profiles will also help you list down the facilities you have to prepare and the equipment you need to acquire to provide for their needs. Some of the customers you may have include:
- Farming community
- Horse owners
- Pet owners
- Related businesses, e.g. zoos, fish farms, racecourses, pet shops, etc.
- Animal charities
Determine Professional Fee
Most veterinary practitioners set their fees at an hourly rate. In estimating your rate, compute the total cost that the business will incur throughout the year. These costs may include your rent, utilities, and initial investments, exempting the cost of drugs you will buy. Your professional fee should be at a rate that will at least cover these costs, given estimated chargeable hours and working days in a year. Moreover, you may also earn through mileage charges, medicine profits, retailing pet food, and arranging general pet insurance.
Anticipate Seasonality
Veterinary businesses are also affected by seasonal habits or changes in animals or related animal industries. For example, busy times for large animals will be in the hunting or racing seasons. It will also depend upon where you are located. Some regions require TB testing of commercial cattle twice a year or once every four years. It is best to anticipate and prepare for seasonality as this will affect your cash flow and need for manpower.
How to Register a Veterinary Business in the United Kingdom
You can start a veterinary clinic as a small business or as a company. Depending on your capacity and goals, you can set the business up as a sole proprietorship, partnership, or limited company. Small businesses usually register as sole traders or partnerships and then scale bigger after a few years. But if you want the full protection and advantages of a corporation, you may choose to start directly as a limited company. You may contact Us to arrange your company registration and enjoy the benefits of our top-quality professional services.
Sole Proprietorship and Partnership
To register as a sole proprietorship or partnership, you only have to request a tax self-assessment with the HMRC. What this means is that the state will recognize you as an independent income-earning entity rather than earning through wages, pensions, or savings. With this registration, you will be responsible for reporting your income through tax returns. You need to register by October 5 after the end of the current tax year to report your income. (e.g. register by October 5, 2021, to report income for April 2020-March 2021)
Limited Company
Moreover, to register as a limited corporation means establishing a separate entity- the company to create the distinction between the owners and the business. To set up a veterinary company, you need to register your company name with the Companies House. Moreover, you also need to submit the details of the company director and shareholders and submit the articles and memorandum of association. You can also simultaneously register for taxes with the HMRC in this process.
Both business (sole and partnership) and company registration can be done online, along with the payment of the process fees. Limited company registration has a fee of £12 and is processed within 24 hours. Moreover, many starting business owners prefer getting United Kingdom company incorporation services to a much faster and more convenient registration. For an additional fee, you get less stress yet more time to handle other startup activities.
Licenses, Permits, and Other Legalities
Being affiliated with the RCVS is not merely a qualification but a necessity for starting a veterinary business in the United Kingdom. The practitioners and the practice premises should also be RCVS and should pay the annual retainer fee. Additionally, if you will sell wholesale animal medicines to other establishments like pet shops, you will need a license from the Veterinary Medicines Directorate (VMD). And if you also sell, advise or arrange general insurance (i.e. pet insurance), you need to register with the Financial Conduct Authority (FCA).
Some veterinary practitioners also conduct research in addition to performing veterinary services. And so, if your business will use an X-ray machine for research purposes, you must acquire authorization from the Health and Safety Executive (HSE). Authorization is also necessary when you will use accelerators other than electron microscopes for purposes including diagnostic and therapeutic. And if you will be keeping computerized records of your customers’ details, you need to register as a data user with the Information Commissioner’s Office.
Moreover, the veterinary practice often produces tons of hazardous wastes every year for used syringes, medical packaging, etc. You need to register the business as a waste carrier if you carry these wastes away from the clinic for disposal. You can register with your related Environmental Agency as a transporter of waste or as a low-tier waste carrier. If you are in Wales and you produce at least 500kg of hazardous waste each year, you will need to register as a hazardous waste producer with Natural Resources Wales.
The other legislations you may need to overview in starting a veterinary business in the United Kingdom include the following:
- Health, Safety, and Fire
- Employment Legislation
- Veterinary Surgeons Act
- Veterinary Medicines Regulations
- Supply of Relevant Veterinary Medicinal Products Order.
Register a Veterinary Business With Corporate Assistance
Starting a veterinary business in the United Kingdom can be a little tedious. Set up your business today with a United Kingdom corporate service provider you can trust and rely on at any time. 3E Accounting United Kingdom is internationally recognized for our quick, hassle-free, and no-hidden-charge company registration services.