Growing Smart: When to Expand Your Veterinary Practice (when to expand & exit planning 101)
Running a veterinary practice comes from the heart; it stems from a vision to make a difference in the lives of pet owners. Yet in the day-to-day whirlwind of surgeries, schedules, and staff meetings, most owners rarely get the chance to zoom out and ask: Is it time to grow? Or is it time to plan my exit?
According to Dr. Michele Drake, founder of The Drake Center for Veterinary Care and co-founder of GeniusVets, the best-practice owners are those who proactively think about growth rather than reactively. Whether you're dreaming of multiple locations or starting to consider what life looks like after ownership, smart growth is intentional growth.
Let's explore the signs it might be time to expand or exit, how to assess the difference between the two, and what steps to take, no matter where you are on your ownership journey.
Expansion vs. Exit: What's the Difference?
These two roads may seem like opposites, but in many cases, they're actually deeply connected. A strong expansion plan can set the stage for a successful exit, and a well-timed exit often begins with operational growth.
While both involve growth, their purposes and end goals are very different.
Expansion means you're leaning in. You're seeing steady client growth, your team is strong, and you're ready to increase your impact. Expansion includes:
- Adding more exam rooms
- Hiring additional DVMs
- Launching new services
- Opening another location
Expansion requires your operational systems to be stable, your leadership team is strong, and the capacity to scale without compromising patient care or team wellbeing.
Exit planning, on the other hand, is about intentionally leaning out. It doesn't mean stepping away tomorrow; instead, it means preparing for a future transition. Exit planning includes:
- Selling the practice
- Passing it on to a partner or associate
- Shifting into a less demanding leadership role
A well-thought-out exit strategy protects the legacy you have spent years building and ensures continuity for your clients and team. Plus it gives you peace of mind for the next chapter.
Both paths require clarity, vision, and proactive planning. The key is knowing where you are in your journey and what kind of veterinary practice and life you're building toward.
Signs It Might Be Time to Expand
Expansion doesn't always mean opening a brand-new building across town. Sometimes it's growing your current facility, hiring another DVM, or adding new services. So how do you know when it's time?
Here are a few signs that your practice might be ready to grow:
1. Your Schedule Is Consistently Overbooked
If your team is booked out for weeks, turning away clients, or constantly operating at full capacity, consider how you can grow to meet the demand, which means hiring another doctor, extending hours, or expanding your facility.
Genius Insight from Dr. Drake: A full schedule isn't just a sign of success; it can also signal you're hitting a ceiling. Expansion isn't just about revenue; it's about continuing to serve your community well.
2. Your Team Is Ready for More Responsibility
A team that functions smoothly and with confidence is a tremendous asset. If your veterinary technicians, receptionists, and assistants are ready to take on more, expanding could help them grow alongside the practice. Have team members expressed interest in leadership roles, mentorship, or professional development? If your current structure doesn't allow them to grow, you might lose great talent. Expansion creates opportunities not just for your clients, but for your people.
3. You've Mastered Your Current Operational Systems
If your practice has standard operating procedures, an efficient workflow, and consistent client communication tools (like reminders, education platforms, and follow-ups), you're in a strong position to scale. Trying to grow before your operations are stable can turn growth into chaos.
4. Your Community Needs More from You
Are local pet parents asking for more services, specialty care, or earlier/later appointments? Strategizing on these needs can allow your clinic to become the go-to destination for these services.
Signs It Might Be Time to Start Exit Planning
On the flip side, if you've been wondering when it's time to start thinking about stepping back from ownership, you're not alone. Exit planning isn't only about selling your practice. It's about creating a path forward that honors your legacy and sets your team up for success long after you're out of the daily flow.
Here are a few indicators it's time to start the conversation:
1. You're Feeling Burned Out
If you are dreaming more about time off than time in the clinic, it might be time to plan your next chapter. Burnout is common and if you let it linger too long, it can affect your health, your leadership, and your team's morale.
2. Your Goals Are Shifting
You may want to spend more time with your family, travel, write a book, or focus on mentorship. Exit planning helps you align your business with your evolving personal goals. If your goals are shifting, your ownership plan should evolve too.
3. You're Unsure Who Will Lead After You
One of the strongest reasons to start planning your exit is to ensure your clinic has a strong successor. If you haven't identified who might take over someday, now is the time to start thinking about it. Whether you want to sell to an associate, transition to a management team, or consider an acquisition, your legacy deserves a plan.
4. You're Getting Inquiries About Buying
If brokers or corporations are showing interest, it could be a sign that your practice has real value. Exit planning lets you evaluate offers from a position of strength rather than urgency. But don't wait until you're ready to retire to start assessing what you want. Exit planning gives you options and control.
How to Build Toward Your Next Phase
Whether you're leaning toward Expansion or thinking about an eventual exit, the process begins the same way: with clarity.
1. Assess Your Practice Health
Start by looking at your financials, client base, retention rates, staff satisfaction, and leadership structure. Are your new client numbers steady? Is your revenue growing year over year? GeniusVets offers a complimentary Marketing Health Exam to help practice owners get a clear picture of their marketing.
2. Define Your Vision
Where do you want your practice to be in three years? Whether that means hiring another DVM, relocating, or stepping away from day-to-day operations, you can only grow with intention if you know where you're headed.
3. Develop Leaders Now
If your next chapter includes less hands-on time, you'll need strong leaders in place. Start mentoring your team leads or associates now so that when you're ready to grow or transition, they are too.
4. Strengthen Internal Systems
Systems are essential for those looking to sell in the future. Growth without structure is dangerous. Document your SOPs, invest in leadership development, and ensure your client experience is consistent before you add more complexity to your business. A well-documented, well-run clinic is easier to value, easier to transfer, and more attractive to buyers.
5. Talk With Experts
Whether it's a veterinary CPA, business advisor, or the GeniusVets team, don't try to figure it all out alone. Get guidance on valuation, marketing strategy, and legacy planning to make confident decisions.
6. Plan In Advance
By planning in advance, you have the advantage to position your practice for optimal success. Just like selling a house, you could get more just by adding a fresh coat of paint, or new appliances. If you plan ahead, and work with someone on the things you need to do, you can increase your practice's value.
Genius Tip: Our team can help you build a brand that scales, a team that aligns with your mission, and a marketing strategy that supports your next phase, whether you're expanding or exiting.
You're the Architect of What Comes Next
Veterinary practice ownership is one of the most meaningful journeys you can take. Whether you're growing to meet new demand or preparing to hand off the reins, remember this: Wise leaders don't wait until they're overwhelmed to make a move. They start planning before the pressure hits.
As Dr. Drake says: "You don't have to grow fast. You just have to grow with intention."
If you're curious what your next step should be, we'd love to help you explore your options.
Book your complimentary Marketing Health Exam today, and let's talk through how your practice can expand, evolve, or exit with confidence and compassion.