Protecting Your Profits in 2023

In my last post, I mentioned the pet resort industry had evolved. I’m not talking about the effect of COVID, although that has boosted the industry in unanticipated ways. Before the rise in pet-buying due to people being socially isolated, the pet industry was growing. Business owners were realizing their businesses could grow larger, and become more efficient, and more responsive to pet owners. More technology was coming in, streamlining booking systems and daily operations. Private equity groups were seeing the ways people were treating their pets like a true family member and wanted a piece of the pie.?The race was on to acquire pet-related businesses: first pet retail stores, then pet food companies and then (as now), pet resorts and vet clinics themselves. As a business broker, I found myself in demand not just as a broker, but as a speaker, as a consultant and a general advice-giver to not just kennels, but pet and vet business owners interested to knowing what their business might be worth to a potential buyer. In 2019, I gave advice on facing a recession. The ensuing COVID did not give the pet industry a recession – just the opposite. It has provided tailwinds for many owners to see the highest cashflow in years (a great time to sell!). However, towards the end of 2022, the talk of recession is back. These tips we gave then, to help you protect your profits, are just as pertinent now:

1.????Fine-tune your sales processes to increase revenues from each client and each stay. Be bullish about who can answer the phone, so each client call leads into a booking. Return each email or form inquiry immediately.

2.????Create new services, add-ons and packages to increase revenues and minimize the impact of losses in other areas.

3.????Consider ‘out of the box’ services you are currently not offering. Involve your staff in brainstorming or get feedback from other business professionals (or your clients!) in your area.

4.????Provide exceptional service and remove any barriers between your business and the clients who has their credit card out! Reconsider policies that prevent a client from booking with you on the spot whether they reach out via phone or in person. The odds of them coming back to you if they leave disappointed are very slim.

5.????Analyze your marketing efforts to ensure your business stays top-of-mind with existing customers. This is not the time to cut the marketing budget, but it is the time to analyze where to spend it.

6.????Be hyper-focused on expenses (especially labor cost), as controlling costs can offset a drop in revenue. During the last economic downtown, we helped some business owners increase their value despite prevailing economic conditions.

Pet | Vet M&A, Sales & Advisory has more information here https://tinyurl.com/2u4r8rcy on recession-proofing your business. Or if you feel like you have tried many of these tactics and need something more customized, call us to schedule a one-on-one. All conversations are confidential. #ProtectingProfits #RecessionProofing #PetResorts #Veterinary #GrowYourBusiness #SellingABusiness