As part of the commitment to the business, the business plan requires an initial personal investment of £30,000 from the new Joint Venture Partner/s. This investment is treated as a loan to the new company which will be repaid when cash flow permits. Usually, our business plans show loan repayments around year 5 but can be sooner dependant on the performance of the practice.

The total investment, including fit-out, stock, equipment for a practice is around £300,000. This is financed with a bank loan, JVP investment and lease financing on some of the assets owned by the business. The bank loan, personal guarantee and lease financing are all arranged by the Support Company but always keeping the new JVP informed of the process and agreements. This process takes the pressure off the new JVP enabling them to start work without any worries about financing and banking issues.

Cheque book control and all finance (including VAT, PAYE, Audit) are managed by the Support Office, thus easing any administrative burden. All information regarding your business is held in the Support Office and is available to the Partner and can be supplied when needed or required.

At Vets4Pets, we fund the practices using a term loan from our banking partners and a finance lease. The bank loan is usually over a mid-term period and finance lease is over a 5 year period. The Bank require the investing JVP’s to give a personal guarantee on the loan, which will be taken out in the name of the new company.

Each practice is set-up as a separate limited company of which the Joint Venture Partners and Vets4Pets are directors and shareholders. The JVP’s own 50% of the shares and Vets4Pets owns the other 50%.

The shares are split into two different categories, the first category are “A” shares allowing the shares of the JVP to draw on the profits of the business and the second category are “B” shares which Vets4Pets hold which allows it to provide services chargeable via a management fee to the business.

As each practice is set up as a limited company, the business employs the JVP. This allows the JVP to take a salary irrespective of profits from day one.

Once the business is established and generating sufficient cash, the initial £30,000 practice loan will be paid back to the JVP's. When the business becomes positive in asset value the “A” share holder can look at the potential of taking dividends, these can be taken when the business has cash reserves and a positive Net Asset Value. With the support of the Ops team and Finance team the expectations of the partners can be managed and forecasted with the most current information, so giving a more accurate time frame for loan repayments and dividends.

All practices are charged Management Fees monthly as per the Joint Venture Agreement, which is agreed and signed by the new JVP, these are calculated as a percentage of the practice’s monthly turnover and charged on a monthly basis. These fees are used to cover the administration of pay-roll, finance, HR, legal, property management, product negotiation, operational support and brand marketing.

All of our practices are thoroughly researched to establish that there is a sound business opportunity available. However, as with any business model, reality may not quite go according to plan. We will work with the investing partner/s on a day to day basis looking at ways to add value to your business, discuss and action agreed changes that have positive outcomes to your business using our experience and knowledge of supporting Joint Venture Businesses.

As a vet it will not surprise you that one of the challenges a JVP may encounter is work life balance. Vets4Pets has recognised this particular challenge and are committed to working with you to get the balance right.

Staff Management can also be challenging when you are all new to the business and establishing team relationships. Our expert advisors in Operations and HR will support and guide you through any issues that arise. We also provide personal development plans and performance management tools to ensure you have happy and productive team, which we hope will then make for a successful business.

Within the veterinary industry there is understanding and recognition of the stress and demands of the profession. At Vet4Pets we have comprehensively trained our Support staff to recognise, and to help you recognise signs of stress and we have implemented interventions and support measures.

If you would like to find out more about becoming a Joint Venture Partner with Vets4Pets, get in touch.