Want a resilient vet clinic? Make your strategic plan work for you

Veterinarians have reported financial challenges and staff retention as the top issues facing the industry in 2025. 

But for small vet practices and sole practitioners, the impact of these challenges will differ from those experienced by a mid-sized urban clinic. It is important to adapt your strategic plan to suit your unique circumstances.

By understanding the challenges facing veterinary practices, how they affect different-sized clinics, and tailoring your approach accordingly, you can build resilience that safeguards your business and the animals relying on your services. 

Challenges facing small vet clinics in 2025

According to veterinary industry reports and ABS data, the number of veterinary businesses has increased by 12% to reach 3,694 entities over the five years to August 2025. Ownership structures are also changing. Sole practitioners are becoming less common, with more than 55% of practices now operating with 2–8 owners and fewer than 20 staff.

Despite strong growth, there are major challenges for the industry. Chief among them, vets report struggling with financial constraints and staff retention. 

Staffing shortages

Finding and retaining qualified veterinary staff remains the industry's most pressing concern. Competition for experienced veterinarians and veterinary nurses has intensified, whilst graduates often gravitate towards corporate practices offering higher salaries and comprehensive benefits packages.

This shortage forces existing staff to work longer hours, increasing burnout and creating a cycle that drives more professionals away from the field. The impact extends beyond workload - quality of care can suffer when teams are stretched thin.

Rising costs

Everything costs more. From medical supplies to utilities, operational expenses continue climbing whilst many clients struggle with their own financial pressures. Equipment maintenance, insurance premiums, and facility costs compound these pressures.

These rising costs squeeze profit margins, making it harder to invest in staff development, new technology, or practice improvements that could enhance efficiency and patient care.

Client expectations

Pet owners expect more comprehensive care, extended hours, and immediate availability. Social media and online resources have created more informed clients who arrive with specific treatment requests and higher service expectations.

Whilst educated clients can be valuable partners in pet care, managing their expectations whilst delivering quality medicine within realistic timelines requires skilled communication and clear boundaries.

Technology adoption

Digital tools promise efficiency gains, but implementation requires time, training, and financial investment that many small practices struggle to manage. From practice management software to telemedicine platforms, keeping pace with technological advances feels overwhelming.

The challenge isn't just choosing the right technology - it's integrating new systems whilst maintaining daily operations and training staff who may resist change.

Ownership transitions

Many veteran veterinarians approach retirement without clear succession plans. Younger vets often lack the capital to purchase practices, whilst corporate buyers may not preserve the personal touch that defines community veterinary care.

This transition challenge threatens the continuity of care that many communities depend upon and can leave practice owners uncertain about their legacy.

Workplace culture

Creating a positive work environment becomes crucial when staff options are limited. Toxic workplace cultures spread quickly in small teams, whilst positive cultures can attract and retain talented professionals even when compensation isn't the highest available.

The pressure of challenging cases, difficult clients, and financial constraints can strain relationships and erode the collaborative spirit essential for quality veterinary care.

Reassess service offerings

 Is telehealth an option for some pet owners? 

Consider introducing subscription models for regular or recurring services, such as puppy classes. 

Additionally, is your practice set up to simplify insurance claims for your customers?

Prepare for ownership transitions.

Plan for ownership transitions early, whether through family succession, staff buyouts, or practice sales. Professional advice from accountants and legal specialists helps structure arrangements that protect your interests and ensure continuity of care.

How these challenges manifest in different size vet practices

Rural vet clinic with multiple owners, less than 15 staff

Rural practices face unique pressures. Limited local talent pools make staffing shortages more acute, whilst travel distances for emergency coverage stretch resources thin. Multiple owners may have different visions for addressing challenges, requiring clear communication and unified decision-making processes. Setting expectations between the owners is the most important first step, and a plan for managing finances being another high priority.

However, rural practices often benefit from strong community relationships and client loyalty that can buffer against economic pressures. Your strategic plan should leverage these relationships whilst addressing infrastructure and staffing limitations.

Depending on their career stage, veterinarians may be new owners or exiting owners. Experienced vets nearing retirement will have different needs and goals compared to new owners trying to establish themselves. The Practice Manager is a crucial role for ensuring the smooth operation of the veterinary practice and supporting the owners. 

Sole practitioner

Solo practitioners wear multiple hats: veterinarian, business owner and practice manager. Every challenge hits directly, with no veterinary practitioners to share the burden or provide coverage during illness or holidays.

The advantage lies in complete decision-making authority and the ability to pivot quickly when circumstances change. Your strategic plan can be more agile but must account for personal sustainability and succession planning from day one.

A good team of nurses and administrators is vital to operate efficiently and avoid burnout for the practitioner, which should be a high priority. Seeking external guidance from professionals and other vets is part of an essential support network.

Adapting your strategic plan to work for you

Effective strategic planning acknowledges your constraints whilst building on your strengths. Rather than copying another practice's approach, create a plan that reflects your unique circumstances and community.

Merging or collaborating with other veterinary practices is becoming increasingly common. By combining complementary practices, vets can share resources, unlock new efficiencies, and provide stronger support within larger and more flexible teams.

Build community and culture

 Focus on developing strong leadership and communication skills early on, as these will help unify your team and foster a shared sense of purpose. Prioritise mental health and work-life balance for both yourself and your employees. 

Additionally, consider building partnerships with other local practices for emergency coverage, equipment sharing, or continuing education. Collaboration can reduce individual burdens while maintaining your practice's independence.

Invest in digital tools

Cloud-based practice management software can streamline your operations by automating information across multiple systems and boosting efficiency. 

Enable online booking and use digital client communication tools. These systems can educate pet owners about your services while setting proper expectations. Providing clear pricing, detailed service descriptions, and thorough treatment explanations helps prevent misunderstandings and fosters trust.

Consider adopting new technology gradually instead of trying to implement extensive changes all at once. Opt for systems that seamlessly integrate with your current workflows rather than forcing a complete overhaul.

Financial management

Financial planning becomes essential when margins tighten. 

Regular financial reviews help you spot trends early and modify strategies accordingly. Build contingency funds for unexpected expenses and opportunities, even if contributions begin small.

 Benchmark against industry standards for vets with similar area, practice size, and revenue.

 Monitor KPI’s like the average amount spent by a customer or average overhead costs per customer.

Staff retention and development

Staff retention strategies should focus on fostering positive work environments and providing professional development opportunities. Flexible scheduling, support for continuing education, and recognition programmes can set your practice apart without needing large salary increases. 

Treat CPD (Continuous Professional Development) and mentoring as vital nutrients that keep your practice healthy. 

Establish pathways for career advancement within the practice.

Building resilience through strategic planning

Your vet clinic faces genuine challenges, but thoughtful strategic planning transforms obstacles into opportunities for growth and improvement. 

Remember that strategic plans require regular review and adjustment. Market conditions change, new opportunities emerge, and your circumstances evolve. You don’t need to be perfect, just make progress towards a more resilient and sustainable practice.