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Starting a vet clinic: A practical guide

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By Rhiannon Koehler, DVM, MPH

The U.S. veterinary services industry is a growing, historically resilient market with strong opportunities for potential practice owners to establish new businesses. The industry was valued at $38.2 billion in 2025 and is projected to reach $68.7 billion by 2033, at a compound annual growth rate (CAGR) of 7.9 percent.1

 

With 58.6 percent of U.S. households owning a pet, industry growth has also been driven by advancements in veterinary technology, pet owners’ willingness to spend on healthcare, and increasing demand for specialty and preventive care, among other factors.1,2

According to the 2026 AVMA Report on the Economic State of the Veterinary Profession, the number of veterinary establishments has continued to increase over the past decade, with a 13 percent increase between 2013 and 2023.3

 

Potential options for owning a practice include acquiring an existing vet clinic, renovating a leased space into a vet clinic, or building a new facility. Each path involves important decisions, from selecting the right location and financing strategy to choosing the technology and equipment that best support the practice.

 

In this guide for starting a new veterinary practice, we’ll focus on defining your vision, understanding startup costs, designing and equipping your facility, and avoiding common startup mistakes.

Starting a vet practice: defining your vision

Before securing financing, designing a facility, or selecting equipment, prospective owners should define their vision for a new veterinary practice. That vision will shape the veterinary clinic business plan and inform decisions about location, facility design, equipment and technology purchasing, and staffing model.

 

In developing the vision, future practice owners should consider:

 

  1. Type of practice: specialty vs. general practice vs. emergency, brick-and-mortar vs. mobile, etc.
  2. Patient population: companion animal exclusive, companion animal predominant, exotics, mixed animal practice, equine exclusive, etc.
  3. Ownership structure: sole proprietorship, partnership, limited liability company (LLC), subchapter S corporation (S-Corp)
  4. How the practice sets itself apart from competition: fear-free, feline-only, specialty procedures, extended practice hours, etc.

Market research can help refine the vision. Potential practice owners should consider the demographics of the target market, including the number of pet-owning households by species, average household income, and pet spending patterns. Esri Reports are helpful at this stage. The competitive landscape should also be evaluated to identify underserved market segments and service gaps, which can help shape a plan to differentiate the new practice.

How much does it cost to open a vet clinic?

The cost to open a veterinary clinic varies significantly depending on its location, size, services offered, and necessary software and equipment.

 

A prospective owner may wish to purchase an existing practice because it provides immediate revenue, existing staff, and an established client base. Although it takes more time to get a brand-new practice up and running when compared to purchasing an existing one, there are several reasons a prospective owner may choose to build from the ground up.

 

According to Link Welborn, DVM, DABVP, chief veterinary officer at Covetrus®, advantages to building a veterinary clinic include:

 

  • Complete control over the business model, culture, pricing strategy, and service offerings.
  • The ability to design a modern facility and workflow with new equipment and a next-generation practice information management system (PIMS).
  • Avoidance of paying for goodwill associated with acquiring an established practice.

“Building from scratch is most attractive when acquisition opportunities are limited, overpriced, or misaligned with the owner’s vision,” Dr. Welborn says.

 

The cost to start a new veterinary clinic can range from approximately $500,000 to more than $1 million.4 The table below covers how practice owners should consider allocating startup dollars.*

Cost CategoryEstimated RangeNotes
Facility40–60%Construction, leasehold improvements, real estate
Equipment and diagnostics15–25%Imaging, in-house laboratory equipment, anesthesia and monitoring, dental equipment
Technology and software3–7%PIMS, payment processing, client communication systems, computers and printers
Initial inventory and pharmacy3–8%Medications, surgical supplies
Working capital and payroll reserve15–25%Maintain sufficient working capital for the first 6–12 months; make sure to consider marketing

*Percentages are approximate ranges and are not intended to total 100%. Estimated ranges are illustrative and may vary based on geographic location, local market conditions, facility size, and other factors specific to your practice.

Construction and build-out costs frequently exceed all other startup expenses combined, so prospective owners should expect the facility to comprise the largest portion of startup costs.

 

If you’re considering a mobile practice instead, keep in mind that the practice models differ in their revenue potential. In 2025, 100 percent brick-and-mortar practices reported a median gross revenue of more than $1.6 million, compared with approximately $600,000 for 100 percent mobile practices.3 However, mobile practices may also have lower startup and operating costs, making them a better fit for some owners.

Designing a veterinary hospital for efficiency and growth

Building a practice from the ground up gives clinic owners the opportunity to design a facility that maximizes efficiency while allowing for growth.

 

First, you’ll need to evaluate potential locations for the clinic. This evaluation should include:

 

  • Pet ownership density
  • Median and dispersion of household incomes
  • Competitor landscape
  • Visibility from road and sidewalks
  • Zoning

 

“It is useful to compare this information for a 3-mile radius around any location under consideration, as well as for the locations of practices with which there is familiarity,”

— Dr. Welborn

 

The American Veterinary Medical Association (AVMA) has a Market Share Estimator Tool (available to AVMA members) that can help evaluate a location, including the potential size of the local market, and set realistic goals for practice growth.5

 

When designing a facility, the layout decisions you make now will affect operational efficiency, patient care, and the client experience. For example, if your clinic will see both dogs and cats, consider whether there will be separate waiting rooms for each species and how the patients will move from the waiting room to the exam room in a way that minimizes patient stress. Proximity of exam rooms to the treatment area will impact the length of appointments and communication between doctors and technicians. Ideally, the treatment area will allow direct access to surgery, radiology, laboratory services, and the pharmacy.

 

As you design, you’ll want to maximize the use of your space. If available space within the facility isn’t being used, it adds to overhead costs without generating revenue for your practice.3 By engaging an architect and veterinary industry partners, you can design a facility that meets the needs of your staff, clients, and patients while maximizing efficiency.

 

You’ll also want to determine which equipment and technologies your practice will use before designing the facility. Planning for these needs early helps ensure the layout supports efficient workflows. For example, if you plan to offer ultrasound and digital radiography, will they share the same room? If so, when one system is in use, will it limit access to the other? Considering how equipment will be used day to day can help optimize patient flow and staff efficiency.8

Selecting the right veterinary PIMS

Selecting a practice information management system (PIMS) is more than just a software purchase — it’s an infrastructure decision. A PIMS often serves as the central hub for clinic operations.

 

A modern cloud-based system may help streamline the daily operations of your veterinary practice. An effective system should support:

 

  1. Appointment scheduling and management
  2. Client communication
  3. Medical record storage and organization
  4. Inventory management
  5. Billing and payment processing

 

Because your PIMS serves as the backbone of your clinic, it’s important to select and implement it before opening. This veterinary technology will shape workflows, influence how you integrate equipment into the clinic, and ultimately affect the client experience and practice efficiency. Waiting to implement a PIMS may be costly, disruptive, and may require significant changes to established workflows.

 

Given its central role, prospective practice owners should take the time to evaluate and compare multiple PIMS options before making a decision. One option to consider is Covetrus Pulse®, an all-in-one cloud-based veterinary operating system (vOS®). Pulse brings together electronic medical records, scheduling, client communications, payments, care plans, and inventory management into one connected, AI-powered platform designed to help veterinary teams work more efficiently.

Equipping your new vet clinic

The equipment you choose will influence your facility design, utility requirements, and budget. Before designing your clinic, determine which items you’ll need on opening day and which you can purchase later as your clinic grows. These decisions should align with your clinical goals, workflow needs, and long-term growth plans.

 

Most practices should have the following technologies in place before opening:

 

  1. Practice management software (PIMS)
  2. Digital radiography
  3. In-house laboratory equipment
  4. Centrifuge and microscope
  5. Anesthesia and surgery monitoring equipment
  6. Autoclave
  7. IV fluid pumps
  8. Dental equipment and dental radiography
  9. Payment processing software
  10. Client communication system (may be integrated with your PIMS)
  11. Reliable network and IT infrastructure
  12. Workstations (+/- tablets)
  13. Printers and label systems
  14. Refrigerators and freezers

 

Dr. Welborn also recommends that most practices have access to ultrasonography and cloud-based communication and scheduling tools before opening. Depending on the platform you choose, your PIMS may offer integrated communication and scheduling capabilities. As you evaluate diagnostic, imaging, and payment systems, prioritize solutions that integrate with your PIMS to help create a more connected and efficient workflow.

 

Examples of technologies that can be purchased later, after client volume grows, include:

 

  • Endoscopy
  • Therapeutic laser
  • Specialty surgical equipment
  • Additional imaging (e.g., CT)
  • Telemedicine platforms (may integrate with PIMS)
  • AI-based dictation software (included in a Covetrus Pulse subscription)

 

Of course, if you plan to open a specialty practice, these recommendations may vary. For example, a specialty clinic seeing neurology patients will need to have CT/MRI at opening. On the other hand, a low-cost or non-profit clinic may not have ultrasound capabilities at the time of opening.

Common vet startup mistakes to avoid

With so much to keep in mind when starting a new practice, it is easy to overlook important details. According to Dr. Welborn, these are some of the most common startup mistakes new practice owners should avoid:

 

  • Underestimating working capital requirements
  • Choosing a location before completing a market analysis
  • Overbuilding for day-one demand
  • Delaying tax planning and CPA consultation
  • Insufficient focus on culture when hiring practice team members (i.e., too focused on skills instead of attitude)
  • Waiting too long to begin marketing
  • Purchasing too much equipment too early

 

“Maintaining sufficient working capital for the first 6–12 months is also critical,” Dr. Welborn says.

 

Launching a successful new-build veterinary practice starts with thoughtful planning. By defining your vision, evaluating the market, planning for long-term growth, and making strategic investments in your facility, technology, and team, you can avoid many of the most common startup mistakes.

How Covetrus supports new business owners

The Covetrus new build solutions team can assist you with veterinary practice construction, remodeling, and expansion projects. Services include:

 

  1. Financing for equipment, plus new build  and expansion savings programs
  2. Equipment planning by room, as well as equipment procurement
  3. Practice management software consultation
  4. Marketing and patient communication software consultation
  5. Ongoing supply relationships
  6. Credit card processing
  7. Covetrus Credit Card for business purchases

About the Author

 

Rhiannon Koehler, DVM, MPH, is a veterinarian and freelance writer based in the Kansas City area. After graduating with her DVM and MPH from the University of Missouri in 2019, she entered clinical practice as a shelter medicine veterinarian. She continues to work with animal shelters and non-profit clinics while running her writing business, Evergreen Medical Writing. Dr. Koehler primarily writes educational content for veterinary staff and pet owners. Dr. Koehler is a paid consultant for Covetrus®.

 

This article originally appeared in the Covetrus Equipment & Technology Product & Services Guide 2026–2027. Browse the full edition for more on the systems and tools shaping practices this year and beyond.

 

CITATIONS

  1. Grand View Research. U.S. Veterinary Services Market Size Report, 2026-2033. Published June 2026. Accessed June 28, 2026. https://www.grandviewresearch.com/industry-analysis/ us-veterinary-services-market-report
  2. American Veterinary Medical Association. 2025 AVMA Pet Ownership and Demographics Sourcebook. American Veterinary Medical Association; 2025. Accessed June 28, 2026.
  3. American Veterinary Medical Association. 2026 AVMA Economic State of the Veterinary Profession. American Veterinary Medical Association; 2026. Accessed June 28, 2026.
  4. Johnson M, Bell J. Practical Business Guide to Starting Your Veterinary Practice. 1st ed. Wiley-Blackwell; 2026
  5. American Veterinary Medical Association. Market Share Estimator. American Veterinary Medical Association. Accessed June 28, 2026. https://www.avma.org/resources-tools/practicemanagement/market-share-estimator

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