The details of your dental practice may be something you have been envisioning for years - the treatment room, the layout, the chair. However, before you design and set up your new practice it's important to take a step back and consider the location. Where you choose to set up is critical to your business's success, so a thorough analysis of the area needs to be completed before you jump in and sign the property contract!
In this article, we'll explore what to consider when choosing the best location for your new dental practice. Taking these factors into consideration at the initial planning stage can save you both significant time and money, as once your fitout is complete and the new practice is operational, changing location is a costly process.
Competition Saturation
Often people have a long-term relationship with their dentists and it can be difficult to get them to change practices if you move into a well-established area. Recognising gaps in the market, pockets that are currently underserved or new development areas will offer the best opportunity to grow your patient base. Talking to your council's town planning team will help give an indication of future incremental growth areas.
When researching your location, it's important to consider what services you're interested in offering and specific areas you'd like to specialise in. Are these currently provided by other practices in the area? If they are, will your presence saturate the market? Do people seem satisfied with their existing service? Are the owners planning on retiring soon with the chance of patient acquisition? Is there a chance to specialise in a niche service that is not currently offered?
If the services you are planning on offering are not currently available in the area, carefully consider if there is a reason why this type of service wouldn't work there. For example, a high-end cosmetic dental surgery is unlikely to work in areas where households typically have less disposable income. Asking these questions will help you analyse the opportunities and the potential risks involved.
Also, if you have recently left a practice and signed a non-compete clause in your contract, you'll need to ensure that your new site is located far enough away from where you previously worked to avoid any legal issues. When training new staff, this clause may be added into the terms by senior practitioners to protect their existing clinic from local competition in the future.
Target Market
Truly understanding the needs of the patient and community you are wanting to serve is critical for the long-term success of any business. Part of this can be achieved by researching current data and analysing the demographic breakdown. For example, what is their average age and disposable income? Is the population increasing or decreasing in this area? What do most of them want to achieve with their dental visits (e.g. treatment or cosmetics)? How often do they typically visit the dentist?
Not only does this information help you decide on the area to open your practice, but it will also give you valuable insight into the type of customers you will likely receive and their expectations of your practice. For example, if your research indicates a lot of elderly residents in the area, you might want to consider a practice on the ground floor with good mobility access. If there are a lot of families nearby, you could add a children's play area into your reception design.
When starting out, an easy mistake to make is wanting to cast your net too wide. By oversimplifying your target market to be 'people with teeth' you miss niche opportunities that will attract new customers and differentiate your practice from the rest. Learning more about the local population can also help you develop a customer persona or an 'ideal patient'. You can then keep this fictional character in mind when it comes to the design, set up and operation of your practice.
Available Site
Once you've nailed down the geographical area, you'll need to find a suitable spot for your practice. It's important that the size and layout of the space will allow for an uncompromised design that balances the needs of the practitioner and patient, delivering an overall positive experience. Your site should also meet your needs now and be able to adapt and grow with you into the future.
Whether you rent a commercial space on a long-term lease or find a site to build a new practice on will likely depend on your budget, long-term goals, preferences and the options available in the area you've recognised as having good potential.
Visibility & Accessibility
When viewing each potential site, consider what the visibility is like. Are there areas to place signs by busy roads to increase brand awareness within the community? Is there room for exterior signage, to ensure that your new patients know where to find you?
Convenience is also key, so it's also important to ensure there is adequate and inexpensive parking for patients and staff that is close to your premise. If finding a car park around your practice is difficult, this can cause headaches for your patients (especially those with less mobility or young children). Visiting the site at various times throughout the day can be helpful to analyse the traffic patterns and any potential gridlocks, for example during the school drop-off or after work peak times.
It may also help to check with your local council that there are no major long-term roadworks projects planned outside your practice in the foreseeable future. Although these may be unpredictable, doing your research will ensure that you have avoided any obvious issues.
Free-standing buildings can often offer higher visibility from the road and better branding opportunities, however they may get less foot traffic as an independent destination. Operating in a shared building complex, such as a mall or plaza, will likely mean that there are improved facilities, including car parks and security. However keep in mind that the management of the facility may be able to dictate certain aspects of your practice, such as opening hours. If you're planning on opening a late-night service at your practice, it's also important to consider a well-lit and safe location.
Neighbouring Businesses
It's helpful to open your practice nearby popular stores that attract patients to the area, such as supermarkets, as busy people appreciate being able to tick multiple jobs off their list at once. However, the businesses that you surround your practice with will impact your customers' overall experience, therefore it's important to consider if they are compatible with the professional look you are trying to achieve. For example, if there is a bar right next to your pediatric practice or a gym on the floor above playing loud music and constantly dropping heavy weights, you may want to reconsider the site.
It's also helpful to analyse the neighbouring businesses to identify if there's an opportunity for mutually beneficial relationships. Some dental practitioners opt to open their practice in an established medical cluster, such as alongside a doctor's clinic, a physiotherapist, a chemist and an optometrist. This has the advantage of being surrounded by like-minded professionals with the ability to support each other through referrals, while also targeting individuals already thinking about their health and wellbeing.
Your community surroundings may also offer a good opportunity for new patients. For example, if you had a high-rise office complex above the practice then workers may find lunchtime appointments very convenient. If you're nearby a local school, you could consider partnering with them for an educational oral hygiene campaign to increase clinic awareness.
Considering all of these factors when deciding on an area to open your dental practice will help ensure that you have made an informed investment decision and given your practice the best chance of success. Although you might not be able to satisfy all of the factors listed above, you should prioritise those that are most important to you and your patient persona.
