Establishing a dental practice involves numerous decisions, but one of the most critical is selecting the right location. The location of your practice significantly influences its success, affecting the type of office you can establish and the patient demographics you will serve.
The Role of Professional Guidance
Some dentists opt to hire specialized real estate professionals to assist in finding the ideal space. These experts offer valuable insights into specific locations and possess market-specific knowledge. However, some dentists prefer to undertake the search independently.
Key Factors in Location Selection
Whether working with a specialist or conducting the search on your own, three main factors should guide your decision: physical space, demographics, and competition. Aligning these elements with your practice goals can help ensure you choose the right location.
Importance of Physical Space
The quality and size of your dental office must provide sufficient clinical space to support, treat, and expand your patient base over time. For first-time practice owners, urban spaces typically range from 1,100 to 1,600 square feet, while suburban areas may require 1,300 square feet or more.
Planning for Long-Term Growth
Your initial office space should accommodate future growth, preventing the need for frequent relocations. Consider the following questions as you search:
- Does this space fit the type of practice I envision?
- Is the space size suitable for both starting and expanding?
- Is the space properly zoned?
- Does the space require significant upgrades or construction?
- Do I have the budget for construction and equipment?
- Are there any obstructions that could hinder construction?
- How can I maximize this space?
Aligning with Your Business Model
Your business model will influence the type of space you need. A fee-for-service model may require a smaller, boutique space, while a practice focused on insurance or Medicare patients may need a larger location to accommodate more chairs and a higher volume of patients.
Understanding Your Layout
Once you've identified a suitable space, work with a dental equipment company to measure and create a preliminary layout. This plan will illustrate how the space can be configured and equipped, detailing the workflow and potential for future advancements. This step is crucial before committing to a lease or purchase.
Demographic Insights: Knowing Your Potential Patients
Understanding the demographics of your potential location is essential, as most patients choose healthcare providers close to home. Conduct demographic research to define the type of practice you want to create. Valuable data can include:
- Median age
- Ethnicity
- Gender
- Average household size
- Households with private insurance
- Population density
- Population growth
- Median income
This information provides a snapshot of the clients you will serve, helping tailor your practice to meet their needs. Resources like the Small Business Administration offer federal business statistics that can aid in your research.
Analyzing Competition
Competitive research is vital in determining the suitability of a location. The American Dental Association suggests a ratio of one dentist per 1,500 patients, with more dentists typically found in urban areas. Consider these questions:
- Is there a need for a dentist in the area?
- Are local dentists meeting the population's needs?
- Is the current competition aging out?
- Will you offer services not currently available?
Answering these questions can provide insights into the potential for establishing a successful practice in a specific location.
By carefully considering these factors, you can make an informed decision about the best location for your dental practice, setting the foundation for long-term success.
