I take a multi-step process when choosing a location for my startups. I have started 15 practices and approached each in a similar way. One important step of this process is a thorough competition analysis.
While many established dentists will tell you that it’s not about the competition, if you work hard and provide an excellent service, you will flourish, this is simply not true in today’s saturated environment.
Firstly, even if there was a component of truth to it, wouldn’t you still rather make it easier for yourself by pitting yourself against easier competition than tougher competition?
When I assess the completion, there are many factors I look at in depth and I examine the closest five competitors.
After a thorough assessment of these factors and how they relate to my offering, I will look to come up with points of difference. I combine this with the various other steps of my location analysis to make the decision whether or not to startup in a particular location.
For example, one particular surgery I started in a suburb that had a number of excellent competitors, because my microlocation was better then theirs. I had a location based point of difference closer to the growth and subdivision happening in the suburb. This surgery turned over approx $600,000 in its first year.
In another example, we found a need for extended hours and weekend appointments and this allowed the particular startup to turn over close to $800,000.
I’m based in SEQ, where the average startup does approx 300-350k. My aim with my startups is to turnover $500,000 in the first year and this is why I have to follow a very thorough process.
I encourage you to look beyond just starting anywhere close to home where you see a “for lease” sign. The turnover of your future surgery can have a massive difference with some great due diligence first. One thing I havent mentioned is that you also need some thorough, targeted marketing to advertise your points of difference.
I am running my first Practice Ownership Seminars in March 2018 in Sydney. We will cover everything you need to know about starting up or buying a practice. There are limited spots remaining and this sold out this year. I will outline everything you need to know about location analysis, amongst other things. http://www.practiceownership.com.au/seminars/
Please feel free to weigh in with your thoughts or ask any questions within the thread.
If you have enjoyed this post, please share or like below