Have you ever wondered where to open your dental clinic? Chances are, at some point, you have. You want to provide the best service possible while reaching many potential patients. Choosing the best location for your dental office is probably the most challenging part of running a business. As much as it is a personal decision, the reality is that so many factors play into this decision.
It would be best if you thought about the overall geographic region of your choice. Do you want to practice in a rural area, suburban area, or urban location? Is it better to be close to a highway or easy parking? Are you likely to get clients in an area with other businesses or a neighborhood where customers are willing to travel? It’s hard to tell. One option is to look at real estate ads and note which addresses bring in the most business.
Realizing the following factors are essential when choosing a location for your dental office is the first step in making an intelligent decision.
Investigate the Area
A good location will have plenty of foot traffic, so you need to ensure that your potential locale has a steady stream of people going by every day. In addition, make sure that there are enough businesses around to attract a steady stream of new customers to your practice. You should also look into demographic data and determine whether these people will be willing and able to pay for services offered by your practice.
Research to find out where other dental offices are located in your area and whether there are any areas that dentists underserve. It can help you choose a location that will allow you to fill a need and gain a competitive advantage over other local dentists.
Determine Accessibility
You may want a prime location with lots of foot traffic, but if it’s located in an area with poor public transportation options or parking issues, you may alienate patients who don’t have their cars or those who prefer not to drive. You want to keep travel time short so that patients can reach you easily when they need emergency care. If it’s inconvenient for patients to get to your office, they might not keep coming back even if they have an established relationship with you.
Examine your Target Market
Do you want to focus on a specific age group or individuals with specialized needs? Is your practice family-friendly? Your ideal customers will determine the type of area that is right for your business. For example, if you offer pediatric services, a location near schools or daycare centers would be ideal. If you focus on cosmetic dentistry, consider setting up shop in an area with many professionals who want to look their best for their careers.
Your Budget
Know how much money you have available to spend on rent and other costs associated with a particular space. If your budget is limited, it may be best to go small at first and grow over time. If you have more money available to spend, it might be best to go big right away. The first step is to determine your budget. For example, you need to decide if you want to lease or purchase a property. This decision will significantly impact your budget. If you are planning on leasing a property, there are several options to consider as well:
NNN Lease
A triple net lease involves the tenant paying rent plus all operating expenses. These include property taxes, insurance, and common area maintenance (CAM). If a tenant chooses this option for their dental office space, they will be responsible for paying the costs of these items and any interior build-out costs.
Modified Gross Lease
The landlord pays the property taxes and CAM charges while the tenant pays their rent and other expenses. The person obtaining the lease must still have a budget for these expenses when budgeting for their dental office space.
Full-Service Gross Lease
This is one of the most popular leases because it includes all operating expenses and janitorial services and utilities. Tenants pay only one bill each.
While it might be tempting to find office space in an ideal location and then build your business model around that space, choosing the wrong space can put you in a precarious financial situation from day one. Considering these four factors upfront, you’ll have a much better chance of choosing an office that meets your needs and aligns with what you want to achieve.
