Demographic and Lifestyle Considerations for Dental Startups
A location that’s ‘right’ for one dentist, may not be ‘right’ for another.
When choosing a practice location, be sure that the demographics and lifestyles align best with your practice strategy.
Here are 6 questions to ask yourself when locating your practice:
1) Do you have a strong preference for (or against) being in the city, versus being in a suburban or rural area?
Higher population densities often fare better for startups, because the ratios are less affected when new competitors move into the area. That being said, there’s no point locating into a densely populated area if a more rural, low density population is a strong preference for you.
2) Do you have a strong preference to serve a particular demographic, lifestyle, or religious community?
Also consider that when racial diversity is low, dentists from other ethnic backgrounds may encounter more challenges adapting to their community. However, this is certainly not always the case, and many communities are very welcoming to providers of different ethnic and/or cultural backgrounds.
3) How far are you willing to commute on a daily basis to be in an ‘ideal’ location?
Consider how far you’re willing to move away from your existing network of extended family and/or friends. If you have (or plan to have) children, consider a location that factors in your proximity to any preferred schools.
4) Does your practice strategy align with blue collar demographics (lower income, bread and butter dentistry), or with white collar demographics (higher income, cosmetic-driven and elective dentistry)?
Higher income markets are usually better for startups, but lower income markets can still work very well if you’re considering a high volume practice strategy.
5) Do you like serving families and children?
If yes, look for communities with a large percentage of children relative to seniors, with larger average household sizes, and growing communities.
6) Do you see yourself practicing in this area (happily) for the next 10 to 15 years?
‘Happiness’ is the key word. There’s no point in moving halfway across the state, province, or country to be in an A-rated market, if there’s a B-rated market closer to a community that you prefer, including your family or friends.