29 Apr How to Use Demographic Changes to Choose the Location for Your Practice
Demographics always play a vital role in deciding on some of the critical factors of your business. When setting up your practice, you need to leverage the data from demographics to make strategic decisions.
Of course – a good rule of thumb is to find out if the IGA is new or well established. If the IGA is well established and profitable, the area is maturing, and Coles and Woolworths will not be far behind.
If however, the IGA is struggling move on to a new area!
However, it is essential to realise the customer demographics keep on changing. These “shifts” occur due to immigration, property valuations, declining birth and death rates.
To give your practice the best chance for success, you must be able to convert these demographic changes into opportunities for yourself.
The location of your practice dramatically determines how much success your business will enjoy. As a health professional with a medical practice, you will need to attract local people towards your business.
For this, you ensure the demographics of the people living in that area are similar to your target audience.
Also, it is imperative that you look for trends, the demographics may be on point now – but have they been a period of decline.
Sometimes an area with average demographics will be an ideal location in ten years.
Gathering future and past data is very important.
We have included below some of the essential demographics that you must consider before setting up a location for your practice.
INCOME
The economic status of the site you choose for your business is critical. You must have a long-term approach while deciding on a site.
If the people of a particular area are dependent on one industry for their income, your practice will suffer if a downturn occurs, or the product becomes obsolete.
Therefore, you must conduct extensive research on the income levels and age groups of all the individuals living in a particular area.
AGE
Depending on the specialisation of your practice, you must locate the right age group in the location you choose.
If there is an area expecting a demographic change in the form of increased immigrants, you can use that opportunity.
People settling in a particular area due to immigration can give you a chance to cater to a broader market.
Thereby, resulting in longevity and increased profit for your business.
BIRTH AND DEATH RATES
As mentioned earlier, other reasons for a demographic change in a particular location include fluctuations in birth and death rates.
A trend of year on year growth in birth rates can help you if you are focused on prenatal and pediatrics. The date also confirms there must be a draw for the area to attract new parents to the area.
On the other hand, a reduction in birth rates may reflect centrifugal migration, an aging population or a transient population.
EDUCATION
Another very important demographic to consider when deciding on the location of your practice is education.
If the locals of an area have an appropriate educational background, they are more open towards specific medical specialisations.
WORKFORCE
You, of course, will hire individuals from the local community to assist you in your practice.
While this demographic is not integral, it holds some significance.
You must ensure the location you choose has the talent you require available. Moreover, it would help if you also determined whether your employees will have access to affordable housing, and transport access is close to your practice site.
Choosing the location for your business is a crucial decision that determines your practice’s success.
You can use the demographic shifts that take place within a particular area to your advantage.
However, conducting ample research and completing forecasts is vital to the success of your business.