Data-Driven Decisions: How the Right Clinic Location Fuels Success
21/11/2024 - Victoria Rule
Supporting a veterinary clinic’s success involves much more than initial funding or simply completing the setup; it’s about fostering sustainable business growth over the long term. Selecting the ideal location is a particularly critical decision for vet clinics, carrying significant financial and operational consequences that will impact the business for years to come. In this post, we’ll provide an in-depth look at how BusiVet’s powerful data insights can revolutionise the location selection process. We’ll highlight how a strategic, data-driven approach empowers vet clinics by optimising location choice, ensuring alignment with target markets, and maximising their potential for strong revenue growth and stability.
What is a Data-Driven Vet Clinic Location Strategy (and Why Does it Matter)?
Using data to guide location selection is increasingly essential in today’s competitive market landscape, especially for service-oriented industries like veterinary care. Without incorporating robust data analysis, selecting a clinic location is essentially a gamble—there’s a high risk of building in areas where demand is low, competition is oversaturated, or the revenue potential is severely limited. A data-driven approach leverages a comprehensive set of market insights, demand analysis, and competitor positioning to help secure a location that supports the long-term financial goals of the clinic. Ultimately, this strategy provides a solid foundation for the clinic’s enduring success by ensuring that it’s strategically positioned from the start.
Understanding the Property Landscape
The property landscape plays a crucial role when selecting a location for a veterinary clinic, as each area comes with unique variables and competitive dynamics. Clients often face fierce competition for prime sites, not only from other veterinary clinics but from a variety of businesses and industries seeking similar spaces.
One of our clients had been operating for over 8 years - given the overflowing demand for his expert veterinary care and boarding services - and the limitation of only 2 consult rooms, he was motivated to expand to a second location to increase his profitability and grow his business.
The location of Redcliffe had a suitable site which Dr. Martin was motivated to purchase. However before making his decision, Dr. Martin decided to consult the experienced team at BusiVet to review his choice.
Through expert analysis, Busivet unearthed that the suburb of Redcliffe - although suitable size and location - had significant zoning and parking incompatibility issues which would not only limit customer access and place limitations on his second location, but also had significant zoning hurdles which would place heavy constraints on the boarding aspect of Dr Martin’s business - impacting a significant portion of his revenue based on the size and scale of what was permitted.
Through BusiVet's data analysis, we assisted the client with insights regarding a nearby suburb that showed a significant undersupply of veterinarians compared to the number of registered animals. With a large population of dog owners but limited specialised options, this location was ideal. Dr. Martin was reassured through BusiVet's thorough data analysis and landscape review that the new location would be significantly more suitable, with a less competitive area, setting his clinic up for strategic growth.
Dr. Martin journey is just one of the many success stories BusiHealth has helped bring to life
Have You Thought About…
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How many vets are operating in your location?
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What services they offer?
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What fees they charge in the area?
By examining historical rental data, understanding current property availability, and navigating zoning requirements, clients can be guided toward high-visibility, appropriately zoned properties that will support their needs well into the future.
BusiVet’s role in analysing past data allows us to identify regions where rental costs align with the budget and business model, enabling clinics to lock in leases that support their financial goals.
We not only assess the number of suitable spaces, but also the types of facilities they offer, their accessibility, and their overall condition. Properties with ample space, modern infrastructure, and adaptable layouts can help reduce initial build-out costs and provide the flexibility needed to grow. Being aware of available properties also allows clients to act quickly when ideal locations open up in competitive markets.
Zoning laws dictate how properties can be used and often include restrictions on activities, the size of buildings, and modifications allowed on the property. For vet clinics, it’s critical to identify sites with zoning that permits medical or commercial use to avoid costly regulatory hurdles. Additionally, zoning compliance ensures the clinic’s operations won’t be disrupted by local ordinances, creating a stable and compliant environment for long-term business success.
What is The BusiVet Index? (and Why is it a Game-Changer?)
With access to the right data, a veterinary clinic can be positioned in an area primed for growth, ensuring it’s meeting current demand and building a foundation for future success. This is where tools like the BusiVet Index come in. The BusiVet Index is a proprietary tool specifically designed to identify high-demand locations for veterinary services across Australia. Unlike general-purpose location software, the BusiVet Index goes beyond basic mapping by not only pinpointing demand hotspots but also assessing the scale of opportunity in each area. This tool incorporates up to fourteen different demand drivers and allows for customised weightings on demographic factors depending on the specific focus of the clinic’s services. By leveraging such detailed and tailored data, we empower clinics to make highly informed decisions on where to establish themselves, setting the groundwork for lasting success from day one.
The Pros and Cons of Different Location Strategies
Different location strategies—such as positioning near residential areas, within commercial hubs, or alongside high-traffic roads—each offer unique advantages and potential drawbacks. For instance, situating a clinic near a high-density residential neighborhood may bring in a steady flow of local clients but may lack the high visibility needed for brand growth. Balancing key factors such as rental costs, accessibility, and potential for future growth is essential in optimising for both short-term performance and long-term success. Weighing these elements carefully allows clients to choose the best possible location to achieve their specific business goals.
Rent to Revenue: Understanding Financial Dynamics
For clinic owners, it’s vital that rent remains within a sustainable percentage of expected revenue to ensure financial health. By carefully evaluating the revenue potential in different areas and taking into account essential lease terms—such as annual rent review clauses and the length of the lease—clients can make financially sustainable decisions. A data-driven approach makes it possible to quantify these variables, allowing clients to see precisely how their location choice aligns with their financial objectives. This clarity is essential for avoiding unforeseen costs and ensuring that the clinic operates within profitable margins.
Making well-informed, data-driven decisions when selecting a clinic location can position the business on a trajectory of success, enhancing the profitability, client retention, and overall longevity. BusiVet’s data-driven approach to clinic location selection empowers veterinary businesses to make informed, strategic decisions that enhance profitability, client retention, and long-term stability.
By leveraging BusiVet’s insights and expertise, clinic owners can confidently secure locations that align with their growth goals and financial objectives. For a comprehensive consultation on site selection, BusiVet provides tailored guidance to ensure each clinic is positioned for sustained success and optimal market alignment.