By Harrison Nguyen, MD, MBA, MPH
Dermatology is one of the most competitive medical specialties in the country, so when looking to start a practice of your own, it is crucial that you check off the right boxes. Rushing to open your practice without a proper look at all of the working factors can result in a business that is not profitable. After years of schooling, residency and growing your expertise, the last thing you want is for your own practice to provide underwhelming results. That is why it is paramount to do it right the first time.
Type of Practice
Ask yourself this: What type of practice do you want to have? Do you want your practice to focus on aesthetics, skin cancer, or medical dermatology? It is worth taking a closer look at which practices exist in your area. If several cosmetic practices are nearby, it might be silly to open another one. Instead, you want to corner the market for your specific practice type and area.
Market Segmentation for Your Practice
Market segmentation is a strategy companies use to break their prospective customer base into different sections. This allows for an easier allocation of resources and also a more rounded approach to your business.
With dermatology being as competitive as it is, this is a great way to ensure you get busy and stay busy. If the market demands something within your expertise, then providing it is essentially a no-brainer. Think of market segmentation as a guideline to building your practice
Competition
It cannot be overstated that dermatology is extremely competitive. That is why studying the competition is an extremely valuable tool to utilize when building your practice.
Chances are, there are other dermatologists in your immediate area and they aren’t going anywhere. So, instead of accepting that they have a monopoly on patients, look at what they are doing and build from it. Are they doing something you didn’t think of? Or, can they be doing much more? Ask yourself what your practice will bring to the table to set it apart from the rest and work towards that.
Location factors into this as well. Urban centers and metropolitan areas are rife with dermatology practices. Sure, the areas are filled with potential patients, but is it worth going head-to-head with so many other practices? It might be, but that is for you to decide. It is important to understand that areas other than urban centers can be equally as lucrative for your practice if done right.
Small-to-mid-size communities offer plenty of opportunities for dermatologists to grow a lucrative and busy office. In certain mid-sized communities, there might not be a practice in each town. This means patients are driving one to two towns over for their necessary care. This is where extended research comes in hand. If you can shorten the trip for hundreds of patients by providing a practice closer to their home, many will naturally flock to you as a replacement. Remember, you must take into account what type of dermatologist the area is in need of. Your expertise can provide the solution.
Overview
There are several factors to keep in mind when looking to open a dermatology practice of your own. Type of practice, location and market demands are just a portion of what should be considered when looking to take this step. You are already an expert in your field, so ensuring you are looking at the right things before your practice gets off the ground is one of the best ways to make sure you have a long and successful career.
