Wednesday 18 March 2015

5 Important Factors to Consider Before You Open a Hospital in a Suburban Area (Part 1)





Being a hospital entrepreneur is a bold step. Being a hospital entrepreneur in a sub-urban area even requires more boldness. A suburban area is a district or residential area at the edge of a large town or city. In many developed countries, suburban areas are well planned, residential and not as densely populated as central cities. Whereas in developing countries, suburban areas are typically unplanned, overcrowded and lack many basic facilities. An example of a suburban area is Nyanyan, a settlement close to Abuja, the Nigerian capital.

Being an entrepreneur requires confidence, skills, money and raw guts. In every business venture, there is always the fear of failure. But it should be noted that an entrepreneur’s boldness is not the absence of fear. Rather, it is the ability to move forward in spite of fear. Every business owner must find a way to channel the negative energy from fear into creating a positive drive towards business success. This drive ensures that the business thrives for years to come and even outlives the owner.

The first step to commencing business is to have a business plan. A business plan is a written document that outlines all your thoughts and plans for your business. It is like a cookbook that shows what you intend to do, how you intend to do it, who you will employ to do it, where you will locate your business and how you will finance your operations.

 Apart from the business plan, there are several practical factors you must focus on when planning to start a service-oriented business (like a hospital) in a suburban area. These factors can make the difference between success and failure. They are:

  • ·        Your Location
  • ·        The Customers
  • ·        The Scope and Quality of your Services
  • ·        The Cost of your Services
  • ·        The Skill Set of the Entrepreneur



  • Location

The location of any business is important; especially when you plan to operate in a suburban area. Sub-urban areas are characterized by a less complex road network than central cities. The major roads are usually very popular and are well travelled on a daily basis by most residents. As a result, businesses that are located along or close to these roads are usually well patronized. You must therefore avoid locating your business in ‘back end’ streets. Go for a location that is central, accessible and has high daily commuter traffic. This will make your hospital highly visible to the public and hopefully highly patronized.

In addition to location, the ambiance of your hospital is also important. This includes the atmosphere, the building(s), the grounds, the dressing and the attitude of employees. Patients will not usually see the product you offer since health is intangible. The ambiance is therefore a way for you to display your competence. Most people will rather visit a neat, upscale and trendy building manned by smartly dressed workers than a dirty, shabby and old looking building.

  • Customers

Residents of suburban areas are mostly government workers, small scale business people, artisans in the informal sector and a few well paid private workers. It is worthwhile to always remember that a business cannot cater to every type of customer or service every niche in the market. For example, I once tried to hire a well-known Inter-city transport company to run intra campus shuttle services with their older buses. But the manager said something like ‘you can only make a significant mark on a hard surface when you consistently aim at one spot’.


 In other words, to make an impact in business, you require dogged and consistent focus on specific goals. You have to be focused and decide on your target market at the onset. Though, this may change with time because business is dynamic, but for starters, decide who you will cater for. A clear definition of your target market will streamline your thinking and help you make concise decisions on how you will attract them to your facility.

To be continued.......

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