If you own an urgent care business and it is doing well, then you are probably thinking about ways you can grow that business. We’ve seen rapid growth in this industry over the past couple years, but that’s not a guarantee that this growth will continue or that any expansion efforts you make will be successful.
Yes, it is likely that the trend toward more growth for the industry will be successful. Healthy growth has been witnessed at every level of the industry, but that doesn’t mean every shot at growth has done well. There are many urgent care businesses that try to expand out into other locations near their original spot and then fail.
It could be a problem of oversaturation or they may not be as successful as they think they are. It could be that the new location is simply poorly managed or staffed, and it doesn’t do as well as a result. There are any number of factors, but the big takeaway you should have is that expanding and growing your business, even a successful urgent care one, can be dangerous.
You have to consider the factors that could be working against you, and you definitely have to take into account the risk you put yourself in. If you don’t have a lot of capital to draw on, and your new location does poorly to start with, will you have enough money to keep supporting it until things turn around? And what if it never turns around for that location? Will you be able to recover from that?
You have to plan like the new location won’t do well. You really just don’t know how well it will perform until it is up and running. You can do some scouting and take surveys to see what people think about opening a new urgent care center in that area, but that’s not concrete evidence of how it will perform.
There is definitely a push to start up as many of these centers as possible, since most of the ones that are already in place are doing so well. But if you plan to grow out your business in this way, you want to do it with care and a lot of foresight. You don’t want to risk what you already have just to try to gain some extra profit.