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How to start a pharmacy business

A pharmacy business can be lucrative and starting from scratch is one of the best ways to own one. However, establishing a pharmacy, even a small one is not an easy task, so it can be easier to buy an existing pharmacy if you find one for sale with potential growth. With so many laws, rules and regulations that you must adhere to before starting a pharmacy, buying an already existing pharmacy or franchise will make things simpler for you. However, starting your own profitable pharmacy business from scratch is possible and may be more satisfying than buying one.

how to start a pharmacy business

Here Deal Stream bring you a guide on starting your own pharmacy business.

Choose the location wisely

Choose the location of your pharmacy business wisely. Find out more about the demographics of the locals to help you determine the services and types of medications needed most. The major items to research on include the average income for majority households, average age, the possibility of getting written prescriptions, and the availability of nursing homes and dental offices.

A location where the majority of people are college students, for example, may not be good for pharmacy business. Your sales could be limited to items including birth control, protein supplements, few antibiotics, and seasonal needs. A pharmacy is likely to do well in an area where the majority are elderly or has an epidemic like HIV.

Choose a niche

Owning an independent pharmacy gives you an opportunity to achieve your vision as a business person and also as a medical practitioner. Your ability to impact your local community and patients is increased as you can adjust your services to meet their needs effectively. There are different patient care services you can combine and create a niche idea for you. They include:

  • Programs to manage health problems such as asthma and diabetes management
  • Retailing
  • Screenings for blood glucose, blood pressure, cholesterol and HgA1c
  • Long-term healthcare provision
  • Medication and home therapy management
  • Supply oxygen
  • Delivery
  • Immunisation

Check the competition

The pharmacy business has been considered a good investment because they tend to show steady growth and capital preservation. However, over the years things have changed. There is a lot of competition with e-pharmacies and other non-traditional channels investing in the pharmaceutical industry.

Seek professional advice

While starting your pharmacy may sound like a straightforward thing, you need to seek professional advice. This includes:

Mentors

Talk to people who started up their own pharmacies and succeeded in the business. They will tell you the challenges to expect and the best solutions. You will get tips in advance, and with their firsthand experience, you can be well equipped and ready to run your business. Join groups and associations of pharmacists in your local area for the latest updates from other people in the same industry. Consider getting a mentor to help guide you through your business journey.

Legal counsel

When starting a business, there are rules and regulations that you must adhere to. Get a lawyer who is familiar with healthcare laws and some experience in retail business set up. The lawyer will assist you to set the legal status of your business. It could be a limited company, a sole trader or a partnership; the lawyer will advise you accordingly and explain how the status affects your business operations and finances.

Professional Resources

You have to get professionals to work with you. They include a financial advisor, an accountant, and an insurance broker. Other experts that you may also have to consult are technology, real estate, and recruitment service professionals. After the pharmacy has been designed, ask the designer to give you the plan because you need to apply for a license.

What’s the best way to start from scratch or buying a pharmacy business?

It is an open secret; starting a pharmacy from scratch is challenging. You begin with building a shop or converting a retail space into a pharmacy. You also need to establish relationships with medicine wholesalers and vendors. This is different from buying a franchise of a pharmacy business. A franchise gives you all the tools needed to get you started, including financing, finding an excellent location and qualified staff. With a franchise you also get connected with vendors and wholesale drug distributors instantly. However, despite starting your own business being more challenging than setting up a franchise, it is an excellent way to create your brand without having to follow another company’s terms and conditions.

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