Whether you are a college pass out and have dreamt of starting your pharmacy business or pharmacy is your family business. Or you could be a pharmacist working under someone, and you want to start your shop. No matter your path, you can be the owner of your pharmacy shop by making a solid plan. When it comes to creating a pharmacy business, you have to consider many factors mentioned here in this article.
Licensing Needs For Pharmaceutical Business:
When it comes to starring a pharmacy; there are many requirements on both state and federal levels; these license are:
- Pharmacy license
- NABP -Association of Boards of Pharmacy number
- NCPDP -National Council for Prescription Drug Programs
- DEA-Drug Enforcement Agency number
- EIN- Employer Identification Number
- NPI- National Provider Identifier number
Time Is Taken To Start Your Pharmaceutical Business:
To complete all the requirements and set up the shop, you will have at least 7 to 9 months, only if you have done all the planning thoroughly.
The Cost Required To Start Your Pharmaceutical Business:
The price can vary, and it will depend on factors such as the size of your inventory, location, and staff. On average, you require between $350–500K to setup your pharmacy.
Checklist To Start Your Pharmaceutical Business:
- Team: you will need various people in your group, starting from mentors who have their pharmacy and helping you and guiding you in setting up your shop. You will also need a lawyer who understands the rules of the pharmacy retail business. He will help you set up your pharmacy’s legal status that will include papers like proprietorship, partnership, Limited Liability Corporation, etc.; you will also need professionals like an accountant, insurance agent, brokers, and financial advisor.
- Location: setting up an area of the pharmacy is a complex task, and you will have to consider the following things before you lock your site:
- How many pharmacies are in that area, and if they are independent shops or chains?
- Are there other pharmacies in the market?
- Will you find sufficient prescription to sustain in the business?
- Is the location convenient for you to travel for customers?
- Are there any doctors, hospitals etc., near the location?
- Is there a sufficient parking space?
- Did any pharmacy recently got closed in this area? If yes, then why?
Making of Business plan: Now that you have a team and location, you should draft a proper business plan. The program will include the following details:
- Upfront investment requirements
- Working capital need
- Credit score and credit history
- List of inventory
- The type of loan you need and for how many years
- Where to approach for loans
One of the main reasons for the independent pharmacies to fail is the lack of cash flow. Therefore, you will have to ensure that you have sufficient cash flow to run your everyday business needs such as electric bills, staff salary and buying new medicines. If you are getting medication on credit, ensure that you don’t get them at a very high-interest rate.
You will have to make a list of people or vendors, or lenders to whom you can approach to get a loan: wholesaler, bank, Small Business Administration lender or any other commercial lender. Also, never try to fool the law in pharmaceuticals as it can put you behind the jail, so make sure that everything is done legally and all the paperwork is perfect. Running your pharmacy can be both rewarding and exciting, but you must ensure that you do not do anything without a plan lest you want to suffer a loss.