Business Ideas | Small Business Ideas: How to Open a Pharmacy Business

Saturday, April 6, 2013

How to Open a Pharmacy Business | How to Open a Drug Store Business

In a country packed with chain pharmacies, more and more pharmacists choose to open independent pharmacies. They do this because as an independent pharmacist they can set their own hours and run their pharmacy as they wish, and not be restricted by the rules and restrictions set by a chain. People often prefer to frequent an independent pharmacist because they tend to have a more small-town feel. The pharmacist can take the time to get to know her customers and make sure that they understand their medications. If you are interested in owning an independent pharmacy, learn how to open your own store

Instructions

1.Purchase an existing pharmacy. Taking over an established pharmacy is a wonderful way to get into the independent pharmacy business. You will inherit a loyal customer base, a proven location and relationships with drug wholesalers and other vendors. This option is becoming more widely available as many independent pharmacists are nearing the age of retirement and are ready to sell their stores.

2.Purchase a franchise. Opening a franchise location is a relatively easy way to break into the retail pharmacy business. The company that you contract with will assist you in getting your store up and running. They can help with everything from securing a location to establishing accounts with drug wholesalers. Being a franchisee is the best of both worlds. You have an established brand name to give you business advice and support, but you can operate as an independently owned store.

3.Open your own pharmacy from scratch. This is the most difficult way to get started as an independent pharmacist, but it could also be the most rewarding. Begin by contacting your local SCORE office to get advice on what is involved in starting a new pharmacy in your local area. Find a good location that will get lots of traffic. Write a business plan and secure financing. Establish accounts with drug wholesalers. Decide if your pharmacy will stock other items besides drugs, such as greeting cards and health and beauty products. Hire staff to help you run the store. If you have an entrepreneurial spirit and boundless energy and ideas, starting your independent pharmacy from scratch could be a terrific option.

4.Start a Community Pharmacy Coop. This is when a few pharmacists join together to open an independent pharmacy. This is ideal for many pharmacists, since they can divide the workload amongst themselves and not have to work as many hours, while still being business owners.

Things You'll Need

Licensed pharmacist
Location
Inventory of drugs
Computer system
Capital

Tips and Warnings

Pharmacies are required by law to have a licensed pharmacist on staff during the hours that the store is open.

Pharmacies are required by law to have a registered DEA (Drug Enforcement Administration) number if they will be dispensing narcotics.

Reference

How to Open a Pharmacy Business

2 comments:

AnonymousApril 18, 2013 at 1:47 PM
Your instruction is right for opening the pharmacy store. Because firstly we need franchise for opening the store after that i need a place where i can start a business. Those things are must for opening the store.
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Drug Store BusinessJanuary 5, 2014 at 3:47 PM
Drug Store Business, How to Open a Drug Store Business, How to Open a Pharmacy Business, Pharmacy Business
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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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