Buying an existing pharmacy: With this option, you’ll get a pharmacy that has already been established and has a consumer base. You may also be able to keep some of the staff that worked in the previous pharmacy, which will save time searching for employees later. However, it will most likely be more expensive to buy an existing pharmacy. You’ll have to get a bigger loan, find more investors, and wait longer before you start turning a profit from your business. Building a new pharmacy: This option is often cheaper than buying an existing business. With fewer financial arrangements to worry about, you can open the store faster. However, you’ll be starting from scratch with customers, so earning a profit may take longer. You’ll have to advertise extensively, preferably before your store opens, to make sure you have enough customers to keep your business afloat. It may take a while before enough people know your store to give you a consistent profit.
Determine demographic information that may affect your business. For instance, if the neighborhood has a large elderly population, you may want to consider catering towards geriatric needs. Look at the economic state of the neighborhood. If the area is economically depressed, you’ll have to keep your prices low to attract customers. This will also help determine the cost of owning a business in the area. If the area is affluent you may be able to charge more money, but you’ll also probably pay more in rent, taxes, fees, etc. Pay special attention to if an independent pharmacy recently closed in the area. If you can, investigate why it closed. You can find out what mistakes this owner made that you can avoid, or it may be a sign to avoid an area altogether.
What is the competition in the area? If there are several chain pharmacies within a few blocks, you’ll have a tough time building your business. It isn’t impossible, however. Independent pharmacies can compete with chains if they offer better service or a higher level of expertise than these competitors. You will, however, have to work much harder to build a successful pharmacy if there are chains close by. Is the area visible? Will people walking or driving by be able to notice your pharmacy? This is crucial for when you are just starting out, so you’ll want to pick an area that is visible to the local population. Look for nearby businesses. Office buildings and businesses are not only a potential source of customers, but also an indication if the area is good for business. Large chains like McDonald’s usually conduct extensive research on a location before opening. If there are some of these nearby, it means other businesses have marked this as a profitable area. Consider the accessibility of your store. It would be good if you had room for a parking lot or there was abundant street parking. Since many of your customers may be elderly, you’ll also want an area without stairs or long walks. Do not forget to consider accessibility for those with disabilities as well. The Americans with Disabilities Act (ADA) website can provide additional information.
A personal referral is usually the best way to find a reliable accountant. Ask other local small business owners who their accountants are and if they’re satisfied with their work. You could also see if your local Chamber of Commerce hosts networking events for small business owners where you could connect with potential accountants. Schedule an appointment with potential accountants. Most accountants will offer a free introductory meeting for potential clients. When you compile a list of candidates, meet with them and discuss their experience and qualifications to see if they would be a good fit for your business. Find out if a candidate has experience working with a small business and in the medical field. Small businesses and pharmacies have unique needs, and you’ll want someone who has worked with small businesses and pharmacies or other businesses in the medical field before and understands how they work.
A description of the service your business will offer. Does something set you apart from other drug stores? Will you cater to a specific niche? Investors will want to see this description to determine if your business will offer the kind of service to make it profitable. A projection for the profitability of your business. What are projected annual earnings for your business? How long will it take for you to begin earning a profit? Where will your business be in the next few years? Long-term calculations are important to show investors that they will earn a profit if they provide you with the necessary capital. A full breakdown of your costs. Exactly how much capital do you need to open this store? Include rent, legal fees, advertising costs, renovations, and anything else that will go into opening your store. Also include an amount needed for day-to-day operations. Pharmacies typically take several weeks to get money from insurance companies for the prescriptions they sell, so you’ll need money to cover your expenses until you receive this revenue. The money you’ve already acquired or will be putting down yourself. Investors and banks will usually want to see that you’ve put down money yourself for the business. This can vary, but it is usually around 20%.
In your agreement with investors, be sure to define exactly what your relationship to them will be. Are they just providing a loan that will be paid back with interest, or are they actually buying into your business? Make sure you are both clear on what your relationship will be if they provide you with capital to avoid any problems in the future. It would help to draw up a contract and have it notarized to make your agreement official and legally binding.
Include the proper way to interact with customers in your manual. Keeping your customers happy is your main concern when starting a small business, so you should make certain all your employees are friendly and helpful. Also include what is inappropriate behavior. Make clear what sort of activities are grounds for a warning and which ones are grounds for termination. That way if you have to resort to firing someone, you can say that this was all clearly spelled out in the manual.
Computers and all the necessary software. Cash registers. Phones and phone lines. Good-quality chairs for waiting areas. Make sure these chairs have arm rests so elderly or disabled patients can get up easily. Inventory for the front of the store, like paper towels, OTC drugs and products, food, cleaning supplies, and anything else you’d like to sell. Vials and pill bottles for the pharmacy.
Have a cash register by the front door so customers can check out and then leave conveniently. Keep all pharmacy-related activities behind a counter in the back of the store. This will ensure that pharmacy staff can work efficiently, and is also important for safety. Make aisles wide enough for wheelchairs and people with disabilities to easily travel down. Designate an area for counseling. Your drug store should have a private area where pharmacists and techs can counsel patients on their medications. In some locations, this is even a law. Ideally this should be back by the pharmacy, so your pharmacist doesn’t have to travel far from his post to counsel a patient. Organize aisles by product and hang signs above aisles indicating which products are there. This will help customers find what they need quickly and ensure they leave happy.
For example, in the United States, a state pharmacy license. Each state has a board of pharmacy that evaluates pharmacies and grants licenses. Contact your state’s board of pharmacy to get this certification. Sometimes the state board of pharmacy will also want to inspect your pharmacy before it opens, so stay in contact with this office to make sure you are complying with all laws. An additional requirement in the United States is a DEA number. The Drug Enforcement Agency regulates the sale of narcotics, so you will have to register with this agency for permission to do so. Contact your local DEA office to get federal certification.
If you have a big flood of customers on your grand opening and you experience problems, you and your staff can easily be overwhelmed. If service suffers because of it, your store could get a bad reputation right from the start. To avoid big problems, open your doors one or two months before your actual grand opening. This will help you work out any kinks in your system with only a few customers to deal with. That way, you can make sure everything runs smoothly on your grand opening.
Hang a large “Coming Soon” banner outside your store to pedestrians and drivers will know that a business will open soon, and take out an ad in the “Coming Soon” section of your local newspapers. Send out circulars in the mail or place them on houses manually. These flyers should describe your business and the services you will offer. It would also be good to include some opening day sales to attract customers. Use social media. Start a social media page for your business. Share it on your own personal page and ask friends, family, and staff to do the same. With enough shares, you can get a lot of free advertising.
