In this article, you will get to see how to set up a pharmacy, a very profitable business. This is because people get sick all the time, and many of them do not have medical card let alone have access to treatment, medication or medical care they need. Therefore, many of them end up in public hospitals, which will later have to buy their own medicines, or if the illness is not very serious, they will opt for self-medication and end up buying the medicines at a local pharmacy.
Pharmacies are very important stores in a city or town because they are where people buy their medicines, painkillers or any other supplies necessary for their health. Hospitals are often very far away from a city, so the best option is to go to the nearest pharmacy and buy the medicine.
According to world statistics, the number of pharmacies has tripled, due to the fact that the sector has evolved a lot. Currently, not only are medicines sold in a pharmacy but also products for different types of care such as skin creams, fat burners or multivitamins are sold. Undoubtedly, it is an excellent business to invest in, which offers many options within the same category.
Starting a pharmacy will be a very lucrative business idea, as the demand for drugs is very high. The following tips should be considered when investing in pharmacy:
The location is very important; the idea is to start a pharmacy in a central location, where there is a lot of people. A great place could be a shopping mall or a residential area. Another of the recommended areas is a place close to health centers, hospitals or clinics; it is known that people often buy medicines when they leave the hospital or clinic with their prescriptions. As you may have noticed, the location is essential for this business to be profitable, although in a neighborhood or town where there are no pharmacies nearby it will also be an excellent place. So when it comes to entrepreneurship, it’s best to do a thorough study.
Another thing you should keep in mind about the location is that it should be visible and that it should be a safe area.
This will depend on which country you are from, but to set up a pharmacy you must have some licenses to be able to handle products containing strong drugs.
As for supplies, once you have a license, you will be able to obtain all the products from the factory and official distributors. It is best to coordinate with your local pharmaceutical representatives or health centers. In addition, by familiarizing yourself with all the companies, you will be able to obtain special discounts.
However, depending on the size of your facility, you may be able to order high volumes of products. The great thing about this business is that many of the companies offer their products for free, so you can manage your business with their money until you can afford it.
Starting the business
When starting a pharmacy you must take into account which products are the most popular, so you will be organized and can replenish the stock of different products. However, the products that tend to have the least movement in a pharmacy are antibiotics, cough syrups (tablets). In terms of the medicines that have more sales are cough medicines, antiparasitic medicines, painkillers and multivitamins.
As for the organization of your products in the pharmacy, you should place them on the shelves by manufacturer and not by drug style. This way your attention to the public will be much faster and you will be able to easily know if any product is missing.
Earnings of a Pharmacy
A pharmacy is one of the most profitable business ideas because it does not have a season, as with other businesses. This will give you the opportunity to generate good, stable income throughout the year. Currently, any small or medium pharmacy generates profits of between 1,000 and 3,000 dollars in a week. This will also depend a lot on the location, and the range of medications being sold.
There are other expenses at the time of opening a pharmacy. One of the biggest is the salary of pharmacists and their assistants. According to the Bureau of Labor Statistics, the average salary of a pharmacist in 2008 was US$ 106,410 per year. You will need two to three full-time pharmacists and assistant staff. In addition to salaries, you will also have to pay for a computer system that can identify inventory and help with billing.
Common problems in entrepreneurship
No doubt setting up a pharmacy will be very rewarding, but as with any other business there are problems like:
1. It takes a lot of investment to start the business.
2. Obtaining licenses, in some countries is very rigorous and even expensive.
3. Discounts for the elderly or disabled may reduce earnings.
4. Dealing with clients who do not understand that some medications are sold under prescription.
In many cities, there are pharmacy franchises, so in some areas the competition is very high, so you should implement good marketing to increase your list of customers. Keep in mind that you will have a business that involves human life, so try to advise your customers as best you can and recommend good quality products.
Opening a pharmacy is not difficult, but you need to research the procedures thoroughly and hire a qualified pharmacist.
A pharmacy, like any other activity that starts in a competitive market, has to have a business strategy or plan, because it is still a business activity with the purpose of profit.
Opening a pharmacy requires the possession of profitable products and commercial competition is very high, mainly due to the fact that the products sold are normally available over the counter online, as well, where large groups can offer affordable prices.
From a practical point of view, the first step is to carefully identify where to open the pharmacy: it will ensure a good user base and may be sufficiently distant from pharmacies and other potential competitors. In this perspective, even small towns may be suitable, due to their remoteness although they may have their medical card which gives them medical care in the city.