5 How To Open A Drug Store

(doylc.com) How to Open a Drug Store - Owning a drugstore can be a rewarding and profitable endeavor for someone looking to provide a valuable service to a community. However, opening an independent pharmacy is a challenging process. There is market research to be done, financial arrangements to be made, licenses to be obtained, staff to be hired and much more. Before attempting to open a drug store, do some research on what it's all about.

• How to conducting market research

Decide whether you want to build a new pharmacy or buy an existing one. When starting an independent pharmacy you have two options: either build one from scratch or buy an existing one. There are different opinions about which option is better. Each choice has unique challenges and benefits that you should carefully consider before making a decision.

Purchase of an existing pharmacy: With this option, you purchase an already established pharmacy with a customer base. You may also be able to keep some of the staff who worked at the previous pharmacy, saving you time looking for staff later. However, it will most likely be more expensive to buy an existing pharmacy. You'll need to take out a bigger loan, find more investors, and wait longer before you can turn your business into a profit.

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, with clients, you start from scratch, so it may take longer to turn a profit. You need to advertise extensively, preferably before your business opens, to ensure you have enough customers to keep your business afloat. It may take a while before enough people know about your store to give you a consistent profit.

Analyze the local community. This will give you an idea of ​​what kind of services your pharmacy should offer to differentiate itself. Take some time to talk to local residents about their health needs. This way you can see if the local population has any special needs that your drugstore can meet. By tailoring your services to the local community, you can successfully compete with chain stores that do not offer specialized services. Authorities or chambers of commerce can often provide such information.

Identify demographic information that may impact your business. For example, if there are many elderly people in the neighborhood, consider addressing geriatric needs.

Look at the economic situation of the neighborhood. When the area is in trouble, you need to keep your prices low to attract customers. This also helps determine the cost of owning a business in the area. If the area is affluent, you might be able to charge more, but you're also likely to pay more in rent, taxes, fees, etc.

Pay particular attention to whether an independent pharmacy has recently closed in the area. If you can, investigate why it was closed. You can find out what mistakes this owner made that you can avoid, or it can be a sign to avoid an area altogether.

Decide on a location for your pharmacy. One of the most important aspects for a successful company is the location. There are many things to consider when exploring a place.

How is the competition in the region? When there are multiple pharmacy chains within a few blocks, you will have a hard time building your business. However, it is not impossible. Independent pharmacies can compete with chains if they offer better service or a higher level of expertise than those competitors. However, you have to work a lot harder to build a successful dispensary when there are chains around.

Is the area visible? Can passers-by or passers-by see your pharmacy? This is crucial when you are just starting out, so you should choose an area that is visible to local people.

Look for nearby shops. Office buildings and shops are not only a potential source of customers, but also an indication of whether the area is good for business. Large chains like McDonald's usually do extensive research on a location before opening. If there are some of these nearby, it means other companies have marked this as a profitable area.

Consider the accessibility of your shop. It would be good if you have space to park or if there is ample street parking. Since many of your customers may be older, you also want an area with no stairs or long walkways. Also think about accessibility for people with disabilities. Visit the Americans with Disabilities Act (ADA) website for more information.

Talk to other business people and independent pharmacists. Running a small business is always a challenge. It can be both comforting and informative to talk to others who have been in your position. Meet with other business people and independent pharmacists and ask if they have any advice to offer. While independent pharmacists in your immediate area may not be willing to share secrets, you can join national organizations and speak to other professionals who do not compete with you and receive valuable advice. Click here for a list of national pharmacy organizations you can join.

• How to financing drug store

Find an accountant. A good accountant is critical to the success of a small business. Raising the capital to start a business and managing the finances of the business will be challenging, so you need someone with experience to guide you through the process. An accountant not only helps you with taxes and balance sheets - he is also your financial advisor and advises you on business decisions. Therefore, you should hire someone you can trust. There are many things to consider when looking for an accountant.

A personal recommendation is usually the best way to find a reliable accountant. Ask other local small business owners who their accountants are and if they are happy with their work. You can also see if your local chamber of commerce is hosting small business networking events where you can connect with potential accountants.

Make an appointment with potential accountants. Most accountants offer potential clients a free introductory meeting. When you create a candidate list, meet with them and discuss their experiences and qualifications to see if they would be a good fit for your company.

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 want someone who has worked with small businesses and pharmacies or other businesses in the medical field and understands how they work.

Develop a business plan. Before you get a loan or find investors, you need to develop a plan for your business. You then present this plan to potential investors to raise capital to start your business. With the help of your accountant and other financial/legal advisors, create a plan for starting and growing your business. A good business plan should do at least the following.

A description of the service your company will provide. Is there something that sets you apart from other drugstores? Will you cater to a specific niche? Investors will want to see this description to determine if your business offers the type of service that makes it profitable.

A forecast for the profitability of your company. What is the projected annual turnover of your company? How long will it take before you start making profits? Where will your company be in the next few years? Long-term calculations are important to show investors that if you give them the capital they need, they will make a profit.

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 help open your business. 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 need money to cover your expenses until you get that income.

The money that you have already acquired or will deposit yourself. Investors and banks will usually want to see that you have invested money in the company yourself. This can vary but is typically around 20%.

Apply for a loan from the bank. Bank loans can cover your pharmacy expenses for anywhere from a few months to a few years, depending on the type of loan. Submit your business plan to your bank when you apply for a loan. A well-designed business plan will show the bank that your drugstore is a good investment and they will be willing to give you a loan. Also remember that in addition to what is in the business plan, the bank will likely ask additional questions about the deal. So be ready to fully explain the business and your own finances.

Find private investors. In addition to bank loans, you can find private investors to cover the opening and running costs of your business. This can either be friends or family members or other business owners interested in diversifying their portfolios. Present your business plan to these potential investors to show that your pharmacy will bring them profit.

In your agreement with investors, make sure you clearly define what your relationship with them will be. Are they just providing a loan that is repaid with interest, or are they actually buying into your business? Make sure both of you are clear about what your relationship will be like if they provide you with capital to avoid future problems. It would be helpful to draw up and notarize a contract to make your agreement official and legally binding.

Insure your pharmacy. As with any business, you need to insure your pharmacy to avoid financial loss for yourself. Some insurance, like theft and fire, are standard for small businesses. Others, like professional liability insurance, are more unique. Be sure to talk to your accountant, an insurance agent, and perhaps a lawyer to find out what insurance you need for your business.

• How to occupation of your drugstore

Write a handbook for employees. Running a small business can be unpredictable. Therefore, it is very important to have procedures in place to allow your employees to respond appropriately to the many situations they may encounter. Encourage all new hires to read the handbook as part of their training. This ensures that all of your employees are familiar with the policies and procedures of the store.

Include the right 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 sure that all of your employees are friendly and helpful.

Also report inappropriate behavior. Make it clear which activities constitute grounds for warning and which grounds for dismissal. So if you need to fire someone, you can say that everything is clearly described in the manual.

Research all employees before hiring them. No matter how good you are at multitasking, you need great people in your pharmacy to make it successful. Be careful when hiring all of your employees, from the pharmacist to the cashier. Conduct background checks, interview them and make sure they are all up to the task. A single bad employee can give your company a bad reputation, which will harm your business.

Hire a pharmacist. All pharmacies require a licensed pharmacist during opening hours. If you plan to start a pharmacy, maybe you are a pharmacist and you take on this task. If that's the case, you should still have a few backup pharmacists to call in case you get sick or need a day off. As an entrepreneur, you also need to focus on making the business successful. Sometimes that means retiring from pharmacy duties and running the business in general.

Hire Pharmacy Technician. Technicians help pharmacists by counting pills, entering prescriptions, and making phone calls. While technicians are not usually required to have any special qualifications, some pharmacies prefer to hire pharmacy students for these jobs because of their familiarity with pharmaceuticals and pharmacy management. Try advertising at nearby pharmacy schools if you are looking for good technicians. Typically, a pharmacy has two technicians on duty at all times, although you may need more if your store is busy.

Hire cashier. Usually, drugstores have both a pharmacy and a convenience store that sells household items (usually referred to as the "front"). In this case, you should have two cashiers, one for the pharmacy and one for the front. This way your lines are not blocked and you ensure that everything runs smoothly.

Hire warehouse workers. These workers keep the shelves tidy and stocked and the store clean. They are very important because a messy store drives customers away. For smaller stores, having just one warehouse worker on duty at a time is usually sufficient, but larger stores will likely need more to keep everything clean.

Hire managers. If your business is small enough, you may be able to oversee the pharmacy and frontline yourself. However, with a larger company, you need to delegate tasks. Managers oversee the employees and activities of their area. They also help with insurance, billing, bookkeeping, and other office tasks. If your store is large, you may need two managers, one for the pharmacy and one for the front. This allows them to report back to you and keep you up to date on what's going on across the company.

If necessary, set security. Unfortunately, pharmacies become targets for robberies because of the medicines they contain. Because of this, it can be a good idea to have a security guard on duty who can help prevent robberies and keep the store safe.

• How to prepare your drugstore for the opening

Acquire all the necessary equipment for your business. You'll need at least the following to get your drugstore ready to open. This is just a suggested list and you will probably find that you need other items to prepare your shop.

Computer and all necessary software.

tills.

Telephones and Telephone Lines.

Quality chairs for waiting areas. Make sure these chairs have armrests so elderly or disabled patients can easily stand up.

Inventory for the front of the store, like paper towels, OTC medications and products, groceries, cleaning supplies, and anything else you want to sell.

Vials and pill bottles for pharmacy.

Set up your shop effectively. The layout of the store is important to make customers want to buy from you. A crowded store with a bad layout will drive customers away, which will hurt your business or even go under. When designing your floor plan, keep the following guidelines in mind.

Have a checkout at the front door for customers to conveniently check out and then leave.

Keep all pharmacy-related activities behind a counter at the back of the store. This ensures that the pharmacy staff can work efficiently and is also important for safety.

Make the aisles wide enough so that wheelchairs and people with disabilities can easily go down.

Identify an area for counseling. Your pharmacy should have a private area where pharmacists and technicians can advise patients about their medications. In some places it's even the law. Ideally this should be back in the pharmacy so your pharmacist doesn't have to travel far from his post to advise a patient.

Organize aisles by product and hang signs above aisles to indicate which products are present. This will help customers find what they need quickly and ensure they leave satisfied.

Set up a security system. All businesses need security to protect employees and your financial investments. You should look at security cameras, alarm systems, window bars and a safe to thwart robberies.

Obtain all licenses, permits, and certifications required to open. These certifications vary depending on where your pharmacy is located, so you must follow local laws to ensure you meet all of the required qualifications. It would be helpful to consult an attorney who is familiar with the laws of your industry to ensure you get all the necessary documentation.

For example, in the United States, a state pharmacy license. Each state has a pharmacy board that rates and licenses pharmacies. Contact your state pharmacy board to obtain this certification. Sometimes the State Pharmacy Board will also want to inspect your pharmacy before it opens. So keep in touch with this authority to make sure you comply 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 must register with this agency to be allowed to do so. Contact your local DEA office to obtain federal certification.

Open your pharmacy before your "Grand Opening". Every new business has a few bugs that need to be fixed, and your drugstore will be no exception. So it's a good idea to have some time to sort out the issues before the official opening.

When you have a big rush of customers at your grand opening and problems arise, it can be easy for you and your staff to become overwhelmed. If service suffers, your business could get a bad rap from the start.

To avoid big problems, open your doors a month or two before you actually open. This will help you solve all the problems in your system with just a few clients. This will ensure that everything runs smoothly when your store opens.

• How to marketing your drugstore

Market your business before it opens. You want to make sure everyone in the community knows about your store on opening day. There are many ways you can promote your business before it opens.

Put up a large "Coming Soon" banner in front of your store to let pedestrians and motorists know to let store opening soon and place ad in "Coming Soon" -Area of ​​your local newspapers.

Send circulars or manually attach them to houses. These flyers should describe your business and the services you 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 colleagues to do the same. With enough shares, you can get a lot of free advertising.

Sponsor a grand celebration for your grand opening. When your store is fully set up and you've resolved any issues in your system, announce to your local community that you're officially open. Contact local news outlets and see if they are covering the event. Also, see if the mayor or other local politician is attending a ribbon-cutting ceremony – this will draw press and community attention. With a grand opening event, you can ensure that the entire community knows about your store opening.

Join local community organizations. Pharmacists and other small business owners are often active in their local communities. This helps expose them and their businesses to the public and contributes to profits. Look for events at local schools, parks, places of worship, and civic organizations. Stay active in your local community to get your business recognized.

Collaborate with other medical professionals in the area. Doctor referrals can be a great way to grow your customer base. If there is a doctor's office nearby, go in and introduce yourself. Ask the doctor if you would leave some business cards or circulars in their office. If you make a good impression and show that you are a healthcare professional who cares about your patients, they can start referring their patients to you.