In this special report, Pharmacy Startup Idea, you’ll learn valuable information on how you can successfully brand your business and yourself for maximum success. However, this post is for Doctors, Pharmacists, Nurses and other health practitioners. So as you read, good for you, please try share with your friends and family who also related to the above-mentioned field.
From my 5 years of experience working in a pharmacy somewhere in Nigeria. I can boldly say that I’ve understood pharmacy business and how it works. This post would be detailed, so read on.
How does a pharmacy business works? Pharmacy business is a lucrative business and very extremely beneficial business to venture. The economic cycle did not affect pharmacy business owners. This is because, in countries like Nigeria, so many people fall ill daily, people suffering from malaria every day and night which has been the increase in demand for life-saving medications.
To take advantage of this pharmacy startup business ideal you have to own a pharmacy store, because, the increasing popularity of government hospitals and private-specialist hospitals has brought massive growth to the pharmacy business.
It is unfortunate that in a country such as Nigeria where many people can only afford government-owned hospitals; these hospital pharmacies are often out of stock. While the community pharmacies are making these drugs available to the public. In this article, we’re going to look at the procedure for starting a pharmacy business, advantage, disadvantage and problem or factors affecting pharmacy startups in Nigeria.
How to Start a Pharmacy Business?
To start a pharmacy business, there are things to look into; I’m going to mention only a few important ones.
Area: find a better location for your business. A busy area suchlike urban areas is likely to be the best place to open a pharmacy shop. It gives more sight to the business.
Shop size: shop size matters in every drug store, the bigger the shop, the more attractive it becomes in the eyes of customers. Always stock up your shop, people believed that a shop with more goods sells original than the shop with little stock.
Capability: why I mention this is because so many pharmacists have formed the habit of leaving their pharmacy shop in the hands of their auxiliary nurse. As a pharmacist, you shouldn’t allow auxiliary nurses to give drug information. Giving accurate drugs information gives happiness to every patient; patients loved and feel relax when a doctor or pharmacist explain drugs effect, dosage and drugs interactions to them. They see it as care, (don’t lie to your patient simply because they’re not in the same field of work with you, it pains them when people outside let them the truth). Assure them quick recovery, with that they feel more careering and respectful to your pharmacy.
Capitalism: when we talk about capitalism we’re talking about the amount you invested in your shop, what you invested in the shop is what the shop would bring back to you. Don’t let your pharmacy to be the type that “Answered No” in every drugs prescription request. You’re losing customers already if your pharmacy is in such category, people will run from your shop and never to come back when there find-out that you don’t stock up your shop. You should not have every drug but at least you should be able to meet up with their request.
Marketing: your marketing approach should be different from other pharmacies out there. Just as when we started our pharmacy newly, there are some pharmacy shops already in existence before us, pharmacies are already situated in every hospital gates, market places and all corner of the urban areas and yours have to compete among them, which means that there would be a lot of competitors. A standard pharmacy is meant to be for distribution, wholesale and retail priceless.
You’re to determine the kind of pharmacy shop you want to operate, how to operate it to outdate your competitors. As a pharmacy startup, you need to strategize your marketing, figure out what to do to attract customers in your business. How you’re going to overtake your competitors so that their patient would leave their pharmacy and come to yours?
Types of pharmacy store you can operate
photo credit Indian filling
Pharmacy business is often divided into four types supported the shop format as follows:
Community Pharmacy: This kind of pharmacy operating in the unorganized sector, you will find them outside the hospital premises, in a street, by the roadside of the community to meet up the people health requirement. They sell drugs to the public.
Chain pharmacy: this kind of pharmacy is often found inside malls and shopping centers. Such pharmacy can own by the government or group of company. Just like pharmacy inside shop-rights and rob-bans.
Hospital pharmacy: this kind of pharmacy only found inside hospital premises where patient easily get their drugs and it is for hospital use only.
Township pharmacy: they can be operated anywhere in the urban areas, near shopping malls, behind or opposite hospitals and street corners of the township.
However, slowly the concepts of chain pharmacy or township pharmacy are catching up; but there is still a long way behind.
Hospital pharmacy, chain pharmacy and township pharmacy are usually established under a bigger corporate entity or the hospital – mostly personal Ltd. constitution. The community pharmacies are usually set up under a proprietorship or a partnership. However, as LLP registration can now be obtained for just N50, 000 through CAC.
You should know that there is difference between Pharmacy and Patent medical shop “which people mostly refer to a chemist shop” . A patent medical store has limited access to some drugs (like anti-biotic are not allowed to sell in chemist shop), where pharmacies have the legitimate right to sell all kind of drugs both the injections. To know more about this you can use Google search.
Now that you’ve known the types of pharmacy and you’ve chosen the one you want to operate, let us look at how you can out-stand your competitors. I’ll share with you some of the secrets that we use to overtake some of our competitor within 3 months of being in business. This secret may not work for you but it will give you more understanding of marketing and strategies.
When we get into pharmacy business as a pharmacy startup, we set out marketing survey teams to go out, we found out that average patients don’t care about drugs efficacy but the price difference. This means that other pharmacies are already in a price war. So people are looking for where to buy drugs cheap, so they don’t want to spend much or buy cost-effective drugs, they need cheap ones to have more money in their hands.
We slash our price to meet up what the people want, our price is very low to compare to other pharmacy shops. What others sell for #1000 is what we sell #750-#800, what they sell #500 is what we sell #350-#400. People now have the trust in us, even when our price upgraded they didn’t notice it because they believe that whatever we sell #1,000 is probably selling #1,500 to other stores, price different.
We also added pharmacy delivery service in our pharmacy business. Our company representatives deliver door to door request, the patient felt happy when there received their drugs at home, especially the elderly ones.
How to start a pharmacy delivery service?
No one ever thought pharmacy delivery can be such a huge undertaking. Offering drug delivery services to your customer is beneficial for your business and also for the consumer. Pharmacy delivery service through an on-demand pharmacy app can make a valuable difference to your business. Offering something new will wipe out competitors in your geographic area.
To start a pharmacy delivery business, you first need to understand the needs and needs of your target audience. Setting up a pharmacy delivery business attracts many entrepreneurs and venture capitalists because it requires minimal capital, little space and some legal documentation. Do in-depth research before setting up a business. Even if you have become the market leader and dominate your competitors, you still need research to expand your business in different geographic locations or to offer over-the-counter (OTC) products.
Manage your entire pharmacy supply on demand
Travel from one platform to give your customers the best experience.
Provide mobility solutions to entrepreneurs and businesses searching for on-demand apps to manage drug delivery and manage the drug store by generating advanced analytical reports. Reports make it possible to make intelligent decisions for business growth.
The disadvantages for the customer when buying medicines online are:
- A large number of pharmacies without a license
- Risk of unauthorized medicines
- Risk of customer privacy
- Late deliveries
Pharmacy activities can be set up under proprietary or partnership law. Pharmacy activities can also be set up as a Private Limited Company or LLP. Pharmacy license is required to start pharmacy delivery. The person must be certified with a degree or degree in pharmacy to start a pharmacy business. The patient should have the prescription to buy critical drugs from online pharmacies, while the prescription is not necessary to buy OTC products.
Pharmacy delivery cannot be compared to other delivery companies.
Pharmacy delivery is much more complicated.
Some common problems at pharmacies that supply medicines are:
- Change in government regulations
- Unavailability of the prescription drug
- Incorrect medicine prescription
Disadvantages of owning a pharmacy shop
- Expired drugs:as a pharmacy startup you don’t have to experience drugs expired in the first year in business. It draws so many pharmacy startups back to lose their investment money. Starting up newly trying to get a customer and experiencing drugs expiration kill so many pharmacy businesses. That is why is not good to open a pharmacy store in unorganized place.
- Purchasing power:price or purchasing power affects every pharmacy startup. Purchasing from a distributor who buys from the manufacturers trying to make their gain and you’ll also to make your gain; it makes your price higher than your competitor. Try to buy from the company manufacturers direct it bring down your price to the wholesale price.
Advantages of owning a pharmacy shop
Pharmacy shop is like selling food, daily people give birth, people fall ill, people also die. Owning a pharmacy store gives you the chance of touching money every hour of the day, weekly in days including Sunday if you open on Sundays.
Factor affecting pharmacy startup
- Poor management
- Unavailability of required drugs
- Out of stock due to capital
- Not opening on time
If you don’t value and care for your customers they would run from your shop.
Try not to leave everything in the hands of your nurses and sales reps, most patients found joy when the owner or the pharmacist himself listened to complain and examine their laboratory test than when it being done by the workers.
I’m stopping here for today if you have anything to add or to ask please use the comment box.