Tips When Buying A Community Or Retail Pharmacy Shop

Buying A Retail Pharmacy Shop

The desire of many pharmacist in Nigeria is to own a community or retail pharmacy. There are two choices when a pharmacist wants to start one; buy an existing one or start from the scratch. Both have their advantages and disadvantages. The decision rest on many factors that need to be considered. Buying can be favourable in certain situation so too starting from scratch.
Read Also: How Community Pharmacy Owners Can Succeed

Buying A Retail Pharmacy Shop

People who wants to sell their shop do it either because the business is no longer profitable to their taste or they are changing business or location or they are in urgent need of money. It is important to consider the reason the owner wants to sell. They may not open up on the main reason especially if it is the first reason. That is because a buyer will negotiate a low price or quit. They will want to say the later two are the main reason for selling it. That does not mean that a good manager cannot turn the table around for good if there is change of ownership. It is important to carry out your personal research of the business before considering buying.

Advantages Of Buying A Retail Pharmacy Shop

1. Some of the problems have been discovered and many may have been solved
2. Income is usually instant. In some cases even before opening
3. No training of new staffs as existing staffs are already on ground to assist
4. Customer base on ground
5. A business model already established that you can tweak to your taste

Disadvantages Of Buying A Retail Pharmacy Shop

1. Usually very expensive. The cost is both for the stock on ground and probably the business name and reputation
2. May need to buy new stock if it is an abandoned shop
3. May encounter problems you never thought about but this is present with new shop. In some cases, the former owner may have problems with some sets of persons or the community which can rob the current owner.
Read Also: Cost Of Opening A Community Or Retail Pharmacy
There is advantage in buying an existing retail pharmacy shop but even like in opening a new shop, you must consider the following.

Things To Consider Before Negotiation

If you want to start negotiating with the seller the cost of the shop, look out for the following;
1. Location: this is very important. Consider the traffic in the location and the presence of competitors. A shop close to a clinic will focus more on refill prescription than on treatment. Also, when there are other competitors, it is better to consider their strengths and weaknesses if you can fit in or even beat them to the game.
2. Current Sales: this is very important. What is the customer base of the shop as at the time of negotiating. A failing shop will take time and skills to revive than a thriving one.
3. Debts and Assets: some failing companies may accumulate debts that can even be more than available stock. Dig deeper to find out these. A very common debt is utility bills. However, some may acquire assets both physical that is transferred to the next owner.
4. History: some make bad name for themselves and find it difficult to redeem their image. They think of selling and relocate to another place they are not known. You can only get such information if you do diligent research into their past activity. Speak with people around who know the shop very well
5. Shop: the present stock and size of the shop matters a lot. If you wish to grow more than the present stock, you must consider the size of the shop if it will allow you to grow. A small shop will restrict your progress.
After considering all these things, do you wish to continue? Have you bought over a shop before? If yes, what is the experience? Feel free to share you ideas.
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