All About Opening Multiple Community Or Retail Pharmacy Business
Retail or community pharmacy business is not for every pharmacist out there. Among those who have succeeded in running one for some time, come those who wish to have more than branch which is not also for every pharmacist with a retail or community pharmacy outlet. Succeeding in running one is no guarantee of success running multiple outlet. It comes with new kind of challenges that can be overcome if you put all your mind to it.
Read Also: Success tips for community or retail pharmacy business
Running multiple retail or community pharmacy business comes with many advantage. That does not remove it's disadvantage. The advantage far outweigh the disadvantage.
2. Reduce risk with short dated drugs: when you have more than one outlet, you can spread a close dated drug across the other branch. This reduce the chance of getting pass expiration date. This is very important in some drugs that sell fast in one location but not in another.
2. Thief: it is difficult to monitor all sales activities when you are there. It becomes more difficult when you are not there. This is the major killer of business.
If after considering the above, you decide to start another branch, there are some tips that can help and guide you through. But before you venture into this, make sure you have grown one to a standard that can sustain itself. You can use the name you have made from the first to promote the second. The promotion attempt should not focus on the service you can render yourself but on the core value you render in your pharmacy. That way customer are sure they will be getting the same value service from either branch. But if you make the mistake of promoting the new branch with your services, you may slow down the growth of the old branch.
Promoting your new branch should not be done poorly. Use free service to captivate the attention of people around. Broadcast the free service in any channel you can think of like print, television and the internet. Do it for some time and not just a one off thing. Invite known names in the profession around to come and render some of the service. This publicity will work in the long run.
There is also another important decision to make that can impact on the success of the new venture. Buying an existing pharmacy or starting a new one entirely. This decision is not easy to make. However, you can read more on the advantage and disadvantage of both from my previous blog post here.
Location of the pharmacy is a crucial decision to take. It may take months this if not years to get a good location. For those who are in a hurry, they end up citing it in a location that is bad. Also, owning more than one branch comes with another challenge. The cost of buying drugs at one location may be different from the other. That will obviously affect the selling price. When short dated drugs are then transferred to a branch with cheaper price, the end selling price will be so low that it will be difficult to get the capital. Another major challenge with location of two pharmacy is that the standard of living in one area may be different from the other. The purchasing power will obviously not be the same. This will affect mark-up. Using same mark-up with the other branch with strong purchasing power will affect the business. The best step to take is to be available at the new branch for some time, observing the environment before deciding on what work best. Then you can now set standard before leaving.
No mater what, you can't work alone even if it is just one outlet. This is more glaring when you open a new branch. You can't be at more than one place at a time. You need people to work with. Trusted people at that. The trust is of two type; those who are capable and those who will not steal from you. The best way to go about this is to grow your own staff from the beginning. Teach new staffs. Promote those who are doing well to the point of managing it. Getting a stranger can either be a third or not a capable hand at the end of the day.
Read Also: Cost of starting a community or retail pharmacy business
Another important staff you may need in all your branches is a staff who grow up in that locality or community. An indigenous staff who is familiar with the culture and traditions of the land will help a lot considering the cultural heritage of this country. That staff will know about some cultural festivals that can affect opening of shops and the implication of failing leaving the decision on you on what best to do.
Use technology to your advantage. Monitor each branch with one software connected together to your personal account. This will reduce the need for your physical presence. Close circuit television play a key role in modern business. It is not actually to monitor staff but to study staff and customer attitude and decide changes that will improve yield. Provide a cheap easy means of communication and transmission of information between each branch and you.
Lastly, set out a flexible standard operating procedure (SOP) for each staff. Each branch should have an SOP but it is not a must that it is the same. This is because the different branch will have different number of staffs, different number of capable hands, and some other difference. The aop should put into consideration factor peculiar to each branch. But the SOP should have a skeleton or backbone they all fall back on. The SOP should equally spell out appropriate sanction for offender and the punishment melt out when appropriate. When a manager fails to enforce sanction, the business will crumble.
Read Also: Success tips for community or retail pharmacy business
Running multiple retail or community pharmacy business comes with many advantage. That does not remove it's disadvantage. The advantage far outweigh the disadvantage.
Advantage Of Multiple Retail Or Community Pharmacy Business
1. Multiple source of income: this is the number one reason of investing in multiple retail or community pharmacy business. You no longer rely on one source of income. When one is dwindling, the other will be there to pull it up.2. Reduce risk with short dated drugs: when you have more than one outlet, you can spread a close dated drug across the other branch. This reduce the chance of getting pass expiration date. This is very important in some drugs that sell fast in one location but not in another.
Disadvantage Of Multiple Retail Or Community Pharmacy Business
1. Presence not felt: the moment you start a new branch, you risk losing some customers. This is because they are familiar with you and you alone. They want to see you but you are not there. They may not be comfortable talking with a new pharmacist because of the nature of your relationship with them. If the new branch is far, they may resort to go back to the hospital for health care.2. Thief: it is difficult to monitor all sales activities when you are there. It becomes more difficult when you are not there. This is the major killer of business.
Guide For Starting Multiple Community Or Retail Pharmacy
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Promoting your new branch should not be done poorly. Use free service to captivate the attention of people around. Broadcast the free service in any channel you can think of like print, television and the internet. Do it for some time and not just a one off thing. Invite known names in the profession around to come and render some of the service. This publicity will work in the long run.
There is also another important decision to make that can impact on the success of the new venture. Buying an existing pharmacy or starting a new one entirely. This decision is not easy to make. However, you can read more on the advantage and disadvantage of both from my previous blog post here.
Location of the pharmacy is a crucial decision to take. It may take months this if not years to get a good location. For those who are in a hurry, they end up citing it in a location that is bad. Also, owning more than one branch comes with another challenge. The cost of buying drugs at one location may be different from the other. That will obviously affect the selling price. When short dated drugs are then transferred to a branch with cheaper price, the end selling price will be so low that it will be difficult to get the capital. Another major challenge with location of two pharmacy is that the standard of living in one area may be different from the other. The purchasing power will obviously not be the same. This will affect mark-up. Using same mark-up with the other branch with strong purchasing power will affect the business. The best step to take is to be available at the new branch for some time, observing the environment before deciding on what work best. Then you can now set standard before leaving.
No mater what, you can't work alone even if it is just one outlet. This is more glaring when you open a new branch. You can't be at more than one place at a time. You need people to work with. Trusted people at that. The trust is of two type; those who are capable and those who will not steal from you. The best way to go about this is to grow your own staff from the beginning. Teach new staffs. Promote those who are doing well to the point of managing it. Getting a stranger can either be a third or not a capable hand at the end of the day.
Read Also: Cost of starting a community or retail pharmacy business
Another important staff you may need in all your branches is a staff who grow up in that locality or community. An indigenous staff who is familiar with the culture and traditions of the land will help a lot considering the cultural heritage of this country. That staff will know about some cultural festivals that can affect opening of shops and the implication of failing leaving the decision on you on what best to do.
Use technology to your advantage. Monitor each branch with one software connected together to your personal account. This will reduce the need for your physical presence. Close circuit television play a key role in modern business. It is not actually to monitor staff but to study staff and customer attitude and decide changes that will improve yield. Provide a cheap easy means of communication and transmission of information between each branch and you.
Lastly, set out a flexible standard operating procedure (SOP) for each staff. Each branch should have an SOP but it is not a must that it is the same. This is because the different branch will have different number of staffs, different number of capable hands, and some other difference. The aop should put into consideration factor peculiar to each branch. But the SOP should have a skeleton or backbone they all fall back on. The SOP should equally spell out appropriate sanction for offender and the punishment melt out when appropriate. When a manager fails to enforce sanction, the business will crumble.
Lastly, you need a pharmacist with license. The licence will be use to register the new premises and will be in charge of the clinical aspects of the practice.
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