retailSOS.ca | Gerry Spitzner

October 14, 2012

You have decided that you want to run

a community Pharmacy - now decide

how you will achieve this.

Will you:

• buy an existing business

• start up a new business from scratch

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Will you be doing this alone, or with one or more

partners? How much financing can you get together

(collectively)?

What experience do you (and/or your partners) have in

running a Pharmacy? Which type of community would

you like to serve (and live in)?

Will you need to hire a Pharmacist or additional

Pharmacists to comply with legal requirements and

coverage of your open hours?

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What does your ideal store look like? How big, where,

opening hours, what professional services to offer

other than dispensing?

Will it be a “full mix” drug store, health centre, simply

Pharmacy or central fill?

How will you deal with...

◦ sick leave and holidays, advertising and marketing, growth

opportunities, business development, pricing policy, staff,

bookkeeping, website, wholesaler and all the other

operational details of running a Pharmacy?

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Location, location, location.

◦ A good location depends on whether your ideal Pharmacy is

urban, suburban or rural: foot traffic and/or parking

possibilities, other businesses in the area to draw traffic (like

a supermarket), line- of-sight to a doctor’s office or other

origin for prescriptions like a hospital.

Are there any long term (zoning or construction) plans

which might affect the suitability of the location?

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The goodwill of an established Pharmacy is influenced

by...

◦ how long it has been open; how long it has been under the

current ownership; what type of relationship the owner had

with his clients and community; what services (professional

or “front shop”) they offer apart from dispensing medications.

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A new owner usually enjoys the same current

prescription activity, sales and profit; unless

something drastic happens.

It’s often easier to transfer contracts, permits and

registrations than to apply for new ones; if local laws

allow this.

Partnering with a retiring Pharmacist/owner can help

you build your business experience, if this is not your

strongest point.

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Again, location. And the same points as above. ◦ Do the zoning laws allow for a retail Pharmacy at the proposed

location?

◦ Renting space from a diagnostic and treatment centre might be good for “leapfrog” traffic, but beware of self-referral and anti-kickback statutes.

How much lease hold, renovation or interior changes are necessary to comply with space and layout requirements?

Consult a lawyer and/or accountant on the company form which gives you the best tax advantages.

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The lease can make or break any new business.

◦ Reasonable rent is essential to keep overheads as low as possible while building a reputation and client base for a starting Pharmacy.

◦ The optimal length of the lease is a fine line which influences your eventual exit strategy.

Make sure your initial loan or financial package includes enough working capital to cover expenses like salaries and wholesale purchases until the money starts coming in.

◦ Modesty here can cost you dearly in the long run.

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Supermarkets, mass merchandisers and Pharmacy

chains are likely to keep competition keen for the

independent Pharmacist.

The Government's plans for pharmacy include an

enhanced role for Pharmacists.

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The aging population and ongoing shortage of

physicians will strengthen the demand for Pharmacy

services.

◦ Community Pharmacy will be the centre of health care and

Pharmacists will focus more and more on disease

management.

◦ Government has recognized that Pharmacists are the most

accessible and under utilized healthcare professionals.

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Is owning a community Pharmacy still possible in the

world of today?

With the current economic conditions, is this a good

time to be financing your Pharmacy vision?

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Yes!

◦ It is not exactly easy – buying or starting a Pharmacy is a

challenge; involving many different risk factors.

◦ But so is parenting. Don’t miss out on the personal and

financial rewards just because the unknown risks put you off.

◦ With trustworthy guidance and support you can make your

vision a reality.

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retailSOS.ca is a Vancouver-based retail consultancy guiding

Pharmacy owners to create, engage and retain great customers

by doing the right thing extraordinarily well.

Gerry Spitzner works as a management consultant supporting

community Pharmacy owners to achieve results by aligning

their vision and implementing marketing strategy with

operational execution.

Drawing on 35+ years experience in drug store multi-site retail

operations, Pharmacy ownership and Pharmaceutical

wholesale supply-chain; Gerry brings the leadership, knowledge

and market awareness of ownership and business development

to Pharmacy owners to achieve growth objectives.

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