Thanks to the global economic crisis from the last decade, many firms went bust. Although it’s not as well reported, plenty of pharmacies saw a decline in business and to close down. The good news is that there is a reverse trend happening.
One thing that is surprising is how more independent pharmacies are setting up! There was once a time where only big-name brands operated pharmacies. It was usually hard to find a traditional family-run pharmacy back in those days. Today, it seems recession has created many an entrepreneur.
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Despite setting up in the face of adversity, those “indies” seem to be making a good profit. So, what are the secrets to their success? Well, common sense and careful planning appear to be the order of the day. I talked to a few independent pharmacies and here is how they became such a success:
They started out small
One of the classic mistakes startups make in the business world is to spend too much money! There’s nothing wrong with being ambitious and wanting to aim for the Holy Grail. But, if you spend too much too soon, you’ll end up with nothing.
The one thing that all the pharmacies I spoke to had in common is they operated from small premises. After all; people go to such places to get medicine, not look at fancy packaging on the walls! A small retail area with enough storage space is all that’s needed to get started.
They hired well-trained staff
When you set up a pharmacy, it’s crucial your staff know what they are doing. Your customers demand it, and the government does too. The last thing you want is for medicine to get dispensed to the wrong people!
Hiring people with the right skills and qualifications is an essential need here. Yes, qualified people command higher salaries. But, it means that you can offer a professional service to your customers. And that’s at the forefront of the pharmacies I spoke with in the past.
They aren’t afraid to ask questions
Some people assume that they are failures if they have to ask questions about their line of work. The thing is; if you DON’T ask about stuff, you’re likely to go bust! When you run such a business, it’s crucial you are an expert in your field.
Any minor errors could result in danger to people’s health. Not to mention a phenomenal lawsuit! Today’s independent pharmacies are more than happy to consult with industry leaders. They also enjoy sharing knowledge with each other
They chose the right locations
If you want to open a pharmacy, you won’t wish to do so in an area with a small population. After all; if you don’t have many customers, you won’t be in business for much longer!
As with any new enterprise, it’s a good idea to research the best locations to get premises.
They borrowed some money
It might scare some people, but most businesses need to borrow some capital. That’s the only way they can afford to lease premises, buy stock and set up their retail outlet.
Of course, some of us might be lucky enough to have a lot of savings in the bank. But, for the rest of us, it makes sense to get a loan and pay it back in several installments.
If you’re planning to set up a franchised pharmacy, it’s not likely you can do so without some borrowing.
They made their retail-facing areas welcoming
People don’t usually like going to see their doctor unless they need to do so. A similar thing applies to pharmacies as well. The good news is that your pharmacy doesn’t need to feel “clinical” as a doctor’s surgery might.
Many studies have shown that consumers tend to buy more if they are in a welcoming environment. And that’s one of the reasons why the pharmacies I’ve spoken to are doing so well today.
Here’s one interesting example. Some told me that simple things like M Fried pharmacy shelving made display units sleeker. Others have said plants and even the color of the walls help too.
They offer value-added services
A pharmacy can also become something like a “one-stop shop” for consumers. Some of today’s successful indies offer things like:
- Free local delivery of prescriptions to the elderly and infirm;
- Allergy testing in a private room; and
- Seasonal promotions, such as cold and flu medicine in winter.
Additionally, those who need compounded medications or drugs that fall outside of commercially available products may directly contact a trusted specialty compounding pharmacy.
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