UBC Phar400-buy-start-pharmacy-8mar2013


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  • Intro...
  • I break every rule of presentation; no pictures, no clip art, no cartoons.Just content...Since there are no textbooks for this course my objective is to pack as much information into them for you to reference.
  • At some point in the future you may consider a practice of your own.
  • Leasing and money are two of the most crucial initial decisions a prospective owner makes.
  • Small business makes up 98 per cent of all businesses in B.C., at present there are approximately 400,000 small businesses operating in the province, employing over a million British Columbians.In British Columbia there are more than 4,800 pharmacists and 1,100 pharmacies. Best estimate of banner/IND’s is about 55% of the total 1,100 or approx. 600. Add in the franchises like SDM/Medicine Shoppe and it gets closer to 800; approx 70% of the total.What’s the Difference Between Small, Medium and Big business?A small business, as defined by the BC Ministry of Jobs, Tourism and Innovation, is any business that has fewer than 50 employees. A business with fewer than 5 employees is often referred to as a micro-business. But the number of employees within an organization doesn’t always tell the entire story.Another term you are likely to come across when researching or learning about small business, is the term SME. SME stands for Small and Medium Enterprises. Medium size business generally is defined as any organization employing between 51-500 employees.
  • What is the meaning of the word entrepreneur?Here is the origin of the word...
  • The perception of opportunity in the absence of resources; helps explain much of what differentiates entrepreneurial leadership from that of corporate administrators: the emphasis on team rather than hierarchy, fast decisions rather than deliberation, and equity rather than cash compensation.In other words, entrepreneurs offer their team members a larger share of a vision for a future payoff, rather than a smaller share of the meager resources at hand. Opportunity is the only real resource you have as an entrepreneur.Every time you want to make any important decision, there are two possible courses of action. You can look at the array of choices that present themselves, pick the best available option and try to make it fit. Or, you can do what the true entrepreneur does: Figure out the best conceivable option and then make it available.
  • If you want a successful, profitable business, sooner or later you need to develop your skill at making decisions.Because in a funny way, business is nothing more than making a series of decisions and acting on them.So, this is the first decision a small business entrepreneur ought to make. Buy or start?This is really the BIG QUESTION; and the first one you must answer; so you can focus your efforts; because the path to each one is different. The course of action you choose will affect the costs you will incur and may also affect how soon you start to receive income from the venture.
  • Whether buying or starting...That really starts with you and then depends on these common factors;some of which are particular to the pharmaceutical industry...Living in the community you serve is an under estimated key to success; especially in rural markets.There is an unexplainable special connection with customers when they see you out in the community doing stuff; like groceries, at the hockey rink or church.One of the most common mistakes made by Pharmacists is to set the opening hours to their life instead of their customers.
  • There are a lot of questions here and it’s important to ask questions. However, they have to be the right ones for the type of practice you want to create for yourself..And some of these questions have already been addressed in an existing pharmacy. Is that the best choice for you?
  • Is buying an existing Pharmacy the best option? That depends on these factors... Here are some key initial questions to consider...There are many types of liens. In Canada; a lien usually is a contractual lien of some kind, typically the cause of a construction contractor not getting paid, who “slaps a lien” on the business; it is a legal action which must be settled before the business sale can complete. An assignable lease means... if the landlord allows the existing lease to be taken over by the purchaser.
  • Re: Location...you don’t want to be “one block away from success”.Location is important; however in today’s business world it is only a real estate solution and a great location doesn't guarantee success. In order to create and keep customers you must “differentiate, differentiate, differentiate” yourself on your unique value proposition or you will be caught in a sea of sameness. And if that happens, customers tend to default to convenience or price.KEY POINT: Zoning and construction; this can be either a burden or a blessing and depends on the situation and location. For example, would the construction hide or highlight the location from public view. Review the OCP for the area; always available at City Hall.
  • Definition of goodwill... Intangible assets relating to a company's business practices. Goodwill includes assets with value that are exceptionally difficult to quantify.Examples include brand recognition, customer loyalty, and employee happiness. Goodwill helps a company remain competitive in the long term, even if the company does not produce the best product. For example, a customer will be more likely to buy peanut butter from one company and pay more for it, if they think the company produces better-tasting peanut butter, regardless of whether or not this is the case. When a company buys another company, it will often pay above the target company's book value to account for goodwill.The goodwill comes at a cost which can be difficult to quantify and therefore justify. How do you put a price on something as subjective as a reputation? The vendors perception is often very different than the reality in the marketplace.Also, the down payment and loan required for this is often more than a first-time owner is able to pay or borrow.This is without a doubt the most difficult area of the Pharmacy valuation; especially since drug reforms and can often be quite emotional; I’ve seen deals come apart at the last minute over differences on goodwill.
  • Buyingan existing Pharmacy is challenging yet; these factors can help a buyer avoid some of the uncertainty inherent in starting a new business. Other advantages include…(next slide)
  • Here is a “short” list of common stumbling blocks.Re; last point on slide…Writing an existing owner into the deal is also sometimes a good idea for continuity with the doc’s, staff, patients and customers. Even the landlord and neighbouring tenants. However it can also be a nightmare; might be better to get rid of them ASAP.In a well structured purchase agreement; Goodwill doesn’t get paid out fully unless certain conditions and milestones are met.
  • The alternative to purchasing is to open a new pharmacy, which has its own list of pros and cons
  • This 10 point list may not be all inclusive on the unique details to every situation but it is a good starting point.The list is dynamic and fluid; not intended as a hierarchal list but rather tends to bounce around and is a bit of a juggling act.Just like buying an existing Pharmacy; opening a new one is a project and needs a project plan with timing set to it.
  • Key considerations include... Location.Re; renting space in a clinic. Doc’s have an obligation and requirement to follow clear by-laws with regard to “under the table” arrangements.Building out a new Pharmacy is tricky; space layout and work flow are critical as well as submitting a properly drawn store/dispensary plan to the College for approval before starting the build.Also, the structure of the Incorporated company must be submitted to the College. In addition to taxes. Partnerships, marriage, and children are all key considerations to include in a properly structured company.Clearly defined remedies and actions as a result of disability and death are also essential elements.
  • Re: Lease; try to negotiate a lease that is assignable to a prospective purchaser should you decide to exit.Re: initial loan or line of credit…The sad truth is most businesses that go bankrupt are profitable; the problem is they have negative cash flow.It’s not fun looking over the edge of the cliff; especially when rent, salaries and wholesale purchases line up due on the same day and your sales or PharmaCare money hasn’t been posted to your deposits yet.
  • The main advantages to opening a new Pharmacy include... You don’t have to pay for goodwill; you get to build it.
  • Focus on a few of the really important things…Timing note; should be at least halfway by now.
  • Developing your skills, and staying focused on them, is a key to turning your vision into reality and “just-right-for-you” sources of income.What is a project? A project is a temporary effort, with a defined beginning and end, designed to help you achieve what you desire.A project is a way to organize your activity. It is defined by the action steps that move you through the project from beginning to end. You complete the project by taking as many of the actions you’ve defined as possible, as well as new ones that emerge as you are in motion, within the time frame you’ve set, as quickly as is healthy, reasonable and within your capital resources.
  • Preferably a Business Lawyer, Accountant and Bank focused on working with Healthcare professionals.Ask around and get to know who these people are. Start now and connect with them.
  • Mentors and advisors; not your family!Commercial real estate agents are worth their weight in gold and can help to negotiate a good lease.Contractor; the rent clock is ticking before you open; and trades that don’t show up are costing the prospective owner time and money.Business Brokers do the valuation on the purchase; and set up a properly structured deal.
  • Now...going to take these five points and break them down a bit more.
  • Robson St $160 - $210Yaletown $29 - $35Vancouver (Downtown) $26 - $42Vancouver (Broadway) $24 - $30North Shore $20 - $28Burnaby $19 - $28New Westminster $16 - $26Richmond $16 - $20Surrey $17 - $28Class “A” commercial real estate lease rates per net rental per square foot. Compiled by Avison Young for year-end 2011.So, in this example this dispensing Pharmacy would have to do an average 20 Rx’s/day, 7 days a week @ a 10.00 dispensing fee just to cover rent.You can see how important it is; especially for a startup to have other revenue streams like OTC’s or clinical services to cover rent, staff wages and income for the owner.
  • If percentage rent; then a lower % rent on low margin commodity items that drive traffic; like paper goods.
  • Gross Earnings are the profit a business generates after cost of sales; and before expenses like rent and wages.EBITDA stands for Earnings Before Interest Taxes Depreciation and Amortization.
  • Note; Solvency is the ability of a corporation to meet its long-term fixed expenses and to accomplish long-term expansion and growth.Note; In accounting liquidity (or accounting liquidity) is a measure of the ability of a debtor to pay their debts as and when they fall due.
  • Financial capital is borrowed sums or equity with which the firm’s assets are acquired and it’s operations are funded.The money used by entrepreneurs and businesses to buy what they need to make their products or provide their services.
  • Personal Financing is your own money.Debt Financing is usually done with a bank.Equity Financing is what you see on the TV show, Dragon’s Den. Sweat equity can be risky and a nightmare if the value of shares or options isn’t clearly spelled out in the purchase agreement.
  • Junior partnership; the right share structure is critical. It’s a form of sweat equity.
  • The answer might be surprising, but in fact, this is probably the best time, for two key reasons. The first is that prime lending rates are at an all-time low and likely to remain there for the near future. The second is that lending institutions consider financing a pharmacy to be a less risky proposition than funding other types of businesses. In fact, the healthcare sector is considered “recession proof” by many. (if there is such a thing as recession proof)
  • Maybe all this sounds too complicated...however with the right team of trusted support it will go a lot smoother.Don’t compromise your dream; instead work towards it. Stay curious and follow your passion. Learn what you need to know; then surround yourself with the right people.
  • To your business and professional success, thank you.
  • I’ll be around for a while today but if you think of something later; find me.
  • UBC Phar400-buy-start-pharmacy-8mar2013

    1. 1. retailSOS.ca | Gerry Spitzner March 8, 2013
    2. 2. Email me gerry@retailsos.ca
    3. 3.  Overview of key points to consider when establishing your own practice.  Either for....  Purchasing an existing Pharmacy business, or  starting up a new business. retailSOS.ca | Gerry Spitzner 3
    4. 4.  Questions for starting up a new or buying an established Pharmacy.  Advantages and disadvantages of purchasing an established Pharmacy vs starting one.  Important factors before you start actively searching to establish new or purchase. 4retailSOS.ca | Gerry Spitzner
    5. 5.  Explanation of leasing & rent calculation.  Capital requirements for establishing a Pharmacy and possible sources of capital.  Factors important in performing a Pharmacy location analysis and analysis of potential markets. 5retailSOS.ca | Gerry Spitzner
    6. 6.  Thoughtstarters  First questions; What, Who, How and Where Do I start?  Purchasing an Established Pharmacy  Opening a New Pharmacy  Key Tasks for the Prospective Owner 6retailSOS.ca | Gerry Spitzner
    7. 7. This packet of thought starters is just that; a starting point. Let your mind wander and consider the vision of establishing a new practice or taking over an existing one. retailSOS.ca | Gerry Spitzner 7
    8. 8.  Most community Pharmacy owners are small business entrepreneurs.  It takes time, commitment, a good idea, the right personality and at least a few basic business skills to start and run a small business successfully. retailSOS.ca | Gerry Spitzner 8
    9. 9.  The french word "entrepreneur" was first defined by economist Richard Cantillon (1680-1734) as a person who is willing to help launch a new enterprise and accept full responsibility for the outcome. 9retailSOS.ca | Gerry Spitzner
    10. 10.  What's an Entrepreneur in the 21st century?  What is it that all entrepreneurs do?  The Best Answer Ever…  Entrepreneurship is the pursuit of opportunity without regard to resources currently controlled. retailSOS.ca | Gerry Spitzner 10
    11. 11. 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 retailSOS.ca | Gerry Spitzner 11
    12. 12.  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? retailSOS.ca | Gerry Spitzner 12
    13. 13.  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? retailSOS.ca | Gerry Spitzner 13
    14. 14. Considerations, questions, advantages and disadvantages. retailSOS.ca | Gerry Spitzner 14
    15. 15.  Key Initial Questions ◦ Why is this pharmacy for sale? ◦ Is the owner retiring? ◦ Has the neighbourhood changed due to competitive, demographic or economic factors? ◦ Is the pharmacy on the verge of bankruptcy? ◦ Is there a lien on the business? ◦ Who are the Doc’s? How long is their lease? ◦ Lease term of Pharmacy? How long? ◦ Is the current lease assignable? ◦ Zoning? Will the area change due to development? 15retailSOS.ca | Gerry Spitzner
    16. 16.  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 or liquor store; ◦ 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? retailSOS.ca | Gerry Spitzner 16
    17. 17.  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 owner had with clients and community; ◦ what services (professional or “front shop”) they offer apart from dispensing medications.  Goodwill is normally calculated as a multiple of annual net profit and may include number of scripts retained over a period of time after the purchase agreement is completed. retailSOS.ca | Gerry Spitzner 17
    18. 18.  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. retailSOS.ca | Gerry Spitzner 18
    19. 19.  Advantages ◦ Lower level of risk for the buyer ◦ No additional competition added to the marketplace ◦ Reduced set-up and start-up costs / less risk ◦ Less time required to show a profit ◦ Buyer receives established goodwill ◦ Business has an established clientele ◦ Business provides buyer with trained employees, inventory, physical facilities, and established relationships with healthcare providers and doctors. 19retailSOS.ca | Gerry Spitzner
    20. 20.  Potential Disadvantages ◦ Inadequate facilities ◦ Old/Outdated fixtures and equipment ◦ Inventory that may be too large and/or unsellable ◦ Established policies/procedures don’t match new owner philosophy ◦ Inflated sale price; less than full disclosure on financials ◦ Problems with the location or landlord ◦ Undesirable established leases / lease terms or conditions ◦ Existing owner may reopen and take customers  Write the vendor into the deal or have a non-comp clause 20retailSOS.ca | Gerry Spitzner
    21. 21. Things to consider and tasks to do. Develop a project management plan with timing and tactical action plan. retailSOS.ca | Gerry Spitzner 21
    22. 22.  How to Get Started: ◦ 1. Decide on the type of pharmacy ◦ 2. Assess potential market ◦ 3. Develop a detailed business plan ◦ 4. Determine the legal structure ◦ 5. Identify financing options ◦ 6. Select a location; sign a lease ◦ 7. Obtain licences, permits and insurance ◦ 8. Determine leasehold, renovation and fixtures ◦ 9. Develop a marketing and promotion plan ◦ 10. Establish the management philosophy of the business 22retailSOS.ca | Gerry Spitzner
    23. 23.  Again, location. And all the same points as in buying. ◦ Do zoning laws allow for a retail Pharmacy at proposed location? ◦ Renting space from a clinic or diagnostic and treatment centre might be good for “leapfrog” traffic, but beware of self-referral and anti-kickback statutes.  How much leasehold or renovation changes are necessary to comply with space/layout requirements?  Consult a lawyer and/or accountant on the company form which gives you the best tax advantages. retailSOS.ca | Gerry Spitzner 23
    24. 24.  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 initial loan/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. retailSOS.ca | Gerry Spitzner 24
    25. 25.  Opportunity to select every item for the new venture  Hiring one’s own personnel (compatibility)  Finding a great location  Creating your own systems, policies & procedures  Avoiding having to pay for intangible assets  Negotiating your own arrangements with suppliers  Choosing your own practice focus 25retailSOS.ca | Gerry Spitzner
    26. 26.  Difficult to get financing  High level of risk  Suppliers may not extend you credit  Longer term to profit  Considerable time investment  Need to do everything yourself  Un-established brand  Competitors 26retailSOS.ca | Gerry Spitzner
    27. 27. Key tasks for the prospective owner whetherstarting or buying. retailSOS.ca | Gerry Spitzner 27
    28. 28.  Hard skills ◦ Knowledge of Leasing ◦ Negotiation Skills ◦ Fundamentals of Financing and Accounting ◦ Project management  Soft Skills ◦ Insights into complexity of issues involved in leading change ◦ Recognize your personal values and define work/life balance ◦ Cultivate a calm, clear mind even in times of stress ◦ Lead strategic change initiatives and decision making 28retailSOS.ca | Gerry Spitzner
    29. 29.  Create your team of experts ◦ So you can do what you do best... ◦ and they can do what they do best ◦ Create an advisory board  The first three people you need ◦ Business Lawyer; with Employment Law & Leasing experience ◦ Accountant; with Tax Planning experience ◦ Banker; preferably experienced with Pharmacy accounts 29retailSOS.ca | Gerry Spitzner
    30. 30.  Create your team of experts...  The next person/people you need (buying or starting) ◦ Mentors, advisors and a business consultant  Then you need (if starting new) ◦ Commercial real estate agent ◦ A great designer/general contractor that knows the Pharmacy business and can get and keep the trades focused  Then you need (if purchasing) ◦ Business broker retailSOS.ca | Gerry Spitzner 30
    31. 31. 1. Identify available pharmacies for sale or suitable locations for a new one 2. Leasing Agreements 3. Determine a satisfactory purchase price 4. Evaluate and determine capital needs 5. Investigate & select best source of capital 31retailSOS.ca | Gerry Spitzner
    32. 32.  Location Analysis is a Hierarchal decision… ◦ Region – Lower Mainland, Okanagan, the Island ◦ Market Area – West Van, Kelowna, Comox ◦ Trading Area – Caulfield, Glenmore, Comox “downtown” ◦ Site – specific location  Location Analysis ◦ Location is the most important factor; “traffic” is the key ◦ Very difficult and expensive to re-locate ◦ You don’t want to be “one block away from success” ◦ Doc’s and/or nearby clinics, hospital ◦ Parking, Signage, Visibility from street/parking lot 32retailSOS.ca | Gerry Spitzner
    33. 33.  Most Pharmacies lease (rent) their space  Common is 5 years plus an option to renew for 5 years  Once you sign you are obligated!  Before you sign is the time to negotiate  If you are purchasing an existing biz-need to get an assignment from landlord ◦ usually this is a “subject to” clause in purchase agreement 33retailSOS.ca | Gerry Spitzner
    34. 34.  “Offer to lease” vs. “Lease” ◦ “Offer” is starting point where both parties negotiate terms. ◦ Landlords have a standard “Offer” form. ◦ At this point you try to drive your best bargain/value. ◦ “Offer” usually includes “Sunset clause” – date by which lease must be signed or null and void. ◦ A “lease” is a written legal document. A verbal lease does not exist. (i.e. worthless) ◦ A “lease” specifies what the lessor (landlord) will provide and what the lessee (you) will do and pay. 34retailSOS.ca | Gerry Spitzner
    35. 35.  What is "Base rent"? ◦ Base rent refers to the minimum or base amount of rent as set out in the lease excluding percentage rents or any other additional or operating costs.  What is a "percentage lease"? ◦ A percentage lease refers to a specific type of rental arrangement that applies mainly to retailers, especially in shopping centres or multiple-tenant malls. ◦ Tenant pays a fixed or base rent plus a percentage of gross income. To create this type of rental arrangement, the tenant pays "Base Rent plus % of Gross Profits or Sales". 35retailSOS.ca | Gerry Spitzner
    36. 36.  What are "triple-net leases"? ◦ The most common form of commercial lease. ◦ They can be used for retail, warehouse and industrial properties. ◦ The tenant is responsible for all of the costs of operating the building (including taxes, insurance and repairs and maintenance) .  What are “CAM” costs? ◦ Common area and maintenance costs; usually in a shopping centre, strip mall or power centre lease. ◦ CAM costs cover maintenance of the property, gardening, floor washing, snow removal, repairs, lighting; indoors/parking lot, security. retailSOS.ca | Gerry Spitzner 36
    37. 37.  Downtown Vancouver/Victoria – YIKES!!!  Langley/Surrey - $25 – $30/sq ft triple net plus CAM  New locations/escalating construction costs  Rural locations/old buildings; $12 – $25/sq ft  Leasing example ◦ Store “footprints” vary; Dispensary only; usually 1-2000 sq ft ◦ Taxes and CAM can be $5 - $8/sq ft ◦ So, a 2K sq ft store @ $30/ft plus $5 CAM  2000 x 30=$60,000/year  2000 x 5=$10,000/year  ~Total lease cost is $70,000/12=$5,833/month + Tax (on applicable) 37retailSOS.ca | Gerry Spitzner
    38. 38.  Sublet clause – if excess space or for doc’s  Signing incentive; first month free while setting up  Leasehold improvements; often get just bare space  Adequate signage – some landlords have restrictions  Exclusive use clause – only Pharmacy or store selling certain products; i.e. Prescriptions, greeting cards  Contingency on financing – similar to buying a home  Whether the tenant can assign or sublet the property 38retailSOS.ca | Gerry Spitzner
    39. 39.  If purchasing; determine a satisfactory purchase price  Accurate pharmacy valuations are critical in successfully buying a pharmacy. ◦ Due to changes in Generic reimbursement and Professional Allowances; Pharmacy valuations are more complex and difficult than ever. ◦ “Normalize” the script count; ie nursing home contracts. ◦ Usually a multiple of earnings termed as EBITDA. ◦ Get expert advice from a business broker that understands Pharmacy purchase agreements. 39retailSOS.ca | Gerry Spitzner
    40. 40.  Review the external business environment (i.e. the local community; how are other businesses doing ?)  Review the financial health of the business (i.e. solvency, liquidity, cash flow, sales, and profitability).  Assess physical assets of the business (i.e. inventory, equipment, fixtures, technology, hardware & software)  Assess the condition of the building, (i.e. roof, electrical, plumbing, lighting, HVAC, concrete or wood) 40retailSOS.ca | Gerry Spitzner
    41. 41.  Will it be an asset or share purchase? o Asset purchase; your company takes over only the assets like inventory but not the liabilities. o Share purchase; your company takes over the vendors company in total and owns everything; assets and liabilities. o Asset purchase generally favours the buyer; share purchase generallyfavours the vendor. o In either type of purchase; always consider…  Assess the Financial liabilities of the business (i.e. A/P)  Assess the Financial assets of the business (i.e. A/R )  Are there any outstanding legal issues or contracts? retailSOS.ca | Gerry Spitzner 41
    42. 42.  Definition of financial capital ◦ Wealth, in the form of cash, equipment, property; ◦ or a combination of these factors, that can be used in the production or creation of income.  Areas of capital need ◦ Set-up capital ◦ Start-up capital ◦ Operating capital 42retailSOS.ca | Gerry Spitzner
    43. 43.  Personal financing  Debt financing  Debt financing takes the form of loans that must be repaid over time, usually with interest.  Equity financing  Equity financing takes the form of money obtained from investors in exchange for an ownership share in the business.  Also known as "share capital".  “Sweat” equity  Build equity over time at a reduced wage rate or reinvesting part or all of salary or bonus back into the business in exchange for shares or options. 43retailSOS.ca | Gerry Spitzner
    44. 44.  Debt Financing ◦ Desante (MAXIUM Financial) ◦ Banks (RBC), Government loans or BDC  Equity Financing ◦ Junior partnership  Buyer can purchase a pharmacy with little or no initial capital and build equity over time.  Seller can ease gradually out of ownership and maintain the legacy of the independent pharmacy in the community.  “Sweat equity” ◦ Forewest-Pharmasave ◦ Multi store owners in banner stores 44retailSOS.ca | Gerry Spitzner
    45. 45.  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? retailSOS.ca | Gerry Spitzner 45
    46. 46.  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. retailSOS.ca | Gerry Spitzner 46
    47. 47.  Want a copy an electronic copy of this of this presentation with bonus slides? ◦ Email me; gerry@retailSOS.ca  To your business and professional success...  THANK YOU for your attention.  Questions? retailSOS.ca 47Gerry Spitzner
    48. 48.  Follow Twitter: @passion4retail  Connect LinkedIn: Gerry Spitzner  Web: retailSOS.ca  Blog: gerryspitzner.com  Email: gerry@retailsos.ca  Online Biz Card: gerryspitzner.tel  Online Biz Card: retailSOS.tel retailSOS.ca | Gerry Spitzner 48
    49. 49.  Gerry Spitzner is an optimist with a natural "kid-like“ curiosity for improving life and business results. He believes in a bright future and our ability to build it together. Gerry is passionate about making the public aware of the great things Pharmacists do. Drawing on 35+ years experience in multi-site retail Pharmacy operations, drug store ownership and the Pharmaceutical wholesale supply-chain; Gerry brings the leadership, knowledge and market awareness of business development to retail Pharmacy owners helping them achieve growth objectives. He teaches and inspires Pharmacists to achieve results by aligning their vision with marketing strategy and operational execution. Fascinated with a lifelong curiosity for why customers buy and a passion for retail Pharmacy; Gerry guides leaders and organizations to create, engage and keep great customers by delivering the promise of an extraordinary customer experience. He has devoted his life to sharing his thinking with other Pharmacy leaders to manage market analysis and build business plans that increase profitability and create competitive advantage with systems to implement. His company is retailSOS.ca, a Vancouver-based business management consultancy with a suite of outsourced business services to support Pharmacy owners starting, buying or strategically realigning their practice. With a clear understanding of the business of Pharmacy he uses a solution oriented focus with ideas and alternatives that clients can use to address the changing practice issues they face right now. Gerry understands who they are, what they need, and where to find it, helping them market and strategically realign their professional clinical services to integrate the business activities of optimal drug therapy outcomes through patient centered care. retailSOS.ca | Gerry Spitzner 49