uniPHARM-buy or start pharmacy-14oct2012


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Presentation to uniPHARM | pharmacyownership.ca followed by panel discussion

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uniPHARM-buy or start pharmacy-14oct2012

  1. 1. retailSOS.ca | Gerry Spitzner October 14, 2012
  2. 2. You have decided that you want to runa community Pharmacy - now decidehow you will achieve this.Will you:• buy an existing business• start up a new business from scratch retailSOS.ca | Gerry Spitzner 2
  3. 3.  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 3
  4. 4.  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 4
  5. 5.  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? retailSOS.ca | Gerry Spitzner 5
  6. 6.  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. retailSOS.ca | Gerry Spitzner 6
  7. 7.  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 7
  8. 8.  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. retailSOS.ca | Gerry Spitzner 8
  9. 9.  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. retailSOS.ca | Gerry Spitzner 9
  10. 10.  Supermarkets, mass merchandisers and Pharmacy chains are likely to keep competition keen for the independent Pharmacist. The Governments plans for pharmacy include an enhanced role for Pharmacists. retailSOS.ca | Gerry Spitzner 10
  11. 11.  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. retailSOS.ca | Gerry Spitzner 11
  12. 12.  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 12
  13. 13.  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 13
  14. 14.  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 14
  15. 15.  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. retailSOS.ca | Gerry Spitzner 15