New Independent Pharmacies Opening Nationally
The opening of new independent pharmacies is taking place at an amazing pace. After discussing pharmacies closing and being shutdown recently, it was encouraging news to see that during August of 2017 an estimated 100 new independent pharmacies were opened nationally. Although the NCPA (National Community Pharmacists Association) has reported that there has been a 10% decline from 2001 in the number of independent pharmacies nationally (currently approximately 22,000 versus 25,000 in 2001), the current trend shows that the starting up and opening of a community pharmacy business is still a lucrative venture. Especially if you consider that independent community pharmacies still hold about a 30% share of the overall drugstore market.
New Independents Are Opening Everywhere
Here is just a sampling of the new independently owned pharmacies that have opened across the nation in just the first three weeks of August so far:
– Orlando, Florida
– Glendale, California
– Fountain Hills, Arizona
– Reno, Nevada
– Bainbridge Island, Washington
– Victor, Idaho
– Salt Lake City, Utah
– Martinsville, Virginia
– Georgetown, Illinois
– Houston, Texas
– Connersville, Indiana
– Fort Gratiot, Michigan
– Miami, Florida
– Floyd, Virginia
– Saint Florian, Alabama
– New Orleans, Louisiana
– Mifflinburg, Pennsylvania
– Athens, Georgia
The point of this “sample” is that the recent rise in independently owned pharmacies being started is not confined to a certain geographic region of the country. Nor is the increase related to population density. You’re as likely to see a new store opening in Saint Florian, Alabama (with a population of only 413 people) as you are in a larger city such as Reno, Nevada (with a population of almost 250,000 and known as “The Biggest Little City In the World”).
According to a recent article in Drug Channels, with independent pharmacy owners doing better than expected and their annual profits again showing an increase in 2016, the trend of seeing new independent pharmacies opening up will continue. Adding in the fact that the average pharmacist owning a single pharmacy in 2013 earned roughly around $250,000, and the future looks promising indeed.
Are You Considering Opening a New Independent Pharmacy?
If you are planning a pharmacy startup, there are numerous factors to take into consideration in the planning and execution that will lead to a successful business venture. Everyone needs to ask the following questions:
1. How much money will I need as a startup?
This includes initial costs, as well as the ongoing cost of staffing and marketing. Plus perhaps various additional costs that you may not have even thought of if you have a business plan already written. How much debt or equity are realistic?
2. What can I do myself and what will I need help with?
You may have already considered that perhaps you will need to hire an accountant and an attorney. But have you considered hiring an expert pharmacy consultant? An experienced consulting firm that has been through numerous pharmacy start-ups can help with all the details required throughout the process.
3. How long until I see a profit?
Everyone starts a new business such as a pharmacy with the expectation of making money. Yet what is a realistic time-frame to expect to turn spending into profit? Plus what time period is realistic to get your initial funding back?
Talk To An Expert First
The purpose of any business venture is obviously to end up with a profitable and successful operation. The steps required for success in opening a new pharmacy include all of the following:
– The creation of a business plan
– Choosing the type of corporation to form – Limited Liability or LLC, C-Corporation, S-Corporation, Sole Proprietorship or a General partnership
– Choosing the best business location (of course most experts agree that this is perhaps the most important consideration of them all)
– Choosing the contractor for the build out of the pharmacy
– Estimating the startup costs – including prescription and OTC medication inventory costs, plus items such as equipment, signage, advertising, insurance, security, etc.
– Obtaining financing
– Floor plan and work flow design
– DEA & State Board of Pharmacy applications process
– Development of required Policy and Procedure manuals
– Development of required Continuance Quality Improvement (CQI) manual
– Hiring of a Prescription Department Manager (PDM) for both the application process (during the pre-inspection period) and the inspection
– Purchasing the equipment and supplies (for both the Board of Pharmacy inspection and the actual pharmacy operations)
– Security assessment
– Arrange for the final inspection of the facility
– Aquiring Board of Pharmacy required internal signs and postings
– Selecting vendors
– Obtaining legal support
– Staffing (not only the pharmacist, but technicians and ancillary staff such as cashiers and other support personnel)
Healthcare Consultants can handle this all for you. Pharmacy startups and opening new pharmacies have been our business now for over 28 years. Having helped open hundreds of new pharmacies, HCC ensures that all aspects of the business are covered and done right. We offer you the support of an experienced staff who have been through the process many times and know the business inside and out. Whether you are a seasoned business professional with experience or simply considering a pharmacy venture as a new business investment, HCC can help. Contact us now online or call us at (800) 642-1652 for a Free Consultation.