New pharmacy startups and the opening of brand-new pharmacy operations are occurring at a faster rate this year than ever before seen. Just reviewing the first two weeks of November this year reveals a staggering number of new retail community pharmacy businesses being opened and successfully established all across the entire fifty United States. Considering the 2018 “explosion” of new drug stores, plus the recent national economic growth and positive forecasts for 2019, one can only conclude that the number of new pharmacy start-ups will continue and even, probably, accelerate at a rate never before seen.
Examples of Recent Pharmacy Startups
Just as examples of the startup trend, consider the following recently opened retail community pharmacies that have been in the news in just the past few weeks.
- In Clarksville, Tennessee – Hilltop Supermarket is adding a brand new pharmacy department. Owner of the supermarket (Cody Jackson) said that he will actually not own the pharmacy, but will partner with a local RPh. who has vast experience running retail community pharmacies in the area. For Hilltop Supermarket, having a pharmacy as an addition to his grocery store will be “breaking new ground”. “I know about the grocery business, but I don’t know a lot about running a pharmacy,” Jackson said. “The pharmacy will occupy space in our store, but it will be run and managed by someone else who has been successful with other pharmacies in the area.”
- In Ellensburg, Washington – Whole Health Pharmacy was recently opened by two local pharmacists who saw a tremendous opportunity after the local Downtown Pharmacy closed their doors this past October. Both of the new pharmacy’s owners had previously worked at the now defunct Downtown Pharmacy and knew that this was the “chance of a lifetime” to both help their community and open up a successful retail community drugstore.
- In Dayton, Ohio – Wright-Patt’s Kittyhawk Pharmacy opened its doors for business (although the official “ribbon cutting” will actually take place on December 12th). The new $10 million facility was actually upgraded with a modernized drive through lane, plus new dispensing apparatus that will enhance both dispensing safety and double the prescription processing space. While focusing on diabetic supplies, the owners are hoping that the increased efficiency alone will pay for the upgrades over time (plus increase their local market share of customers).
Changes in Ownership Also Rapidly Increasing in Pharmacy
In addition to the rapid pace of new pharmacy practices being recently started and established, there is also an increasing frequency of established pharmacies being sold, bought and reorganized under new ownership and management. Once again, simply scanning the past several weeks reveals numerous examples to consider.
1. In Cleveland, Ohio – Dave’s Mercado Pharmacy (owned by Dave’s Supermarket Inc.) was sold to Neighborhood Family Practice. The new owners have announced that they will be expanding the pharmacy’s business hours, plus adding several new services. Currently the pharmacy is undergoing an extensive remodeling, but will reopen in January of 2019 under the new name of the Neighborhood Family Practice Pharmacy. Interestingly, the store was originally founded all the way back in 1930 and renamed Dave’s Mercado in an effort to attract the Hispanic population in the area as customers.
2. In Bull Shoals, Arkansas – Lake Side Pharmacy was purchased from previous owner Steve Thomas (who owned the drugstore for approximately thirty years) Thomas sold the pharmacy in order to retire, and the new owner (Layne Hawkins) has a PharmD degree and vast previous experience as an independent pharmacist.
Starting a Drugstore or Buying an Existing Pharmacy
If you are considering a pharmacy startup or the purchase of an existing drugstore in 2019, then consider asking yourself several basic questions. Your answers may make the difference between your pharmacy becoming a successful business venture versus it being a disappointing failure and a loss of money.
1. How much money and funding will I need and where will it come from?
Your answer should include all of the possible initial startup or acquirement costs, plus take into consideration such ongoing costs as staffing (if necessary) and marketing. If this is your first business venture, are there additional costs that you may not have thought of? How much debt or equity are realistic? How best to obtain funding should you need it?
2. Do I need a written pharmacy business plan?
The answer is YES! Whether starting up a pharmacy business or purchasing an existing drugstore, every successful entrepreneur knows that in order to become successful one must write a solid business plan. In addition to being a “road map to success”, a solid business plan can help you get the funding from lenders that may be required.
2. What experts will I need?
You may have already considered an accountant and an attorney, BUT the most important expert of all is a seasoned Pharmacy Consultant on your team. HCC is known for being a national leader in helping pharmacy owners plan, purchase, setup and staff their pharmacies nationwide. Having helped open hundreds of new pharmacies and pharmacy startups, HCC ensures that all aspects of the business are covered and done right.
There are many factors to consider in the planning, execution and the long-term success of starting up or purchasing an existing pharmacy business. Planning and execution are the keys to a drugstore being opened and becoming a successful business. Some of the considerations and tasks that Healthcare Consultants Pharmacy Staffing can provide include:
– Creation and review of a business plan
– Evaluation of proposed business location
– Design recommendations
– Obtaining financing
– Assistance and guidance in the application process
– Provide a Pharmacy Manger for both the application process and inspection
– Provide a list of equipment and supplies (both for the Board of Pharmacy inspection and the actual Pharmacy operations)
– Make arrangements for the final inspection of the facility (including a mock-inspection)
– Suggestions for vendors
– Provide legal support
– Provide staffing
If you are considering starting up or purchasing a pharmacy in 2019, we strongly urge you to get in touch with us today for a free consultation. We offer you the support of an experienced staff who have been through the process numerous times and know the business inside and out! With over 29 years of experience, Healthcare Consultants Pharmacy Staffing has helped hundreds of business owners (both pharmacists and non-pharmacists alike) establish successful businesses over the years. Contact us now online or call us today at (800) 642-1652 to discuss how we can help you.