The pharmacy business, as well as throughout the world, is measured in billions of dollars, and every year the turnover in the pharmacy business grows by about a quarter.
The pharmacy business idea is one of the most profitable, but also quite complex.
The pharmacy business is complicated by the fact that it is directly related to people’s health and requires licensing and special knowledge. In addition, high competition in this type of business often forces entrepreneurs to close unprofitable points of sale.
To avoid losses and create a profitable business, you must first conduct market research and make sure that you can work in this area.
Forms of implementing a pharmacy business idea can be very different:
- pharmacy store or pharmacy kiosk.
The law singles out a pharmacy and a drugstore as business forms that require licensing.
It is quite difficult to obtain a license to open a pharmacy or pharmacy. This is primarily due to the level of qualification of the staff.
Pharmacy employees must have not only a higher pharmaceutical education, but also work experience in their specialty for at least 5 years.
These requirements are related to the fact that in a pharmacy and pharmacy point, medicines can be made according to prescriptions from doctors. Such work can be performed only by people with special education. Naturally, the sale of prescription drugs allows you to attract the largest number of buyers.
Less stringent requirements apply to pharmacy kiosks and pharmacy stores.
These points of sale can only sell medicines without a doctor’s prescription, hygiene items, as well as have homeopathic medicines, various dietary supplements, and so on.
Due to the high competition in the pharmacy business, it is often easier to open a pharmacy in one of the pharmacy chains.
This allows you to immediately get to work using the promoted brand of the pharmacy chain. Many pharmacy chains offer partners to work using a franchise.
On the part of buyers, confidence in large pharmacy chains is much higher than in private pharmacies.
If an entrepreneur wants to implement the pharmacy business idea on his own, but still have a high level of customer confidence, he can open a pharmacy and then join a non-profit association such as Soyuzpharm.
This form of doing business allows you to maintain independence while using a network brand.
Participation in the network business is also beneficial because medicines can be obtained through reliable and proven channels. It’s no secret that the drug market is flooded with fakes that are not only useless for customers, but also undermine the credibility of private pharmacies.
The profitability of a pharmacy business idea largely depends on the form of sale of medicines.
The most profitable is the sale of medicines from open windows, as in this case, sales volumes grow by 20-30 percent. Typically, pharmacy stores use this form of sales, however, many network pharmacies also use open sales, allocating 1 or 2 windows for prescription drugs.
In this regard, we note that the sale of prescription drugs is also associated with an increased level of safety requirements for the storage of special and narcotic drugs.
The profitability of a pharmacy business idea is on average about 20-25 percent.
However, the profitability of this type of business depends on many parameters, which marketing research will help to identify . The ever-growing number of pharmacies clearly demonstrates that the pharmacy business continues to be one of the most profitable areas for start-up entrepreneurs.