In the world of pharmacy, it can be really tough out there for the independents, but many who own independent pharmacies believe it's worth it, especially those who have a thing about being their own bosses. When starting a pharmacy as a prospective owner, you have basically two options: going independent or with a chain (franchise) operation. There are advantages to both.
Pros and Cons of Going Independent
Opening an independent pharmacy puts all the risk on your own shoulders, but you also have the opportunity to enjoy the lion's share of the rewards. Whether your idea is starting a pharmacy from scratch and building your business from the ground up or taking over an already existing enterprise, when you're the owner, you call the shots and run things as you see fit.
Buying an established pharmacy will typically be costlier than building one from scratch, but this type of setup comes with an existing customer base and employees who may be willing to come to work for you, saving both time and money in the hiring of a new staff. You'll also have previously established relationships with vendors and drug wholesalers and, in many cases, will already have the store's inventory in place on the shelves.
Pros and Cons of Chain Pharmacies
Buying into a franchise chain pharmacy can be an easier route to take than starting a pharmacy from scratch because you're not alone as you proceed along the way. Going into business under the banner of a well-known brand can give you a boost from the beginning. A franchise operation can provide you with a great deal of valuable assistance, including:
- Help with securing necessary financing
- Assistance in finding a good location for your store
- Help hiring a licensed, experienced pharmacist if needed and a staff of employees
- Assistance in establishing the needed contacts with merchandise vendors, equipment distributors, and drug wholesalers
Besides these important factors, a well-developed franchiser will have garnered a great deal of invaluable experience through helping others get started, and they'll be able to provide you with a proven track to run on so that you can get out of the blocks as quickly as possible. In addition, they won't just leave you hanging; they should be able to provide ongoing assistance, motivation, and future growth ideas. They, in effect, become your partner in developing a successful business.
If you're the type of person who likes to run the show and make all the important decisions, however, you may find running a franchise or chain pharmacy operation a little too restraining. When it's got their name out front on the sign above the door, they'll definitely want to have a say about how certain things are done. Although it's your business, you may not be able to operate just the way you'd like.
Independents are Coming Back!
The term "corner drugstore" used to mean the little Mom & Pop shop that had a soda fountain, sold newspapers and magazines, sundry items, and (by the way) prescription medications. Today, however, many of those stores have gone the way of the buggy whip and were bought out or phased out in favor or the big-box, grocery store, and other chain pharmacy operations. In the U.S., the top four of these—Walgreens, CVS, Walmart and Rite Aid—have a total of more than 50,000 pharmacies. According to Consumer Reports, though, these drug stores rank below the independents in speed, courtesy, accuracy, helpfulness, and knowledgeable pharmacists. Which group would you rather be associated with?
