The global pharmacy market has grown significantly, especially after the pandemic.
Starting a pharmacy business is no easy task considering the finances and licenses involved. It will be even more difficult if you don’t have a proper team to share your vision.
The good news is that running a profitable pharmacy business is not impossible provided you have a practical plan.
Given below are a few tips to help you grow yours!
1. Be Committed
As a business owner, you should be one hundred percent committed to your business.
Don’t start a pharmacy business if you think it is going to be easier than your typical 9-5 job.
In the first few months, you will have to work 24/7 and even forgo a steady salary. You might have to perform all the tasks from making accounts to restocking your inventory till you have the funds to employ a proper team.
You will find yourself working every minute of the day whether it is answering phone calls, taking orders or dealing with paperwork.
It is important to stay focused and not give up even when you feel like it is too much work.
2. Perform Market Research
You might know how to prescribe the right medicines but do you know how to sell them?
Conducting thorough market research is an important step that you should never skip, especially if you have no previous experience running a business.
It will help you with the following things,
- Segregating and targeting your customers depending upon the percentage of medicines consumed by each demographic group.
- Finding out different ways to bring down distribution and procurement costs.
- Methods for funding inventory purchases.
- Identifying medications which are in high demand.
- Strategies used by successful pharmaceutical companies to grow their businesses.
Identify the marketing strategies which you can employ to launch your business and generate sales.
3. Set Goals
Set business goals which are practical, achievable and specific. You will know what you are aiming towards and the direction you should take to hit targets quickly.
Make sure each short-term and long-term goal has a timeline. For example, you can have a goal to increase your pharmacy’s revenue by 30% every year.
Specify the methods or factors which will be used to measure and determine the success of each one. The overall business plan and the strategies you employ should revolve around these goals.
They don’t have to be restricted to finances but can involve employee, capital, inventory and marketing goals.
4. Be Accessible
You should be accessible at all times since you are the owner and have the ultimate say in your business.
All your employees and suppliers should have your contacts. Keep a separate phone for your business contacts. Have it with you all the time even when you are not physically present in your office.
If an emergency or any situation where your say is required comes up, you have to be reachable.
5. Train Your Employees
Lack of workplace training will affect your business even if you have done everything else right.
Employees who work in a pharmacy business should be qualified and certified. Many business owners don’t invest in employee training in order to save money but they end up losing more money due to poor work performance.
Some other consequences include,
- Increased work-related stress.
- Poor quality services.
- Customer dissatisfaction.
- Increased tendency of employees to quit.
- More conflicts between employees.
- Chances of legal issues or lawsuits.
6. Be Organized
Every pharmacy business should have a plan for special circumstances and emergencies.
Every employee should possess a copy of the plan and follow all the safety policies which are outlined in it. You should review the plan and check whether you have accounted for all the possible emergencies.
If there is a sudden drop in medicine stocks or you failed to receive them on time, you will need to have a backup provider or supplier.
Pharmacy businesses also face the common issue of running out of storage options or space for their extra stock.
Reputed companies like InnerSpace Healthcare can help provide you with the innovative and necessary equipment for situations like these.
7. Outsource Operations
Eventually, you will be unable to perform everything on your own and you will need more time to focus on managing your business.
That’s why, when your company starts bringing solid profits, you should consider outsourcing certain operations.
Outsourcing can also help you reduce overall expenses. Make sure you outsource your work to a professional company that knows the rules and procedures and produces quality results.
You will be able to access improved distribution and transportation facilities.
Do thorough research on good CRO’s and CMO’s you can partner up with.
8. Utilize Technology
Using technology will help you set your company apart from its competitors and help in efficient management. Incorporating services like telecare where customers can purchase medicines digitally can help save time and money.
It will also help you,
- Keeping account of inventory stocks online.
- Recording the previous medical prescriptions of each patient.
- Automating slow manual processes and track patients.
9. Maintain Authority
As the owner of your business, you should establish your authority in the workplace. Make sure you are clear about what you expect your employees to do and ensure that each person does their job.
You can be friendly with your co-workers but make sure you establish proper boundaries. Train your subordinates to handle each department and maintain a line of command.
10. Hold Monthly Review Meetings
Hold review meetings once a month with all your employees.
This will help you track how each department is doing whether it is marketing, sales or advertising.
It will help you review your business performance and check whether it is producing the expected outcome or meeting its monthly targets.
If your business isn’t growing as expected, you should check where you are going wrong and modify your strategy accordingly.
Make sure you reach out to people who run pharmacies or have contacts in the industry.
You can even consider hiring a business advisor who specializes in this field.