There are several important steps to open an independent pharmacy business in 2022. Opening your own independent pharmacy is a great way to provide valuable medical services to your community. Simultaneously, starting your own business from scratch is often faster and less expensive than buying an existing company. With the right process, you can move from signing a lease to cutting your grand opening ribbon in just six months. As a pharmaceutical entrepreneur, you need to know the proper steps to open your own company. This way, you can start to see a positive cash flow. Read on to learn about how to start an independent pharmacy business in 2022.
Write Your Business Plan
First, you need to write your business plan before you start your independent pharmacy business. Start with big-picture elements such as your vision statement. Importantly, this short, aspirational statement clearly defines why your business exists. In your mission statement, you can get longer and more specific about how you plan to accomplish your goals. Include an objectives section to set specific parameters for success. For example, you can strive to hit a specific number of average prescriptions filled per day. You may also want to achieve a certain gross profit margin or sales target. As you writ youer business plan, you should also perform market research to get your community demographics, income stats, and unemployment ratings. Definitely, write your business plan to open your own independent pharmacy in 2022.
Understand Legal Requirements
Next, understand the legal requirements to start your own independent pharmacy business. For instance, you must apply for an employee identification number (EIN) so you can secure your legal business name. Once you have your EIN, apply for a national provider identifier (NPI). Then, assign a pharmacist-in-charge (PIC) to oversee your business. Importantly, you need this point-person before you can apply for your state pharmacy license. Indeed, the name on your license serves as your “Doing Business As” (DBA) name on all documents moving forward. Of course, you should also apply for a DEA certificate so you can legally dispense controlled substances. Consider talking with doctors near you to prepare to learn about working with HMO and PPO healthcare services. Absolutely, understand legal requirements to open your own independent pharmacy company.
In addition, you need to secure funding to start your own independent pharmacy business. For example, you can get loans from traditional lenders such as commercial banks, wholesalers, and the Small Business Administration. This is a great option if you have an initial upfront investment, good credit score, and sufficient working capital. Keep in mind that you may need roughly $300,000 in startup capital, separate from working capital. Typically, lenders want to see a minimum of 20-25% investment from you before they finance 70 to 80% of the loan. Importantly, this percentage needs to be liquid and available. Therefore, seek small business grants and create a savings plan to accumulate enough capital to get a loan. Absolutely, securing funding is key to start your own independent pharmacy business.
Select Your Wholesaler Or Buying Group
Moreover, select your wholesaler or buying group to get the right partner for your independent pharmacy business. Typically, pharmacy business owners find it beneficial to join a pharmacy buying group. Usually, the buying group takes the total book of business for its member pharmacies. Then, they can use this to negotiate pricing and services with wholesalers. By combining your purchase volume, they can get the wholesalers to fight for your business, rather than the other way around. This way, you can get better deals. Notably, some buying groups also provide other benefits such as a generic drug program, return policy, and services to help your pharmacy avoid hidden costs for owning business. In short, find a wholesaler or buying group who meets your independent pharmacy business needs as you start your company.
Design Your Interior
Furthermore, design your interior before you open your independent pharmacy company. Ideally, you should think about your workflow before you start installing any cabinets or closets. Think about how products will pass from the left, right, or center. In addition, account for different technology solutions such as a data entry station, POS system, and price check. Remember to think about if you want your pharmacy to have a drive-thru as well. Once you develop a layout, you can find a general contractor who’s accredited with the Better Business Bureau. Often, these professionals can help you choose flooring, lights, and counter materials to get your space ready. Plus, they can assist you as you look to comply with ADA and HIPAA. Certainly, design your interior before you open your independent pharmacy business in 2022.
There are several important steps to open an independent pharmacy business in 2022. First, you should write your business plan to get a sense of your objectives and target market. Next, understand legal requirements to follow small business legislation and secure the proper structures for your company. In addition, secure funding through small business loans and grants. Moreover, select a wholesaler or buying group to get the best product deals. Furthermore, design your interior to prepare your business for opening. Follow these steps to learn about how to open an independent pharmacy business in 2022.