Entering the Pharmacy Business-Do I Build or Buy?

Entering the Pharmacy Business- Do I Build or Buy?
So you want to be in the pharmacy business. You have a passion, you know you could provide better service to patients, you have a unique idea, or you see a void in the market. Perhaps it is an opportunity just waiting for someone to take advantage.
No matter what your reason, as you begin assembling your thoughts, or you are doing your homework or beginning your business plan, the question eventually will come down to “ Should I Build or Buy”.
If you ask many of the experts, or read many of the articles, they will invariably tell you that conventional wisdom will dictate that you buy an existing business. Hands Down!
I will tell you with out any hesitation, that is a superficial judgment. Often these experts are business brokers. “If all you have is a hammer, every problem will look like a nail”. That is because they sell pharmacies. Our company provides both services because not every problem is a nail and the more options you have, the best chance of finding the right fit for your goals. We are a resource of pharmacists for pharmacies, and we have found that over many years of working with a wide variety of clients, that each client is different. In the next five weeks, I will highlight some of the pluses and minuses of both Building and Buying a pharmacy. This five week series will be broken down into
Week One – “The industry wisdom”, advantages of buying an existing Pharmacy
Week Two- “I have a Dream”- The advantages of Building your own Pharmacy
Week Three- “I didn’t see that pothole”- the disadvantages of buying an existing pharmacy
Week Four- “I think I am going to stand in traffic” – The disadvantages of starting brand new.
Week Five- “Decisions, Decisions”- How do I know what is right for me?
PS. Yes this is a shameless plug! If you are in the middle of this process and don’t have time to wait for the five weeks, you can call us and we’ll be happy to assist you with the process.
1 800.642.1652 Dean A. Pedalino R.Ph., C.Ph., FASCP

Now that you have a clearly defined goal, and you are sure that it is Time to Sell, Your Pharmacy, are you prepared to sell?
What can I do to improve my pharmacy’s marketability?1. Curb Appeal,a. Just like in real estate, “if I was looking to buy a pharmacy, would I buy this pharmacy. b. Pictures will often be used to profile your pharmacy, and pictures hide a lot. However the worst thing is to have someone see great pictures and be enthused, then see the pharmacy and it is disheveled, unorganized and cluttered. That is a sure way of negotiating your price down and getting less than you deserve. c. Does your pharmacy look clean and is your equipment in good working order. 2. You can’t sell what you can’t show. Financials, can you easily produce your financial reports? b. Are they in good order?c. Are your price updates currentd. Are your invoices from vendors organized and retrievable
3. Inventorya. When was the last time you did and inventoryb. Is your inventory clean or filled with outdated or unsalable merchandise.
4. Leasea. Is you lease transferableb. Is your lease attractive to a buyer or will a buyer have to worry about moving in a few yearsc. Can you negotiate extensions
Last notes, it is always better to sell a pharmacy when it is on the upswing rather then losing business. Make sure that once you consider that “It is Time to Sell” your pharmacy that is when you should continue your growth plans, and increase your marketing. Wouldn’t you want to buy a pharmacy that showed future promise?
By: Dean A. Pedalino R.Ph. Hcc Pharmacy Business Solutions
Be Sure Not to Miss Our Next article:“ Build or Buy” The good, the bad and how to determine what is right for you.

Is It Time To Sell Your Pharmacy

Welcome to the first Article from HCC Pharmacy Business Solutions and Pharmacy Matchmakers. Is It Time To Sell Your Pharmacy? Part 1 by Dean A. Pedalino R.Ph, C.Ph. FASCP

Selling or buying a pharmacy? The phrase “Timing is Everything” is as tried and true an aphorism as any you will ever hear.
No where is it more true than in the purchase or sale of a pharmacy.
We have all heard the stories of the Pharmacist who “Made a killing” on the sale of his pharmacy. Boy wasn’t he in the right spot at the right time!
We have also heard of the good pharmacy that just declined and they couldn’t give the pharmacy away. While we have all heard these stories and there are good examples of both, they are the exception rather than the rule.
In actuality, the majority of pharmacies that consider “Is it Time to Sell” fall somewhere in between these two examples. The good news is there are definite steps you can take to move towards having the more attractive selling pharmacy, but more importantly there are definite steps you can take to avoid being the latter.
Possibly the most important thing you can do once you determine, It is Time to Sell, is to sit down and clearly define your goal. Sure it is to sell your pharmacy, but clearly the highest bidder is not everyone’s goal. It will be different to everyone. Some examples:- I want the pharmacy to remain independent- I want the name or Legacy to carry on- My employees have been with me a long time, how do I assure they are secure- I want to pass the pharmacy on to a family member - I would consider taking on a junior partner- My clients have been loyal and helped with my success, how do I assure that any potential buyer shares my values and care for my patients
There are many things to consider and your situation will be different from anyone else’s. A good pharmacy consultant can help you with how to handle any one of these situations, but we will discuss the use of consultants in a subsequent article.
Now that you have a clearly defined goal, and you are sure that it is Time to Sell, are you prepared to sell?
Don't miss next weeks Part 2 and learn what you can do to improve your pharmacy's marketability.