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Opening your own pharmacy is an exciting venture, but remember, you're not in this alone. Connecting with industry professionals and seeking advice from those who've been in your shoes isn't just a good idea, it's essential.
Their wisdom and experience are invaluable, and reaching out to them early can make a world of difference in your journey to success.
Now is the time to consult (and possibly hire) the following professionals:
Initiating and nurturing these professional relationships early in your process of opening a pharmacy is crucial.
This proactive approach provides you with a supportive network, comprehensive guidance, and practical solutions. Additionally, engaging with industry mentors and thought leaders extends your reach into the pharmacy community, offering diverse perspectives and experiences.
These connections can be fostered by participating in industry events, joining professional organizations, and networking with fellow pharmacy entrepreneurs.
By combining professional consultation with industry mentorship, you significantly enhance your prospects for success in the competitive world of pharmacy business.
“Having knowledgeable pharmacy advisors on your team before starting or buying a pharmacy is paramount to optimize your success… The downside risks are too great to go down the path of ownership without the right team."
- Scotty Sykes, CPA at Sykes & Company P.A.
Adequate research and a detailed plan are necessary to start your own pharmacy business. Unfortunately, there is no crystal ball to tell you whether your investment will pay off. It is your responsibility to ensure that your pharmacy will be profitable and beneficial to your community.
In order to serve your customers, you have to know who they are and where to find them. Conducting market research uncovers several consumer insights including demographics, psychographics, traffic patterns, and more.
When looking at potential neighborhoods, consider the healthcare needs of the residents. Are you servicing an older community? Or perhaps one with an abundance of new families and children?
Consider potential clinical services you can offer your community, including:
Or, depending on your demographic, consider more niche services — like PreP injectables, travel vaccines, and pharmacogenomic testing.
Differentiate your store by specializing in your community’s needs, whether it be geriatrics, pediatrics, pregnancy, sports health, active lifestyle, etc. Remember, big chains already sell to everyone. How can you serve your community?
“I think if you want to be in business in the next 10 or 20 years, you’ve got to be creative in what you do. You’ve got to be more than just an access point for medications.”
- Rob Maher, Director of Pharmacy Services at Klingensmith's Drug Stores
Market research will help you determine your best location options.
Your business plan should include enough detail for readers to capture the entire scope of your business, but concise enough to read in one sitting. Refer to the U.S. Small Business Administration for more guidance in writing your business plan.
Aside from initial expenses, you will also need to maintain recurring costs — which, as NCPA reports, can reach up to $230,000 per month.
Once you've secured the necessary funding, it’s important to establish a business bank account.
This ensures a clear separation between your personal and business finances, making tax reporting easier and providing a professional avenue for transactions. It also helps you manage cash flow efficiently.
Keep in mind that it may take several months after opening your doors to begin generating profit. Liquidity is key in your first year of business to ensure you do not run into any cash flow problems.
After you secure funding, turn to legal and operational requirements. First and foremost, start by deciding on the type of business you want to run.
Choosing the type of business structure you want for your pharmacy depends on the amount of legal liability you desire, tax liability, and how much you are willing to spend on ongoing costs of formation and administration, according to Entrepreneur.
There are four common types of companies you can classify your pharmacy as:
Independent pharmacy is always changing, and it’s important that you stay on top of those changes. From compliance changes to provider status updates, new laws and regulations are opening up new opportunities for pharmacists.
Stay up-to-date with our Pharmacy Laws & Regulations page, which provides both federal and state-specific changes.
Great amounts of research will go into selecting the perfect store location, whether you choose to rent, buy, or build. Visibility and accessibility of the store will be critical to ensure you get the most amount of traffic possible.
You may consider setting up shop near a large chain pharmacy or charting the waters in an underserved neighborhood in your area. In any case, try to find a location with:
Once you have made your decision, it is now time to make the financial transaction and officially call the store your own.
Make sure that you have all of the proper licenses and insurance required for owning or leasing property.
Hear honest advice from Pharmacy Matchmaker and Multi-Location Owner, Jeff Harrell
Workflow:
Storage and Organization:
Front-End Design:
Accessibility:
Customer Flow:
Lighting and Ambience:
“No one wants to go into a pharmacy that looks like it’s barely hanging on... No one is going to stop for you unless your exterior is sparkling, your interior is clean, and your front-end is well-merchandised.”
- Gabe Trahan, Former NCPA Senior Director of Store Operations & Marketing
Hiring the right employees is an investment in the success of your business. It is important to establish a well-thought-out hiring process from the beginning and be consistent in your search. By picking and training the best team from the start, you can prevent a high turnover rate and retain your employees.
Write an employee manual that outlines both job descriptions and your pharmacy’s values, policies, and procedures. Because you are starting from scratch, you have the exciting privilege of creating your own company culture. You want to find people who will thrive in that culture.
“Hiring the right people for the right seats in the pharmacy isn’t just important…it’s EVERYTHING! While we’d all love for hiring to be a ‘science,’ the hard truth is that it’s more an ‘art.’ However, when owners, leaders, and managers get clear on the mission, vision, and values of the business, it becomes easier to hire for alignment. When you have alignment, the team can be unstoppable…”
- Kelley Babcock and Terri Novell, Founders of Leadership Growth Formula
Beyond initial qualifications, look for candidates who share your values and passion for independent pharmacy. These individuals are responsible for your store’s success by engaging the community and turning them into loyal customers.
The size of your pharmacy will determine the number of individuals you hire. At the very minimum, you need to have a Licensed Pharmacist and Technician at your store. You may decide to hire more than one of each initially or in the future.
Once you have selected your team, lead them through a detailed training process that outlines a clear task hierarchy.
Make sure to touch on ongoing tasks that can be done when the main work is finished- this will increase efficiency by making sure your staff is always keeping busy. Keep in mind that training is not a “one-time” event.
You should be continuously educating your staff and refreshing their skills to stay up-to-date.
Taking time for open, two-way communication about each individual’s performance will make your staff feel appreciated and also give them pointers on how to improve. Establishing trust and creating an environment where your staff is comfortable asking questions will go a long way towards empowering your team.
A good tactic to consider is continuous performance management instead of the typical annual review which leaves gaps in feedback.
Motivate your employees even further by challenging and rewarding them. If they have been chosen as a part of your team, they will have the passion to actually make a difference in the community. Keeping an encouraging work environment that promotes growth will instill the right values and set your team up for success.
Starting your own pharmacy is just like buying your first home – once you purchase it, you need to get everything that goes inside. This can seem overwhelming, but connecting with the right partners and resources will make your life easier and provide you with the best options for your pharmacy.
Your partnership with your wholesaler will directly affect your profitability. Building a strong relationship will go a long way in ensuring a stable, reliable inventory. When choosing a wholesaler, think about their proximity to your store, delivery schedules, and billing cycles.
Other factors to consider are cost, customer service, products available for sale, and any discounts/incentives they may offer. If you join a PSAO, they typically provide guidance and contracting services to help you select a wholesaler that best fits your pharmacy’s needs.
Sometimes it may be necessary for a pharmacy to rely on multiple wholesalers. This could be due to price changes or availability of items.
With PioneerRx, the software is equipped to automatically compare providers and manage inventory orders based on the current information available.
"I think we're at the beginning of a revitalization for community pharmacy...and what we need in our software vendor is someone that has no boundaries in what they can help us accomplish...And PioneerRx fits that mold."
- Thad Schumacher, PioneerRx User
Having the right tools and technology in your pharmacy allows you to innovate your workflow, gain loyal customers, and allocate time and resources efficiently.
When opening a new independent pharmacy and selecting your pharmacy management system, it is vital to find a system that will grow with you. Think about where you see your business 5, 10, 15 years down the road. Will your pharmacy system be able to keep up?
Make sure to also consider what features are included vs. what are add-ons. Are you going to spend even more money buying all the necessities for your system?
PioneerRx Pharmacy Software is the #1 software chosen by independent pharmacists to open their new stores with. Let us show you our passion for saving and revitalizing independent pharmacy and explore our full list of pharmacy features.
To further optimize your pharmacy system, you may decide to incorporate additional technology. Our mobile apps give you the flexibility to bring your workstation with you anywhere in the pharmacy – or outside of the pharmacy!
Choose from valuable additions like HIPAA-Compliant 2-Way Messaging, Mobile Refills, Patient Counseling, Mobile Delivery, Drive-Thru, and Mobile Inventory. PioneerRx also partners with around 70 technology vendors to provide products that integrate seamlessly with our software.
From automation to inventory to IVR and more, we connect you with the tools you need to take your pharmacy to the next level.
Every small business budget, no matter how limited, needs a line for marketing. Loyal customers are formed through trust, and how can customers trust you if they don’t know you exist? Your marketing effort will slowly build over time, but there are a few key areas to start thinking about from the start:
When you are trying to find out more about a business, where do you usually start? Most people immediately look online to find a website with more information. In today’s market, having a website is crucial for becoming a key contender in the competition.
Again, this can start off very simple and progressively expand alongside your growing business. You may also consider utilizing social media platforms such as Facebook, Twitter, and Instagram.
Getting the word out there and creating a brand image will establish your pharmacy’s credibility and outreach potential. Make sure that your branding is easily recognizable and cohesive across all platforms.
“I think you need to go where your customers are, and your customers are online. We see evidence of it every day… People are looking for you, so you need to be there.”
- Debbie Hamby, Marketing Director of Parkland Pharmacy
As an independent pharmacy, you already have the potential for a niche value that can set you apart from the typical chain pharmacies. However, this value is worthless if people do not know about it.
Many patients are simply unaware of the unique services that a community pharmacy can offer them. From the start, you need to assess your local competition and differentiate your pharmacy’s services from the others in your area.
Then make those services known- don’t be afraid to be proud of your work! Make it a point to also strengthen your personal touch. Build meaningful relationships with your customers that will foster loyalty and allow you to better serve them.
Paid advertising is important, but community engagement is key to starting an independent pharmacy.
Talk to other independent businesses in your area and build relationships with healthcare providers and professionals.
Forming a strong network will tie you into what is going on in your community and give insights on how to best operate your business.
Find opportunities to participate in local events and get to know potential customers. You should also consider getting involved in local government boards or joining pharmacy organizations.
Once you have proved your value to potential customers, incentives are a good way to transform them into long-term customers.
Offering discounts, having a referral rewards program, and providing free routine health screenings are all ways your pharmacy can show customers you care while still growing your business.
Referrals will expand your customer reach and boost credibility, and free screenings can guide participants to fill any resulting prescriptions at your store. This is your chance to impress them!
Every store’s marketing strategy will be unique – so use these tips as a guideline to creating the best plan for your pharmacy.
After countless hours of planning and preparation – you are ready to open your doors!
Well, sort of.
About a month before your open date, conduct a soft opening for only a few customers. Inevitably, there will be hiccups when opening your pharmacy. Soft openings act as a grace period for staff to master their routines and to ensure that all processes are working smoothly. Soft openings allow you to tackle road bumps immediately with only a few patients, rather than delaying a lengthening line of customers. This period of time allows you to focus on details and last minute tasks so that your grand opening is polished and successful. In preparation for the big day, make sure you spread the word so people are aware of when the grand opening will be. Also, work on building relationships with other local businesses and potential customers so you have a network before opening your doors.
Opening your pharmacy’s doors for business is an exciting day for you and your staff. Make it an exciting day for your new customers, as well!Host fun events for your entire community to see what your new business is all about.
Do anything that you can to attract your target market and show your community that you have arrived.
A first impression is a lasting impression, and this is your pharmacy’s first chance to spark lasting relationships within your community.
Fuel your passion for pharmacy by learning from a variety of enthusiastic, trailblazing leaders in the independent pharmacy industry. These pharmacy professionals and business owners have found their niche and succeeded in bringing their visions to life. Now it’s your turn.
He’s known as the pharmacist who doesn’t like drugs. Rather, Josh Rimany is a fan of functional medicine — so much so that his business model revolves around it. At his Charlotte, NC store, Dilworth Drug & Wellness Center, Josh offers a wide range of services: from nutrition assessments to food sensitivity tests to pharmacogenomics and more. Each service, though, is designed to help patients achieve optimal health: not through masking symptoms but through finding the root cause of their sickness. When he’s not behind the counter, Josh can be found spending time with his 2 girls and sharing his passions on his podcast, Functional Rx.
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