Buy or Build a Pharmacy -Conclusion
Week Five- "Decisions, Decisions"- How do I know what is right for me?
We have come to the point where we have reviewed many of the positive aspects of buying an existing pharmacy. We have looked at many of the considerations that should be kept in mind that may cause problems or have a negative impact in the growth of your business when buying an existing pharmacy.
We have also looked at many of the positive things that inspire many to open a new pharmacy. Lastly, we looked at the drawbacks of starting up from scratch. Revenue, how quick will it come in?
Now what is the right decision for me?
As mentioned earlier in this series, conventional wisdom is if you are just looking for a pharmacy business and need to immediately replace lost income or off set existing costs then the immediate revenue provided by an existing business is an important consideration. Therefore the existing business must be a good ongoing business with sufficient stability to provide you with that income security.
As clients come to us from all spectrums of the pharmacy business and with all different types of business situations, we need to have a type of "litmus test" In which to discern which is the best way for our client’s situation? It usually comes down to this:
WHERE ARE YOUR PATIENTS COMING FROM?
If you are new to an area, are starting new, without contacts, or stable relationships, then the conventional wisdom probably applies to you.
However if you are well established, have solid relationships with referral sources or a very important consideration, have an existing customer base, then by all means build. We get many inquiries, from people who may have an established client base. For example, Long term care operators who have clients in their facilities and merely want to provide more consistent care, or an additional source of revenue. Physician groups or practices, DME companies and many other healthcare providers who have an established client base and want to expand their service offerings. In all these cases, it is certainly much more efficient and cost effective to build!
So just as one size fits all model doesn’t always apply and rarely provides you with the personal service and uniqueness often needed to set one out from the crowd, a simplistic one size fits all may work for the person looking to open a corner drugstore, but it does not work for the many disciplines and specialties available to the profession of pharmacy, or to the healthcare entities looking to expand their services to their clients. For new and more unique forms of pharmacy practices and creative business models to survive in these times, you want a company or consultant that has a wide enough service offering and sufficient experience to be able to provide you with the options that work for your business model and goals. In trying times the American people are creative and innovative! Keep those ideas coming and be sure to get proper assistance and guidance to get your business up and going and when we see your name in the headlines it is for only terrific grow, innovative thinking and excellent patient care.
Dean A. Pedalino R.Ph., C.PH., FASCP HCC Pharmacy Business Solutions
We have come to the point where we have reviewed many of the positive aspects of buying an existing pharmacy. We have looked at many of the considerations that should be kept in mind that may cause problems or have a negative impact in the growth of your business when buying an existing pharmacy.
We have also looked at many of the positive things that inspire many to open a new pharmacy. Lastly, we looked at the drawbacks of starting up from scratch. Revenue, how quick will it come in?
Now what is the right decision for me?
As mentioned earlier in this series, conventional wisdom is if you are just looking for a pharmacy business and need to immediately replace lost income or off set existing costs then the immediate revenue provided by an existing business is an important consideration. Therefore the existing business must be a good ongoing business with sufficient stability to provide you with that income security.
As clients come to us from all spectrums of the pharmacy business and with all different types of business situations, we need to have a type of "litmus test" In which to discern which is the best way for our client’s situation? It usually comes down to this:
WHERE ARE YOUR PATIENTS COMING FROM?
If you are new to an area, are starting new, without contacts, or stable relationships, then the conventional wisdom probably applies to you.
However if you are well established, have solid relationships with referral sources or a very important consideration, have an existing customer base, then by all means build. We get many inquiries, from people who may have an established client base. For example, Long term care operators who have clients in their facilities and merely want to provide more consistent care, or an additional source of revenue. Physician groups or practices, DME companies and many other healthcare providers who have an established client base and want to expand their service offerings. In all these cases, it is certainly much more efficient and cost effective to build!
So just as one size fits all model doesn’t always apply and rarely provides you with the personal service and uniqueness often needed to set one out from the crowd, a simplistic one size fits all may work for the person looking to open a corner drugstore, but it does not work for the many disciplines and specialties available to the profession of pharmacy, or to the healthcare entities looking to expand their services to their clients. For new and more unique forms of pharmacy practices and creative business models to survive in these times, you want a company or consultant that has a wide enough service offering and sufficient experience to be able to provide you with the options that work for your business model and goals. In trying times the American people are creative and innovative! Keep those ideas coming and be sure to get proper assistance and guidance to get your business up and going and when we see your name in the headlines it is for only terrific grow, innovative thinking and excellent patient care.
Dean A. Pedalino R.Ph., C.PH., FASCP HCC Pharmacy Business Solutions
Labels: Build a Pharmacy
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