Do you want to open a medical shop? If so, you are in the right place. Here we will find a detailed medical store business plan guide for beginners with costs, profit margin, licenses, setup, and much more.
Medical store business opportunity is perfect for those who are a chemist or has years of experience as a pharmacist. In this business there are so many types of commercial options are available apart from only medicine selling.
Is Medical Store Business Profitable?
Every year it is seen that the medical industry is growing all across the globe. It is only for increasing demand for medicine and related health care products and supplements. In the medical store business, the retail margin is very inspiring.
One can start a medical store business with extra value-added services like a doctor’s chamber, some testing facilities like blood pressure, oxygen supply, etc. As a startup, you can buy a franchise of established brands or you can start your own from scratch.
Here are the 10 Steps to Start A Medical Store Business
1. Understand the Local Market
Like any other business, it is most essential to collect as much information as possible regarding the local demand and level of competition around your location of the shop.
Conduct market research and find out the gaps that exist in the current market scenario. Accordingly, plan your medical shop business to utilize those gaps to your advantage.
2. Write a Medical Store Business Plan
Create a detailed plan for your business. Decide what range of medicines you will be keeping. What other services you will be offering to your clients. Calculate fixed costs and working capital. Decide the entire startup budget and expected revenue earnings.
Some of the basic aspects that your medical shop business plan must address are the following:
- Startup & recurring costs
- Your target customers
- Pricing Strategy
- Wher and how to sell?
3. Name Your Business
Determine a memorable and easy-to-spell name of your medical store business. Do remember, an attractive and catchy name is extremely critical to create a long term medical store brand in your locality.
4. Register Your Business
Decide on the business structure under which you are going to run your medical shop. Every country and state offers different business structure formations based on your resources and scale of operation.
It is advised to talk to a local attorney and ask for suggestions and advice. Select the business structure that perfectly fits your business venture.
5. Procure Licenses and Permits
In most countries, you need a number of licenses and permits to open and run a medical shop. Talk to local concerned authorities or take advice from professionals and obtain the required licenses.
6. Learn More on Medical Store Profit Margin
The profit margin for a pharmacy shop can be divided into two categories. One is the branded medicines and the other is generic medicines. It is generally around 15-25% for branded medicines. For generic medicines, it can be as high as 50%.
The profit also depends on the type of medicines and the price offerings of drug companies.
7. Medical Shop Setup
Location selection is an important factor in the medical store business. It is preferred to choose a location with a high density of residential population, not a commercial area.
Create a detailed floor plan layout of the storeroom, cash counter, customer waiting area, doctor’s chamber, and get your shop’s interior decorations done accordingly.
8. Procure Medical Items from Suppliers
Contact the local wholesaler or medicine manufacturing company to have the products. If you go for direct company supply definitely you will get a better margin but they will ask you for a higher-order quantity. To start with, it is advisable to go with medicine stockiest.
9. Hire Manpower
Hire skilled personnel having experience in the medicine retail segment. If you are not a chemist and starting your medical store business, then always remember, it is mandatory to keep a pharmacist on a full-time basis. Keep women employees. Your lady clients would prefer to interact with a lady about their personal requirements.
10. Promote Your Medical Store business
You can start the promotion by giving some local newspaper advertisements. You can think of some value-added services like an online order system and delivery at the client’s doorsteps.
Do not forget a create a website as it is a must nowadays for promoting your business.
Aged persons, who have regular requirement of medicine, will prefer this service. Offer discounts on the maximum retail price. Also, you can offer some promotional gifts for a certain amount of purchase.