Presentation to uniPHARM | pharmacyownership.ca followed by panel discussion

1. retailSOS.ca | Gerry Spitzner
October 14, 2012

2. You have decided that you want to run
a community Pharmacy - now decide
how you will achieve this.
Will you:
• buy an existing business
• start up a new business from scratch
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3.  Will you be doing this alone, or with one or more
partners? How much financing can you get together
(collectively)?
 What experience do you (and/or your partners) have in
running a Pharmacy? Which type of community would
you like to serve (and live in)?
 Will you need to hire a Pharmacist or additional
Pharmacists to comply with legal requirements and
coverage of your open hours?
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4.  What does your ideal store look like? How big, where,
opening hours, what professional services to offer
other than dispensing?
 Will it be a “full mix” drug store, health centre, simply
Pharmacy or central fill?
 How will you deal with...
◦ sick leave and holidays, advertising and marketing, growth
opportunities, business development, pricing policy, staff,
bookkeeping, website, wholesaler and all the other
operational details of running a Pharmacy?
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5.  Location, location, location.
◦ A good location depends on whether your ideal Pharmacy is
urban, suburban or rural: foot traffic and/or parking
possibilities, other businesses in the area to draw traffic (like
a supermarket), line- of-sight to a doctor’s office or other
origin for prescriptions like a hospital.
 Are there any long term (zoning or construction) plans
which might affect the suitability of the location?
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6.  The goodwill of an established Pharmacy is influenced
by...
◦ how long it has been open; how long it has been under the
current ownership; what type of relationship the owner had
with his clients and community; what services (professional
or “front shop”) they offer apart from dispensing medications.
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7.  A new owner usually enjoys the same current
prescription activity, sales and profit; unless
something drastic happens.
 It’s often easier to transfer contracts, permits and
registrations than to apply for new ones; if local laws
allow this.
 Partnering with a retiring Pharmacist/owner can help
you build your business experience, if this is not your
strongest point.
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8.  Again, location. And the same points as above.
◦ Do the zoning laws allow for a retail Pharmacy at the proposed
location?
◦ Renting space from a diagnostic and treatment centre might
be good for “leapfrog” traffic, but beware of self-referral and
anti-kickback statutes.
 How much lease hold, renovation or interior changes
are necessary to comply with space and layout
requirements?
 Consult a lawyer and/or accountant on the company
form which gives you the best tax advantages.
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9.  The lease can make or break any new business.
◦ Reasonable rent is essential to keep overheads as low as
possible while building a reputation and client base for a
starting Pharmacy.
◦ The optimal length of the lease is a fine line which influences
your eventual exit strategy.
 Make sure your initial loan or financial package
includes enough working capital to cover expenses
like salaries and wholesale purchases until the money
starts coming in.
◦ Modesty here can cost you dearly in the long run.
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10.  Supermarkets, mass merchandisers and Pharmacy
chains are likely to keep competition keen for the
independent Pharmacist.
 The Government's plans for pharmacy include an
enhanced role for Pharmacists.
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11.  The aging population and ongoing shortage of
physicians will strengthen the demand for Pharmacy
services.
◦ Community Pharmacy will be the centre of health care and
Pharmacists will focus more and more on disease
management.
◦ Government has recognized that Pharmacists are the most
accessible and under utilized healthcare professionals.
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12.  Is owning a community Pharmacy still possible in the
world of today?
 With the current economic conditions, is this a good
time to be financing your Pharmacy vision?
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13.  Yes!
◦ It is not exactly easy – buying or starting a Pharmacy is a
challenge; involving many different risk factors.
◦ But so is parenting. Don’t miss out on the personal and
financial rewards just because the unknown risks put you off.
◦ With trustworthy guidance and support you can make your
vision a reality.
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14.  Follow Twitter: @passion4retail
 Connect LinkedIn: Gerry Spitzner
 Web: retailSOS.ca
 Blog: gerryspitzner.com
 Email: gerry@retailsos.ca
 Online Biz Card: gerryspitzner.tel
 Online Biz Card: retailSOS.tel
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15.  retailSOS.ca is a Vancouver-based retail consultancy guiding
Pharmacy owners to create, engage and retain great customers
by doing the right thing extraordinarily well.
 Gerry Spitzner works as a management consultant supporting
community Pharmacy owners to achieve results by aligning
their vision and implementing marketing strategy with
operational execution.
 Drawing on 35+ years experience in drug store multi-site retail
operations, Pharmacy ownership and Pharmaceutical
wholesale supply-chain; Gerry brings the leadership, knowledge
and market awareness of ownership and business development
to Pharmacy owners to achieve growth objectives.
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