Buying your first pharmacy can be daunting, and a very big investment decision too. Here are a few things to consider when you’re thinking of becoming a pharmacy business owner, so it’s the right decision for you and a solid business investment.
Be proactive to find the right pharmacy
While sometimes the right pharmacy opportunity will just appear, other times you have to be more proactive to unearth your dream pharmacy. Research, attend conferences, register for alerts, contact pharmacy brokers and network to ensure you hear about any pharmacies that are coming up for sale that meet your requirements.
How is a pharmacy’s value calculated?
You need to understand how the market values a pharmacy’s value, and the methodology behind that to calculate it. You can then make an informed decision about what you can offer in terms of price and what return you can expect on that investment. A specialist pharmacy financial adviser can help with the valuation.
Assemble your team of experts
Like any good heist movie, you need a team of experts. It’s a bit like this when it comes to buying a pharmacy. Pharmacy bankers, brokers and accountants who specialise in retail pharmacies, who have current and relevant industry knowledge, can help you make the right decisions.
What can I afford?
Affordability is one of the biggest and first questions to answer, when buying a pharmacy. Pharmacy banking specialists can advise you on your available capital and lending rates, plus any fees involved, so you have a clear picture of what to look for when buying.
Be “Finance Ready”
Once you have done an affordability assessment, it’s time to get your finance ready. Like any large purchase, you are a more desirable prospect, and the deal should progress quicker from offer acceptance to settlement, if you have the money ready to go. Speak to pharmacy bankers and finance brokers to get your capital and paperwork ready in anticipation of a deal.
Go through your figures
Even with a team of experts, you should not rely on other peoples’ calculations about the purchase without thoroughly understanding it yourself. This allows you to check and understand the purchasing figures involved. A proper due diligence will ensure you know what you’re paying for and also give you more information so that you can properly negotiate the price.
Build your business skills
Once you have bought a pharmacy, it’s time to ensure you have strong business ownership skills to guide the future performance of your pharmacy. Absorb as much knowledge as you can from courses, books, employees, colleagues and build a team of mentors and advisers to help guide you in the running of a successful pharmacy. Just because you’re a great pharmacist, it doesn’t necessarily transpire into running a profitable business.
Talk to us for all your pharmacy accounting and advisory needs
We are specialist pharmacy accountants and advisers in Toowong. We can help with acquisitions, valuations, cashflows, benchmarking and business improvements. Our specialised team has extensive pharmacy knowledge and is able to provide the skills and tools required to successfully compete in an environment that requires increasing efficiency, productivity and innovation.
Call us on (07) 33512 8888 to discuss your pharmacy’s business and financial needs.