More on: finding sales opportunities! Where are the growth areas or the best areas to buy for a young pharmacist?

If you have done your homework and a thorough due diligence then (within reasonable confidence limits) the business should deliver minimum surprises.

However, possible dangers could include:

Poorer financial performance than your expectations Competitor reaction (testing the new owner) Poor leadership and management

The challenge of ownership is to live, learn and anticipate — being mindful of the threats without being fearful of them can be a positive impe…read more

What are some of the perks of ownership? Tax write offs? Free goods?

If you ask a banker how much you need to bring to the table, the typical answer would be 25% of the total cash needs for the transaction. By preparing a solid, conservative Loan Proposal, 10-20% has been acceptable.

For an average pharmacy with say a $2,000,000 turnover and say a $1,500,000 value, this means you will need approximately $375,000 in cash or unencumbered equity in other assets (i.e. your home).…read more

I need more information on the financial management of a pharmacy?

Normally the Heads of Agreement or the Contract of Sale will address this specifically. Don't sign a deal that doesn't allow for withdrawal if a lease is not forthcoming on or before settlement date.

Is opening a pharmacy in a Medical Centre a good idea?

The best perk of ownership to me, is that I can change the way I do things when and however I want to. Just as an example, if I want to introduce a new service or department, I can. But, I also know the risks and have the responsibility for failures or poor choices.

Are there other professionals that I need to hire like a lawyer and/or accountant? How do I hire/identify who I should hire?

Assemble as an advisory team consisting of an accountant, banker, insurance agent, a lawyer, and a pharmacy mentor (pharmacy related person and a close business-oriented friend). Interview several local accountants to find a good chemistry.

Have a plan in mind to counter any adverse trends. It is often beneficial for the accountant to have experience with pharmacy.…read more