Essentials Of A Medical Shop Business Plan
The pharmacy business is an evergreen business that is unaffected by any economic slowdowns or unfavorable market conditions. The statistics also point towards the exponential growth of the pharmacy business over the past decade, and as per analysis, the global pharmacy market is expected to display a robust growth of approximately 4.94% during 2018 to 2023, which is in the next few years. All of this indicates that the medical business is a great business opportunity to invest in, for all the entrepreneurs who are looking for a rewarding business idea that promises growth as well.
The other advantage of starting a medical shop is that it is one of those few businesses that is noble in nature as it provides medication to those in need and helps people recover from illnesses and diseases. Medical shops are thus a must for the well-being of the community. Also, with the growing number of speciality hospitals and clinics and medical professionals for specific illnesses and body parts, there is an equally growing demand for medical shops to meet the rising demand. The modern stressful and hectic lifestyle has further increased the number of health problems troubling people and this too adds to the rising demand for medical shops for lifestyle diseases and conditions too.
In order to open a medical store, entrepreneurs need to carry out planning for the business in advance as several vital elements and factors can be forgotten when a plan is not in place. A medical store business plan ensures that the objectives and goals of the business are noted down and a clear path has been chalked to achieve the said objectives and goals instead of having a vague business idea that exists only in the mind of the entrepreneur. A business plan is defined as a formal written document containing the details of the business, it’s goals, the methods on how these goals can be attained, and the time frame within which these goals need to be achieved. Business planning is vital because
- It helps to set up a structured business.
- A well-defined business plan helps save time and resources while setting up the business and also in the long run.
- The business plan is the first step to secure funding as it addresses all concerns of funding institutions.
- Business planning and the projections made in the business plan helps give an understanding of how the business will operate in the future.
- It helps to validate the assumptions made about the business and also determines if there is a need for the product or service.
These are some of the benefits of having a business plan in place before starting any business, including the medical shop business.
However, what is included in the business plan is also as important as having a business plan ready. There are several essentials that need to be included in the medical shop business plan and in order to ensure all these pointers are present in the plan, business plan services can be sought to help prepare a comprehensive and detailed document. Some of the factors to be included are discussed here.
Medical Shop Business Plan
Type Of Medical Business
There are a number of medical stores present in the market and starting one more store is an addition to the list. However, the business plan must elaborate on how is this medical store different, and on the exact type of store. There are a few different types of medical shops, such as-
- Hospital medical store which is located inside a hospital. This type of medical shop caters to the needs of the patients mostly inside the hospital.
- A standalone medical store which is the most commonly found form of medical store and is usually present in a residential area, catering to the residents in the area.
- Chain Pharmacy/ Franchise outlets is a medical store that is present in the malls and is usually part of a chain of pharmacies.
- Township medical store is a medical set-up in a township that helps cater to the needs of the people residing there.
The business plan can elaborate on the type of medical store that the entrepreneur wishes to setup.
Analysis Of The Location Of The Medical Store
The next important aspect to be included in the medical shop business plan is the location decided for setting up the medical shop. A study of the area and its community must be conducted and included in the business plan, to justify the location selected. The community study will include analysing the demographics, the economics of the locality, the presence of hospitals and doctor’s clinics in the area, the presence of competition in the area, etc. This will give an idea if the locality has the majority of geriatric patients or high-income families, etc and can help decide the kind of stock to keep in the store.
Additionally, the location must be easily accessible by customers. The store must be visible to people, even from a distance, and the store must also have parking space for the customers’ and the owner’s vehicles. The place must also have storage space to store the medicines as well as a display and counter space where the staff can attend the customers.
Also, while considering a commercial space for the medical shop, the price of the place, whether rent or purchase price, also needs to be considered and it should fit within the budget decided by the entrepreneur for the business. These criteria and analysis of the location must be mentioned in the medical shop business plan.
Financing The Medical Shop
The financial plan is an important aspect to consider and the details of it must be included in the medical shop business plan. The first part of it enlists all the capital requirements for the business. This includes details regarding the purchase or renting of the commercial space for the medical shop, the capital investment required for procuring the medicines. These medicines can be bought in bulk for lower rates directly from the manufacturer (provided there is a need for medicines in higher quantity) or the medicines can be bought from wholesalers and distributors who provide the stock at a higher price, as compared to manufacturers, but take orders for low quantities too. The other financial requirement includes the cost of furnishing the shop and purchasing the equipment. This includes the purchase of shelves, counters, cash registers, computers to maintain records, bags, inventory for the front of the store such as paper towels, OTC drugs and products, food, cleaning supplies, etc. Also, costs involved in hiring employees for the shop such as a pharmaceutical technician, a salesperson, an accountant must be accounted for and included in the business plan. The day to day recurring costs while running the business also need to be considered, such as electricity bills, phone bills, fuel bills while providing home delivery etc. All of these financial requirements need to be accounted for and mentioned in the business plan.
The next aspect includes details of how the capital requirements will be fulfilled. Entrepreneurs can either opt for bank loans or take loans from NBFCs (non-banking financial institutions) or even look for investors or open the shop from savings or borrowings from friends and family or approach institutions to help them procure funding.
While applying for loans, the business plan often needs to be presented to the authorising officials and therefore the business plan must be made meticulously, especially the financial details of the business must be mentioned in detail.
Legal Requirements For The Business
Information regarding the necessary registrations and permits required for the business and the steps taken to procure them must also be mentioned in the medical shop business plan. A pharmacy business, just like every other business, requires a business registration. It could either be a sole proprietorship or a partnership or a one person company or even a limited liability partnership, depending on the entrepreneur’s preference. The details of the business entity selected must be mentioned in the business plan.
The medical shop also requires a drug license or a pharmacy licence and this licence is provided based on the area of the shop, the storage facility and the technical staff at the shop. The details of this licence and it’s procurement must be mentioned in the business plan. Additionally, the business requires a GST registration as well as a Shop Act License, both of which must be mentioned in the business plan.
The mention of the required medical store licenses in the business plan displays that the entrepreneur is aware of the legal requirements for the business and has a plan to obtain the same. Also, since most of these registrations are mandatory, the mention about them in the business plan acts as a reminder to the entrepreneur to procure them at the earliest.
Additionally, the business plan for the medical shop must also include details about the proposed management for the business as well as the marketing of the business because these are vital elements of the business. Entrepreneurs can opt for business plan services from experts such as those at deAsra if they are unsure of how to start a medical shop.