Starting your Own Pharmacy?

james07 said:

What are the advantages and disadvantages of starting your own Pharmacy? Approximately how much can one aspect to make owning there own Pharmacy and how do you go about starting one? How long do you have to be a Pharmacist before your able to start your own?

-thanks in advance

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Take what i say with a grain of salt.
1. Advantage: you are your own boss. Disadvantage: you are required t take care of everything.
2. Similar to any pharmacist, with the chance to make more. Similar to opening any business.
3. As soon as you get your licence.

Advantages: You are your own boss, your salary is not limited by the number of hours that you work. If you come up with a nice business model that succeeds, then you could earn as much as you are willing to put into the business.

Disadvantages: Competition. Some customers will have bad experiences at retail stores, and you will have the chance to pick them up and make them loyal to your independent. It is all about location, customer service, and providing an atmosphere or set of services that keep people coming back to your pharmacy.

Anybody can own a pharmacy.

james07 said:

What are the advantages and disadvantages of starting your own Pharmacy? Approximately how much can one aspect to make owning there own Pharmacy and how do you go about starting one? How long do you have to be a Pharmacist before your able to start your own?

-thanks in advance

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The advantages are numerous. You can practice the way you want to practice pharmacy, and you answer to yourself. The income potential is unlimited, and governed really only by your imagination. Some entrepreneurs love owning one store, while several go on to own a mini-chain. You're net worth grows, the more successful you become. You set your own hours, which can be good or bad. You become an important pillar of the community, and if you are really good some people will rely on your expertise. You can put other people to work, and help improve their lives. You can contribute to charities, and help them with the massive amounts of money you'll be making. Helping people in this business is extra important.

Disadvantages. If you talk to most pharmacy entrepreneurs, most will tell you that they opened a business because many were not happy working for the corporations and they feel that they were not practicing pharmacy. I guess they were happy with their decision.

On to disadvantages. Cost to start up one is about 100-450k, depending on what you want to do. If you are doing a startup, it takes a while to generate business. If you are acquiring an existing one, if can cost you much, much more. You also need to specialize these days. Old-school third party pharmacies are going out of business these days because of low reimbursements, so that avenue is closed. Look to compounding, or closed door pharmacies. At first, you may have to do everything yourself(accountant, stock person, technician, pharmacist, janitor).

You can start a pharmacy as soon as you graduate. It's up to you. If you are seriously interested in becoming an entrepreneur join your local chapter of NCPA or check out ncpanet.org. Or posts requests on the NCPA subforum here.

The biggest disadvantage of pharmacy business and other healthcare industry today is that we have lost our ability to manipulate reimbursement for profit. Basically, we can't charge for goods and services as we wish. It's predetermined by the 3rd party payors and contracts.

And the reimbursement is getting smaller everyday.

That's why you stick a burger joint with a pharmacy!

Agreed. For anyone deciding to go the third-party independent pharmacy route it will be very difficult to compete against the chains. That's the reason so many independents are going out of business. We need a niche, and burger joint may be one of them.

ItsOverZyvox said:

The biggest disadvantage of pharmacy business and other healthcare industry today is that we have lost our ability to manipulate reimbursement for profit. Basically, we can't charge for goods and services as we wish. It's predetermined by the 3rd party payors and contracts.

And the reimbursement is getting smaller everyday.

That's why you stick a burger joint with a pharmacy!

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Sheese...are you bi-polar?!?!?!? First a bait shop and soda fountain....then a resteraunt...and now a burger joint.....you are wearing me out!!!!

There actually is a way to get around the funding issue (although not until the credit crisis has eased up). First, you want to make a viable business model. Second, take it to some small business gov't group and have them determine whether it is viable. Third, draw up incorparation papers (so you aren't liable) and take out a loan if you can. Fourth, well it's in your hands...

Any flaws? I read somewhere there is a small business bureau that helps new business start up.

There is a group out there called SCORE(counselors for small business). Here is a link

http://www.score.org/index.html

Also contact your local SBA(small business administration) agency in your area. They can help you out tons.

blueclassring said:

There is a group out there called SCORE(counselors for small business). Here is a link

http://www.score.org/index.html

Also contact your local SBA(small business administration) agency in your area. They can help you out tons.

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Ahh, that's what it was.

Is it possible to own a pharmacy in the US as a stranger ?

You have about ~$500k-1M to buy the business?

Requirements for the Green Card: EB-5:
"You must have invested or be actively in the process of investing at least $1,000,000 in the new commercial enterprise, unless the investment is to be made in a targeted employment area, in which case the investment must be at least $500,000"

Otherwise, nope.. usually any type business conducted in USA while you live here is illegal for an alien... H1B visa limits you to ONLY work for your sponsoring employer.

Define stranger?

jadeb said:

Is it possible to own a pharmacy in the US as a stranger ?

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No, we don't allow French to own a business in the states. We do thank you for giving us overpriced Michelin tires...but they're high quality and a lot is riding on em..and with the obesity epidemic in the US..trust me when I say "A LOT" is riding on em.

If you want to own a business in the states as a French National, then we demand you give us a formal "Thank You" for saving your butt in the WWII from Germany.

Then we want a formal "We're sorry" for teaming up with Germany to start a pos currency Euro and tried to undermine our currency, "The US Dollar"..and got Saddam Hussein hung.

Oh wait..you're from Cyprus.. are you greek?

117296 said:

That sounds like Bass Pro Shops...pharmacy.

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I see this working....

Its Z said:

No, we don't allow French to own a business in the states. We do thank you for giving us overpriced Michelin tires...but they're high quality and a lot is riding on em..and with the obesity epidemic in the US..trust me when I say "A LOT" is riding on em.

If you want to own a business in the states as a French National, then we demand you give us a formal "Thank You" for saving your butt in the WWII from Germany.

Then we want a formal "We're sorry" for teaming up with Germany to start a pos currency Euro and tried to undermine our currency, "The US Dollar"..and got Saddam Hussein hung.

Oh wait..you're from Cyprus.. are you greek?

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I'am from Cyrpus (greek part not turkish illegaly occupied part) so I can't be responsible for the *******ness of the French. I'am very sorry for that.

(I'am sad to teach you that the Soviet Union saved Europe and defeated the Nazi army by winning the battles of Moscow and Leningrad in 1941, the battle of Stalingrad and finaly the decisive battle of Koursk ine 1943 before US army's intervention. Operation Overlord took place after on 6, June 1944.)

Nevertheless the good point is that the 101st airborn second division killed Saddam's sons with anti-tank missiles. Thank you

Momus said:

You have about ~$500k-1M to buy the business?

Requirements for the Green Card: EB-5:
"You must have invested or be actively in the process of investing at least $1,000,000 in the new commercial enterprise, unless the investment is to be made in a targeted employment area, in which case the investment must be at least $500,000"

Otherwise, nope.. usually any type business conducted in USA while you live here is illegal for an alien... H1B visa limits you to ONLY work for your sponsoring employer.

Define stranger?

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I'am going to finish my studies in 2012 than I will have to work in a pharmacy during 3 years (I can save 100-150k$ suring this 3 years). After that I will be able to buy a 2-3 million $ pharmacy in Paris by contracting a 10-12 year loan with a personal contribution of 500k $ (my parents will help me and I will use the money I saved).

When I will finish repaying the loan, I will sell my pharmacy.
After that BYE BYE FRANCE : I will buy a new pharmacy in the US.

That's my strategy !!!

jadeb said:

(I'am sad to teach you that the Soviet Union saved Europe and defeated the Nazi army by winning the battles of Moscow and Leningrad in 1941, the battle of Stalingrad and finaly the decisive battle of Koursk ine 1943 before US army's intervention. Operation Overlord took place after on 6, June 1944.)

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Is that what you learned? You're giving the entire credit of fall of Nazi Germany to the battles won by the Russians? Man...you Europeans are really something.

Oh yeah...USSR really saved the Europe...thanks to their communization efforts, the Eastern European block countries are really thriving economic powers today aren't they? Please note [/sarcasm]

Nevertheless the good point is that the 101st airborn second division killed Saddam's sons with anti-tank missiles. Thank you

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Not in my nature to celebrate death of people in a war. Yet, the mechanism of death of Hussein's family may have been carried out by the US military to send out a message to other OPEC leaders to not alter the way petroleum trade takes place, it was the deceiving French and German who tried to introduce Petro-Euro into the currency market that did the Hussein family in.

jadeb said:

I'am going to finish my studies in 2012 than I will have to work in a pharmacy during 3 years (I can save 100-150k$ suring this 3 years). After that I will be able to buy a 2-3 million $ pharmacy in Paris by contracting a 10-12 year loan with a personal contribution of 500k $ (my parents will help me and I will use the money I saved).

When I will finish repaying the loan, I will sell my pharmacy.
After that BYE BYE FRANCE : I will buy a new pharmacy in the US.

That's my strategy !!!

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How can you save 100-150k a year if thats all you make?

Trankuil said:

How can you save 100-150k a year if thats all you make?

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Mommy and daddy...

Its Z said:

Mommy and daddy...

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A professional still living under mommy and dadies roof...how precious.

Trankuil said:

How can you save 100-150k a year if thats all you make?

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I don't know about being able to get a 2-3 million dollar pharmacy but it is possible maybe to get a loan like that if he saves around a 100k a year and his parents leverage their mansion house or something. Getting a 2~3 million dollar pharmacy by yourself will not be a very realistic thing to do. Most likely you'll have to have a couple of partners or get it through succession planning. Another important thing is if the banks will lend you money and how much. The economy everywhere isn't good, bank lending is pretty conservative everywhere.

Anyway, I wish him well. I plan to own a pharmacy as well, just on a smaller scale. It'll probably be in a rural place or on the outskirts of a city.

Trankuil said:

A professional still living under mommy and dadies roof...how precious.

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It's a Euro thing.

quartel said:

I don't know about being able to get a 2-3 million dollar pharmacy but it is possible maybe to get a loan like that if he saves around a 100k a year and his parents leverage their mansion house or something. Getting a 2~3 million dollar pharmacy by yourself will not be a very realistic thing to do. Most likely you'll have to have a couple of partners or get it through succession planning. Another important thing is if the banks will lend you money and how much. The economy everywhere isn't good, bank lending is pretty conservative everywhere.

Anyway, I wish him well. I plan to own a pharmacy as well, just on a smaller scale. It'll probably be in a rural place or on the outskirts of a city.

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Im looking independent as well, but getting a loan doesnt save him any more, it puts him more in debt. its not feesable to save 100k a year unless he still lives with ma and pa which must be a cyprus/euro/loner thing

Trankuil said:

Im looking independent as well, but getting a loan doesnt save him any more, it puts him more in debt. its not feesable to save 100k a year unless he still lives with ma and pa which must be a cyprus/euro/loner thing

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It might be possible to save a lot if you locum all year for 3 yrs and don't pay any living expenses. If you do relief work I believe it is somewhat common practice to ask for lodging and sometimes even a car (especially in rural areas). You'd be living as a pharmacy hermit though.

It also really depends how much revenue and net profit you take home. If he puts himself into 3 million of debt and his pharmacy has good revenue it would be worth going into that much debt as he would be making a lot more money than he would be by working for someone else. The only problem is competition which is scary as hell. Chains and people with lots of money can put you out of business pretty fast, it's very scary. That's the last thing I forgot to mention - risk. You are taking a big risk when you buy a pharmacy, I just hope people know what they are doing.

Trankuil said:

Im looking independent as well, but getting a loan doesnt save him any more, it puts him more in debt. its not feesable to save 100k a year unless he still lives with ma and pa which must be a cyprus/euro/loner thing

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Did you say you played competitive golf?

quartel said:

I don't know about being able to get a 2-3 million dollar pharmacy but it is possible maybe to get a loan like that if he saves around a 100k a year and his parents leverage their mansion house or something. Getting a 2~3 million dollar pharmacy by yourself will not be a very realistic thing to do. Most likely you'll have to have a couple of partners or get it through succession planning. Another important thing is if the banks will lend you money and how much. The economy everywhere isn't good, bank lending is pretty conservative everywhere.

Anyway, I wish him well. I plan to own a pharmacy as well, just on a smaller scale. It'll probably be in a rural place or on the outskirts of a city.

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My parents have an apartment in France so I don't have to pay for housing.

In France you can buy a pharmacy wihout taking any risk, you have to give 15-20% of contribution, 500k $ for a 2-3 million $ loan.
In France there are only independant pharmacy.

When I will finish paying the loan of this pharmacy, I will sell it and buy a new one in California wihout loan (I think 2-3 million $ is enough to open a good buisness !).

Its Z said:

Did you say you played competitive golf?

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I used to, its been a few years since ive been in a tournement that wasnt a scramble or best ball haha. Ive only been able to go out a handful of times this year but each time ive stayed at least in the 70s

do you need a pharmD/MBA in order to open up a pharmacy?

nycrxdream said:

do you need a pharmD/MBA in order to open up a pharmacy?

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no

jadeb said:

My parents have an apartment in France so I don't have to pay for housing.

In France you can buy a pharmacy wihout taking any risk, you have to give 15-20% of contribution, 500k $ for a 2-3 million $ loan.
In France there are only independant pharmacy.

When I will finish paying the loan of this pharmacy, I will sell it and buy a new one in California wihout loan (I think 2-3 million $ is enough to open a good buisness !).

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Don't most people have an apartment in France? Only having one apartment there is well........almost the poverty level.

jadeb said:

My parents have an apartment in France so I don't have to pay for housing.

In France you can buy a pharmacy wihout taking any risk, you have to give 15-20% of contribution, 500k $ for a 2-3 million $ loan.
In France there are only independant pharmacy.

When I will finish paying the loan of this pharmacy, I will sell it and buy a new one in California wihout loan (I think 2-3 million $ is enough to open a good buisness !).

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That's ridiculously good - only 20%.

I'll likely need close to double that to secure a loan.

Trankuil said:

I used to, its been a few years since ive been in a tournement that wasnt a scramble or best ball haha. Ive only been able to go out a handful of times this year but each time ive stayed at least in the 70s

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Don't quit playing for the sake of golf. I probably played more golf in my life during pharmacy school than any other period of my life. With note pool..we just didn't need to go to class very often..

Its Z said:

Don't quit playing for the sake of golf. I probably played more golf in my life during pharmacy school than any other period of my life. With note pool..we just didn't need to go to class very often..

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Oh I wont quit playing. There is actually a driving range and an executive 9 hole course right next to the school haha. I just havent played in competitive golf for a while, hopefully I can pick it up again after school.

james07 said:

What are the advantages and disadvantages of starting your own Pharmacy? Approximately how much can one aspect to make owning there own Pharmacy and how do you go about starting one? How long do you have to be a Pharmacist before your able to start your own?

-thanks in advance

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I think you should ask a person who owns one. I had been told before that 3rd party reimbursements are not enough to cover the cost on some drugs, and that it will actually make you lose a lot of money filling them.

Our PIC ask corporate about it once, because we had a patient that was getting a lot of expensive meds through insurance that was brand name, cosmetic (he has very very good insurance) and was semi-questionable (dosage was abnormally high). I believe the answer corporate gave was to fill it as long as it is legit, since the smaller chains can't afford the $10,000 loss, while we can absorb the cost because we are bigger.