tough decison: should I open my pharmacy immediately after graduation

[babyapple]

I know I would say: NO, 100%. I didn't want to do it immediately after graduation. However, here is the opportunity in front of me.
Here is my situation: I will graduate in 2 weeks and already have a job with a chain as a floater. However, I always want to have my own pharmacy. I competed in the NCPA business plan completion and won the top three. The pharmacy that my business plan was based on was closed yesterday due to the owner's family reason. The owner sold the files to a chain and he will move out of state in 2 weeks. It has a great location, about 100 RX a day (not much, but have high end cosmetics to support it), in a very affluent, liberal town, and it's the only independent in the town.
If it is 1 year later, I will definitely step in.
Now you know my dilemma: I am very inexperienced as a new graduate, I won't even get my license probably until August. I must act fast because it is the best to open a pharmacy at the same location within 6 months to get back the patients.
What will you do if you were me?

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[THE MTL]

I have a few questions.

Do u have experience working at an independent pharmacy already?
Also, are you graduating without any loans? or have a family support if something bad was to happen?
If the owner sold the files and scripts to a chain already wouldnt that mean that pharmacy no longer does 100x day?

 

[babyapple]

I have a few questions.

Do u have experience working at an independent pharmacy already?
I have some experience (worked at an independent one day a week before I got into pharmacy school, did IPPE in an independent, volunteered in this independent that is closed, did compounding rotation in another independent)

Also, are you graduating without any loans? or have a family support if something bad was to happen? (financially I am ok, saving 150K, loan 90K, 401k 140K with husband, house equity 100K, I am an older student, had another career)

If the owner sold the files and scripts to a chain already wouldnt that mean that pharmacy no longer does 100x day?

(that's right, I will start from 0, however, it is easier to get customers back than you really start from ground 0. and I don't have to pay the owner 800K to buy the files)

 

[Wheresmyaricept]

(that's right, I will start from 0, however, it is easier to get customers back than you really start from ground 0. and I don't have to pay the owner 800K to buy the files)

Yeah you'll just have to pay 800k to finance an inventory, computer system, PBM contracts, and the other particulars of opening a business.

 

[Ackj]

Are you planning on opening in the same space, or a new location? An independent I worked at previously sold out to CVS, and they were leasing the property in a plaza. CVS not only purchased the files, but they are also temporarily holding the lease for that location, preventing a new owner from opening up there.

 

[babyapple]

I already contacted the realtor and he said the landlord wants a pharmacy there at the same place. tomorrow I will go to the site with the realtor and also find out exactly if the chain continues to pay the lease. from our local newspaper, it seems the landlord wants to rent out the space ASAP. (this is VERY important as I just talked to my business professor)
you don't need 800K to start a new pharmacy. I have done the business plan. all three big wholesalers give you some kind of start-up inventory and a grace period to ease your cash flow.

 

[Unchained]

Your margin for error is Zero. You have no money and you want to open a business? A business with no customers? I wouldn't even recommend owning a pharmacy if you had the money. There are better businesses out there to own. You have high inventory costs, are heavily regulated, high personal health insurance costs, will be audited by insurance companies, and will have to work 70+ hours per week. Don't plan on anything resembling a vacation for around 10 years. Our country is becoming less capitalist. Our policies are crushing small businesses and the middle class. You have to be very wise with your decisions and your money.

 

[pharmdpharmd]

Big risk, big reward situation.

I say go for it!!

 

[Klueril]

Your margin for error is Zero. You have no money and you want to open a business? A business with no customers? I wouldn't even recommend owning a pharmacy if you had the money. There are better businesses out there to own. You have high inventory costs, are heavily regulated, high personal health insurance costs, will be audited by insurance companies, and will have to work 70+ hours per week. Don't plan on anything resembling a vacation for around 10 years. Our country is becoming less capitalist. Our policies are crushing small businesses and the middle class. You have to be very wise with your decisions and your money.

what kind of business would you suggest then?

 

[n64bomb]

The margin for error is not zero. Unchained doesnt understand how business runs. You should ask someone who has run his/her own business rather than rely on someone who has not.

 

[babyapple]

Yes, I will start from zero, but not really from ground zero like the original owner did. I welcome the old customers back who went from chain to this small pharmacy for some reason. Now all the files are transferred back to the chain. Can you imagine if it is you, without any of your approval, they transfer your files to a chain? what if you see a lovely pharmacy pop up at the same place again, with the old technicians back there? I want to get them back. I would not start a "new" pharmacy, I only want to "continue" the old pharmacy.

 

[eagles22]

Yes, I will start from zero, but not really from ground zero like the original owner did. I welcome the old customers back who went from chain to this small pharmacy for some reason. Now all the files are transferred back to the chain. Can you imagine if it is you, without any of your approval, they transfer your files to a chain? what if you see a lovely pharmacy pop up at the same place again, with the old technicians back there? I want to get them back. I would not start a "new" pharmacy, I only want to "continue" the old pharmacy.

Work for a stable chain or at a startup that could close at any moment? Are you going to have the Rx volume or funds to hire them back at full time? Are you going to be able to offer the same benefits? You may be a little too optimistic.

 

[IndustryPharmD]

A little too optimistic?

 

[Unchained]

Pharmacy is not the cash cow it once was. Let's examine the trends. Declining reimbursement from insurance companies. More insurance audits. Greater gov't involvement resulting in lower reimbursement. More gov't regulation. Higher taxes on small business due to gov't inefficiency. Higher healthcare costs for you and you employees because of the Obamacare disaster. Economic indicators which say we are still in a recession and headed down. Very weak job creation since the 2008 housing crash. I'm not being negative just realistic. Go and slave for the chains for 10 years for 130k per year and you'll get rich slow. Don't make the big mistake and spend 15 years digging yourself out. Let someone else lose sleep at night. Do your 40 hrs per week and enjoy all the time spent away from your job. I might be raining on your parade now but you can thank me later.

 

[THE MTL]

If you don't have any children I would say go for it. If you can get 100X scripts per day you are already close to the break even point to run a pharmacy. 150K saved up is great and you have good money in your 401K for retirement too. Plus, Im assuming you have the support (financial) of your husband as well. But as long as you dont have any children, definitely go for it.

 

[babyapple]

Thank you everyone. I will seriously consider the pros and cons of the situation and look at some numbers. I already talked to the technician and the relief pharmacist today and got some inside view.

 

[ajl87]

Thank you everyone. I will seriously consider the pros and cons of the situation and look at some numbers. I already talked to the technician and the relief pharmacist today and got some inside view.

Any updates? I'm interested if you've worked at this independent before?

 

[SterilecompoundServices]

How did everything turn out since your last post? Where is this located?

 

[SClENCE]

I'd do it IF I had a trusted and experienced business partner to go 50/50