Thanks buddy!
I have 2 more questions for indepedent owners out there:
1) How fearful are you of armed robberies? I still see pharmacies as easy targets because of both the cash and the narcotics in store. Is hiring armed security guards a bad idea?
2) In order to "collaborate" with prescribers, is that another way of saying that you will give them a cut of the profits (isn't that a conflict of interest)? I'm just having trouble wrapping my head around this concept. I don't see why any prescriber would voluntarily refer to X pharmacy unless there is something in store for them as restitution.
I have worked for an Independent pharmacy since graduation, about 3.5 years now. We are very profitable, with 3 locations in the 3 neighboring towns. I have plans to buy at least two of these stores as our newest location, which just opened 3 weeks ago, is owned by the daughter of my employer and she is going to hold onto this store for a while.
First things first. If you are not sitting a bunch of capital, I would not consider a start up location. If you can afford all that it would take to open from scratch, then open up right across the street from a big chain. You would be amazed how well you can do in the midst of the big guys. I guarantee within 6 months you will grab 10-15% of their market share, so long as you have what the customers need and you provide a high level of service.
If you don't have a bunch of capital, consider purchasing an existing independent. You would be amazed how little out of pocket you will need to make this happen if you talk to the right people. So long as the owner is willing to put some collateral against the loan, which most are as they are advocates for the independent market, you can get in a store with little financial commitment. There are a few things that need to be in place in order to get approved for financing. The books on the store have to be clean and the store needs to have shown a history of good growth and solid cash flow. Check out Live Oak Bank, they can point in the right direction and they specialize in pharmacy lending.
As far as narcotics are concerned. A majority of our sales do not come from narcotics. We are one of the most strict pharmacies on our area when it comes to dispensing narcotics. If you open a store you need to tap into some niche markets. We do both sterile and non-sterile compounding, DME, & IV Home Infusion. DME is becoming more complicated than it is worth financially, but it drives traffic into the pharmacy so.....
You can collaborate with Physicians in the form of kick-backs and such, that would be a very slippery slope. A physician can recommend a pharmacy, but can not exclusively send patients to one particular pharmacy. If a physician was getting paid a portion of the sales, then this would eventually happen and cause trouble for all parties involved.
Statiscally independents are probably marginally at a higher risk for robbery and burglery. Good security systems (cameras) and location can mitigate this as well as having a a large enough staff. The key is to make it look hard for someone to get away with what they want to do. If there are always a ton of people in your store, ie staff and customers, and you have adequate survailance it is unlikely, but possible. It is important to discuss the risk with your staff and make sure to let them know that compliance with the threat is usually the best option. Always remember this, you cannot "make" your staff act in a certain manner when being robbed. It is unethical. You have to remember that they have a right to make their own decisions when "their" life is on the line. You would not be able to live with yourself if you told someone they "had" to be compliant and their compliance resulted in their death or harm. It's their life, their right to choose. If you wanted to hire an armed guard that is your choice, but most likely unecessary. You have to be sure the image you are portraying doesn't steer honest customers away.
One thing is for certain, do not graduate and then immediately open a store. You do not and will not know enough to be successful. (playing the odds; but I guess even a blind squirrel finds a nut from time to time) Find an independent with some old owner and go talk to him/her. Find out if they are looking to get out, work your way into a position and build their trust. Then buy that sucker. You will not learn all of the things you will need to know to run your own store by working at a major chain. Get some experience with an independent and make the choice.
It's a lot of work. You will not be living the high life right away. It will be a 24/7 job for a while and you will have a whole new set of life challenges. If you are married or engaged, discuss it with your partner. It is not only your life and they have to be considered in the decision as well. Before I made the decision to work towards owning my own store, I made sure that it would be a goal for my wife as well and she is all in. (<------ This is very important
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Good luck and feel free to PM anytime if you have some questions. There are a couple of other independent guys/gals on these boards that can offer their own advice.
