You’re looking for a medical store? We’ve got just the thing. Here we’ll provide a detailed medical store startup cost, license requirements, setup, and much, much more.
A medical supply company is ideal for people who are pharmacists or chemists. There are lots of different ways to run a successful business besides just making medicines.
Is medical store businesses profitable? Every day we see the medical industry grow and expand. And every day we see the retail margins increase.
You can start a medical store by offering additional value-add services like a doctor’s room, some testing facilities like a lab, etc.
Here are the 10 Steps to Start A Medical Store Business
1. Understand the Local Market
It is important for any store to gather as much information as possible about its surrounding market so they know exactly where its competitors are located and what kind of products they’re selling.
Research the current situation and figure out where there are gaps in the current marketplace. Then, use these gaps to your own benefit by planning your medical shop business accordingly.
2. Write a Medical Store Business Plan
Create a detailed business strategy. Determine what products you’ll sell. What other services you’ll offer to your customers? Calculate how much money you’ll require to start out. Set aside an amount of cash for initial expenses. Estimate future revenues and profits.
Here are some of the main points that your medical store business plan must cover:
- Startup & recurring costs
- Your target customers
- Pricing Strategy
- What are your plans for selling medical supplies online?
3. Name Your Business
Choose a memorable and easy-to handle name for your medical shop. Remember, an attractive and catchy one is extremely important to establish a long-lasting medical shop brand in your neighborhood.
Read: How to name your business? Step-by-step guidelines
4. Register Your Business
Choose the business formation that best suits your needs. Every country and state has different business structures for small businesses.
You should seek legal counsel from an experienced lawyer and ask them for their opinion and guidance. Choose the type of entity that best suits your needs.
5. Procure Licenses and Permits
You usually need several licenses and permits to start running a medical store. Consult local authorities or seek professional help before opening a business.
To obtain a drug license in India, one needs to be registered with both the Central Drugs Standards Control Organisation (CDSCO) and the state drugs standards control organization (SDSCO).
You must register for GST if you want to operate a medical store in India.
6. Learn More about Medical Store Profit Margin
The profit margin for a pharmacy shop may be broken down into two categories. One category includes brand-name medications and the second category consists of generics. Typically, the margins for brand names are between 10-15%, whereas those for generics are higher, often reaching 50%.
Profit also depends on the types of drugs and the prices offered by pharmaceutical companies.
7. Medical Shop Setup
Location choice is an important factor for any type of business. For medical stores, choosing a location with a high residential population is preferable.
First, create a detailed floor map of the storeroom, the doctor’s chamber, and the waiting room. Second, use accounting software and point of sale (POS) systems to run the daily operations of the medical clinic.
If you’re planning to set up a medical store in India, you must ensure that there is enough room for storing medicines. However, if you plan to set up a retail/wholesale pharmacy, then you need at least 15 square meters of space.
8. Procure Medical Items from Suppliers
You may contact the local wholesaler or manufacturer to purchase the medicines. However, if you choose to buy directly from them, you will be asked for a higher order quantity. It is best, to begin by buying from a pharmacy first.
9. Hire Manpower
Hire experienced people who can help you run your pharmacy successfully. If you are not an expert in pharmaceuticals and planning to open a drugstore, then make sure you hire pharmacists who can assist you in running your pharmacy smoothly. Always remember, if you do not employ a qualified pharmacist, your customers may get hurt because they might buy incorrect medicines.
Women customers would feel comfortable talking to female staff members.
10. Promote Your Medical Store business
Start the campaign by placing ads in newspapers. Think of ways to add value to your service like an online ordering system and delivering products at clients’ doors.
Create a website because it is now a necessity to promote your business.
Elderly people, who need regular medical care, will prefer this service if they get a discount on the maximum retail price and receive some promotional gifts when they buy a certain number of products.
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