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UBC Phar400-startup or buy pharmacy-23mar2012

Aug 29, 2014

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Business

Presentation to Entry to Practice 4th year Pharmacy students at UBC on buying an existing practice or starting a new business.

  • Gerry Spitzner | retailSOS.ca March 23, 2012
  • Overview of key points to consider when establishing a new practice. Business plan outline for buying an established Pharmacy. retailSOS.ca Gerry Spitzner 3
  • Advantages and disadvantages of purchasing an established Pharmacy vs starting a new Pharmacy. Important factors before you start actively searching to establish new or purchase. Explain factors important in leasing & rent calculation. retailSOS.ca Gerry Spitzner 4
  • Capital requirements for establishing a Pharmacy and possible sources of capital. Factors important in performing a Pharmacy location analysis and analysis of potential markets. retailSOS.ca Gerry Spitzner 5
  • What, Who and Where Do I start? Key Tasks for the Prospective Owner Reasons for Wanting a Franchise Pharmacy Opening a New Pharmacy Purchasing an Established Pharmacy retailSOS.ca Gerry Spitzner 6
  • This packet of thought starters isjust that; a starting point.Let your mind wander and considerestablishing a new practice ortaking over an existing one. retailSOS.ca | Gerry Spitzner 7
  • Whats your BIG idea? What is your why? How will you benefit? Is this right for me; right now? Are you ready? It takes time, commitment, a good idea, the right personality and at least a few basic business skills to start and run a small business successfully. retailSOS.ca Gerry Spitzner 8
  • The BIG question... Start up a new independent practice, or purchase an established Pharmacy? Franchise, banner or independent? Full mix drug store, Health Centre or simply Pharmacy? retailSOS.ca Gerry Spitzner 9
  • Overview of types and departments retailSOS.ca Gerry Spitzner 10
  • Pharmacy set-up support and type of pharmacy Corporate Pharmacy retail stores (employee or owned and operated by the licensed associate- owner, closely related to franchise, manager of a chain Pharmacy) Franchise Pharmacy (independently owned and operated, sharing in benefits, buying group, sales/promotions, contracts) retailSOS.ca Gerry Spitzner 11
  • Pharmacy set-up support and type of pharmacy Banner Pharmacy (independently owned and operated, working together, buying group, sales/promotions, contracts) Wholesaler (independently owned and operated, shareholder in wholesale, buying group, working together) Independent Pharmacy (independently owned and operated) retailSOS.ca Gerry Spitzner 12
  • What departments and products? Consider location, clientele, age, mix, income levels, education, health providers nearby, other retail stores, etc. Alternative medicines, vitamins, OTCs, orthotics and mobility aids, wound care, private consultations, cosmetics, electronics, food and groceries, post office, greeting cards, books and magazines, etc. What professional services? Consultations, Medication Management, Education, Counseling, Disease state screening, Chronic disease management, Immunization, Refill services, delivery services, blister packing, LTC, Group homes, other retailSOS.ca Gerry Spitzner 13
  • Where do I start?What do I need? retailSOS.ca Gerry Spitzner 14
  • Hard skills Knowledge of Leasing Negotiation Skills Fundamentals of Financing and Accounting Project management Soft Skills Insights into complexity of issues involved in leading change Recognize your personal values and define work/life balance Cultivate a calm, clear mind even in times of stress Lead strategic change initiatives retailSOS.ca Gerry Spitzner 15
  • Create your team of experts So you can do what you do best and they can do what they do best The first three people you need Lawyer; with Employment Law and/or leasing experience Accountant; with Tax Planning experience and a Banker; preferably with Pharmacy accounts retailSOS.ca Gerry Spitzner 16
  • Create your team of experts The next person you need Mentors and advisors Then you need (if starting new) Commercial real estate agent A great general contractor that can get and keep the trades focused Then you need (if purchasing) Business broker retailSOS.ca Gerry Spitzner 17
  • 1. Develop a Business Plan This is an essential step and critical for the planning and viability of your business. 2. Have you undertaken extensive market research? Market research is a vital part of your Business Plan, including creating a viability report (Market Feasibility Study) 3. Do you need additional financing? Banks and other lenders or investors will require a written business plan 4. Consider and select the most appropriate structure to operate your business Partnership Agreement if applicable and Corporation retailSOS.ca Gerry Spitzner 18
  • 5. Submit your business name request (NR) for approval Recommend that you conduct a domain name search and put a hold Also recommend: contact CPBC; ask for clearance of business name 6. Incorporate your business either through a lawyer or yourself online Corporations are automatically assigned a Business Number (BN) for corporate income tax purposes As soon as you get the Incorporation documents send copy to CPBC 7. Review Pharmacy Licensure Guide from CPBC 8. Open a business bank account Visit your financial institution with a copy of your Business Registration Certificate retailSOS.ca Gerry Spitzner 19
  • 9. Register the domain name of company 10. Open accounts under your Business Name (BN) as required for payroll, GST/PST (HST). You MUST open a GST/PST/HST account if your sales are greater than $30K 11. Contact your municipality for a business license Need this to apply for a Pharmacy License 12. Determine whether there are any further licenses or regulations that apply to you or your business retailSOS.ca Gerry Spitzner 20
  • 1. As a Corporation, you must register your business for workers compensation Call WorkSafe BC 2. Open a Payroll Deductions Account under your BN which was provided with your business as part of incorporation Contact CRA 3. If you hire employees ensure youre aware of your requirements under the Employment Standards Act retailSOS.ca Gerry Spitzner 21
  • Your Lawyer and Accountant You MUST keep detailed and accurate records for both your corporation and year end accounting Your Bookkeeper Detailed employee files and records Cash and credit card receipts Prescription records Hard copy storage and record keeping requirements retailSOS.ca Gerry Spitzner 22
  • Key Tasks for the Prospective Owner retailSOS.ca Gerry Spitzner 23
  • 1. Identify available pharmacies for sale or suitable locations for a new one 2. Leasing Agreements 3. Determine a satisfactory purchase price 4. Evaluate and determine capital needs 5. Investigate & select best source of capital retailSOS.ca Gerry Spitzner 24
  • Location Analysis is a Hierarchal decision Region Lower Mainland, Okanagan, the Island Market Area West Van, Kelowna, Comox Trading Area Caulfield, Glenmore, Comox downtown Site specific location Location Analysis Location is the most important factor; traffic is the key Very difficult and expensive to re-locate You dont want to be one block away from success Docs and/or nearby clinics Par