Answers to common questions from pharmacy owners
Q: Are there any fees for RxOwnership® services?
A: RxOwnership is a no-fee service that assists pharmacists with getting started in their pharmacy ownership career and aids existing pharmacy owners with succession planning.
Q: How can I determine if my prospective location is favorable?
A: There are many factors to consider when evaluating a pharmacy location. Generally, a good location is well-populated with many nearby prescribing physicians. A good location should also have ample parking and foot traffic. Ideally your startup pharmacy location does not have nearby competitors, particularly other independent pharmacies. Prior to signing your lease, contact an ownership advisor for a location analysis, which includes demographic information as well as prescribing data for nearby physicians.
Q: How much capital will I need to start my pharmacy?
A: You should expect to have approximately $350–450K available to start your pharmacy. This amount includes startup costs such as fixtures, lease deposits and pharmacy system as well as pharmacy build-out, inventory and working capital. Sufficient working capital is critical to the success of your pharmacy; you should expect to have working capital in the bank equivalent to 9–12 months of expenses when you open.
Q: Can I get financing for my new pharmacy?
A: RxOwnership works with many financial partners who are ready to lend money for your startup pharmacy. Many lenders require a pharmacy owner capital contribution in the range of $50–100K with a good credit score. Lenders will also require demographic information on your location, industry experience and a well-prepared business plan. Financing is also available to purchase an existing pharmacy. You can expect to contribute a down payment in the range of 20–25% on ownership transfer transactions. Consult an ownership advisor to help identify the right lender specific to your needs.
Q: Do I need a business plan?
A: A business plan is a roadmap that outlines your goals for the pharmacy and includes a detailed plan for how you intend to achieve those goals. As a new pharmacy owner, it is imperative that you not only create a plan, but also use the business plan as a guide to ensure you stay on track with the plan once your pharmacy is open.
Q: What steps can I take to ensure the greatest success of entering into pharmacy ownership?
A: Ensuring you have selected the best location for your pharmacy is your first step to success. Generally, you must also immerse yourself in every aspect of independent pharmacy ownership education. Become involved with your state association and other industry trade organizations such as APhA, NCPA and/or PDS. Consider attending the NCPA Ownership Workshop, sponsored by McKesson, which provides excellent content for every new pharmacy owner. By attending the annual McKesson ideaShare conference, you will have access to a wide range of ownership services and tools, suppliers, CE courses and networking events.
Q: I am thinking of selling my pharmacy. How can I determine the value of my pharmacy?
A: There are various industry formulas that may be used to calculate the approximate value of your pharmacy, including a formula based on a percentage of sales or a per-script value. The most relevant industry formula is based upon a multiplier of the adjusted net profits of your pharmacy. Use our McKesson Interactive Valuation Tool for more information or contact your ownership advisor for assistance with calculations.
Q: How can RxOwnership help me sell my pharmacy?
A: RxOwnership is a resource to help you preserve the legacy of your community pharmacy. RxOwnership can start with helping to calculate the value of your pharmacy. Once you make a decision to sell and have determined the asking price for your pharmacy, your ownership advisor can help locate qualified buyers for your pharmacy. Your advisor will also provide guidance and resources throughout the process to ensure a smooth transition of your pharmacy to a new owner.