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Things to Consider When Starting a Pharma BusinessSunday February 26, 2023 at 3:51 pm
Several young pharmacists are realizing that it can indeed be profitable to get associated with a Pharma franchise company as its distributor. However, one should always keep a few things in mind before launching one’s own franchise distributor business such as the choice of the brand, the amount of money to be invested, the place required for business, human resources, economic condition, existing know-how, etc. Here, a few of the most valuable of these considerations have been discussed.
Let’s get started:
1. Go for the best brand always
The first and one of the most valuable considerations when starting a pharma business is the choice of the company and brand. It is the single most potent decision that is going to affect the chances of success or failure of your business. Often an improper selection of a company can ruin the PCD business. One should never forget that the success of the franchise business depends on which company it is representing. A good choice can establish the PCD business on the right footing, and a poor choice ruins the future of everyone involved in running the franchise.
2. Invest money in cycles and not at once
When one launches the business of a pharma PCD franchise distributor, one might need to invest a lot of money. However, the need for money doesn’t end there. rather every single step or decision one will take might cost more capital. Thus one needs to be prepared to keep on investing later also. One should not expect returns unless one has already established a good market presence. The gestation period of a pharma PCD franchise business varies but, generally speaking, the pace of revenue generation is slow initially. There is a rather high probability of getting into an economic crisis even after doing things in the right manner during the initial two or three years of the business. Thus, one needs to have some extra reserves to meet the ends, so that the engine of your business keeps running and prevents any burnout during the process.
3. Market relationships and reputation
What is the single most important thing that decides our market relationships? They are determined by not only the status of the company, and its position in the market but also our own reputation in the market. Other considerations include whether the quality of our goods is good or not, and whether our trading practices are fair or not. If these aspects are not in the favor of a PCD pharma franchise business, then one will not get a good response even if one has invested heavily in the market of our goods and also if we sell goods of very high quality.
4. Products need to be as per market demand
Naturally, one of the biggest considerations for the PCD business model remains the market demand. Sometimes, pharma franchise owners might get into a troubling situation because they didn’t choose the products according to the requirements of their respective markets. A good general rule for such things is that if something is not working, then it should be changed immediately before it’s too late. Thus one should always choose products according to the demand in the market. It helps to know how likely the doctors and medical practitioners are likely to prescribe in case of a prescription drug and how likely the customers are to buy them in case of OTC drugs.
5. Don’t depend on others for help in setting up your business
It is never a bad thing to expect or seek help where one can get it but one should not start a PCD pharma franchise business or any other business with the anticipation of getting help from someone whether it be government. Parent company or a loan from a bank. If one gets it, then it is the best situation. However, one can’t rely on it for success in your business. Thus one should make a clear, executable business plan. Anticipate the various possible challenges, and then go ahead and try to base your business on self-reliance to the maximum extent possible.
6. Build a reliable team
Running a PCD pharma franchise business is not a task that can be accomplished by an individual alone only. It needs teamwork. When one has a group of dedicated people who work in synergy to achieve results, there are greater chances of success, Each member of your team should know their respective duties and responsibilities. The rules and policies of the company should be crystal clear. The team should be able to work in coordination. Good communication, mutual respect, and clarity of roles are some of the key prerequisites that help in building good teams.
Also, check out our article on the differences between PCD Generice and Ethical pharma business in detail here!
7. Existing know-how
The last but not least important consideration is the existing know-how. It is always better to have an understanding of existing know-how first before starting a business rather than venturing blindly.
Frequently Asked Questions
There are several questions relating to pharma businesses. The following are some of the most Frequently Asked Questions:
Question: To Whom is the PCD pharma franchise model suited?
Answer: Anyone can start a business but a person with an education in pharmacy and preferably with some experience is in the best position to start a business as per this model.
Question: How can find a good parent company to get a franchise?
Answer: The following are some of the helpful tips that can help you find a good parent company for the PCD business model:
- The company should preferably be old and enjoy goodwill and reputation.
- It should have a good product that has a USP (Unique Selling Proposition) in the market.
- It should be willing to provide any assistance that one might require while running the business.
If the reader has any other questions, they should feel free to ask them here.
The Bottom Line
One can easily wrap up the above discussion by concluding that these tips will help anyone in establishing a very good and successful franchise distribution company. The Indian pharma market has done phenomenally well in recent decades. The prospects are also looking great, so do your research and join the revolution.