Did you know that the Indian pharmaceutical market is the third largest in the world? In addition, pharmacies have become a $ 2 billion industry in 2021 – since the outbreak of the Covid-19 pandemic. If you have been planning to start a pharmacy for years, the post-pandemic scenario offers a great opportunity due to the market demand.
Here is a guide to starting a pharmacy business from scratch.
Eligibility
- To open a retail store, you must have at least 10 square meters of floor space. In a wholesale pharmacy, an area of 15 square meters is mandatory.
- Your pharmacy should have air conditioning and a refrigerator. In addition, both wholesale and retail pharmacies must have a pharmaceutical specialist to sell drugs in the pharmacy.
How you can be a pharmaceutical expert
- Pharmacy graduate with at least a year of experience in the pharmaceutical business.
- Registered pharmacist approved by the National Pharmacy Council.
- SSLC (Secondary School Leaving Certificate) graduate with minimum years of drug dealing experience as approved by the Narcotics Control Department.
What are the different types of pharmacies?
Community pharmacy
Community pharmacies or retail pharmacies are the most common and well-known type of pharmacy. Most of them are engaged in commercial business and offer both over-the-counter and prescription drugs. Prescription orders are combined and distributed in local pharmacies. Community pharmacists are considered the most accessible health professionals and can provide health advice on the spot without an appointment. Community pharmacies differ from individually owned and operated large retail chains.
Hospital pharmacy
Hospital pharmacies are departments of a hospital. Medicines are prepared, mixed, stored, and dispensed to patients in the hospital. Hospital pharmacies usually have a larger selection of drugs, which the drugs are more specialized and more investigational (some are under investigation but not yet approved).
Hospital pharmacies supply much larger quantities of medication per day, which are distributed to hospital wards and intensive care units according to patients’ medication schedules. Some hospital pharmacists may also combine sterile products with IV medications for patients, such as newborn antibiotics and chemotherapy.
Clinical pharmacy
Clinical pharmacists provide direct patient care that optimizes medication use and promotes health, wellness, and disease prevention. Clinical pharmacists often work with doctors, nurses, and other healthcare professionals to develop a comprehensive treatment plan for a patient.
Clinical pharmacists have extensive training in biomedicine, medicine, social behavior, and clinical sciences. Most have a doctorate in pharmacy and continuing education. In some states, clinical pharmacists are licensed under a protocol with a physician.
Industrial pharmacy
Medicines are researched and planned in industrial pharmacies. Industrial, pharmaceutical laboratories conduct clinical trials with patients, use technology to synthesize new chemicals, and develop proposed treatments for new drugs.
Industrial pharmacists sometimes work in production facilities or near hazardous substances. Industrial pharmacists need the same training as those who administer drugs to patients.
How to start a pharmacy business?
Medical Store Licence
The first step is to obtain a medical license for your medical business. A pharmacy license is required to sell medicines in India. You can apply for a medical retail or wholesale license. A drug license is required to open a family doctor’s shop. You can work as a chemist if you have a retail pharmaceutical license. A wholesale drug license would entitle you to carry on the wholesale business of a pharmacy.
Requirements
Medical Degree
If you are new to the medical field and are not aware of getting a pharmacy license in India, you should know about the eligibility to get a pharmacy degree. You should have a medical degree – B.Pharm or M.Pharm. If the required grade is not available, a pharmacist should be found who will lend his name in return for goodwill. You need this grade to register.
Personnel
When selling medicines to customers, there must be a qualified person at the counter. A qualified person may be one of the following:
A person who graduated with at least one year of experience in selling drugs.
- A person registered in a pharmacy.
- A person with an SSLC degree and years of experience in the drug business.
How to Get a Pharmacy License in India?
It is mandatory to have a medical license in India to open a pharmacy. You don’t need to worry about getting a medical license in India, as it can be easily obtained from the following organizations:
- Central Medicines Standard Control Organization
- Central Medicines Standard Control Organization
You need to fill out the application form and meet the eligibility requirements. To open a pharmacy and get a pharmacy license in India. After making the payments, you will receive a pharmacy license.
What documents are required for a Medical Shop License?
There is a list of some documents which you require for a medical license:
- Fill out the application form
- A cover letter that states the intent. It must be signed by the Applicant.
- Payment fee proof
- The declaration must be signed by the Applicant
- Blueprint of your business
- Constitution of Medical Store proof (Partnership deed, MOA, AOA, etc.)
- Affidavit of a registered pharmacist working full-time
- Non-conviction of owners proof as per the Drugs and Cosmetics Act, 1940
- Identity proof of owner with photographs
- Passport size photograph
How to register a pharmacy business in India?
Medical businesses must be registered under the Indian Pharmacopoeia Act, 19
You can register your medical, retail business as an ownership or partnership. If you are a chain or hospital pharmacist, you can register as a limited liability company. Also, you need to be GST registered. Every pharmacist must have a GST number and pay her GST on time.
Arrangement of finance
Finance is the most important requirement for the success of any business. Raising the necessary funding can be a very daunting task for small and medium-sized entrepreneurs. If you want to know how to open a medical supply store in India with less investment, you need to do some thorough research.
A capital of Rs 15 lakh to Rs 2 lakh is required to start a small pharmacy business. By reinvesting profits, you can gradually expand the scale of your business. The initial investment amount varies depending on the location and business scale. You can take out a business loan for your day-to-day operations in the form of a working capital loan.
Two sources of funds
Own resources
If you wonder how easy it is to start a medical practice, you can use your previous savings because a medical practice requires less capital and earns a handsome profit in a shorter time.
Starting Finances
If you are worried and thinking about starting a pharmacy business due to a lack of funds, you can seek help from banks and financial institutions. You can take a business loan to start a pharmaceutical business. Flexiloans offers business loans on simple terms. Interest rates on business loans are also very low, making them attractive. Flexible loans and easy and unsecured small business loans make your dream of starting a pharmacy business a reality. You can also avail of corporate MSME loans that are provided at affordable interest rates.
Demand and Supply balance
For your pharmaceutical business to be successful, you need to stock a variety of medications to meet the needs of your customers. You should keep stock of different medicines as it increases sales and builds goodwill for your pharmacy. Your store should also have a refrigerator where you store certain medications such as vaccines, insulin injections, serums, etc. A large inventory of medicines is very important to boost your income. You can also connect with various hospitals and doctors to increase sales.
Hiring of staff
Every business needs work to run. A dedicated and dedicated team of employees leads the company to the top of success. A pharmacy business requires a workforce that knows medicine. Experienced staff who have previously worked in medical practice and have a solid medical background. The people working in your doctor’s office must be quick and provide prompt service. Customers should not have to wait long. Fast customer service would get positive information about your hospital business.
Marketing
Behind the success of any business is an effective marketing strategy. In the current competitive situation, it has become necessary to advertise your company. You need to aggressively market your newly opened pharmacy. Both traditional and modern marketing channels can be used. Internet marketing is also a good idea to promote your medical practice. You can get your medical store website and also take orders online. Your website should be attractive and informative. An SEO-friendly medical store website would bring in more customers. You can also offer free home delivery of medicines to customers.
Conclusion
The pharmaceutical business is a profitable business opportunity for an entrepreneur because the demand for medicines never goes away. The number of hospitals and clinics has grown rapidly in recent years. This increased the demand for medicines. Thus, the pharmaceutical industry is an ocean for young people and aspiring entrepreneurs.
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