Is it Time to Expand Your Pharmacy?
If you’re a successful business owner and this question is top-of-mind, let us first say congratulations! Expanding your small business into additional locations is no easy feat, but we’re here to help you navigate these murky waters. How do you know if it’s time, and what steps do you need to take once you do? Let’s find out if it is time to expand your pharmacy.
Look at Your Profits
Take a look at your net income. Generally speaking, if you’ve seen steady revenue growth over the past few years, you might be in a great position to expand. Years of growth—not months—are a good measurement to go by, as that shows reliable consistency that’s not likely to be a fluke. Clearly you’re doing something right by your customers if business is growing and your revenue is steadily on the up-and-up.
Assess Your Patient Base
Expanding your pharmacy locations is the ideal solution if you’ve seen consistent profit growth, but it can also be a perfect way to increase your patient base. Opening a new store in a different city will attract a whole different set of patients. It’s been reported that 94 percent of consumers choose their pharmacy based on convenience and location. More locations, more patients!
Repeat What Works
The very business processes and strategies you implemented at your independent pharmacy are a part of why you’re so successful. Don’t rock the boat. If you’re able, take these tactics into account as you consider expanding to an additional location. Obviously your staff will be different (unless you want to bring over some of your best employees to help get things off the ground), but your daily operations, systems, branding, and “vibe” should remain the same. Consistency is great when expanding. Repeat customers who patronize your new location will appreciate the familiarity they find when stepping into your new spot. That’s why franchises are so popular!
Know if Your Staff is Ready
As the pharmacy owner, the majority of your time is going to be spent getting things up and running at a new store. For this reason, it’s critical you have absolute trust in your staff to handle things at your flagship store while you work on expanding. Not only will they need to keep the trains moving, they should also assist in hiring and onboarding your new staff. Trust is key. If you can’t hand the keys over to the team you have assembled currently, it might not be the best time to open a new store.
Expanding is going to take time, patience, and a good chunk of money. There’s always the possibility that your current pharmacy’s revenue will end up supporting your new location, and that is definitely not the road you want to end up on. There are a few reasons to start lining up your source of capital. First off, there’s the cost of renting a new building, stocking and inventory, hiring staff, and all that good stuff that goes into opening a business. Additionally, it’s going to take time for your second store to begin turning a profit—and you’ll need to keep the lights on until then. A line of credit or Flex Pay loan are just a couple examples of the loan products we have available at ARF Financial to help you break ground on your expansion project. Our expert loan consultants have helped countless business owners like you open additional locations, and you’ll work hand-in-hand with one when you partner with ARF Financial. Submit your loan application today to see how much you qualify for—on the spot!