In this article I”d like to draw your attention to information about your pharmacy readily available to you as a pharmacy owner. With this information you can start to be a little more scientific about how to lift the performance of the business. Point of sale systems contain a wealth of information and, providing they are accurate, can give you food for thought on some key measures you can use to improve your pharmacy business. Read the rest of this entry »
The changing banking policies
The last 12 months has seen all of the banks put in place tighter restrictions on pharmacy lending. In our experience, presenting the right story to your financier is now more important than ever. Otherwise you can spend a long time waiting to get an answer on finance and it may not be an approval. This can waste valuable time in any transaction. Read the rest of this entry »
Dad thought he should listen to what his son was telling him, so they pulled down some of the roadside advertising to cut costs, started putting a little less meat in the pies and started producing less pies so that they wouldn”t waste any food or electricity. And what do you know – sales did fall and business did slow down. Read the rest of this entry »
Not so fast
The inclination is to start diving into the numbers, statistics and results and start pouring over them. But let”s take a few steps back first, because where the action really starts is with strategy. It”s about having a strategy, implementing the strategy and then managing the strategy. And if pharmacy owners are wondering why they should get into this “management stuff”, we could talk about PBS reforms, retail and discount competition, future health reforms, larger spaces to operate from, larger fit out costs, larger stock investment more staff. On top of this, Guild Digest tells me that the average dispensary size is between 18 – 22m2 and that 70% pharmacy revenue is coming from that space.
It means that an awful lot of space is generating very little revenue. An impressive list of issues to address, I am sure you would agree. Read the rest of this entry »
Property values turn on yield and income. Put simply, the stronger the income flow and the lower the return on investment that is accepted, the higher the property value. Not unlike the valuation of a pharmacy business. Property owners are at the mercy of valuers and buyers when it comes to determining the yield, or return on investment that is pegged. But the owners can sure as anything do something about the income that flows from rental income. And this of course is where pharmacy comes in. Read the rest of this entry »
Your business structure can take one of many different shapes. The structure that suits you and your pharmacy aspirations will depend on your own individual situation – which surprisingly may be different to the situation your pharmacy colleague might have. Make sure you consider the real issues as they pertain to you so that you ensure you end up with the right business structure. It can be expensive to undo and restructure later down the track when you find out there is a more appropriate way of doing things. Read the rest of this entry »
PBS Pressures Continue
Its not news that pressure continues on the level of PBS expenditure. It’s a fact of life, with the absolute dollars growing continuously and the expenditure as a percentage of GDP constantly under surveillance. And the intergenerational reports and forward estimates continue to set the cats among the pigeons in terms of cost reduction pressure. Add to this the new drug discoveries and the high cost of some of these drugs and you have a government looking to do something now and something serious to keep it all under control. Read the rest of this entry »
Where do I start?
Although I am an accountant with a vested interest, the numbers DON’T come first. The starting point is to be clear on what your pharmacy would look like if you were doing everything you think your pharmacy should be doing. If you were able to achieve all of your goals, what would your pharmacy look like? Now – write it down. Then take a bold step and tell someone about it, preferably those on your management team in the pharmacy and then eventually all the staff. And because staff keep changing, you might need to keep reminding them or giving them updates – “This is what success will look like at our pharmacy”. If you like, this is our vision. Read the rest of this entry »