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I am not a Pharmacist. Is it a good option to purchase a pharmacy?

I need to know if a non pharmacist can manage a pharmacy profitabily , where the main expense would be salary of the pharmacist. I have pharmaceuticals marketing experience.

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We are financial consultants to a group of investors whom we have their consent to manage their funds which is in our custody for cooperation in joint venture business investments.

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Jesse Peterson
phone: (980) 239-7539

Aug 17, 2017
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Aug 7, 2017
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The BAF Group LLC

If you look at the major pharmacies - Rite Aid, CVS, etc. - you will note that the General Managers are normally Pharmacists. There are two reasons for that: (1) As you say, that is your biggest Salary, so why have the overhead of a Pharmacist, and then another one for a Store Manager? (2) Pharmacists are tough to find, in many areas. Sometimes, when the competition for their services is really hot, they leave for a dime more per month!

As a rule, I never like to see anyone invest in a business that is solely dependent upon one or two people, and the Investor is not someone that can jump into the business himself, if that key person leaves, gets sick or goes on vacation. What are you going to do when the Pharmacist goes on vacation? You have to HOPE you can get a temporary replacement, or you have to shut down!

It is not the profitability that is the biggest concern, in my view. Profit can be overcome if the Revenue and Margins are high enough. But even there, Walmart, Target and others are going to make margins an issue; then the whole Government Health Care situation is going to be a major headache, in the next several years. And the Retailer will probably be one that takes it in the shorts first, before the Johnson & Johnsons and other goliaths get hit.

Not the business I would recommend.

Jun 22, 2009
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How to Buy a Business

Would you buy a small architectural firm if you weren't an architect? What about a small engineering firm if you're not an engineer? There's always an added risk if you can't personally perform the business's main revenue function.

If I bought a pharmacy it would be difficult for me to tell if my pharmacists were doing their work correctly and efficiently. Nor could I step in and substitute for them if they all caught the flu and didn't show up for work one morning.

You're always best off owning a business where you could run the whole thing by yourself in an emergency.

Jun 22, 2009

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