Excerpt from Brian Keen's "Guide To Buying A Pharmacy"
Country or city location?
Most of us cling desperately to our comfort zones - and this probably applies more so when considering this question. So, if you're in the country that's perhaps where you want to stay, and the same goes if you're a city dweller. The personal issues you must decide relate mainly to lifestyle matters: proximity of family; education facilities at all levels; sporting facilities and events; entertainment; air quality and its influence on personal health; cost of housing; the pace of life and so forth.
When we look from the business perspective, we must then consider matters such as: availability of staff (and so the opportunity to take holidays, get emergency relief, etc.); supply issues such as availability of product range and frequency of delivery; trading hours; population base; competition; availability of GP's locally; can you get access to appropriate financial and other professional advice; in the case of a banner group or franchise, what level of support and training will be offered; the cost of travel and so on.
In a time when pharmacies in country districts may only be asking for a 20-25% return on investment vs. 14-20% in metropolitan areas, then it quite simply means you get more for your money. Here I'm not just referring to buying a bigger business with more turnover, but as a result making more net profit every year; but there could be hiccup here as you may need a higher proportion of your own funds, the reason being that banks, as with country housing, will only lend a lower percentage of the purchase price.
My advice? If you are starting out then consider a stint in the country as it can help you to get on your feet - and you may find you become addicted to the friendlier community way of life.
Next time - group member or independent?02.04.08
