News Archive
2006
HIP in the news...
"Health Corp set for solid debut" Herald Sun (21.12.06) read full article here
22.11.06
HIP in the news...
"Scrip on offer" Adelaide Advertiser (09.11.06) read full article here
"Pharmacy group to list" Australian Financial Review (09.11.06) read full article here
"Pharmacy IPO targets nation" Courier Mail (09.11.06) read full article here
21.11.06
HIP in the news...
"Chemists set to join forces" Herald Sun (08.11.06) read full article here
"Pharmacy company's $7.5M float" Daily Telegraph (08.11.06) read full article here
"Independents on warpath" Courier Mail (08.11.06) read full article here
"Customer care key to Health Corp model" Australian (09.11.06) read full article here
13.11.06
Comment - November 2006
Much has happened at Health Information Pharmacy since the last edition of UPdate back in June this year. We have continued to grow, with another three pharmacies joining the group in NSW and another seven due to join by the end of the year. But perhaps the biggest news has been the imminent listing of Health Information Pharmacy's parent company, Health Corporation Ltd on the ASX, with the share offering due to open to the public very soon. We have opened our first store with the new HIP retail branding in Dee Why on Sydney's Northern Beaches, with rollout of the new brand across all stores planned for 2007 (see item below).
Photo: HIP Dee Why
01.11.06
HIP Continues To Grow
In August HIP opened its first compounding pharmacy - HIP Balmain in Sydney owned by existing HIP members William Khoo and Liong Ang, and run by store manager Lana Crawford. September saw Liong and William open HIP Ermington with partner Ken Wong and HIP Winston Hills opened, owned by Keith Bui and Bruce Tong. HIP is on target to open five other pharmacies in NSW in the next few months. In Queensland two pharmacies in the Brisbane area are scheduled to join the group in November, with a more planned in early 2007. HIP now has 25 pharmacies across Australia.
01.11.06
HIP Website Gets An Upgrade
With the upcoming company float we have taken the opportunity to upgrade the HIP website to give more information about the group to consumers, pharmacists and prospective investors alike. We have also added a separate section on Careers at HIP listing open positions within the group nationwide. You can subscribe to our Careers@HIP bulletin on the site as well.
01.11.06
IPO Update
We are now very close to being able to launch the Health Corporation IPO (Initial Public Offering). You can register on our website to receive a copy of the Health Corporation prospectus when it is published, or you can wait until the share offer is open and download the prospectus and apply for shares online at that time - it's up to you! Don't worry - we will let you know as soon as the share offer is open.
Register for the Health Corporation prospectus
01.11.06
HIP Launches New Brand In Dee Why
If you want to have a look at the future of pharmacy, nip down to the new Health Information Pharmacy outlet in Dee Why on Sydney's Northern Beaches. The new brand and retail concept was designed by Yuri Bolotin of award-winning retail design consultancy Design Portfolio. Yuri was given a brief by HIP CEO Ken Lee to design the 'best pharmacy in the world' and we think you'll agree the design is a radical departure from what might be considered a 'regular' pharmacy. The new look reflects the focus and principles of the group both inside and outside the pharmacy.
Health Information Pharmacy's primary focus is the reduction of medication problems, and an important addition to the new interior layout is a consulting area where the pharmacists can conduct the HIP Chemconsult® consultation. One of the hallmarks of the HIP model, Chemconsult® is specifically designed to flag medication errors, and at HIP Castle Hill in Sydney the process uncovered errors in 1 in 6 scripts presented. As HIP is generally focused on high service, a comfortable waiting area is also built in to the new store design. As a finishing touch the new design incorporates large size TV screens which show short information videos on HIP systems and services to customers who are waiting.
In the New Year we will be holding official launches of the new brand in NSW and QLD - look out for your invitation.
Photo: HIP Dee Why
01.11.06
Excerpt from 'Guide to Buying a Pharmacy'
Brian Keen's e-book 'Guide to Buying a Pharmacy' is now published. You can subscribe to receive your free copy of Brian's book (in PDF format) in the Pharmacists section on this site. If you would like a print copy of the book we are running a special offer price of $29.95 incl p&p (RRP $45).
Call the HIP office on 1800 457888 to order your copy.
Here is the third short excerpt from Brian's book:
Six Wrong Reasons for Starting Your Own Business
Reason 1: I'm tired of continually being told what to do by a boss: Being in business for yourself certainly removes the boss figure, but replaces it with something far more demanding: the customer. And whereas bosses have to be fair and reasonable in their dealings with you, customers don't.
Reason 2: I'm tired of working for peanuts: having your own business is no guarantee of making enough to cover your own wages. Just because you work so many hours each week, there's no guarantee that there'll be enough money in the bank at the end of the month to cover what you might consider a fair salary. Your employees, your landlord and your suppliers, even the government, all get paid before you do.
Reason 3: I reckon ''m smarter than a lot of people already running successful businesses: intelligence is a fair way down the list of things you need to run a business. Ahead of it are perseverance, initiative, drive and passion.. With a fair amount of good luck thrown in!
Reason 4: I want to work more flexible hours: with many small businesses, this wish will come true only if you remove the word 'flexible'. Sure, you may be able to structure your business affairs around having the occasional half-day off but, in the main, you'll need to work the hours that suit your customers, and then some.
Reason 5: Running my own business will be easy: wrong, wrong, wrong. Added to the normal responsibilities you've got as an employee there is the financial risk; The need to become a jack-of-all-trades; You give up the guaranteed pay packet, paid holidays, sick days, superannuation and other perks. But perhaps the biggest difference between employment and self employment is that, when you're running your own business, the buck stops on your desk. As the owner, you can't say 'It's not my responsibility' or, 'I don't know anything about it.' The consequences of ignoring it affect you directly. So, ask people running their own businesses: They might say it's rewarding, satisfying; even profitable, but they'll never say it's easy.
Reason 6: You fancy the prestige and fun of owning your own pharmacy - just like all the high-rollers you see at industry gatherings: See 1 to 5 above!
If any of these reasons apply to you, I've got just one word - beware! These dreams can be shattered for a hundred reasons that we'll attempt to address in this book, because it isn't all wine and roses in business ownership.
Next time - You Need a Plan, and An Attitude!
01.11.06
HIP in the news...
HIP goes public - ASX launch will put HIP "ahead of the game" reports Pharmacy News (26.10.06 p2)
Health Corporation Limited will list on the Australian Stock Exchange from the end of this month... read full article here
30.10.06
28.07.06
Pharmacy group to list on the ASX
Health Corporation Limited (HCL), the parent company of Health Information Pharmacy (HIP), is proposing to list on the Australian Stock Exchange. HCL was founded by pharmacist Ken Lee and is predominantly owned by pharmacists.
The company’s main purpose is to use the leverage and power of the public market to fund the development of local retail pharmacies.
“Pharmacies around the world can deliver improved health benefits to the community whilst still being profitable. The pharmacy industry generally is fragmented, lacks economies of scale and buying power, all challenges we at Health Corporation are endeavouring to solve. We are attempting to unite pharmacy owners in this vision and for those who are part of HCL a generous share option plan exists”, Mr Lee said.
Central to HCL’s growth strategy is continuing to franchise its successful HIP brand and providing finance to assist its members, and other pharmacists, to purchase pharmacies.
60% of current pharmacy owners are over the age of 55 and their succession planning is a critical issue, particularly as approximately 2,000 pharmacies are forecast to come on the market in this way over the next five years: a typical pharmacy business sells for around $2m and buyers normally need around $500,000 of their own funds.
This creates a problem for both the vendor, who wishes to recover the value in their pharmacy, and the buyer, who needs to source the funds, and ensure that they can grow a successful, profitable and professionally rewarding business.
This is a huge challenge for many aspiring owners, but HCL’s finance arm, Leverage Finance, now makes pharmacy ownership possible for a much broader range of purchasers (for pharmacists wishing to join the HIP group), by making sufficient funds available to reduce ‘own funds’ needed to about of a third of the normal amount.
HIP provides the pharmacy owner with a focused, differentiated high-service model based on over 100 business systems and the support of business coaching. Members also receive the benefits of group buying power and will now be better resourced with access to public market capital.
The success of the HIP systems has seen stores report substantial net profit increases and helped several members grow their store ownership, in one case from one store to seven within four years of membership.
As part of its successful growth strategy HCL is also sourcing potential sites and business partners, as well as managers with ownership ambitions, to provide a turnkey solution for those pharmacists who wish to expand their business interests.
Some monies will also be raised to create new products and programs for pharmacy. More detailed information on the listing will be announced soon.
To find out more about being part of HCL or its share plan please call 1800 457888, or to request a prospectus register in the red box above.
07.06.06
Comment - June 2006
As reported below the last three months have seen five pharmacies join the HIP group – three of these through the Accelerated Ownership Program.
At the beginning of May HIP held one of its two annual two- day conferences at the Star City casino in Sydney, where the focus was on how to ensure good financial control of the business.
Members were also updated on three major initiatives for the group in 2006 – a new finance arm, a group rebrand and new product launches (more on all of these in the next newsletter).
Finally it’s good to see that HIP is now listed in the annual AJP group report (Australian Journal of Pharmacy May 2006 p82)... and that at 21 pharmacies (now 25) we’re not the smallest group there! It is interesting to see that pharmacy in Australia is developing along the lines we have been predicting for a while – sophisticated discount operators are growing rapidly, as are high service- related smaller groups (such as HIP) at the other end, with the middle ground stagnant or declining.
07.06.06
Five pharmacies join HIP
Since the last newsletter in February five pharmacies have joined HIP.
In Queensland the new pharmacies are HIP Dicky Beach (Sunshine Coast)and HIP Manly (Brisbane) owned by Julianna Neill and Tien Chuc respectively and HIP Morningside (Brisbane) and HIP Runaway Bay (Gold Coast) which are group acquisitions through the Accelerated Ownership Program (AOP).
AOP members Ming Lin and Allen Huang are the proud new owners and HIP members – Ming at Morningside and Allen in Runaway Bay. In NSW our new addition is HIP Cardiff on the Central Coast which has been converted by current members (and former AOP members) David and Donald Croot, who also own HIP Caringbah.
HIP Dee Why (Sydney - Northern Beaches) is due to open its doors very soon and will be the first to display a new HIP branding and fitout. More stores are due to open over the next few months – see our AOP activity report below for details.
07.06.06
HIP appoints ex Woolworths senior executive as General Manager
HIP recently appointed Brian Taylor as General Manager for the group.
Brian has an impressive background in retail and in franchising having worked as a senior executive at Woolworths and later as CEO of the bakery franchise Brumby’s.
Brian spent 13 years at Woolworths in a number of senior roles including national buying and then went on to take Brumby’s from 180 to 250 stores and renewed profitability through a restructure and rebranding program. Immediately prior to joining HIP he worked as a strategic planning and supply chain consultant for a number of overseas clients.
Brian has overall responsibility for HIP group operations and will oversee key projects including the HIP rebrand which is due to launch in the next few months.
07.06.06
HIP Accelerated Ownership Program - Update
If you are out there at the moment looking for a pharmacy to buy you will not be surprised to hear that the market is a little quiet at the moment – particularly in Queensland.
Nonetheless the HIP team has been active in seeking out suitable pharmacies for AOP members and – as reported above – with some success. We now have a cluster of four pharmacies in the SE Brisbane/Bayside area with discussions continuing with other potential vendors in the area.
We are also looking closely at a number of pharmacies in regional and rural Queensland for potential conversion to HIP.
In NSW competition continues to be fierce for good pharmacies that come on the market but the HIP team is still seeing some good opportunities for the group and AOP members and – based on current activity – HIP will continue to grow in NSW over the next few months.
STOP PRESS
There are a number of excellent opportunities to purchase pharmacies in regional areas - especially Queensland - which would suit the HIP model and provide a very good return. We are currently looking for pharmacists who would be interested in becoming HIP members and (equal) working partners in these pharmacies.
To find out more call David Bateson on 0402 332287.
07.06.06
Guide To Buying A Pharmacy
Brian Keen’s e-book “Guide to Buying a Pharmacy” is now published. You can download your free copy of Brian’s book in PDF format by following the link on the home page (RRP $45).
This is the full version which incorporates Parts 1 & 2. The title is due to publish in printed form and will be available at the Health & Beauty Show in Sydney later this month – to order your copy at the special pre-publication price of $29.95 incl p&p call the HIP office on 1800 457888 or email us at admin@hip.com.au.
The book has garnered praise from many corners of the pharmacy industry. Here are a few comments:
"I would encourage all pharmacists interested in purchasing a pharmacy to gather as much knowledge as possible before any purchase is made. This resource 'Guide To Buying A Pharmacy' provides useful information from someone who knows our sector”
Kos Sclavos – National President, The Pharmacy Guild of Australia
"Brian has collated a great deal of simple, logical, commonsense ideas into one user friendly reference guide. This is a book that many prospective pharmacy owners will have on their bedside tables!"
Neil Featherstone – Partner, Pinn Deavin, Business & Investment Advisors Regular contributor to Retail Pharmacy magazine
07.06.06
Member Profile - Michael Soo
Michael joined the Health Information Pharmacy Accelerated Ownership Program (AOP) at the end of 2004 and became a fully-fledged Member of HIP late last year when he bought a former Soul Pattinson pharmacy in Rose Bay - now HIP Rose Bay.
Having worked as a pharmacist in the Sydney area for 18 years, Michael was wondering how to take the step into ownership when he read about HIP in one of the pharmacy publications. A short while later, having had little success finding the right pharmacy to buy through his connections with the wholesalers, he decided to contact HIP to find out about the (then) new Accelerated Ownership Program. Particularly impressed with the level of business support given by HIP to members through the systems and the coaching program, he joined the AOP after visiting an HIP store and talking to an existing Member.
It is fair to say that delays in the announcement of the Fourth Agreement somewhat stalled Michael's move to ownership as the pharmacy market slowed down to almost a complete stop, but shortly afterwards the HIP recruitment team identified the Rose Bay pharmacy as a possible option for him and the purchase went ahead in December last year.
Rose Bay is an Eastern suburb of Sydney with a reasonably high income demographic profile. HIP Rose Bay is a 70sqm pharmacy with a traditionally older, fairly static customer base, but this is changing as the HIP systems are implemented in the pharmacy which appeal to a broader base, including younger people who are moving into the suburb. There is healthy competition in the area, with two pharmacies in the same strip and others in neighbouring Maroubra and Bondi Junction. There is also a warehouse discount pharmacy close by.
HIP Rose Bay is a way through the HIP implementation program, although re-branding will be delayed until the new HIP brand is launched. Michael can already see that the HIP approach is enabling him and his team to provide a higher standard of care for his customers than other pharmacy models, and personally he is very happy to have the assistance and guidance of his business development coach in setting up his new business.
It has not been plain sailing for Michael in the new pharmacy - half of the team left before Michael even took over the business and he admits that the HIP implementation program is hard work, but he is already seeing the benefits of the HIP systems in the day to day running of the business. Michael says:
"Using the HIP systems I am looking to increase trading (turnover) in this first year by 10-15%. I plan to leverage myself out of the day-to-day running of the business and move from six days a week in the pharmacy to three, and then acquire another pharmacy - ideally closer to where I live - within the next three years".
07.06.06
Excerpt from 'Guide to Buying a Pharmacy'
This is the second short excerpt from Brian’s book:
What Is Involved In Owning And Running A Pharmacy? (continued)
Do not overlook the need for technical or operational knowledge – being a successful PIC does not mean you know how to do all the things that are expected and indeed required of you when you take the responsibility for running your own business... Rely on your staff at your peril, for it’s not just about being a technician and doing the dispensing, sales, buying, bookkeeping, etc; It’s also about getting your head out of these tasks and assuming the management role as well as the entrepreneurial role that is so often missing or neglected by pharmacy owners.
With all this demand on your time and person, your family will need to be behind you all the way. As a small business owner, you will almost certainly be working harder than you ever did as an employee. You will also lose the security of a guaranteed pay packet each week. Your family will need to understand that they may see less of you, that you may appear preoccupied or worried at times, and that household finances may be tight from time to time.
The demands will inevitably be high... higher than you imagine, so you will need patience – more than ever before – and don’t forget, the customer is always right. You will need the ability to learn from your mistakes – you will make them. Add to this list the willingness to work long hours, often way beyond the opening hours of the pharmacy itself, and you’ll need the willingness to perform mundane tasks – as the proprietor, the buck stops with you!
While we’re questioning your decision, maybe you dream of being your own boss, and that’s great, but are you sure you’re doing this for the right reasons?
Next time – Six Wrong Reasons For Starting Your Own Business
09.03.06
Comment - March 2006
This month we welcome one new member and two new pharmacies to the group.
Michael Soo joined HIP as a new member from the HIP Accelerated Ownership Program and opened his new pharmacy – HIP Rose Bay – on 19th December last year. We can also announce that HIP Dee Why will be opening in April this year. This pharmacy is a joint venture with our medical centre group affiliate and will open in a brand new medical centre in Dee Why with eleven full-time equivalent GP’s. For Sal Torrisi and Simon Reinhard (who acquired HIP Narrabeen in October 2004), HIP Dee Why will be their second pharmacy with HIP within eighteen months; they joined the Accelerated Ownership Program at its inception in May 2004.
2006 is shaping up to be a big year for HIP. We are on schedule to open another four pharmacies in Queensland and two in New South Wales in the next month, and in the middle of the year we will be launching a major re-brand and a finance vehicle to help prospective members acquire suitable pharmacies for the group. We will keep you posted on these developments as they unfold.
On a lighter note, HIP team members in Sydney gathered for the HIP Christmas party on a boat on Sydney harbour - do you recognise anyone in the photo?
09.03.06
HIP sponsors new pharmacy business course scholarships
As the beginning of the 2006 academic year approaches on Australian Pharmacy Faculty campuses it’s good to see that common sense has prevailed, allowing the Australian College of Pharmacy Practice and Management (ACPPM) to team up with the National Australian Pharmacy Students Association (NAPSA) to create a first in pharmacy education - the new final year Pharmacy Students Retail Management course!
To kick it along, Health Information Pharmacy has teamed up with the ACPPM and NAPSA to offer several HIP Scholarships to final year students, promoting excellence in professional retail management.
Member pharmacists in the HIP group promote business skills alongside high-level professional practices to create a model designed to compete superbly in the broad retail marketplace, while elevating professional standards of service. In fact, we provide each of their member pharmacists with an accredited business coach to maximise their success.
The scholarships, valued at about $1000 each, will cover the net cost of enrolment.
The course will cover the four primary modules of the ACPPM accredited Diploma of Retail Management. These modules were selected by NAPSA National Committee in consultation with ACPPM officers. Graduates from the intensive two-day weekend workshops will be gain the College certificate and gain credit towards the full diploma on graduation, if they desire.
The awardees will be invited to work about 150 hours in an HIP pharmacy during their final year. This will enable them to gain practical business experience in an enlightened business arena before starting their graduate year.
HIP will also offer to successful awardees the opportunity to conduct their Pharmacy Graduate Year in one of our pharmacies and may be offered a two-year Registered Pharmacist position after Board Registration, as a follow-on from the scholarships.
Applications for scholarships will be available from ACPPM at the same time as course applications are released. The course will be promoted throughout Australia and should become an innovative enhancement to university pharmacy courses.
For further information, please contact HIP Scholarship Coordinator, Graham Dunkley (grahamdunkley@hip.com.au) on (02) 4934 6127, or phone ACPPM in Canberra on (02) 6273 8989.
09.03.06
HIP Accelerated Ownership Program - Update
The HIP AOP now has more than 30 members – a combination of existing Members who would like to open another Health Information Pharmacy and pharmacists who have joined the Program with a view to opening their first HIP store.
We are currently in the process of assessing a number of acquisition opportunities for suitability to the HIP model and expect a number of these to result in new HIP outlets in the near future. Although the majority of these opportunities are in NSW and QLD metro areas, we are assessing opportunities in other states and in country areas.
Opportunities in country areas
We have identified a number of exciting opportunities to purchase secure pharmacy businesses in regional country areas. The recent Financial Survey conducted by the Pharmacy Guild of Australia indicates the average “country” pharmacy achieves higher net profits and is open for less hours than its metropolitan equivalent. To find out more call Peter Allen (NSW) or David Bateson (QLD) on the numbers below. 100% finance may be available subject to certain criteria approval.
09.03.06
New web-based AOP opportunity tracking system
HIP will shortly be launching a web-based tracking system for AOP members.
This will enable members to access a secure area where a real-time list of acquisition opportunities will be displayed, indicating progress through the system and a facility to download pharmacy summary sheets and reports. For more information on the system call David Bateson on 07 3901 1055.
09.03.06
HIP to run workshops on buying (and selling) a pharmacy
In April this year HIP will be kicking off two short series of evening workshops - the first is “How to Buy a Pharmacy” (and get the business you really want!), and the second “How to Sell Your Pharmacy” (and get the best possible price, hassle free!).
The principal speaker will be Brian Keen, author of the ‘Guide to Buying a Pharmacy’ and the ‘Guide to Selling a Pharmacy’, due to be published in June. The workshops – which will be run in Sydney and Brisbane - will cost $25 a head. To reserve your spot go to the Events Calendar below and click on the link.
09.03.06
Member Profile - Liong Ang
Liong became a member of HIP group in March last year when he became a partner in the newly opened HIP Avalon pharmacy on Sydney's Northern Beaches.
Originally from Malaysia Liong grew up in Perth and was working as a manager of a large pharmacy in Fremantle when he first heard about HIP. Liong had met Ken Lee, founder and CEO of HIP, at a conference in 2003 and liked what he heard about the group - particularly the systems focused on the patient health side. In fact he had not seen any other pharmacy model as advanced in this area as the HIP model.
So when an opportunity came up to join the new Accelerated Ownership Program launched by HIP to help pharmacists into ownership he took the plunge. Within a short period of time HIP had identified a suitable pharmacy in Sydney and a possible partner in Victoria - existing HIP member William Khoo. With one prospective partner in WA and the other in Victoria - buying a pharmacy in Sydney - the acquisition process could have been a challenge. However with the help of the HIP support office in Sydney everything went smoothly and resulted in the opening of HIP Avalon on March 11th 2005. Liong then moved over to Sydney to take the role of working partner while William remained in Victoria.
HIP Avalon is a 140sqm pharmacy in a shopping strip location in the heart of Avalon on Sydney's Northern Beaches. Demographically the suburb is relatively affluent with a predominantly older population - this means a strong health and beauty focus in the store. The population is on the increase with a possibility of future high density residential development targeting retirees. However Avalon is not immune from competitive pressures - there is also a fairly new large discounter in a nearby suburb.
Liong - as a first time owner - found the progressive systemisation of the business through the HIP implementation program a real plus, particularly in eliminating a number of the 'unknowns' in starting up a new business. Although he admits that the implementation program was demanding in terms of his workload, he is now reaping the benefits in terms of increased business and less reliance on him personally within the business.
From the customer's point of view Liong sees HIP giving a professional standard of service, complemented by the Platinum Care Club loyalty club that really gives members useful benefits and a sense of belonging.
Liong says that, from his personal point of view, the HIP system has one major benefit:
"With the HIP model in place I will be able to progressively leverage myself out of the business. This will free me up to pursue my next goal, which is owning more pharmacies - HIP pharmacies... naturally!"
09.03.06
Excerpt from 'Guide to Buying a Pharmacy'
Over the next few months we will be running short excerpts from Brian’s book - here is the first one:
What Is Involved In Owning And Running A Pharmacy?
Before you set foot to look for a business you have to ask yourself “Do I have what it takes to run a small business?” So, the first decision you need to make concerns you, not the business! To face the challenges of business ownership it is first essential that you have a realistic understanding of your own strengths and weaknesses; this means a willingness to seek and accept the advice of other people. So, to summarize, let’s look at a checklist for your success potential. Do you have?
- Perseverance and commitment (The will to persist with the task)
- Access to outside resources (Advisor, business coach or mentor, your peers)
- A clear vision of your business's future (The ‘Business Plan’ – A picture of you and your business in one year, in three years)
- The ability to convey your vision to others (Family, advisors, staff & others)
- The professional skills and personal development (An expert in pharmacy and in yourself)
- The commitment to pursue education (Of yourself and in industry matters)
- The support and encouragement of family (Their understanding when the going gets tough)
- A plan to maintain your own fitness and health (The demands will be high mentally and physically)
No matter what business you look at, you must have the drive and determination - and a passion for your business – and not be afraid of hard work. If this isn't you, put this book down, go back to your job, and forget the dream!
