While thinking to start a business, especially which is unaffected by the market crisis, starting a medical shop is the best business in India as it is an evergreen business and highly profitable. This type of business does not suffer during economic up and downs. Recently, online purchases in trend but countertop are always important. This is a value-added service to the pharmacy.
Although, proper market analysis is very important before starting any business as we have to understand how well it will go.
Here, we put all the ideas together to understand the basic requirements to open a medical shop like the plan, documents, drug license, etc.Contents
Before starting any business, you must prepare a plan and it is basically consist of two parts: one is technical and other is financial part. Now considering technical part, it contains market, machinery requirements, raw material and what type of technology used for production.
On the other side, in the financial part, we must consider the financial resources and profit of the business. Also include the break-even, ROI, and payback time. This will help you in establishing your work and also help in taking financial help from banks or other financial institutions.
Steps Required to Improve the medical shop business project in India?
Choosing a good place is a major thing or key for your business as this will help to do well and to stable your business in the market. Choose such types of places which are not very much occupied with old medical shops. For this, you need to survey different areas nearby hospitals, clinics, or running markets for greater sales. It should be easily accessible to every customer including those in a wheelchair or with crutches or with injuries and disabilities.
Contact the local wholesaler dealership or manufacturing company
Procure medicines directly from the manufacturer or from wholesale dealerships. While Purchasing from the manufacturer can give you a big margin for profit since the manufacturer will provide the medicines at a comparatively lower price rather than wholesale but the drawback is that you have to buy bulk and if you are new in the business then you should start with dealers only which are in contact with these kinds of companies.
Linkup with doctors
Maintain friendly contacts with doctors and clinics to set your business and further growth aspects
Invest in franchise
Invest in the franchise or purchasing it is also another way to move in your business well as the franchise provider also takes care of many things.
For any retail shop, you require around 10sq. meters area but if you want to start a combined business like wholesale and retail than it requires 15 sq. meters at least required as it helps to store various medicines for all age groups and different conditions.
Any person can start a medical store project in India
You need to fulfill some requirements provided by the Drug Control Department to open a medical shop. It is not mandatory that the shop head must be a pharmacist but you must employ at least one registered pharmacist in your shop.
Some medications need to store at low temperatures therefore you will require a refrigerator. Frequently used medicines and different drugs require different cupboards and drawers for easily accessible operations.
It will cost around 3-4 lakhs for small cities and villages. Also for a wholesale drug store, it goes up to 8 lakhs and the investment for Megacities will be even more.
Under mention things required to open a medical store in India.
Before starting your business decide sole ownership firm, private limited company, or a partnership firm.
To start a private limited company in India you need to register with the Registrar of Companies. Although for sole ownership firm you don’t need to register. Though a partnership firm may be registered with Registrar of Firms.
Required Pharmaceutical or Drug License to open medical store in India.
To start a medical shop it requires a license provided by the State Drug Control Organization. One person comes for an audit to verify the business storage facility, technical facility, and area you provided for storage is sufficient or not to get approval for the license.
Rules to hire Pharmacist for Medical Shop Business Project
The person you hire must be registered, full time available and approved by the state pharmacy council. But in wholesale business store you don’t need to hire a registered d pharmacist. However person must have one year experience in dealing drugs and medicines or matriculate person with 4 year experience.
In the presence of a registered pharmacist, drugs should be sold out and license must carry the name of a pharmacist or qualified person who cannot do any other work while working with you.
Registration Procedures for Medical Shop Business Project Plan
Filled application form with required documents submitted in the office and the drug department will conduct your area audit. After satisfactory results they issue certificate which is used for only one particular shop.
If pharmacist resigns, you need to submit application again along with original drug license and other required documents to update the name of new pharmacist on the drug license.
Documents Required for medical shop license
Most of the states require same documents however some may require extra information. List of documents required to submit at the Drug Control Department of the state:
- A covering letter duly signed by the applicant to understand the purpose.
- A duly filled-in application form.
- Fee challan.
- The design layout of the store in which you are going to start business.
- Rental agreement is required only in case you start work on rent, declaration letter by owner, and the building tax receipt.
- Relevant certificates of the Person or the pharmacist employ for your store.
- Pharmacist or qualified person submits an affidavit.
- If person was working somewhere else, relieving letters from their previous employers required.
- Appointment letter of the pharmacist or qualified person.
- If you are doing any Partnership or Sole Proprietorship, declaration document or an Incorporation Certificate required.
- The applicant’s affidavit about location, constitution, tenancy etc.
- Purchase records of the refrigerator and must be calibrated timely.
- All residential address proof of the pharmacist or qualified person including that of the applicant must be submitted.
- Passport size photographs of the applicant, pharmacist or qualified person.
Other additional documents must be submitted.
In case you need to update or renew the license, submit the original license, application form, and other documents again.
Marketing and Advertising of Pharmacy Shop Project
Marketing and advertising help the locality or area people to get aware of the particular medicine shops and help to increase sales. Promote acts as a competitive sales aid and supports the business. Start marketing your business by distributing pamphlets or giving advertisements in local newspapers or displaying hoardings. Also, you can contact for online services and provide home delivery for free or some minimal cost by providing handsome discounts. This can be a value-added service for your business. This is helpful for elder people or those staying alone.
Profit earn by Medical Pharmacy shop in India?
It completely depends on the type of drugs from 20% to 1000% or more on MRP. The highest profit found on food supplements like proteins, saline, multivitamins, contraceptives, etc. To understand better profit margins business owners must do an analysis of a particular area or locality.
GST – the GST is a uniform taxation structure that was developed in 2017 and effected from 1st July 2017 in the country. It simplifies the taxation process and no need to have any CST or VAT registration. GST registration is mandatory for all businesses.
This is a growing business today and will continue to grow in future. So, if you understand each and every step and follow these important points your medical shopwill be successful and can resist for lifetime.
So, investing in this type of business is the best part to get success in business with great profit.