Why Investing In A Pharmacy Is The New Trend

STARTING A PHARMACY BUSINESS IS ONE OF THE BEST INVESTMENT DECISIONS YOU WILL EVER MAKE IN UGANDA.

In these trying “corona” times, with many people having lost sources of income, jobs including some of the most stable businesses taking substantial hits, with profits crumbling, due to a steep decline of customers from the imposed lock downs and curfews; it brings to question which businesses are most suitable for such times with some able to survive and even thrive in these trying times.

Pharmaceuticals (drugs/medicines) being vital commodities whose supply to the communities had to be sustained meant pharmaceutical outlets had to be left open as some of the few essential services in operation. Just like food, one cannot do without medicine which only guaranteed a continuous inflow of clients.

One would argue that they could prevent illness, but this prevention many a time still requires taking medicines for example multivitamins, boosters, herbals, among others therefore returning to the same conclusion, need for medicines.

With our ever-growing population currently standing at 40 million, the demand these medicines is increasing day by day, these numbers also reflecting the change in mindset with many people who now becoming aware of the need to maintain good health and effect of the growing literacy levels.

Lately, the increase in the middle class who tend to be dissatisfied in medicines supplied at the government facilities has an increased urge and resources to look for quality services privately. This isn’t helped by the continuous shortages of medicines in the government facilities and has created an opportunity for business-minded people to gain from these challenges by being able to chip into the pharmaceutical supply chain and make available these medicines and high-quality options.

The pharmaceutical supply chain is a very profitable area and lately many people are beginning to notice and take advantage. The supply chain starts from the manufacturer who makes the products/medicines.

These can be very large manufactures like CIPLA QUALITY CHEMICALS or small industries that make some of the registered herbal remedies (kabuuti, cough linctus, Jena Herbals) on the market. the chain then moves to the distributors like Wide Spectrum who are pushing limits to move the products from the factory to wholesale, wholesalers who avail products to retailers, and retailers who deal directly with the consumer of the product or patient. So many opportunities can be identified and investments made along this supply chain with very handsome returns.

Many people are majorly aware of the opportunities at the retail stage of the supply chain (retail pharmacies and drug shops). However, the highest profit margins are higher in the supply chain bar a few stand-out retailers. However, because of increased demand in retail pharmacies, I shall focus my discussion today on these.

Retailers in the pharmaceutical supply chain are the retail pharmacies, drug shops, and health facilities. Many factors are leading to rising in patients (clients) in these retail outlets especially pharmacies. People would rather self-medicate than go to the clinic/hospitals where they would pay more in consultations and wait in long queues.

These pharmacies are easily accessible and because of an increase in online consultations, people don’t feel the need to go to hospitals which has made pharmacies very popular. With all these patterns, it poses a question of whether you too should start a pharmacy, what it takes to start one, and will your pharmacy be as profitable as the rest.