This Post is Sponsored By EVCOR
As experienced pharmacy consultants and transaction advisors with decades of experience, we understand how busy most pharmacy owners are on a daily basis.
The problem is the busier you are as a pharmacy owner; you sometimes get distracted from the essential details of running your pharmacy.
It is important to take a step back and ask yourself crucial questions that will make your pharmacy a much more viable business. When you begin to evaluate your business, this task may seem overwhelming. Still, sometimes, you need to reach out to a business advisor who will help you turn analysis into actionable insight.
This is where a consultant from EVCOR can come in with a fresh set of eyes with our Pharmacy Business Health Check.
This unique offering helps independent pharmacists measure the performance of their business, identify potential weaknesses, and recommend areas for growth and profitability without increasing your risk to the bottom line. In addition, it will set you on the right path so that when you are ready to sell, you will place a higher value on your pharmacy.
Just to give you an idea, here are the areas our business health check-up analyzes for you.
Cost of Labour
Are you paying your staff too much, not enough or just about, right? We benchmark your wage expenses against industry standards and relevant comparators.
Dispensary Efficiency
The Business Health Check-up measures and benchmarks dispensary factors like fill times, staffing and inventory to maximize efficiency.
Professional services
What is the right balance between scripts and professional services revenue for your pharmacy? Are you capturing the full-service revenue– or are you spending too much time delivering them?
Financial Performance
How do your pharmacy’s margins, balance sheet and other financial factors stack up against its industry peers? How can you improve them? And how much would your pharmacy be worth if you took it to market?
Quality of Financial Record-Keeping
Pharmacist owners often overlook this, but the authenticity and thoroughness of your financial records is a key determinant of value in the eyes of a potential buyer.
Corporate structure
The structure of your company can impact value and have significant tax implications, particularly if you are preparing to sell. A corporate structure review can address areas of concern before they become problems and minimize frictional tax when you decide to sell the business.
Commercial Terms
Are you making the most of your commercial terms vis-a-vis generics? Are you accounting for them in the most credible way?
Lease Issues
The terms of your lease can have a direct impact on the price your pharmacy will demand in the market. A “bad” lease can impair your business’s value or even prevent a successful sale in the future.
Inventory
Too much or too little inventory can hurt your bottom line and waste resources (including space). We will help you clean it up.
Concentration Risk
Does most of your revenue come from one or a handful of customers or contracts? What would happen if they were no longer in the picture? We will look at your pharmacy’s revenue streams, identify vulnerabilities, and suggest ways to address them.
Front-Store Contribution
Many pharmacists feel comfortable driving efficiencies in their dispensaries, but a poorly managed front-of-store can suck up resources, turn off customers and leave revenue on the table.
Those are just a few profitability factors we analyze in our Business Health Check-up. It is comprehensive and in-depth, but we have made the full process convenient and affordable – because we know just how busy pharmacist-owners can be. So, whether you are just starting out, operating a mature business, or thinking about selling, our Business Health Check-up can help you get a handle on the “big picture” for your pharmacy – and your future.