Friday, 5 June 2015

Why Big Pharmacies 'close Shop' In Nigeria - Investment

I wrote a previous post on steps to own a Pharmacy in Nigeria here: http://www.nairaland.com/2352771/steps-owning-pharmacy-nigeria

If you ever wondered why, as lucrative a business as running a Pharmacy is, many still run down, I'm about to let you know some reasons. Can you think of some big names that are no more?
Let me give you some insider's clue and, don't mind me, I write with Pharmacists in mind

Why Your Predecessors Close Shop
You can sum the major reasons up under these categories

1. They thought being a good Pharmacist is enough to be a good business owner.

Entrepreneurs have different mindsets than professionals o. If you don't groom yourself and even be willing to pay neutral consultants to learn from (because your should-be mentor is also your competitor) you may learn the hard way

2. Bad location

Location is (almost) everything in any business but you will be amazed how many get this wrong-- may be because it wasn't thought in school? I don't know. What I know is that good location is not just about where you can get many customers. It's about where you can get and retain customers with purchasing power that suit your strategy, get and retain correct staff, spend less on operations etc

3. No or poor business plan

Success comes with its own challenges. A Pharmacy that is making a lot of money can close down because of that- it breeds competition, more tendencies for dissatisfying customers, expansion crisis. You must have a plan to scale through the challenges of the business at every stage

4. Poor staff motivation

This is key and I can tell you this is one major Pharmacy killer. Your staff members are not your resources ! I object to that capitalist language- calling humans resources, and of course, using them as such. If you don't know how to treat your staff like partners and first customers you will soon join those ones big Pharmacies that are now dead or a shadow of their past.

Practically speaking, this entails a lot of discipline and commitment, becoming groomed for effective leadership (for example, understanding what and how to delegate is key), planning for long-term employment and many other stuffs.

5. Bad financial practice

The money you can make in retail pharmacy multiplies with the number of branches you have. If you don't plan long term, you put a cap on how far you can go because your decisions will be poor.

Practical example: Some Pharmacies are very good in owing suppliers and then suppliers avoid them or refuse to sell to them and they can't meet up with demands. Of course, if I come today and you don't have what I want to buy, same tomorrow, same next week, I may not bother again.

One financial error some Pharmacy owners make is treating the company as their ATM machine. You better know where your income to run personal affairs will come from before opening your Pharmacy. Otherwise, you will kill the business before it gets the chance to flourish.
Having a solid financial plan- such that takes as many things as necessary into consideration AND following it is key to keeping your Pharmacy alive and well

6. Ahh! I haven't mentioned poor customer service!

Customer is king is not an entertaining slogan o. And the fact that they are coming doesn't mean they are satisfied sir! One of them may be planning to become a competitor and capitalize on how insensitive you and/or your staff members are. Otherwise, they may be waiting and even praying for that competitor to come and the good God WILL answer their prayers because He wants the best for people while you give them trash services.

You must be deliberate about customer satisfaction. All this promos some Pharmacies so don't keep customers o. If customers don't FEEL like you care about them and not just the money you want to make, sorry they will enjoy your promo and still not be loyal to you.

I hope you'll put these things to heart and use them in business.

If you have something serious to discuss with me please go ahead or send a mail to mailboominn@gmail.com and make the subject obvious so that I can know its not one of those mails.

Thanks.

http://www.nairaland.com/2357298/why-big-pharmacies-close-shop

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