In this article, the proposed medical store is to be located in a commercial market of a residential area having considerable presence of middle or upper middle income groups. The product range offered in the planned pharmacy is a blend of both multinational and national pharmaceutical products. General products such as food supplements, toiletries, shampoos, soaps, diapers, sanitary napkins and prepaid cellular cards will also be available at the store. The proposed medical store will remain open for 16 hours / day.
Medical Store License in Pakistan
In order to set-up a medical store, you need to get the store and site registered with the District Health Officer (DHO) of the respective region. Checkout the pharmacy license requirements in Pakistan for more details.
The staff will include pharmacist who will have B-Pharmacy degree. Cashier / accountant must be B. Com and having two to three years experience in related field.
Some of the Key factors for operating a successful medical store are:
- Background, experience and technical qualification of the entrepreneur and / or key staff.
- Selection of appropriate location, preferably close to clinics & hospitals.
- Availability of complete product range and uninterrupted supply of merchandise.
- Inventory control to avoid any pilferage.
- Reasonable and competitive prices.
A medical store should be easily accessible and should be within population concentration, preferably in close proximity of medical clinics and hospitals. However, keeping in view the investment size of the proposed business, commercial areas around housing societies can also be considered. The outlet can be opened in any of the cities across Pakistan.
Space Requirements for a Medical Store in Pakistan
Approximately 400 sq. ft. will be required for a medical store. It is recommended that the area should be acquired on rent. Rent cost for the proposed areas will be ranging between Rs. 30,000 to Rs. 50,000. Rent cost incorporated for financial analysis is Rs. 40,000 per month. One month advance rent along with three months of security deposit is also to be paid.
Investment Required to Start a Medical Store in Pakistan
The total initial cost for setting up a single medical store outlet is estimated at Rs. 2.06 million out of which capital cost is Rs. 0.89 million along with working capital of Rs. 1.17 million. The project will be financed through 90% debt and 10% equity. The NPV is projected around Rs. 4.64 million, with an IRR of 38% and payback period of 3.20 years. Details of financial analysis can be studied in the pre-feasibility study of starting a medical store business in Pakistan by SMEDA.
Return on the investment and its profitability are highly dependent on the entrepreneur’s practical knowledge about medicines, and availability of complete product range along with regular medicine supplies, well-trained pharmacist, etc. Percentage quantity of each item offered on the store is based on survey of distribution companies.