We need pharmacies now more than ever, especially because of the pandemic going bonkers and putting us in vain. Some of us might have underestimated the power of pharmacies and it can not be ignored any further. Many of you might want to know how to start a pharmacy business?
If you want to climb on the wagon of pharmacies and wonder how to start pharmaceutical business, this article is where you need to be. As you read along, you will discover 6 simple steps that assist you on the thought-provoking question of how to start a chemist shop. So, buckle up!
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How to Start a Pharmacy Business?
1. Requirement for Acquiring Drug License
The following requirements must be ensured while figuring out how to start a pharmacy business:
Space: When you want to know how to start a chemist shop, you must ensure that a minimum space available is 10 square meters. And for some reason if you wish to include wholesale or retail into your business plan of how to start pharmaceutical business, you need to have a minimum area of 15 square meters available.
Storage: You are required to have a refrigerator and air conditioning, so that you can store the medications depending on their specifications.
Staff: As per the guidelines of department of drug control, the medicines must be sold by or in presence of professionally trained staff.
2. Documents for Drug License
The list of documentation varies from one state to another and you can check the particular specifications of your state online. Drug license is also important if you want to start a wholesale pharmacy business.
3. Pharmacy/Drug License
If you find the question of how to start a pharmacy business daunting, then you needn’t worry. How to start a chemist shop is not a difficult affair. All you need for the answer of how to start pharmaceutical business is to acquire the proper licenses. In India we have the Central Drugs Standard Control Organization and the State Drugs Standard Control Organization that manages the licenses.
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4. Register your Business
The next step for how to start a pharmacy business is to register your business. There are four types of business models available for pharmacies:
- Hospital Pharmacy (A pharmacy inside the hospital for the in-house patients)
- Standalone Pharmacy (A pharmacy in residential areas for the requirements of residents)
- Chain Pharmacy (Pharmacy inside malls/ other shopping complexes that are part of a chain)
- Township Pharmacy (Pharmacy inside housing townships for the needs of the township residents)
In India, we commonly have the standalone pharmacy that functions under the unorganized category. However, you can venture into the other categories while getting your business registered such as chain pharmacy or township pharmacy that is slowly gaining momentum in the pharmacy business.
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5. Tax Registration Number
With this step, we come to the last and one of the most salient steps of how to start a chemist shop. GST registration number is a mandate in India for the sale of goods and products by a business. Thus, the pharmacy business must procure a GST number and pay GST for each purchase.