When should a pharmacy consider expanding?
There are two expansion strategies that pharmacy businesses can consider: internal and external growth.
Internal growth refers to the strategies used by a pharmacy in order to meet the demands of its customers. External growth, on the other hand, refers to strategies used by a pharmacy that has little to no room for internal growth.
This article focuses on growing a pharmacy business internally.
What are the signs that indicate that a pharmacy business should consider internal growth? There are three major indicators that owners should pay attention to.
First, business owners and their staff should look at the products that customers are looking for but cannot be provided by the pharmacy due to constraints of space and store design.
Second, pharmacy owners should evaluate the deficiencies of store staff to provide the services that customers need.
Third, pharmacy owners should look back at the last time the store underwent a refit.
Plans for internal growth should be in order if: the pharmacy is unable to provide customers with products or services due to space constraints and/or old store design; store staff are hindered from providing efficient service, and the store was last modified seven to 10 years ago.
One strategy that can used by pharmacies is to expand their current space either by finding a bigger location or extending into an adjoining unit. Another strategy that pharmacy owners can consider is revising the layout of the store. This second option offers the benefits of improving the visual appeal of the store and increasing staff efficiency.
What are the benefits of these strategies?
Both strategies offer a few advantages. For one, refits and expansions boost customer experience. At the same time, both can improve employee morale. Refits and expansions also allow pharmacies to cater to the changing demands of customers while upgrading staff efficiency in dispensing orders. In some instances, pharmacies can reduce the number of employees needed to man their stores as a result of better interior layout.
In an ideal scenario, pharmacies should finance internal growth using company cash. But in some cases, that would not be possible due to a pharmacy’s cash flow situation.
Does that mean that internal growth should not be pursued?
Business owners keen on initiating internal growth can rely on Portman Asset Finance for assistance. Through Portman’s pharmacy asset finance, store owners can enjoy both low rates and long-term payment options for leasing much-needed equipment and furniture. These include display units, refrigeration equipment, drug cabinets, dispenser counters, signage, till systems, lighting, automated dispensers, and furniture.
Contact Portman Asset Finance now to discuss pharmacy financing with one of our account managers.