How to Open Ayurvedic Medical Store – To open Ayurvedic Medical Store in India is the most profitable business nowadays according to the research. Because nowadays people are moving towards the Ayurvedic medicinal system because of the fewer side effects. And even the economy of India does not play any role in Medicine Business. So down the economy will never affect your Ayurvedic Medical Store Business. There is much information you need to know before opening your own Ayurvedic drug Pharmacy. So in this article, I have tried to put all the common points on how to Open Ayurvedic Medical Store.
You can register in four types of medical stores in India. These are:
- Hospital Pharmacy: Pharmacy which is located in the hospital for the patients
- Township Pharmacy: Pharma located in the town for the local people
- Chain Pharmacy: This type of pharmacy is situated with a particular brand name in many places in India.
- Standalone Pharmacy: This type of pharmacy is located in big and metro cities.
Requirements and points to Open Ayurvedic Medical Store
Here are some of the essential requirements that you would need to fulfill before starting your medical business venture.
1. Location of your Ayurvedic Medical Store:
Choosing a location is one of the prior things to consider before you start your medical shop. Choosing a good location, decide the profit of your Ayurvedic Medical Store business. Keeping these following points in your mind before choosing the location can help you in many ways:
- Competition in the area: If there are several chain pharmacies within a few blocks, you’ll have a tough time building your business. It isn’t impossible, however. Independent pharmacies can compete with chains if they offer better service or a higher level of expertise than these competitors. You will, however, have to work much harder to build a successful pharmacy if there are chains close by.
- Visibility: Will people be able to see your pharmacy, or are there too many obstructions and limitations on signs? This is crucial for when you are just starting out, so you’ll want to pick an area that is visible to the local population.
- Access: Can people easily enter and exit? Is there plenty of parking, as well as room for a drive-thru window or curbside service? It would be good if you had room for a parking lot or there was abundant street parking. Since many of your customers may be elderly, you’ll also want an area without stairs or long walks. Do not forget to consider accessibility for those with disabilities as well.
- Opportunity: Are there nearby businesses, such as medical offices, that will provide a constant flow of potential customers? Office buildings and businesses are not only a potential source of customers, but also an indication if the area is good for business.
2. Contact the local wholesaler or manufacturing company
- Running a small business is always challenging. It can be both reassuring and informative to talk to others who have been in your position.
- Meet with other businessmen and independent pharmacists and ask if they have any advice to offer.
- Contact the medicine manufacturing company or the local wholesaler to get the products for your shop.
- Going in for direct company supply will give you better profit margins, but it’s important to keep in mind that they would want a higher order quantity.
- If you’re just starting out, it’s better, to begin with, medicine stockists.
- An informal tie-up with a clinic or doctor will help your business in a big way and will also enhance your chances of doing well in the business.
3. Develop Your Business Plan for Opening Ayurvedic Medical Store
Potential customers are already going somewhere else for their Ayurvedic pharmacy needs, so your business plan will need to answer, “Why are they going to come to me?” In answering this question and developing your plan:
- Analyze the population: Study the demographics of the area population. Is there a large enough population to support your Ayurvedic Medical Store, and are there enough prescribers for any niche services you plan to offer?
- Understand customers’ needs: Talk with community members about what they want, and what about current pharmacies in the area frustrates them. Ask physicians what they are having problems doing or getting for their patients.
- Assess the market opportunity: To develop your Ayurvedic business plan, you must understand where the pharmacy business currently stands and where it is heading in the next three to five years.
- Create marketing plans: Marketing is a key and often overlooked area in an independent Ayurvedic Medical Store plan. Offering better customer service than the competition may keep people coming back, but it won’t bring them in the door in the first place. Plan from the beginning what will set your pharmacy apart and how you will get people in the store.
- Connect with the community: Look for opportunities to reach out to schools, youth sports teams and places of worship.
- Opt for Franchise if you need to: Purchasing a franchise is another great way of doing well in this kind of business as the franchise provider will take care of most of the things for you.
4. Store Area And storage Capacity of your Ayurvedic Medical store:
- For starting an Ayurvedic retail store you would require an area of about 10 sq. meters. But if you’re looking to set up a combined wholesale and retail business under one roof, then you would require a larger area of about 15 sq. meters.
- Your drug store would require a refrigerator to store insulin, liquid antibiotics, vaccines, and other medications that need to be kept at low temperatures.
- Cupboards and drawers are also an important requirement to store different drugs and other products in your shop, so business can be carried out faster, easily, and in a more organized way.
5. Investment to Open Ayurvedic Medical Store:
In your business plan and financial statements, including three types of funding:
- Build-out capital to pay for building the store, renovations, fixtures and other fixed assets.
- Opening inventory financing, to pay for initial products to stock your store.
- Working capital for day-to-day operations.
- Understanding your financial needs will help you determine whom to approach for a loan — a commercial lender, Small Business Administration lender or wholesaler.
- For semi-urban and small-town areas, you would require a minimum investment of about Rs. 3-4 lakhs
- For opening a wholesale drug store it would be around Rs. 7-8 lakhs.
- For metropolitan cities and larger towns, the investment would be more.
Retail pharmacy is a unique business because when you fill a prescription, the customer pays only a portion of the cost, and you may have to wait 30 to 45 days to receive the rest of the payment from payers. You need to plan for that delay in cash flow.
6. Taxes and Registration to Open Ayurvedic Medical Store:
- Before opening your Ayurvedic medical shop you must decide on the type of firm you want to open up. Is it going to be a sole proprietorship firm, a private limited company, or a partnership firm?
- There is no business registration requirement for a sole proprietorship firm.
- Though a partnership firm may be registered with the Registrar of Firms, it is not mandatory for the firm to be registered. However, it should be registered to resolve legal disputes that may arise among the partners in the future.
- A private limited company will always be registered with the Registrar of Companies if it wants to do any business in India.
- Other than this to open Ayurvedic Medical shop in India one should register for Value added tax (VAT) under Tax Registration rules.
- For VAT Registration of your Pharmacy, you can contact the Sales Tax Department of your region.
7. Drug License:
Drug License is necessary to open your Ayurvedic Medical shop. This License is permission from the government to deal with drugs. A drug license from the State Drug Control Department is required to open a medical store. The licensing procedure is almost the same across all the states in the country, though some states would have a slightly different procedure. This Drug License is of Two types for drug distribution or sale in India:
- Retail Drug Licence: It is Issued to Persons/agencies involved in Standalone/ chemist pharmacy shops
- Wholesale drug license: It is issued to Persons/agencies involved in wholesale distribution of drugs
8. Documents required for medical shop license:
- A covering letter that specifies the purpose of the application duly signed by the applicant.
- A duly filled-in application form. Application on prescribed Form no. 24-D.
- Fee challan.
- A site plan of the location including the design layout of the store in which you are going to carry out business.
- If it’s a rented store, you would need to submit the rental agreement, declaration letter by the building owner, and the building tax receipt.
- All relevant certificates of the competent person or the pharmacist you are going to employ for your store.
- An affidavit by the registered pharmacist or competent person.
- Relieving letters if any of the competent persons or pharmacists from their previous employers.
- Appointment letter of the pharmacist or competent person.
- A Partnership Deed or Sole Proprietorship declaration document or an Incorporation Certificate.
- The applicant’s affidavit about location, constitution, tenancy, etc.
- Purchase records of the refrigerator.
- All residential address proof of the pharmacist or competent person including that of the applicant.
- Passport size photographs of the applicant, pharmacist, or competent person.
- Other additional documents, if mandatory.
- In case you need to renew the license, you would have to submit the original license, application form, and other documents if necessary.
Given above all the required information about How to Open Ayurvedic Medical Store. Read the blog and start your Ayurvedic Medical shop. For more information contact us.