Pharmacy Business Owners: When to Consider Retirement

Will the pharmacy business experience declining profits over the next few years, and if this happens will the local community pharmacy be able to stay in business?Does it seem that business profits for pharmacy owners are being attacked from every angle? Have you read the articles detailing these points:• Reimbursements for diabetic testing supplies are being reduced.• For patients who have recurring monthly prescriptions the government is nudging the public to purchase by mail-order instead of visiting their local pharmacy.• The multipliers used to calculate reimbursements for Medicaid are expected to be lower than the pharmacy owner’s actual costs.• Dispensing fees regulated by many state agencies are being reduced.• The average wholesale price (AWP) paid to drug stores is being trimmed.The federal government’s Health and Human Services (HHS) negotiates pharmacy reimbursement rates for prescription drugs plans. Many states may take longer to provide the reimbursements. Other federal and state legislation may affect both the profits and the viability of staying in business. There are also issues regarding higher personal taxes and higher capital gain taxes that need to be considered.Over a number of years many independent drug stores have already been sold. These owners are gone and they are not looking to buyout their local competition. There are fewer young people willing to take the chance of business ownership. Some pharmacies have been closed due to the fact there was not a qualified buyer in the area. National and regional drug store chains have been sold during the past few years. The consolidation of pharmacy industry is seen as an advantage for the buyer, but for the local community pharmacy owner the consolidation provides added uncertainty to their business.It is expected that in the coming years, if circumstances don’t change, that current pharmacy owners will receive considerably lower purchase prices than their associates did 10 years ago. With the average pharmacy owner closer to the age of 60 than 40, many of the current pharmacy owners will need to take a hard look at their retirement expectations.When ready for an exit strategy, what does a pharmacy owner do when there are fewer willing buyers? Who will pay them an adequate amount for a business they have spent a life time building?Pharmacy owners, who do not plan on exiting the pharmacy industry until a few more years, will waiting a year or two really put the most amount of money in the bank for the pharmacy owner’s retirement account? If the business is sold now, can the proceeds be injected into other investments that would offer a higher return? The pharmacy owner should have their accountant calculate some projections, and the pharmacy owner will need to personally keep a diligent eye on any new regulatory proposals. By not being on top of what is affecting the industry, a pharmacy business owner could see a serious impact to the person’s retirement plans.Pharmacy owners are small business people. Financially they have done well during their career, but most would not categorize themselves as wealthy. The pharmacy is probably the largest asset they will ever own so any consideration of selling the business at the right time should come with a great deal thought.In a normal flow of transferring a drug store to a new owner, the process typically takes about nine months. This is important for a business owner to understand. To deposit the largest sum of money into the bank for retirement the decision to sell the business cannot be a quick decision, nor should the business be put on auction block for a quick sale. When it is time to consider retirement the appropriate planning needs to take place.

Making a Home Business in Nutritional Counselling

Nutrition is described as the materials necessary (in the form of food) to support life. There is a belief, we as humans need more counselling on nutrition. This belief comes from the rising statistics of obesity, diabetes and our aging population. But informing these groups of the nutritional benefits of certain food types is not going to change the way nutrition is viewed. We must look past counselling and explorer different avenues of why and how we can all benefit from nutrition basics.According to Dr. Lynn McIntyre, Professor at the Dalhousie University in Halifax, Nova Scotia, low income, single women, sacrifice their own nutritional needs for the benefit of their children. Other studies also show that low income families in general, sacrifice their nutritional needs because of the cost of foods at grocery stores. Somehow, low income families are slowly associating fast food as an affordable way to feed their families. To correct this, we must change the view that nutritional food is expensive food. By showing families what types of inexpensive foods can offer the most nutrition will begin to change that view point. But how do we communicate this critical information?Interesting enough, there are a few ways that we can communicate our message that nutritional health is important. The first is through using “Duplication”. Duplication is the act of seeing and replicating what we have seen. Creating a “community” vegetable garden and selecting affordable, easy growing vegetables and providing basic recipes that use these vegetables would begin encouraging basic nutritional counselling without saying a word. By participating in these community gardens, people will begin duplicating this behaviour in their own family gardens. Providing recipes with seeds and instructions on how to grow these vegetables would certainly be one way to communicate this important message. It can also serve as an advertising tool to other sources of information such as websites and blogs.We know that parents will sacrifice their own nutritional needs for the sake of their children, but why? A high percentage is due to their limited income. Publishing blogs and twittering about the deals at grocery stores and markets to get the most affordable and nutritional food would certainly be a benefit. Providing families a list of places to go where nutritional foods are inexpensive would also help send the message. Even daily blogs on local market specials would help. Publishing these blogs in community forums setup by the YMCA or health forums or even health focused social medias like P90X on Facebook would help communicate this message.Recently, friends came over who seemed to be lost when it came to cooking. Providing some basics information on meats, fruits and vegetables can be a bit dry, but when mixed into a cooking lesson, nutritional counselling turned into a fun filled, memorable event. Whether the cooking course is provided in your house or in the house of others, the message can still be the same. Creating and showing the elderly in their own homes how to cook healthy and what nutritional foods to pick up would be a great benefit. Perhaps providing oversized, large text recipes would also be a great idea to promote nutritional eating without getting into why. The only reason is because it tastes good.With easy to read recipes, recipes and seeds delivered to communities to help market your blogs, blogs that provide tips and local deals at grocery stores and markets and marketing these blogs to all types of community forums and social media, the important message of nutrition and its benefits can be successfully communicate to all.

Book Review: Start Your Own Business

If you want to start a business, but don’t know where to start, then the place to start is with Start Your Own Business: The Only Start-Up Book You’ll Ever Need by Rieva Lesonsky. The book is put out by Entrepreneur Press and is essentially a compilation of Entrepreneur Magazine’s large knowledge database regarding starting a business.The book literally takes you through the entire business process – from determining if you really have what it takes to run a business to how to deal with failure if your business doesn’t work out, and everything in between. The best part about the book is that it covers nearly EVERYTHING in some capacity. If you need more information, it does a great job of suggesting further reading and pertinent web sites.The book is broken down into seven sections, each with several chapters. The first section, ‘You Gotta Start Somewhere’ covers determining if you can be an entrepreneur, how to come up with an idea for your business, and whether you should launch your business part time or full time. Most people who buy the book will already have answers to these questions, but going through the exercises in the book can still be helpful.The second section of the book is entitled ‘Building Blocks’. It covers how to name your business, choosing a business structure, creating a business plan, and how to hire a lawyer and accountant. I think that this is the most valuable section of the book. These are the things that most entrepreneurs either struggle with or ignore. The Naming Your Business chapter in particular helped me a great deal. Naming your business is not nearly as easy as you think – you need to consider all registered trademark names, registered domain names, and names that are being used but not trademarked. One of the worst things that you can do is to pick a name that is already being used by someone and face a legal battle down the road.The third section covers financing including where and how to get money to run your business. The fourth section, ‘Setting the Stage’ is absolutely massive and covers numerous important things such as choosing a location for your business, creating a professional image, offering customers credit, hiring your first employee, and business insurance. Needless to say, all of these things are extremely important to every business owner.The fifth section covers buying company computers, cell phones, and cars. These things probably won’t be very difficult for most business owners. The sixth section, however, covers one of the hardest thing every business owner faces – marketing. The section is nearly 100 pages about advertising, marketing, and public relations. It also briefly touches on web-marketing but those looking to seriously profit online will need to look elsewhere because the book is a little thin when it comes to e-commerce.The final section, entitled ‘By the Books’ goes over every entrepreneurs favorite things – accounting and taxes. It gives solid advice regarding basic bookkeeping, financial statements, budgeting, and taxes. For most business owners this section and the web resources listed should be more than enough to get them started on keeping their business legal.I can’t overemphasize how important I think it is for every business owner to have this book. It is a mini-encyclopedia (ok, so 800 pages isn’t THAT mini) for everything business related. Having this book on your shelf will save you countless hours. I read it from cover to cover when I got it and I constantly refer back to it. I have recommended it to every person I know that has talked with me about starting a business. Each and every one of them bought it, and each and every one of them came back to me raving about it.For the amount of depth that is covered in the book, Start Your Own Business: The Only Start-Up Book You’ll Ever Need by Rieva Lesonsky is an amazingly easy read. Anyone over the age of 16 will be able to comprehend the simple nature of the book. Reading this book won’t guarantee your success as an entrepreneur, but it will help reduce the risk of starting a business by providing you with a sound foundation to build upon.