Tight budget? No problem.
Although monetary profit is every business’s goal, there might be times when revenue is down. But that doesn’t mean you have to close your doors.
Effective pharmacy owners and managers know that it’s still possible to be profitable even when you’re working with thin margins. All it takes is sticking to a few simple strategies and finding the right resources.
Don’t let tight finances keep your pharmacy from succeeding. Consider these tips when working with a limited budget.
1. Follow a budget
You already know that a budget is essential for your pharmacy. But when you’re operating on thin margins, like most independent pharmacies are, it matters even more.
If finances are tight at your pharmacy, budget for only the necessities. These expenses include payroll, taxes, utilities, rent and computers. Non-essential expenses include free snacks for employees or ineffective marketing.
The future of your business depends on its financial success, so working to keep costs low should be a top priority.
2. Evaluate your staff
Overstaffing can be a problem for many businesses.
Are slacking, poor-performing individuals costing you more than they’re helping you? Or, is it a slow time and you have less need for full-time employees? Whatever the case may be, when finances are tight, reevaluate your staff.
Full-time employees require salary and benefits. Save money by hiring someone for a temporary or part-time position instead. Hiring interns is another solution to eliminate the extra costs of a full-time employee.
3. Market your pharmacy with limited resources
Marketing can be a high cost for any business. But there are endless possibilities to market your pharmacy less expensively.
Take a small business marketing approach and promote your pharmacy for free using your own social media platforms, blogs and website. Spend a day with your employees volunteering at a community event or charity fundraiser. Or, offer your health care expertise to a local news station to get your pharmacy in the news for free.
4. Find new ways to generate revenue
It’s important to always be on the lookout for new revenue streams.
Refreshing your front end can be a great way to improve your pharmacy’s image while also generating additional revenue. Consider offering new merchandise such as compression hose or products for diabetes care.
Don’t forget to consider your back end. Most of your pharmacy’s profits come from your back end, so it’s important to continuously work to improve sales there, too.
When patients come to the counter to pick up their prescriptions, suggest related front-end products or recommend vitamins and supplements that would support their daily medication regimen. Or, try suggesting flavored medications. Starting a flavoring service at your pharmacy can help boost adherence as well as back-end sales.
Niche services like pet prescriptions are another great idea.
5. Learn from your mistakes
Everybody makes mistakes when running a business.
Whether the decision to implement a new front-end product line fell flat or you’re not buying your inventory well enough, it’s important to learn from what went wrong so that it doesn’t happen again.
Successful businesses recognize problems, fix them and move forward.
Discover the three business skills every pharmacy owner needs.
