The pharmacist should consider the following factors before opening a new pharmacy.
Table of Contents
The pharmacist may choose from three widely recognized forms of legal organization for the drug store enterprise.
Unincorporated Sole Proprietorships
The business enterprise owned and managed by an unincorporated sole proprietor is not considered in law as a separate legal entity; rather, the owner and the enterprise are considered one.
Partnership arrangements and incorporation are mechanisms that may be used to broaden the financial or talent base for an enterprise and also may serve to spread the risk. As to liability, a partnership may be described as an association of sole proprietors, because at law the partnership is not considered separate from those who compose it.
Co-ownership also may be affected through a more formal organization known as the corporation, which is a separate legal entity, created by the expressed authority of the state.
Factors such as population in the trading area, distribution of income among the population, type of industry, and the competitive climate have been cited as being important for site selection.
Planning and assembling the capital requirements for a new pharmacy are predicted on careful evaluation of projected sales volume, breadth and depth of inventory requirements, and estimated operating expenses. The amount of capital required for the operation of a successful pharmacy is a function of its productivity.