When Should You Consider Opening an Independent Pharmacy?

For many of us in the world of pharmacies, we have often been part of a larger organization that can introduce new businesses to a city or state as and when it feels necessary. For those of us looking to branch out and start an independent pharmacy, things need to be a little more strategic.

We took a look at the report from our friends at PioneerRx that delved into the minds of independent pharmacists and looked at the how, why, and when surrounding the start-up of their business.

Independent pharmacy owners are in it for the long term

In the report that Pioneer RX commissioned, it was found that a huge 60% of independent pharmacy owners started their business before the year 2000. This means the vast majority have now been assisting local communities for over 20 years! It is understandable when you think about it. Communities thrive on connections and familiarity, and when it comes to healthcare, having a reliable, familiar face alongside a premium service stands to solidify the pharmacy presence in the local area.

28% of owners set up between 2011-2020, whilst just 6% started business up the decade before. As for where we are today. Since 2020, 6% of the current independent pharmacy owners in the USA started their business up in the past three years.

When do pharmacists begin to open their first pharmacy?

Whilst many pharmacy owners have been trading for over twenty years, the report showed that some owners may take some time to reach that milestone. A huge 70%  of independent pharmacy owners took control of their business between the ages of 26-44.

The study breaks this down further by showing us that 37% were opened by pharmacists aged between 26-35, and 33% began providing medical assistance to their communities aged 36-44.

The remaining sectors, 18-25 and 26-35 both showed a result of 15% each. What is pleasing here is that many people that started out young in the industry are still here but that also, new, younger pharmacists are still looking to enable their local areas to benefit from a supportive community pharmacy.

Pharmacy start-ups are the common entry point

Whilst the number of independent pharmacies in the USA is around the 20,000 mark, how owners came to acquire them indicates that starting up an independent pharmacy remains something many do all by themselves. In our guide covering the legalities, complications and funding needed to set up your own independent pharmacy, it was established that it isn’t a simple process but the fact 38% of owners bought their pharmacy to market from a start-up rather than acquire an already established business shows that many are prepared to take on and succeed in the challenge.

34% of independent pharmacy owners acquired their business from an already established pharmacy by taking the reigns from a retired owner. Potentially the best way to hit the ground running but also the fastest way to ruin a reputation quickly.

Surprisingly to us, as a family of pharmacy owners, only 3% of pharmacists starting out inherited the business from family members.

Do independent pharmacy owners expand their business?

Independent businesses tend to stick to a small number of units. It is easier to control costs, it is easier to understand the market and the risk is minimized. In the world of pharmacies, this also seems to ring true.

The study showed that a huge 71% of independent pharmacy owners owned 1-2 pharmacies and whilst it could not be determined whether any of this number owned either one or two pharmacies, we would tend to believe that most would keep just one business open.

Incredibly 6% of independent pharmacy owners have expanded their empire to cover 5 or more pharmacies.

If you have been considering becoming part of the numbers above, speak to RxMile to ensure your pharmacy benefits from fully integrated software that enables you to manage your prescription delivery service so that nobody in the community ever misses out on their medication.  With route optimization, captured proof of delivery and full compliance, RxMile helps lead an independent pharmacy into the future. With cost-effective methods that ensure your bottom line never goes into the red, RxMile is transforming the way you keep patients as your priority. Book a free trial of our pharmacy delivery software today to discover how RxMile will reshape your pharmacy for the better.

If you would like to see the full report from Pioneer RX, you can view it here.