Most of person has issue of investment. 98 Out of 100 person who think to start own business face investment problem. Investment and money is most important prospect for starting any type of business. We receive number of queries related to investment problem, so we decided to update this article to provide more accurate information about money you need to start own marketing company. We are not economist but will try to provide best possible as per our experience. Same could be applicable at wholesale and distribution of pharmaceutical products.
We can Divide investment in three parts.
- Initial Investment
- Second investment in second batch to prevent shortage of products
- Emergency money
You could need double of your initial investment as reserve money for smooth running of your company in initial stage. You have to invest in market, doctors and products. You have to get manufactured your products at advance payment and have to provide credit to chemist and stockist. You will also have to invest at promotion and marketing. Calculate all your budget accordingly. Once you have invested, you have to invest at regularly basis until your company has started to earn enough to pay all its expenses and your salary.
Documentation/licensing fee expenses is one time investment. We are not including it in above mentioned three parts. This could require investment as below.
For Marketing Company:
- Drug License number: Approx. 5000/- vary state to state
- Good and Service Tax Registration : Approx. 4500/-
- Company Registration: For 2 partner approx. 9000/-
- Trade Mark Registration per product/name:Govt. fee + Advocate fees
- FSSAI Registration: 100 per year for registration
Now come to monthly expenses. Rent of Premises, Electricity bill, office expenses and other miscellaneous expenses depend at location and area. Some expenses like accountant/CA fee, quarterly sale tax return etc also will be added in your expenses. As average you can consider it five to six thousand per month or may be more. Prepare your budget after writing all these in your diary.
Above expenses you have to bear without involving in single product launching. More than fifty thousand rupees will be invested in only preparation of your pharma business.
After art work, lets talk about third party manufacturing procedure. We have build a separate website with complete information about third party manufacturing and investment. Read complete about third party manufacturing here. You can also read here about- how much you have to invest in third party manufacturing of your products?
You must read : Investment at Packing material of Each Dosage form also to prepare your complete budget.
We are also mentioning few queries related to Investment here for more elaboration. Hope you will get some help for these queries:
Query 1: Myself is Doctor working in a reputed medical college. My wife is a gynaecologist and she is in private sector. We want to start a pharma business of our own. What we want is that want to have product packaging from raputed company and sell in our name.Please guide us in following points. .
Starting budget 12 to 15 lakhs. Is it adequate?
Do we have to form a company to do that
Where do we get quality manufacturer because we don’t want to comprise quality.
Response:You want to start pharma business and sell products from your name then you should prefer to start your own Pharma marketing company. If you want to start only pharma business then you have many options to start. We discuss about point to point in this matter:
Your first point is
1. Starting budget 12 to 15 lac. Is it adequate? Starting budget depend upon number and type of products you want to get manufactured. Few products are costlier and few are cheaper in rates. The molecules or salt you want in your product list will effect your budget. For example, You are starting with 26 products and products are A, B, C etc. Your budget are depend upon rates of A to Z products. If your products are costlier like Cefixime, Cefpodoxime, Cefuroxime , levofloxacin, Azithromycin etc then chances are you have to invest good amount. If you start with vitamins, ferrous combinations, nimusulide, paracetamol, ofloxacin etc then budget will be less. Above molecules are example purpose only, costing of products can depend upon circumstances. 12 to 15 lakhs is sufficient amount if you invest it wisely. We have seen person to start their own marketing company with amount as less as 1 Lakh. You can start your company from 1 products or you can start with above 100 products or as number you want. We advise to start with less number of products and add new products gradually. Starting with 5 to 10 products will not require above 3 lakh investment. But investment depend upon your products selection. Mail us your product selection then we can send you estimated budget you will required to start.
2. Do we have to form a company to do that?To work with your company name, you have to start your own marketing company. Read Procedure by clicking following link: How to start your own pharma marketing company
Other ways, you can start pharma business or pharma marketing by ways like…
Taking franchise and marketing right for particular area of any pharma company, Distribution of pharma company etc. But with investment of 12 to 15 lakhs, you can start with your own pharma marketing company.
3. Where do we get quality manufacturer because we don’t want to comprise quality?Searching for Quality manufacturer is difficult task but you can find good quality manufacturer easily. You are doctor and prescribe medicines. You better know which product is good in quality and efficacy. Products which you are prescribing will have manufacturer address. Even multinational companies like pfizer, lupin, cadila, sun pharma, unichem, cipla are also get manufactured their products at third party or loan license basis. See the address of manufacturer on strip or box, you trust the most. You will easily find quality manufacturer address. Search for that manufacturer at internet and will get contact number easily.Contact them and ask them to manufacture your products.
Query 2:Estimate Budget for Pharmaceutical Marketing Company!!!
Hope you have found it useful…..
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