How to start pharmaceutical business without having pharma or medical knowledge?

Query:

My name is —– and presently working in Nigeria.
My background is engineering and has no medical experience; though I am getting the support from one of establish Pharma Franchise/Pcd Company and they want to start their new division considering me as head of operations. The new company would be sister concern of the old establish company, they are considering me as partner in the firm of my investment of 20%.

Could you please guide me how to start with basics? My present job is well paying with all expat benefits, so for me now the first priority is freedom (come out from 9 to 5 routine) and not the money initially. I am a fast learner and passionate about learning and ready to work for any number of hours as long as the work is exciting. I have always been interested towards starting our won business and I think this would be an opportunity that will give me a launching platform

Response:

Owing own business is best possible career development that may be happen to an Employee, whether he is working in high profile job or at lower profile. It may be dream opportunity for you to start as a partner but before leaving your current job, you have to prepare for next one or two years with minimal out-put. We may be wrong here but it takes time to set-up a new business that pays you for all your basic needs. If you are unmarried then you require not much money for paying your bills. But if you have a family that is dependent at you, you should consider for back-up plan for money for them.

Basic things in Pharma franchise and sales/marketing are not so complex. It is as simple as you appoint distributor for your company that will also do sales/marketing for you along with distribution. We will let you know basic things about pharma business and will provide links if you want to read it in detail.

First you should know about Pharmaceutical sector and procedure & types of pharma sales and marketing. You have to learn how to sell products in Pharma market and how to handle queries of your customers. Marketing and sales in pharma sector is different from all other sectors sale and marketing. In Pharma field you can’t sell your product to primary consumer i.e. patient. You have to go through a different channel i.e. you have to generate prescription by doctor.

You should also know about pharma franchise/pcd system. It is simple process of appointing sales and marketing partners for your company. In detail you can read by following link – What is Pharma Franchise/pcd and how does it work ? read here

Pharma franchise marketing are further divide into two field pharma franchise and Pcd Pharma. Both type of fields have generally two types of distributors. Distributors that directly involves in sales and marketing and second one, distributors that work like c&f and appoint further distributors those does marketing and sales for them read here types of Pharma franchise distributors

Along with above information’s, you may need to know what type of marketing has what type of advantage and disadvantage. Read here in detail: What are the drawbacks/advantages of generic/ethical/pcd/Franchise marketing ?

For more detail you can follow our list of old articles/post to understand pharmaceutical market.

You should research all basis concepts before deciding whether you want to enter into pharmaceutical business or not. It is a profitable business but highly competitive too. Prepare yourself mentally and financially before start.

Now come to general things like how to calculate net rates, MRP, distribution margins, C&F margin, chemist price etc. You may also need to understand type of packaging used in pharmaceutical products, general salt knowledge etc and what does it to have 10×10 packing etc. Following articles may be helpful for you to understand terminology and calculations:

What does it mean of packing 10*10, alu-alu etc. at products?

How to calculate Stockist price(PTS), Retailer Price(PTR)?

How to calculate profit margin, net rates, trade rates in Pharma franchise Marketing?

Hope above information was helpful..

You can send your suggestion and queries at pharmafranchiseehelp@gmail.com

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