As you are visiting this page, you have decided to take franchise of any pharmaceutical franchise company or ayurvedic franchise company. In this article, we will discuss about step wise procedure and will provide valuable links related to the article useful for starting franchise distribution business.
First you need to know what Pharmaceutical Franchise Business is.
Pharmaceutical Franchise Business is a mutual benefited concept for pharmaceutical companies and sales professionals or pharmaceutical distributors. Pharmaceutical companies provide products at net rates and sales professions/distributors market & promote these through any sales technique to earn profit. Read in detail about What is Pharmaceutical Franchise and How it Works here
Now you have learnt about pharma franchise concept. Now you need to prepare yourself mentally and financially for starting franchise business.
Prepare a Business Plan: Not necessary, you have to write a long business plan. You can prepare a 3-4 pages business plan mentioning product range you are looking for promotion, doctors and chemist you will target in initial phase, financial planning, you want to do it as part time in initial phase or not, if doing part time when to quite job in future, vision, primary target etc.
Arrange License and Registration: For taking franchise of pharmaceutical company, one should need to have wholesale drug license and goods & service tax number. Either you can apply for your own or you can appoint distributor having these licenses. For taking franchise of an ayurvedic company, one needs to have only Goods and service tax number, no need of wholesale drug license.
Financial Planning: Pharma Franchise business is not of highly investment business but you need to arrange fund for initial order, re-order procurement and investment of doctors, chemist and pharmacy stores. If you are starting it after leaving job, then you need to arrange finance till you will have started to make profit in franchise marketing. It may take 6 months, 1 year or more time depend upon your experience, potential and effort for establishing franchise business
Territory Selection: Select territory or area, you want to start. You want to start in single district, location, area etc initially.
Prepare Territory Doctors/Chemists list: Prepare list of all doctors and chemist in that area. Divide them according to preference. You can divide then in three parts or more depend at circumstance. Give them any particular name to them like
- Most Preferable (High possibility of getting sale)
- Less Preferable (Fifty-Fifty possibility of getting sale)
- Least Preferable (Minimum possibility of getting sale)
Prepare List of Molecules: Product range i.e. general, paediatric, ophthalmic, derma etc you have decided while preparing business plan. Now you need to prepare list of molecules i.e. paracetamole, rabeprazole, itraconazole etc you want to market and promote.
Search for Pharmaceutical Franchise Company: You can find out franchise companies through searching at Google, referring Drug Books (like drug today, CIMS), medical news papers advertisement etc. Make list of at least 4-5 companies and sent them franchise query through their website’s contact form, phone, sms, what’s app etc. Ask them for sending price cum product list if territory you are asking is vacant.
Compare Price List: Compare products, molecules, brand names, company name, rates, MRP, term and conditions, promotion material etc as per your requirement. Choose which is best suitable for your need.
Company Selection: Choose Company which fulfils are your requirements and need. We have written a separate article for cautions while selecting pharma franchise company for you. Check out article: Point to be consider before selecting Franchise Company
After Selecting Company:
Now you have finalized a best suitable franchise company for yourself. Following steps you need to follow
Finalize Term and Conditions: Written term and condition will be helpful for you in any future dispute occur. Term and conditions should be based upon mutual understanding. If you are not satisfied with any condition, clarify all you doubt openly. What are the payment terms, target system, promotional material supply conditions etc should be finalized by proceeding. Sample term and condition you can check out here
Monopoly Marketing Right Agreement: Monopoly is foundation of franchise business. Monopoly marketing right agreement prevents any future dispute and infiltration caused by another distributor in your area. Company will not eligible to appoint any other distributor in your territory if you will have monopoly right agreement. Check monopoly marketing agreement sample here
Place Order and Payment clearance: Place order as per your requirement and terms & conditions. Make payment as per mutually agreed term and condition.
After receiving order franchise company will send you Performa as per availability of products and for estimation of amount payable. After receiving payment, goods will be dispatched through courier or transport as discussed.
Hope above information is helpful to you…
You can check out more franchise business related articles:
- Top Ten failure reason in pharma franchise distribution
- How to generate and boost prescription sale?
- Which is better Pharma Franchise or PCD Pharma?
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