When you venture into owning a business, of course you have to make the decision based on if it is a good financial decision or not. However sometimes determining if a business venture is financially wise requires one looking at the opportunity as a whole. Every business is not necessarily right for every person. For example if you were born, raised and still live in a town you have a much better opportunity to start a pharmacy than someone who lives 60 miles away.
Other items to consider are:
Â· Does the opportunity improve your current pharmacy through staffing, economies of scale or purchasing power? Or maybe the new opportunity allows you to now service compounding or specialty from your other store?
Â· Can you buy the building and stretch the loan over 15 years or 25 years improving cash flow? Or does the building allow you to create another asset that is funded by the pharmacy?
Â· Are their doctors or other healthcare referral sources that only you have which can drive significant growth?
Â· If buying a pharmacy can you drastically improve the cost of goods sold upon buying? Or once you take over, will the payroll reduce significantly allowing you to have a more profitable business?
These are just some examples, but remember to analyze the opportunity from all angles as it may not make financial sense but there may be a much larger return hidden in the details.