Requirements For A Successful PCD Pharma Franchise Business– Planning to join the pharmaceutical sector by opening your own PCD Pharma Franchise Business? This flourishing industry is full of opportunities for those entrepreneurs who are willing to venture into the healthcare sector. But before venturing into this successful business, it is extremely important to know about the Requirements For A Successful Pcd Pharma Franchise Business and what documents are needed to start the process of becoming a successful PCD Pharma franchise owner.
The Indian pharma industry is very competitive and among the largest industries in the world market. In terms of the different business models in the industry, there is a quite common model that goes by the name of the PCD (Propaganda-Cum-Distribution) pharma franchise model. This is a model through which small and medium-sized businesses can begin operating in the pharma industry with less capital and risks. But initiating a PCD pharma franchise in India and conducting business involves following a few rules and regulations. Asvins Lifecare blog elaborates on these Requirements For A Successful Pcd Pharma Franchise Business.
What is the PCD Pharma Franchise Model?
A PCD Pharma franchise can therefore be described as a distribution system where a drug company (franchisor) awards the right to sell specific drugs to a distributor or independent retailer (franchise) in a specific geographic location. The franchisee enjoys the name and experience of the franchisor both in the brand and in the products and discount promotions provided.
Key Requirements For A Successful Pcd Pharma Franchise Business
One of the key Requirements For A Successful Pcd Pharma Franchise Business is to acquire the required licenses and certifications. These documents not only establish your business but also verify compliance with the regulations. Let’s discuss the key requirements and documents required to begin your PCD Medical Franchise Business:
Drug License
The first among the most Requirements For A Successful Pcd Pharma Franchise Business is a pharmaceutical license. This license is required if you plan to venture into the marketing, sale and distribution of pharma products. Drug licenses come under the Indian Drugs and Cosmetics Act, of 1940. A license is normally categorized as follows: A license is normally categorized into the following categories:
- Retail Drug License (RDL): For the people who want to operate a chemist or pharmacy store.
- Wholesale Drug License (WDL): For the people who are engaged in wholesale dealing.
Submission of an application for a drug license depends upon its conditions, like availability of an RDL-registered pharmacy and availability of a WDL-qualified person who possesses necessary knowledge and experience.
GST (Goods and Services Tax) Registration
One of the most significant considerations is GST registration. Post GST introduction in the Indian economy, it is a statutory requirement for every supplier of goods and services to get registered under GST. This registration aids in collecting the taxes appropriately and enables the franchisee to collect the taxes incorporated in the buys.
Trademark Registration
Trademark registration is necessary to secure protection of the Pharma PCD franchise brand. It keeps the brand, logo and other marks safe from use or imitation by competitors in the marketplace. Nevertheless, it goes without saying that for a franchise, brand registration enhances credibility and credibility in the marketplace.
Agreement Documentation
A legal document has to govern the relationship between the franchisor and the franchisee. This document governs the relationship between the franchisee and the franchisor and outlines the parties’ rights and duties, the price of products and services, sales promotional and advertising steps, and the term of the franchise. This document should be reviewed legally to ensure that its content is highly transparent and compliant with the law.
DPCO (Compliance with Drug Price Control Order)
In India, DPCO (Drug Price Control Order) is a regulation controlling the prices of some strategically crucial drugs. Franchisees are impacted by the DPCO and have to comply with the directives to escape legal cases and charges. It also demands compliance with MRP controlled by NPPA for controlled drugs in the nation.
Insurance
Taking insurance for your business is one of the most crucial things when you are going to start your own PCD pharma franchise business. This saves your business from unexpected damages or losses. That’s why insurance is not only essential for PCD business but for every business where you invest your hard-earned money.
Product Catalogue
If you wish to sell and distribute medicines to other people in your pharmacy business, you must create a list of everything you have. This list is referred to as a catalogue. It must state the name of every product, what it’s composed of, how it’s packaged, and how much it’s worth. Having a quality and comprehensive catalogue enables people to know about your products and prompts them to buy from you.
The Investment and Financing Strategy Required to Operate a PCD Pharma Franchise
Financial and investment plan: When opening your entrepreneurial life in the medical field, investment and financial strategy is the highest priority. There is a delineation of what are the fundamental areas that require investment:
- Buy initial stock
- Renting property
- Buying stocks
- Purchasing machinery
Invest a major part of your investment in buying preliminary supplies of drugs from a reputable pharmaceutical firm like Asvins Lifecare. Conduct research and select items in high demand within the market and address the demands of your target customers.
Infrastructure and installation fees
Building a distribution network necessitates well-equipped office facilities, warehouses, and transportation logistics. Set aside money to lease or buy appropriate buildings, storage shelves, refrigeration appliances (if needed) and transport vehicles.
Marketing and Promotional Activities
Spend on marketing and promotional efforts to build visibility for your PCD pharmacy franchise business. This involves creating marketing materials, participation in medical conferences and trade fairs, and utilization of digital marketing avenues to reach a large audience.
Staff and Training
Recruit qualified staff to handle different aspects of your business, such as sales representatives, pharmacists and administrative staff. Furthermore, provide resources for training programs to ensure your team is adequately prepared to offer excellent service and promote your pharmaceutical products effectively.
Contingency Fund
Keep a contingency fund for unforeseen expenses or issues that can occur in the initial phase of your PCD drug business. A financial cushion minimizes risks and facilitates smooth operation even in unfavorable circumstances.
How Much Investment Required to Start a PCD Pharma Franchise Business?
Investment is necessary in every business. Along with this, a regular flow is also more necessary. Every company has a different investment requirement. You can begin as low as Rs. 10,000 or even as much as Rs. 3–4 lakh. PCD is a mini big medicine business wherein you are distributing a few medicines and treatments. This makes several companies all over India provide decent service without consuming much money. But still, it’s a good notion to have at least Rs. 1 lakh put aside to use to buy stuff when you are beginning.
