How Much Investment Is Required For Pharma Franchise – Investment is very important in any business. Are you thinking of starting a pharma franchise business in India? Want to know the amount of investment that you will require and other factors affecting your capital requirement? In this post, we will be discussing how much investment is required for pharma franchise in India.
Factors Affecting The Capital Requirement For Your Pharma Franchise Business
Many factors can affect your business in a short and long run. Apart from running short of money, there are other things which can lift or break the business. If you are starting pharma franchise business in any state, you need to keep in mind a couple of things.
- Study and try to know more about the economic and market conditions. Like if you are going to provide franchise in any pharma segment like diabetes, cardiac etc, you should know about its currents situation.
- Good demand is a good sign but make sure that the demand is good where you want to start your business. Like we say Charity begins at home! So, try to know the demand of the general public and customers your business is going to cover.
- You have two situations either you can choose to market a company or you can build a contract with a manufacturing company. Agreement with the company means a genuine business and does not require huge capital formations. On the other hand, contract with manufacturing company needs to invest in R&D and other documentations.
- Study about the weak and strong points of your business location. Accessibility to resources is very important. This helps decrease cost and expenses of various things like transportation etc.
Guide To Good Investment For Starting A Pharma Franchise Business in India
Here are some key points if you want to start a pharma franchise business. It will give you an idea about the investment areas to focus.
- As a start-up pharma franchise company, you need to invest various subject i.e. doctors, promotional tools, proper delivery facilities etc.
- You should keep aside a certain portion of your capital or money for later time.
- Premises and storage facilities according to Drugs and Cosmetic Act. It can be rented or owned.
- You should have an investment planning for products and medicines. You can choose to market them or get them manufactured.
- Promotion is the basis of your new startup! Be ready to spend on medical samples of your products, materials with company logo, internet promotion and much more.
- Quality is never cheap! Thus, you need to invest in affordable yet quality materials and delivery system of your company.
Investment Needs to Set Up A Pharma Franchise Business in India
Every business goes through hiccups or a business cycle. It affects the business. If you have newly opened a business you will require a period of 6 to 8 months as gestation period. The gestation period is the time when you start the business to when you actually start to gain profit. Investment on licensing, documentation and others are as follows:
- Accountant Salary or auditor (If)
- Drug License Number: Estimated Expense – Rs5000
- Electricity Bills
- Employers Salary and Wages for Workers
- Expenses of Doctors, Physician etc.
- Expenses of Medical Representative, Stockiest or any person appointed (If)
- Food Safety & Standard Authority of India (FSSAI): Rs 100 annually for Re-registration.
- Marketing and Promotional Expenses
- Private Limited Company registration: Estimated Expense – Rs8000 to Rs9000.
- Rent of the premises and warehousing if hired.
- Tax Identification Number (TIN): Estimated Expense –
- Third Party Manufacturing: Minimum Rs25,000 is needed.
- Trade Mark per product or name: Estimated Expense – Rs4500 (government fees + advocate fees respectively)
First of all, before jumping to any conclusion or other matter, you should be aware of your business size. The capital requirement differs for a simple pharma franchise client and a pharma franchise company itself. If you are new and want to simply start of PCD pharma franchise business than the investment amount can be as low as Rs 50000. It all depends upon you!