“We don’t have time to plan.
Right now we just need more business.”
~ Author Unknown
Does this quote describe you? Over the years you always knew you needed a plan but just didn’t have time to develop one. What about your “Exit Strategy”? Sure, you want to exit some day but you really haven’t planned for it because the rules of pharmacy keep changing, profit margins are getting smaller, and insurance companies have you doing more work than ever just to get a small reimbursement. Some of you may even be saying, “If this new Medicaid reimbursement plan gets implemented in January, then our government has already planned my exit”.
Of course many Independent & Small Chain Pharmacy Owners can relate to the above. We all have the same challenges. However, some are choosing to handle their challenges in a different manner. Now that you know you are not alone, let’s talk about exit strategies or succession planning.
Professional athletes provide us with some great examples. The best examples of doing it right are those who really think out their exit and leave at the top of their game. They leave the game even though their fans are begging for more.
Ideally, you want to be like that professional athlete when you exit your business. You want to leave when you and your business are at the “top of your game” with your employees and customers “begging for more”. At this point, you are worth your maximum value and you deserve to be compensated for it.
No matter if you exit now or 30 years from now, you need a plan that will help you achieve your maximize value. Here are some things to consider:
1) What goals do you want to achieve with your exit?
2) Do you want to keep the integrity of your business intact?
3) Do you want to make sure your employees and customers are taken care of without much change?
4) Who would you prefer to sell your business to? A family member? A loyal employee? Another Independent Pharmacist? Groom an up and coming young pharmacist to take over your pharmacy down the road? Or let the maximum value dictate who you should sell to?
5) Economically speaking, how are you going to transfer your pharmacy or pharmacies to the buyer if it is a family member or employee? Will they pay you throughout time? Will you have to finance their purchase?
6) Should you redefine your focus in the marketplace because of all the changes in pharmacy? Should you buy more pharmacies and/or sell one or more of your pharmacies now because of the changes in pharmacy?
These questions will start you on the path to planning your exit strategy. If you would like to discuss your options, please visit the Keep Your Pharmacy Open website to request a complimentary initial call. KYPO is a non-profit to help not only the troubled pharmacies but also help you develop the succession plan that is right for you.
Of course many Independent & Small Chain Pharmacy Owners can relate to the above. We all have the same challenges. However, some are choosing to handle their challenges in a different manner. Now that you know you are not alone, let’s talk about exit strategies or succession planning.
Professional athletes provide us with some great examples. The best examples of doing it right are those who really think out their exit and leave at the top of their game. They leave the game even though their fans are begging for more.
Ideally, you want to be like that professional athlete when you exit your business. You want to leave when you and your business are at the “top of your game” with your employees and customers “begging for more”. At this point, you are worth your maximum value and you deserve to be compensated for it.
No matter if you exit now or 30 years from now, you need a plan that will help you achieve your maximize value. Here are some things to consider:
1) What goals do you want to achieve with your exit?
2) Do you want to keep the integrity of your business intact?
3) Do you want to make sure your employees and customers are taken care of without much change?
4) Who would you prefer to sell your business to? A family member? A loyal employee? Another Independent Pharmacist? Groom an up and coming young pharmacist to take over your pharmacy down the road? Or let the maximum value dictate who you should sell to?
5) Economically speaking, how are you going to transfer your pharmacy or pharmacies to the buyer if it is a family member or employee? Will they pay you throughout time? Will you have to finance their purchase?
6) Should you redefine your focus in the marketplace because of all the changes in pharmacy? Should you buy more pharmacies and/or sell one or more of your pharmacies now because of the changes in pharmacy?
These questions will start you on the path to planning your exit strategy. If you would like to discuss your options, please visit the Keep Your Pharmacy Open website to request a complimentary initial call. KYPO is a non-profit to help not only the troubled pharmacies but also help you develop the succession plan that is right for you.
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