Setting up a PCD pharma franchise business like Vivaceutical in India is one of the most lucrative business setups today. And the ever-growing number of franchises across the nation is proof that everybody realizes how profitable this venture can be. However, what most people don’t realize is that this business isn’t without risks. Sure, the business is profitable and easy to set up, but it has other possible risks that you need to focus on. In this blog, we’ll go over the challenges while starting a PCD pharma franchise business.
Challenges Faced by PCD Pharma Franchise Businesses
There are a few things you must go over carefully so you can handle your business with ease. It all comes down to how well you’re prepared to take on the role of the franchise owner, how well you research, how good you are at choosing the right company, and more.
Selecting the Right Franchise
To become a franchise owner, you must first find a PCD pharma company to partner with. But here’s the catch, there are hundreds of PCD companies all across the country. So how do you know which one is a legit company and which one is a scam?
You do your research. You ask questions. And you listen to what other franchise owners have to say about the company.
1. Browse Through Multiple PCD Companies
We’ve already established that there are a lot of pharma companies in India. Start by finding franchise companies that provide you services in your state. Next, look through their product range to ensure they manufacture the products that you require. If they do, go through the quality certifications of their products and their manufacturing facilities. If these PCDs outsource the manufacturing of their products, go through the quality certifications of the manufacturers.
All products and facilities should be ISO, WHO & GMP certified.
2. Select a Suitable Company
You’ve gone through the pros and cons of every company, now it’s time to make the decision. Choose the company that:
- Has quality certifications
- Provides monopoly rights
- Provides promotional support
- Has PAN India presence
Also Read: How to Get a PCD Pharma Franchise in India?
Stock Availability and Regular Supply
Every PCD company makes promises of 100% stock availability and regular supply but not all can fulfill these promises. If you collaborate with a company that is unable to keep the supply up when you’re low on stock, you can end up garnering a bad reputation in the market. Instead, a good collaboration where the parent company stays true to its promises is the most crucial part of keeping the business operational in the long run.
To understand whether a company really can provide timely services, you must look into what other franchise partners have to say about the company. You can find their reviews on digital platforms or connects with them online or offline to get a genuine idea.
Compatibility Issues
The company you partner with should share your vision of the business. They should have similar values, morals, and principles so you can see eye to eye.
The company you find should manufacture or provide the products that you want to deal in. Not only that, but the company should have other partners dealing in similar products so that they always keep up with the stock requirements. For instance, if the company has other franchise partners that deal in ayurvedic products, chances are, they’ll continue manufacturing the products without fail. On the contrary, if you’re the only franchise dealing in ayurvedic products, you might face inconsistencies in supply.
Apart from the products you require or the therapeutic category you want to cater to, the marketing strategy, location, and terms and conditions of the company should match yours.
Inefficient Track of Finances
PCD franchises are famous for being inexpensive business setups that can help your earn a massive return on investment. But it’s crucial to remember that the business isn’t without investment. As a new business, it can sometimes get hard to keep track of all the expenditures until it gets too complicated.
Once you set up your business, you must invest in a structure that can keep the score of your expenditure. This ensures that you know exactly how much you’re spending on your business and whether you’re earning more than you’re spending. Without a proper mechanism in place, you won’t be able to keep track of small miscellaneous expenditures.
Reliable Supply Chain
A supply chain for a PCD franchise begins with the procurement of raw materials and their manufacture and goes all the way to their distribution to consumers. With a franchise acting as a crucial part of this supply chain, it must be registered and have all the necessary documentation available. This includes a drug license and a GST number.
With these documents in hand, the franchise will not come across any substantial complications in the distribution of pharma products.
Problems With Quality
This brings us back to the first pointer we discussed. The PCD company you collaborate with will determine if your customers are satisfied with the products or not.
Nothing beats the importance of delivering high-quality products to the customers. So when you blindly trust a company or take their word about the quality of their products you can end up on the losing end of the bargain. Instead, it is your duty to ensure that the company has all the necessary certifications. The products and the manufacturing facilities must be WHO, GMP, GLP, and ISO certified/ approved.
Not every company or product is worth investing in. As a franchise owner, it is your job to scrutinize these companies and find one that is the most beneficial, for you and for your customers.
Ending Words
Setting up a pharma franchise is the perfect way to establish your own business with minimal investment and earn a good return on it. However, this process isn’t free from complications and it’s best to be prepared from the start. As a franchise, you should be aware of the type of company you want to invest in, the product range you want to distribute in the market, have a financial structure in place, and be very particular about the basic requirements of setting up the franchise. With these issues resolved, the whole experience can go smoothly and without too many complications.
