Starting a PCD pharma business requires some sort of investment. This isn’t very different from other businesses. Every business requires some initial capital investments, whether for their business registrations, or other pre-requisites that might be unique to the business. For franchise owners to collaborate with PCDs like Vivaceutical, they must fulfill all the requirements mentioned in the checklist below.
Financial Investments Required:
- Initial capital of at least Rs 10,000
- Fees for business and drug licenses
- Monthly expenses for maintenance and salary
- Regular expenses for marketing and promotions
Apart from these, there can be multiple small expenses that a business has to afford. For this purpose, a pool of savings and emergency investments is a crucial part of any business to thrive in the industry.
Let’s go over some of these investment requirements in detail.
Initial Capital of At Least Rs 10,000
Setting up any business with an investment as small as Rs 10,000 sounds unreal, that’s what makes a PCD business such a lucrative idea. You can start your PCD franchise with such a minimal investment and go on increasing your investments as the business grows. However, there is no upper limit for how much an entrepreneur can invest in a PCD business, it all comes down to how much you can afford. This initial investment helps you find an appropriate place of work, along with the right storage equipment and more.
Business and Drug Licenses
Even before you make the initial investment to buy or rent any piece of land, or equipment, you must first become a legal business entity. This requires the registration of the company for multiple licenses.
Here are some of the licenses that you must register for:
Private Limited Company Registration – An aggregate of Rs 8000.
Wholesale Drug License – This can require an investment of approximately Rs 5000.
Tax Identification Number – This might cost you about Rs 4500.
Food Safety and Standard Authority – This requires an annual fee of Rs 100.
Trademark Registration – A fee of Rs 4500 (aggregate) per product/category.
Before you can collaborate with a PCD company, you must first apply for all necessary licenses. Some of these are uniform across all private businesses, such as Private Limited Company registration, the Tax Identification Number, and Trademark Registration. Companies dealing with the manufacture, sale, or purchase of pharmaceuticals, must apply for the appropriate drug license. In the case of a PCD pharma franchise, applying for a wholesale drug license is the only way to indulge in its legal sales.
Monthly Expenses for Maintenance and Salary
Electricity and water bills, rent of the premise and warehouse, along with the monthly salaries or wages of appointed employees are common expenses that every business has to indulge in. However, with a PCD franchise business, you can shoulder the business by yourself, without recruiting other staff. As you go on expanding the business and adding more pharma products or greater stocks, you can expand your team. Since you’re dealing in pharmaceuticals, you’ll require refrigerators and cold storage to keep up the quality of the medication/supplement. If you have your own production unit, your monthly expenses will be much more
At the same time, it is crucial to keep some urgent money aside for these. This emergency money if office or order
Regular Expenses for Marketing and Promotions
As a PCD company, one major responsibility that you have is to promote the pharmaceutical products that you sell. Irrespective of how you do it, you’ll require some type of investment to get it done. You can hire medical representatives to promote the products while also distributing creative and attractive flyers. The whole idea is to grab the attention of the customer. With PCD companies like Vivaceutical, PCDs get support in this process too. Parent companies provide assets like pamphlets, visiting cards, bags, and more.
Once you have all your finances sorted and planned for the long run, you can go ahead and get yourself registered with a PCD pharma company.