How much Investment is Required for a PCD Pharma Franchise?
How much investment is required for a PCD pharma franchise?
Although the success of a business relies on the performance of the company, it is the investment that could make or break the company. The PCD pharma franchise, just like any other business, works on the same principle. A dearth of capital in wanting areas could impede the business growth leading to financial losses. Therefore, the obvious question that every potential PCD pharma franchise owner asks is – “How much investment is required for a PCD pharma franchise?” We will elaborate on the answer for both- if you are a future PCD pharma franchise owner and for anyone looking to start a PCD pharma franchise company in India.
Amateur entrepreneurs are more often the ones who face financial hurdles as they lack the experience and the foresight to predict financial troubles. Therefore, most businesses hire financial consultants or accountants who oversee the financial aspect of the business and estimate the investment requirement accurately. In the Indian pharma industry, the PCD pharma franchise business is a fast-growing business that offers numerous business opportunities with tremendous potential. But, a new PCD pharma franchise owner or a pharma franchise company owner must prepare well to overcome financial challenges to avoid troubles later in the business.
Investment Required to Start a PCD Pharma Franchise in India
A PCD pharma franchise is a low investment model and therefore is popular among freshers and novice professionals. An individual can start the business with an investment as low as Rs.25000 depending upon the kind of pharma products they wish to distribute. We categorize the investment required to launch a PCD pharma franchise in India into the following components.
- Investment Pertaining to Documentation & License
Any PCD pharma franchise in India can lawfully sell and distribute pharma products only after the government grants the permission to do so.If a pharma franchise does not possess a valid wholesale drug license and TIN, it can get into trouble and likewise put its associated pharma PCD franchise company in trouble. Therefore, one of the foremost steps is to invest in obtaining a license and permit. This is a one-time investment and is further segregated into the following components.
- Wholesale Drug License @ a cost of Rs.5000. The cost may vary from state to state, therefore, check with your local state license issuing authority for the right figure.
- TIN or Income Tax Registration with the IT Department @ a cost of Rs.4500.
- Investment for Miscellaneous Expenses
A PCD pharma franchise business incurs many other miscellaneous expenses that require adequate financial backup. These expenses are as follows.
- Utility and electricity bills;
- Salaries of employees
- Monthly rent for the premises
- Emergency Investment
Emergencies may arise out of nowhere catching you in surprise. If you are not ready to deal with emergencies, your business could accrue significant losses. Having a sufficient backup can help you pull out of difficult situations. Hence, you could prepare well for contingencies by keeping aside money for such situations.
Investment Required to Start a PCD Pharma Franchise Company in India
A pharma PCD franchise has PCD pharma franchise owner on one side of the spectrum and the pharma PCD franchise company on the other side. Now that we have discussed the investment required for a PCD pharma franchise in India, let us now turn our attention to the investment needed to start a PCD pharma franchise company in India.
Like a PCD pharma franchise, a pharma PCD franchise company needs investment basically in two areas. These are,
- Documentation, Certification, & License
It is mandatory for a PCD pharma franchise company in India to have license and accreditations from various health governing bodies. The license and approvals may require renewal from time to time but are for the business.A pharma company must invest in getting the following license, certifications, and registrations.
- Drug License Number (D.L. Number) @ a cost of Rs.5000 (may vary from state to state)
- Company Registration @ a cost of Rs.8000 -Rs. 9000.
- Registration with Food Safety & Standard Authority of India (FSSAI) @ an annual cost of Rs.100
- Trademark Registration per product @ a cost of Rs.4500 (includes government & advocate fees)
- TIN @ a cost of Rs.4500.
- Other Expenses
Pay the following expenses on time for the smooth running of the business.
- Salaries and wages to employees and workers.
- Expenses paid to Medical Representatives, Stockists, distributors.
- Salary to the Accountant
- Expenses paid to Doctors
- Office Rent in case leased
- Warehouse Rent
- Electricity & Water Bills
- Office Furniture Purchase or Leasing Expenses
- Product Production Cost (Own or Third party Manufacturing)
- Credit Payment to Distributors or Stockists
- Promotion and Marketing Costs
- Sales Tax Returns
- Emergency Investment
Any business, be it pharma related or otherwise, must keep some money aside for emergencies. Emergencies could happen due to steep market fluctuations, the sudden demand for products, bad debt or loan given to distributors, and much more. So, experts advise keeping aside a minimum amount of Rs.50,000 for emergency related situations.
Conclusion
Starting a PCD pharma franchise business in India is very easy if you have done your maths well and taken proper care with planning and investment. For a new pharma PCD franchise owner choosing the right PCD pharma franchise company is as important as pouring money into the business. Making mistake with any one aspect could cost you dearly, But, doing the things in the right manner can bestow you with tremendous success and growth.
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