Before digging into it let's first understand what pcd/Pharma franchise means. Sounds right? PCD is short for Propaganda-cum-distribution which by its name you are getting Idea. When it comes to medicines or food items people get very cautious and to be honest it is a good thing but not so good for those who want to enter the business of food and drugs.
With problems come the solutions. It was too difficult for new business entrepreneurs to enter the business and according to a survey the failure ratio was touching 90% and which makes the business too risky. Established companies were earning huge profits and there were not enough opportunities for the newbie’s. So to solve this problem huge MNC’s came up with a solution which would benefit both sides. In this the already established companies would give rights to franchisees to sell their products as a third party. After that it is the responsibility of the franchisees to produce and distribute the products in the area.
So let's come to the topic of today's blog. Why the PCD / Pharma franchise or pcd pharma is companies a very big business? Answer is so simple as there is very less scope for the newbie’s to sell medicines through their own brand name, they go for the franchisee which is a smart thing to do. Sky's the limit for profit if done properly and if things work out properly.
But there is nothing so easy in this corporate world. It’s best if you have experience in the medical fields and how things work in this field. You need to have a good name in the medical field and good relations with the doctors. I am not saying it is necessary but it helps overall.
Now let's come to the investment. Just to be on the safe side let's say you will need around 15-20 lakhs, the more the better but 15 is minimum. Divide your investment in three parts:
• Initial Investment: This is the investment you will need to make all your legal documents for example Drug license and GST. This investment also includes the purchasing of products for the first time.
• Second Investment: In the business of a PCD Pharma company you may get your payments monthly so it's best if you have some funds for the shortage of products and run things smoothly.
• Emergency Funds: In these uncertain times we have learned that we need emergency funds and not run end-to-end. As a PCD Pharma company you never know what comes up or what new law that government makes. You will always need funds.
Let's discuss benefits of owning PCD Pharma franchise:
• You sell the products of already well established Pharma companies for example who wouldn’t want to buy a sun Pharma product and you have to make zero efforts in selling it.
• You get to be your own boss meaning you don’t have to answer to anyone and can work at your own pace.
• You don’t have to start a totally new company which takes lots of effort. Just get your drug license, GST number and some important documents ready and you’re good to go.
PCD Pharma companies are a big business in India and if you think you can handle the risk involved and have related experience. So, if you are interested then you should go for it.