Chemist business is one of the thriving businesses in Nigeria or Africa in general that can make you a millionaire in few months. Chemist store (Patent Medicine Store) is different from a Pharmacy drug store, in that a chemist store can be operated by any individual who is a trained chemist. However, both businesses deal on sales of drugs and medications. Chemist store deals exclusively on stock and sales of over the counter (O.T.C) drugs.
One of the major challenges, a chemist business has been facing is the issue of fake drugs and counterfeit medicines. A lot of campaign has been going on against counterfeit drugs and medications by the National Agency for Food and Drug Administration and Control (NAFDAC). So, if you’re venturing into this business you must ensure you don’t get yourself involve in sale of fake drug and counterfeit medicines.
Raising capital required to start as well as the necessary license to operate the business can be huge task sometimes. But, if you can take the right steps to obtain the entire necessary requirement and permits, you will enjoy it at last. The annual ROI is over 60% if properly managed.
Related article: How to start Pharmacy (drug Store) business in Nigeria
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Who can start a Chemist business?
Anybody can start a chemist business once you have undergone training in Patent Medicine. However, professionals such as:
- And other health allied professional who have knowledge of drugs will do well in this business.
So if you are looking to open a chemist store soon, following these steps below would save you a lot of stress. Here is a step by step guide on how you can start your own chemist business in Nigeria from the scratch.
How to start new Chemist store in Nigeria (with requirement)
Undertake Apprenticeship on Patent Medicine – An apprenticeship is a system of training a new generation of practitioners of a trade or profession with on-the-job training and often some accompanying study. Undergoing an Apprenticeship in patent medicine will enable you to acquire all necessary knowledge to practice as a chemist. You might serve as either an intern chemist or a trainee. With this, you become conversant with things like where the suppliers are, drug products, basic information on how sales are determined, pricing, as well as the various markets for the products to be supplied.
Carry out proper feasibility study – You have to carry out proper feasibility studies before investing in chemist business. Undertake the necessary research by browsing the internet to get the knowledge needed. Read books patterning to chemist business. You can also ask people who are already into the business on how they have managed over the years of operation and existence.
Register your business with Corporate Affairs Commission (CAC) – This is the next step for you to follow and it would entail registering with corporate affairs department. This is so that you can get the necessary documents to be completed, as well as get the necessary legal backings before you start out in chemist business.
Register your chemist business with NAPPMED – another important step to take when starting a new chemist business is to register with the association governing Patent medicine store dealers in Nigeria. The Chemist shop just like Pharmacy drug store cannot be operated in Nigeria without due registration with the National Association of Patent and Proprietary Medicines (NAPPMED). National Association of Patent and Proprietary Medicines Dealers is the Association governing all chemist business in Nigeria. Pharmacists Council of Nigeria (P.C.N) approves NAPPMED to regulate and oversee the operations of private patent medicine vendors (PPMVs) across all the 36 States of Nigeria and educate its members on general principles of primary health care delivery to ensure quality service delivery.
The registration is usually a one-year one-time payment that varies from state to state or from location to location. The payment is within the sum of 200,000 naira with foods and drinks presented to the organization depending on your location. A yearly payment is usually made to. Most places charges 30,000-50,000 naira for that. New person can also get registered through PCN and gets the certificate. So, it is your choice. However, NAPPMED claimed to make the registration simple and easy and demand that you register with their association.
Put down a detailed plan – Before kicking off operation, it would be business-wise to draw up a business plan. This will serve as a blueprint for your business. In the business plan, you will list the mondus of operadu, type of services and drugs you would be providing, how the business would be operated, as well as the problem it would help solve for the community and society you serve. You may include all costs associated with starting the chemist, such as the rent, electricity bill, the salaries, and cost of furnishing the space, counter construction, your profit potential as well as the type of items that would be sold. If this seems too technical for you, then you may need to consider getting an expert to draw this plan for you.
Rent a shop – Once, you have acquire the necessary training and license, then you’re good to go. Rent a shop for your business. This is never a type of business you want to start from your home. So, like earlier I mentioned get an office space or shop well enough for your chemist business. Be sure it is in a busy, accessible and residential area for under the counter drug treatment.
Contact Drug and Pharmaceutical Companies – Your next step would be contacting the various drugs and pharmaceutical companies. At this juncture you would be required to establish a rapport with them by describing your pharmaceutical needs. This is so that you could determine early enough the best deals, as well as the best suppliers for procurement of the drugs and drug products at a friar price.
Hire staff – Hire qualified candidates who will work with you. You may consider putting up an advert on the local directories as well as the newspapers for the various vacant positions. These positions would include the post of a clerk or chemist attendant/sales person, a cashier, as well as stock or store keepers. If you think you need an expert to help you in the recruitment process, then you should seek for expert human resource personnel.
Put up strong promotional and Adertising Strategy – the next thing to do would be to draw up a good marketing strategy on how to attract consumers. Print handbills/flyers and brochures and share to people. By words, tells people about your chemist business and the quality of products you sell, you may also want to give out free drugs to a particular sect of people telling them that you have commenced operation.
Improve your store design: You can consider improving your chemist store design to attract the attention of potential customers. On most occasions, customers start by judging outlook of your store rather than the quality of your products before getting into your store. So, improve the outlook and design of your chemist drug store.
The above are 10 great steps to start your chemist drug store business in Nigeria. Above all, if you want to succeed in this business be ready to satisfy your clients at all time.
Cost of Starting New Chemist Shop in Nigeria
The cost for opening a new chemist shop depends on your entry level. You can chose to enter the business in medium scale or large scale depending on your financial capacity but with capital of N3000,000 – N4,000,000; you can start a new standard chemist store in Nigeria. Here is the breakdown for the cost of starting chemist or Patent Medicine store in Nigeria;
- POS retail system – N175, 000
- 2 Fridges – N250,000
- Drug Counter/Shelves – N600,000
- Inventory – N1,800,000
- Rent – N200,000
- Contingency – N100,000
- Cash at hand – N200,000
- Other expenses – N400,000
How profitable is Chemist business?
A market feasibility study we carried out in Lagos, Abuja, Ibadan, Onitsha, Enugu and Ogun state shows that the Chemist Business is a profitable business although competitive. The net profit margin is up to 45% on many drug products and annual Return on Investment (ROI) of over 60%.
I wish you all the best as you start your Chemist (drug store) business!