A PCD pharma franchise in India is considered to be one of the most financially rewarding and stable businesses. However, like any other business, franchising also requires meticulous financial management to streamline your business.
Financial planning is one of the most important aspects of the franchise business. A tune tuned financial planning can lay a strong foundation for the franchise business.
In this article, we will understand how excellent financial planning can make your franchise business a success story.
Capital layout calculation forehead
It is important to estimate the capital required to own a franchise business. Various franchise companies may present different offers varying by capital investment.
You can get a decent franchise offer as low as 15 to 20 thousand rupees only.
Evaluate the capital input and compare it with other offers to get you a decent franchise offer in your budget.
Ensuring sufficient working capital
Excellent financial planning has to be done first. Before going full throttle into the pharmaceutical industry, calculate and plan your finances. Ensure that you have sufficient working capital to execute business plans.
Assignment of budget for different day-to-day tasks and ensuring a controlled flow of capital to all departments. Marking down expenses like salaries, marketing expenses, storage expenses, transportation charges, inventory procurement and so on.
Making a budget for miscellaneous expenditures always comes in handy in planning a financial outlay. In this way, a franchisee can avoid mismanagement of capital, and by ensuring sufficient working capital, the franchisee can lay a strong foundation for a pharma franchise business.
Managing inventory expenses
Inventory management is one of the most crucial factors in financial management. Accurate planning of inventory expenses is important because franchise business is dependent on stock management.
Stock management is important because pharma products are bound with expiration dates and have limited shelf life. A pharma franchise owner must reserve sufficient stock to avoid the wastage of medicines due to their expiration date.
On the contrary, franchisees also cannot understock the products cause they might risk the potential sale and eventually tarnish the reputation among healthcare professionals.
This is why inventory management and expenditure forecasting are vital for the smooth operation of the franchise business.
Marketing, branding and advertising expenses
Allocation of expenses for marketing and advertising is one of the major capital investments in a PCD pharma franchise company. It is very important to invest sufficient capital into branding and marketing to reach maximum ground and persuade more consumers.
It is also very important for scaling and expanding the business. Financial planning for all these aspects brings stability and improves the chances of success in the franchise business.
In conclusion, advanced financial planning before stepping into the pharmaceutical industry can make your business a dream reality.
Medliva Lifesciences is a PCD pharma franchise in India that supports its new franchisees in drawing a decent financial roadmap. Partner with us and we can guide you through the journey of franchising experience.
