Unfortunately over the course of my career when I have seen businesses go under, (which is not something any of us want!) poor financial records are a common issue. This is because the business owner doesn’t have clarity over how the pharmacy is actually performing.
Generally, you need someone to undertake this function, who are professionally trained, and subject to the highest of quality practice standards. My view is that all pharmacy owners should be outsourcing their bookkeeping function.
As an advisor I need to understand your strategic plan - why you are in business and your long term goals to ensure you have a structure that gives you the best opportunity for asset protection, risk limitation or for tax purposes – noting here that we have put tax last as whilst an important consideration, it shouldn’t be the primary reason a particular pharmacy structure or transaction is entered into.
Last week, Treasurer Jim Chalmers handed down Labor’s October 2022-2023 Federal Budget.
This budget was an update from the previous liberal federal budget and there were no real tax changes that affect small businesses.
The bad news is interest rates and labour costs are rising and with high inflation levels, many businesses will receive very little assistance from the government.
A few key points that we think are relevant to you and your pharmacy:
The way you present your pharmacy has impact and that’s why it’s vital to have a well-considered marketing strategy. Please do not advertise anything your team isn’t well versed on. Furthermore, your pharmacy may be chugging along well without a clear strategy but imagine the evolution your pharmacy could have if you did! Can you say no to increased customer numbers and foot traffic? I most certainly don’t think so.
