Building alliances to fortify your business

Many community pharmacy developments, such as the new pharmacy contract and POM to P switches, are developed at a national level, and guidelines are produced to help pharmacists implement them.

However, local developments can also have an impact on your business. Any change in the services offered on a high street may affect the number of customers visiting that area, and this could impact on profits.

One way to maintain awareness about local developments is to build a network or forum with other proprietors in the area.

You may not be able to refer patients to the local butcher — at least not for health-related issues — but if the local butcher retired or went out of business, this may affect the number of customers shopping in your area.

Other factors that may affect local trade include roadworks, proposals for new shops or shopping centres, changes to car parking regulations and new housing developments.

Forming alliances

Remaining abreast of local issues single-handedly can be daunting. However, these issues are likely to affect all traders in the area, so it makes sense to share the burden. Local tradesmen will usually be aware of local developments and, since they work for businesses that are not direct competitors to a pharmacy, they may be receptive to forming an alliance.

Once an alliance is formed, a group can collectively determine the profile and needs of the local customer, and establish whether anything can be done to improve footfall into the trade area. For example, a group of traders could collectively lobby the local council for increased police patrols, litter cleaning services or CCTV coverage.

Peter Badham, managing director of Badhams Pharmacy Ltd, Gloucestershire, was one of the founder members of the local chamber of commerce in Bishops Cleeve. The group formed in response to an application by Tesco to open a supermarket in the area. Local traders allied, and a group with common commercial interests was formed.

Mr Badham explains: “We had more power as a group than we had as individual traders. Consequently, this allowed us to deal with issues such as parking fees, double yellow lines and business rates. We have also found that we all bring different skills to the group. For example, one person maintains the websites for all the shops in the group.”

While the group were unable to stop the Tesco store opening, they ensured that the amount given back to the community by Tesco was maximised, such as disabled parking at the library.

Planning for the uncertainties of the future can be an impossible task. However, by being proactive and building strong links with other local traders, pharmacists can remain aware of future developments as soon as they appear on the horizon. It will then be easier to limit the damage from or even capitalise on any unexpected circumstances.

Know your GPs

Just because pharmacists have regular dealings with local GPs does not mean that they are capitalising on the relationship. Most community pharmacists are aware of all the GP practices in their area, but they may not be aware of the GPs’ future plans. Raj Nutan, pharmacy business manager at the National Pharmacy Association, suggests that the following questions need addressing:

• Will a GP be retiring in the next few years, and how easily will he or she be replaced?

• Is a GP planning to move premises or merge with another practice?

• Are the GPs involved with local initiatives that may require them to relocate?

Any change in the location in which prescriptions are written will affect the pharmacy that patients use, and the pharmacist in charge should be ready to respond.

Other health services

Allied health services encompass services such as local physiotherapists, chiropractors and osteopaths. Networking with these individuals can enable the pharmacist and other health care provider to refer each other’s services. This provides mutual benefits to both businesses and may also benefit patients who would not have considered using an allied health service.

A successful referral will also raise the profile of the pharmacy in the eyes of the patient. Schemes to refer patients to other NHS health care professionals should already be in place, as part of the signposting component of the new pharmacy contract.

In addition, this network of professionals could be tapped for advice over a difficult query.

Peter Marks, former pharmacy proprietor in Cheshire, built up his businesses by building strong relationships with local health care professionals. He initiated services to nursing homes and GP practices and continued to deliver those services for many years.

He commented: “By offering and delivering a service in an approachable manner, and being willing to go that extra mile, customers will not want to take their business elsewhere.”