Before diving deep into the risk factors associated with the Pharma Franchise business, let’s understand what does it mean?
What is a Pharma Franchise business, and how is it different from other models?
As far as the Indian market is concerned, it is a business where a pharmaceutical company hires a partner and gives an opportunity to market the products in the territory.
The business model extends the reach of the pharma company and takes the business graph to new areas.
To the franchise partner, this business model opens a chance to take the benefit of the flourishing healthcare market in India. And that also without the need for investing big money.
The reason behind its popularity is that the business model brings a win-win situation for both parties.
The business has the least risk
The franchise model is a business that is conducted with a proper franchise agreement. Hence, it has the minimum risk.
The terms and conditions in the agreement are easy and flexible. Each company has different terms and conditions.
Every enthusiastic entrepreneur who wishes to avail the advantage of the high potential of the pharma franchise model must not miss the bus.
Though we say that it is a risk-free business model, it is not actually.
There are a few risk factors that one must not forget.
A few risk factors associated with the business
1. Risk of choosing incorrect items
The most important aspect of this business model is the selection of products. It could be a “make or break” factor.
If you prefer a product that is not easily available in the local market, then you have to look at the demand for it.
A product which is high in demand but low in availability would be a perfect choice. In-depth market research is required before proceeding.
2. Risk of choosing an incorrect company
You may engage in a business relationship with a pharma company that is not appropriate.
It doesn’t have a well-defined organization structure or business processes. Also, it doesn’t have a thorough market strategy.
The best way is to partner with an ISO certified company. Thus, you are in the safe zone.
3. Risk of going short of funds
Indeed, this business model doesn’t need heaps of money, but still, there is a risk of going short of funds. The best way is to assess the financial situation before launching the business.
These risks should be evaluated and mitigated beforehand to avoid risk.
Rx Biotech is a leading PCD pharma company for the pharma products and Franchise Marketing. One of the best pharma franchise companies in India offering monopoly rights to pharma companies in India with top medical promotional schemes.