Best Pharmacy Business Loans - Features Comparisons
||Min. Credit Score
||Min. Time in Business
||Min. Annual Revenue
||$250,000 to $6 million
||$5,000 to $500,000
||150,000 to $5 million
||$1,000 to $150,000
||$1,000 to $150,000
||Depends on your specific situation
||$30,000 to $5 million
The Pharmacy and Drug Store Industry in the United States
The pharmacy and drug store industry encompasses a variety of prescription and over-the-counter medications, health and beauty items, and other consumer goods. Its market size, which is measured by revenue, is $346.3 billion in 2022, making it clear that there is a huge demand for pharmacies. It’s no surprise that the pharmacy and drug industry is the 30th largest industry in the U.S.
When compared to the overall economy, the market size of pharmacies and drug stores has skyrocketed. Since federal funding for Medicare and Medicaid is likely to increase in 2021, there is great opportunity for pharmacy owners. You can support senior citizens and lower-income consumers with their prescription drugs they can purchase at subsidized rates.
The U.S. pharmacy market has also focused on specialty drugs, which are either limited in supply, require special handling, or very expensive. These drugs can treat both rare diseases, such as multiple sclerosis and more common conditions like arthritis.
The use of generic drugs, which are more affordable than their brand-name counterparts have increased as well. As a pharmacy owner, you can take advantage of these trends and grow your business.
What Are the Costs of Running a Pharmacy?
To start a pharmacy, you'll likely need between $880,000 and $1,800,000 per year in funding. Of course, your pharmacy location will play a vital role in how much you’ll need to pay for your commercial property, inventory, and staffing.
You can expect the majority of your funds to go toward inventory as the average pharmacy will turn over its inventory up to ten times per year and spend about $100,000 per month or anywhere between $600,000 and $1.2 million per year just on inventory.
Staffing is another significant expense you should prepare for as the average salary of a pharmacist is $128,710, according to the U.S. Bureau of Labor Statistics. You’ll also have to cover the costs of pharmacy technicians, which earn an average of $35,100 per year.
How to Use Pharmacy Loans?
There are many uses for pharmacy loans including:
- Inventory: Since inventory will likely be your largest expense and you’ll