Starting a pharmacy in Australia can be a journey filled with promise—and a fair share of pitfalls. While the regulatory framework surrounding pharmacy location rules is well-documented, the practical realities are often far more nuanced. Whether it’s launching a greenfield project, tackling the complexities of a large medical centre application, or navigating the rare and coveted ministerial application process, each path presents its unique challenges and opportunities.
In this article, we share real-world examples inspired by the experiences of pharmacist entrepreneurs who have paved the way for others.
While details have been adjusted to ensure confidentiality, these stories capture the grit, determination, and resilience needed to succeed in an ever-changing pharmacy landscape.
Greenfield Projects in New Shopping Centres: Laying Foundations for Growth
Embarking on a greenfield pharmacy project can be rewarding, but it often involves overcoming unexpected challenges. One pharmacist with over 10 years of experience decided to pursue a licence for a new pharmacy in a rapidly growing suburb. Their application met the key location rules—being over 500 metres from the nearest pharmacy and situated in a promising new shopping centre alongside a major supermarket and several other shops.
However, midway through the process, an existing shopping centre opposed the development, resulting in reduced shop numbers and complications for the pharmacy’s licence. To address these hurdles, the pharmacist collaborated with a local medical centre, incorporating it into the project to strengthen their application.
After nearly four years of navigating negotiations, appeals, and self-doubt, the pharmacy finally opened. Though the initial months were challenging, the pharmacist’s resilience and determination transformed setbacks into valuable learning experiences. The lessons learned during this process have since become the foundation for future success.
Large Medical Centre Applications: The Art of Balancing Stakeholder Interests
Securing a pharmacy licence within a large medical centre can unlock significant opportunities, but it demands meticulous planning and negotiation. One pharmacist pursued such a venture in a busy CBD location, engaging with multiple stakeholders, including the management of the medical centre, the team of general practitioners at the practice, the local council, and the legal team handling the application.
This process, which took over a year, required exceptional patience and relationship-building skills. After gaining the necessary approvals, the pharmacist faced an unforeseen challenge: fluctuating GP numbers at the medical centre impacted customer foot traffic and financial forecasts.
Rather than seeing this as a setback, the pharmacist adapted their strategy, managing financial strain until GP numbers stabilised. This experience highlighted the importance of flexibility and thorough contingency planning, especially during critical growth phases.
Ministerial Applications: Turning Vision into Reality
Ministerial applications represent a crucial step in the pharmacy licensing process and present many opportunities for growth and success. A recent success story from a regional area highlights valuable strategies for navigating this complex journey. The applicant invested over two years in thoughtfully building their case, demonstrating the importance of proactive community engagement, careful attention to the details, and persistent effort.
By collaborating closely with local stakeholders and gathering insights from the community, the applicant created a strong foundation for their application. After submitting three well-prepared applications, they ultimately received the much-desired approval. Although this milestone is a significant achievement, it is just the beginning of a larger journey. The path to establishing a successful and profitable pharmacy can take several years, filled with continuous learning and development
Beyond Approval: The Start of an Exciting Journey
Securing a licence is a major achievement, but it marks the start of an even more rewarding journey. From negotiating favourable supplier terms to managing cash flow during early operations, each step brings opportunities for learning and growth. Pharmacy owners who plan strategically and adapt to challenges find immense satisfaction in building a business that supports their community.
Building the Right Team: The Key to Lasting Success
In Australia’s highly regulated pharmacy industry, building a team of experienced advisors is essential for success. Pharmacy consultants provide critical insights into location rules and market dynamics, while legal experts navigate licensing compliance, lease negotiations, and regulatory requirements. Specialised accountants ensure sound financial management, while finance brokers assist with capacity assessments and sourcing tailored finance solutions to meet the unique and specific needs of pharmacies.
These experts streamline the licensing process and equip pharmacists to manage challenges confidently, from approvals to operations. With a strong support network, pharmacists can navigate complexities, seize opportunities, and establish a solid foundation for long-term success in a competitive landscape.
Please reach out if you would like to speak to any of our AP Group team of pharmacy industry experts.
Conclusion: A Rewarding Yet Challenging Path
While the road to establishing a new pharmacy in Australia is long and fraught with challenges, it can be incredibly rewarding for those who persevere. The key lies in thorough preparation, realistic expectations, and access to expert advice.
Written by Tony Hope, QLD State Manager – AP Group
AP Group are the leading pharmacy experts in Australia, helping hundreds of pharmacists into ownership every year – our team can help with sourcing finance for your purchase, as well as providing the right legal advice to help you navigate the process.
We connect existing pharmacy owners with over 5000 ready and eager investors via our cutting-edge online Data Room. Our Data Room keeps confidential listing data secure and allows buyers to make informed decisions on each of our pharmacies for sale.
About the Author:
From navigating pharmacy acquisitions to deciphering regulatory red tape, Tony is your go-to expert for all things pharmacy business. He’s spent years helping pharmacy owners buy, sell, and grow their businesses with a calm confidence that makes even the most complex transactions feel like a walk down the dispensary aisle.
Tony has a knack for turning challenges into opportunities, especially when it comes to site acquisitions and pharmacy regulations. His innovative marketing techniques and client-focused solutions have earned him a reputation as a trusted partner for pharmacy owners planning their next big move – whether that’s an acquisition, an exit, or simply getting back to what they love about their business.
At AP Group, Tony combines his industry know-how with a personable, results-driven approach to deliver exceptional outcomes. His goal? To make the process as smooth as a well-organised stockroom and just as satisfying.
When he’s not brokering pharmacy deals, Tony’s likely on the sidelines of his son’s AFL games or reminiscing about his rugby days. He’s a proud community contributor, having served on the boards of several non-profit organisations and clubs. At home, you’ll find him camping with his family or cooking up a feast, proving he’s as handy with a spatula as he is with a sales agreement.
With his expertise and dedication, Tony prides himself on making buying or selling a pharmacy a stress-free and rewarding experience for every client.