Succession planning is one of the most important considerations for pharmacy owners. Beyond simply maintaining day-to-day operations, it’s about securing the long-term success of your business and empowering the next generation of leaders to continue its legacy.
As a pharmacy owner, you may be wondering: When is the right time to think about succession planning? Who can I trust to lead my business forward? What steps do I need to take to ensure a smooth transition?
Drawing on my experience in the pharmacy industry, I’ve seen both the triumphs and challenges of succession planning. Whether you’re just starting to consider it or already in the process, here are key considerations and actionable steps to help you get it right.
Why Succession Planning Matters
Succession planning goes beyond preparing for retirement. It’s about safeguarding the value you’ve built in your pharmacy, ensuring operational continuity, and nurturing new leaders who can bring fresh perspectives while maintaining your core values.
The absence of a clear succession plan can lead to operational disruptions, financial instability, and lost business value. With a thoughtful approach, you can avoid these pitfalls and create a legacy that thrives beyond your leadership.
Key Steps to Effective Succession Planning
1. Start Early:
Succession planning should never be a last-minute decision. The earlier you start, the more time you have to identify potential successors, develop their skills, and ensure a smooth handover.
2. Identify and Partner with the Right People:
Look for individuals who not only understand the operational aspects of the business but also align with its values and vision. High-performing staff are often natural successors, but they need to know they are valued.
One effective way to do this is by offering a small equity stake in your pharmacy, making them a partner in the business. This not only strengthens their commitment but also empowers them to think like an owner, driving business growth.
3. Develop Leadership Skills:
Invest in training and mentoring for your chosen successors. When high-performing staff see a clear path for growth and ownership, it boosts their motivation and loyalty.
4. Document Business Processes:
Ensure that critical knowledge is documented and accessible. Clear processes help successors maintain continuity and improve efficiency.
5. Open Communication:
Keep communication transparent with your team and stakeholders. Share your long-term vision and make sure high-performing staff understand their role in it.
6. Seek Professional Advice:
Don’t hesitate to consult with legal, financial, and business experts to navigate the complexities of succession planning.
Overcoming Common Barriers
Many pharmacy owners hesitate to start succession planning due to fear of change or uncertainty about the future. However, a well-executed plan can provide peace of mind and even open up new opportunities for growth.
Succession planning doesn’t mean stepping away completely—it means setting up your business for continued success while giving yourself the freedom to explore other interests or roles.
Recognising and Retaining Talent
Offering key staff a structured pathway to increase their equity share over time creates a sense of ownership, accountability, and a deeper connection to the pharmacy’s success. Recognising this, we developed our structured partnership program, specifically designed to help pharmacy owners build sustainable businesses alongside trusted and motivated partners.
This program provides junior partners with a clear and achievable roadmap to invest in the business, starting with an initial equity stake. Over time, they have the opportunity to incrementally increase their ownership share in a way that is financially manageable and strategically aligned with the pharmacy’s growth.
By giving your high-performing staff a tangible stake in the future of the business, you foster loyalty, encourage entrepreneurial thinking, and build a strong leadership team invested in your pharmacy’s long-term success.
Final Thoughts
Pharmacy owners are passionate about the health and well-being of the communities they serve. Succession planning ensures that this passion continues to make a difference, even as leadership evolves.
If you’re thinking about succession planning but unsure where to start, feel free to give us a call to chat through your options. AP Group work with pharmacy owners every day and see first-hand when a succession plan is executed well, so we know what works. By empowering the right people, rewarding high performers, and putting a solid plan in place, you’ll be building a future where your pharmacy, and its community can continue to thrive.
Written by Chris Swifte, WA 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:
Whether it’s swimming from Rottnest to Cottesloe, cycling through the Italian Alps or taking up water polo — Chris is a full-time “doer.” He still hasn’t achieved his lifetime goal of being on the Nutri-Grain box, but he has some rather impressive runs on the board when it comes to pharmacy — so that’s pretty much the same thing.
After more than two decades in the retail pharmacy industry, Chris has the in-depth knowledge, industry relationships and leadership skills to help you reach your pharmacy goals — whatever they may be.
Prior to joining AP Group, Chris was a key member of Terry White Management and Sigma Retail’s executive leadership teams. During his time at Terry White, he successfully increased the brand from 80 stores to over 400 stores across Australia. A rather impressive feat. Chris is also qualified as a nationally accredited mediator, giving him the ability to negotiate successful outcomes in complex commercial matters.
This impressive combination of work history and education makes Chris an asset to the AP Group team and our clients. We’ll just ignore the fact he’s a Kangaroos supporter.