How Much Does It Cost to Start a Pharmacy?
April 27, 2025 | Last Updated on: April 27, 2025
By Melanie Lockert
If you’ve asked Google if there’s a medicine shop near me to no avail, well, your area might need a pharmacy. Georgia is a topographically diverse state, with some dense urban areas but many rural ones. As a pharmacist and entrepreneur, setting up a pharmaceutical practice in an underserved area might be not just a rewarding experience but a potentially lucrative one.
The cost to start a pharmacy is significant, and many pharmacists leave medical school with student loan debt that may complicate getting started. You can still get a loan for a pharmacy in Georgia even if you’re carrying debt. This guide will show you how.
In this article:
- The cost of starting a pharmacy in Georgia
- Why a pharmacy is a good business for medical professionals
- How to get a small business loan for a pharmacy in Georgia
How much does it cost to start a pharmacy?
There isn’t a definitive cost to starting a pharmacy and the actual cost depends on a range of factors. Small Business Chron estimates the cost to start a pharmacy land somewhere between $880,000 and $1,765,000.
This number is calculated from estimates of the price of the location, licenses, inventory, and technology to support your business. It also assumes a negative total revenue for the first six months. Even then, a positive profit margin isn’t a guarantee.
McKesson, an American organization that helps distribute pharmaceuticals, medical supplies and technology, and expertise in healthcare management, offers a lower projection, at just $350,000 to $450,000.
As Georgia real estate tends to be more affordable, it’s possible that your startup costs may be on the lower end. Regardless, it’s very likely that you’ll need to get a loan for a pharmacy in Georgia.
Advantages of starting a pharmacy
Like physician private practices, using your pharmaceutical education to start your own business is a good way to put yourself on the path to higher earnings and having greater control over your work. Independent pharmacies also often offer a range of benefits to customers that they might not receive from larger, nationwide pharmacies.
Strong customer base
Depending on your pharmacy location, it may be the best option for patients to get their prescriptions and other medicines. That makes it effectively recession-proof.
According to The National Community Pharmacists Association (NCPA), independent pharmacies offer several benefits:
- More affordable medication: When independent pharmacists take the time to analyze their customer’s prescriptions, they can evaluate individual prescriptions in terms of affordability. A 2018 Consumer Report study found that prescription prices are often cheaper at local pharmacies, although CVS has loudly attempted to debunk this idea.
- Better customer health: During this evaluation of a customer’s prescription, pharmacists can better assess how medications affect their well-being. These one-on-one evaluations can help the pharmacist determine whether dosages need to be expanded, reduced, or changed .
- Supporting the community: An independent pharmacy can greatly give back to the community. That’s a major reason why you may be able to get a USDA loan for a pharmacy in Georgia, taking advantage of one of the government’s best loan programs for supporting rural and under-served areas.
Even if there is some competition, many customers will prefer to support the local pharmacy rather than a nationwide brand.
Convenience
While nationwide brands like CVS and Walgreens certainly have more locations, a well-placed pharmacy in an underserved area will immediately have market advantages. By being the primary pharmacy option for the local people, you can offer services like free or affordable prescription delivery and create more flexible hours that work for your customers.
Most people would prefer to search for a “medicine shop near me” and just check another item off their to-do list. This gives independent pharmacies an advantage in certain areas. If you’re looking to get a loan for a pharmacy in Georgia, it’s a good idea to play up the location during the loan application process.
Efficiency
Size doesn’t always equal efficiency. More cash registers and pharmacists do not always make for a more efficient customer experience. In 2021, the Washington Post found that small pharmacies administered COVID and flu vaccines with greater efficiency than big chains. They also offered shorter wait times and same-day delivery, two things that major pharmacies have often struggled with.
Challenges of starting a pharmacy
Like any business, there are challenges to starting and running a pharmacy. Finding fast business funding in Georgia may be difficult, but you’ll need it to take advantage of marketplace opportunities and secure the startup capital you need. Getting a loan for a pharmacy in Georgia can help mitigate several of the most significant challenges.
Competition
The biggest challenge for any independent pharmacy is competing with multiple national competitors. Independent pharmacy owners have to navigate the fact that CVS and Walgreens alone make up 40% of the prescription pharmaceutical market. These chains have continued to grow over the past years, with brick-and-mortar locations popping up all over the country.
As a small business owner interested in starting an independent pharmacy, it is important to implement and emphasize your business’s convenience, efficiency, and affordability.
High costs
Independent pharmacies have a range of significant startup costs and operating costs. Not only will you have to pay for a brick-and-mortar store, but you’ll also need to purchase an inventory of both basic and over-the-counter drug and convenience store wares. You’ll need to hire employees, including another pharmacist if you don’t want to be the only one on duty. You may have additional marketing costs, technology costs, and more and all of that is before you get to your student loan repayment.
Industry risks
Perhaps one of the biggest costs you may overlook is the cost of pharmacy business insurance. This can be up to $750 per year, but it’s vital if a customer accuses you of malpractice or an employee is injured on the job.
Moreover, you’ll have to thoroughly vet anyone you hire to work as a pharmacist to ensure they are properly licensed with the state and qualified to work with your customers. Failure to do so may put your business at risk of lawsuits.
The best loans for a pharmacy in Georgia
It might be a while before your business starts to turn a profit. To cover startup and operating costs, it’s smart to work with a lender to get a loan for a pharmacy in Georgia. Both traditional lenders like banks and credit unions, as well as online lenders offer loans for doctors and pharmacists.
Some of the most common small business financing options include:
- Term loans: With these conventional loans, borrowers get a lump sum, upfront loan amount, and must repay it, plus interest, over a certain period. Usually, you make monthly payments, and the interest rate is subject to your credit score, business revenue, and other qualifying factors.
- SBA loans: Loans backed by the U.S. Small Business Administration have stricter eligibility requirements but usually offer the best interest rates. The SBA offers a range of loan programs that may serve as pharmacy loans. The SBA 7(a) is the most popular.
- Working capital loans: If your business is having cash flow issues and needs an infusion of working capital, online business loans in Georgia often offer faster funding times than traditional lenders and can give you a quick infusion of cash, usually with less favorable repayment terms than long term loans. But if you’re looking for fast business funding in Georgia, a working capital loan may fit the bill.
- Business lines of credit: A business line of credit is part loan, part credit card. Once approved for a maximum credit line, you may withdraw funds when you need them to make business purchases, then repay the amount, plus interest. When you’ve repaid the amount, you can once again draw on the full line of credit. The approval process for this financing solution is typically easier than conventional loans.
- USDA loans: The United States Department of Agriculture offers low-interest loans to businesses providing services in low-income or underserved areas. A pharmacy in a rural area may be an eligible business.
There are many types of loans for a pharmacy in Georgia, and each loan option depends on how you plan to use the money. Term loans may serve well as startup loans, provided you can make a down payment, but many lenders prefer to see at least a year in business before approving a business loan. Business lines of credit may provide more flexible pharmacy financing to manage costs while you’re in business.
How to get a business loan
To get a loan for a pharmacy in Georgia, the process is like any other loan application.
- Do your research to find a preferred lender that’s willing to work with medical professionals who want to open their own practices.
- Compare interest rates and loan terms between financial institutions to find the right loan option and lender.
- Gather your documentation, including your business information, business plan, pharmacy retailer license, Drug Enforcement Agency (DEA) clearance, NCPHP Provider ID, National Provider ID, personal tax returns, and financial statements.
- Apply for a loan for a pharmacy in Georgia and wait for approval.
Final thoughts
Starting a pharmacy business is expensive. Add to that your student loan debt and existing cost of living, and it can feel overwhelming to get your business off the ground. However, a loan for a pharmacy in Georgia can give you the startup funds you need and help you navigate the less profitable early days.
All in all, business is a risk, but with a smart analysis of the pharmacy market, you can create your own success story.
FAQs on loans for a pharmacy in Georgia
How much does it cost to start a pharmacy?
Estimates vary and depend on factors like the location and size of the pharmacy, necessary licenses, and the inventory and technology you need to run your business. McKesson estimates the cost to be between $350,000 and $450,000. Small Business Chron estimates the costs to be much higher, somewhere between $880,000 and $1,765,000.
What are the challenges of starting an independent pharmacy?
Some of the most significant challenges of starting an independent pharmacy are the competition from national retailers, the high startup costs, and the risks of malpractice lawsuits should you make any mistakes with prescriptions.
What are the advantages of an independent pharmacy?
Independent pharmacies tend to be more efficient than national ones and may also offer lower costs. Moreover, if started in the right location, they may offer a much more convenient alternative to a national branch for locals.
What kinds of loans can you use for pharmacy financing?
Some of the best loans for a pharmacy in Georgia include term loans, business lines of credit, working capital loans, and government-backed programs like SBA loans and USDA loans.
Can you get online business loans in Georgia?
Yes, you can get online business loans as many online lenders operate in Georgia. Just do a little research about a company’s reputation and customer testimonials before getting a loan with them.
