NAVIGATING THE PROCEDURAL REQUIREMENTS UNDER THE FAIR WORK ACT AND THE HEALTH SERVICES MODERN AWARD Terminating an employee can be a difficult and often emotional part of operating a business. The stress of termination can be compounded by the prescriptive procedural requirements around termination of employment contained in the Fair Work Act 2009 (Cth) (Act) and the Health Services Modern Award (Award), which applies to employees of a pharmacy business.
Having found a pharmacy opportunity it is important to understand if it is affordable. The affordability question is distinctly different from the question of what the pharmacy valuation is. Each pharmacy has a different set of circumstances, therefore each must be considered on its own merits.
Many of my pharmacy clients don’t rely entirely on their business to support them in retirement. They take advantage of the concessions to be had investing in superannuation and invest in companies they like to
AND THE CONSEQUENCES OF FAILING TO TAKE CARE OF EMPLOYEES’ SAFETY AND WELLBEING Employers are ordinarily aware that sexual harassment in the workplace is against the law. However, recent case law has displaced previous assumptions about the kind of awards that can be made against an employer or employee that commits, or is involved in sexual harassment of an employee.
There are a number of insurances to look at when in business. An example for Pharmacists to consider might be insuring the lives of their business partners so the business partner’s estate can be paid their share of the business in the event of death. Another major issue that could cause a pharmacy business to struggle is solved by having income protection insurance. Sure, a locum can be brought into the business to work in your place and be paid possibly a lesser amount for their work but would the business be able to cover your personal expenses: your mortgage, living expenses and medical costs?
There has been much commentary on the impacts of PBS reforms and price disclosure on dispensary sales, gross profit and substitution, yet the flow on effects to Pharmacy valuations are certainly much less discussed if not less understood. As a Pharmacy owner, do you understand the impact of these reforms on the net profit of the pharmacy and the underlying value of the Pharmacy?
On 12 March 2014 there was a significant update made to Australian Privacy and Information Laws, marking a significant change in the way Australian businesses deal with customer data. These include: the Australian Privacy Principles, new investigation and increased enforcement powers of the Commissioner, and penalties up to $1.7 M for non-compliance.
You have successfully operated your pharmacy for many years and it is time to sell – maybe to retire or look at other business opportunities. Many issues would be on your mind like finding the right buyer and receiving a top price for your business.
With the climate of change you’re experiencing in your industry, have you considered if you and your team are prepared as best you can be? Your team could include your bank, accountants, suppliers and anyone else who has an active interest and investment in your business. Your continued success during this period of change could depend on not just how prepared your immediate business is, but your wider team. How much do they know about the impact of price cuts; PBS reform; proposed changes in the federal budget?
Accurate financial reports are necessary when selling a pharmacy. However, accurate and timely financial information should be front and centre of your mind all the time. Tracking retail financial data enables pharmacy owners and managers to make decisions and control the performance of the business. In other words, make it ready for sale if that is your motivation.
Once again, APP has come and gone for another year. It was exciting to experience the optimism from most of the delegates, despite some corners of the market pushing the doom and gloom barrow. Particularly exciting was business owners accepting change and finding constructive and innovative ways to adapt their businesses.
Purchasing or selling a pharmacy is usually an exciting time, but it can also be a frustrating period if you don’t have service providers with knowledge of the pharmacy industry driving the transaction. In a transaction context, solicitors predominantly add value by negotiating contractual terms that provide certainty for their clients. A purchaser needs certainty that they are buying what they think they are buying. A vendor needs certainty that following settlement, they can move on without worrying about a dissatisfied purchaser making a claim against them.