Why Medicine Biz Is The Best Business In Pakistan: 11 Big Reasons!

When it comes to best business in Pakistan, one can’t justify one particular business on basis of a single or couple of factors, reasons like for instance if we say food business is the best business in Pakistan because it provides huge return on investment (ROI) that ranges between 40% - 65%, although this factor alone suggest a healthy picture of food business.

But, and yeah, there is a BIG BUT! , we can’t decide on basis of  ROI alone, simply because there are other reasons for instance, reason number one is, there is immense competition in the food niche and two majority of people consume food cooked inside their homes and there could be other reasons that make the case for food business being the best one, quite weak.

So again although ROI is great, you won’t be able to make good money out of food business unless you can somehow make your brand stand out in the crowd and somehow get people crazy about you, you must have heard about savor food chain in Rawalpindi, Islamabad or food street in Lahore or namak mandi, Charsi in peshawar.

So unless you are savor foods, Charsi etc you won’t be able to squeeze some real cash from such business and no wonder majority of investors in food niche are always upset about their investments.

The point I am trying to make, is a simple but an important one, that is, when you want to find out which business is the best, you have to consider many factors, reasons before forming a rational, logical, objective, facts based conclusion and that is what I am going to do in this article.

What you will learn from this article:

1. You will learn how to conclude rationally, logically, based on research which business is the best business in Pakistan
2. You will learn why seemingly other best businesses like property business, garments business, food business, smart phones business etc are in no way better than medicine business
3. You will also gain some useful insight about medicine business plus you will be given resources that will help you in practical sense in starting and successfully managing medicine business in Pakistan

Before going for the main theme I can’t help but share some really successful business ideas in Pakistani market context, do check out this link if you want some really superb business ideas, you won’t be disappointed, that’s for sure.

In the above mentioned article, you won’t only find some really cool business ideas but also practical how-to’s on each idea that means after reading that article you will not only know what will be required of you to successfully pursue a given business idea but also know how to practically do the whole thing, from launching to managing to earning healthy net profit.

Okay, yeah I am wasting your time here 😩, I know, you guys really want to read about the main theme of this article but let me give you one more thing before going for the main theme, yep, just one more thing, that is if you are looking for some really easy low investment ideas then you should read 5 easy low capital business ideas.

Okay let’s get back to the main theme of this not so boring article 😉.

I will be discussing medicine business in terms of eleven big factors or reasons, once you read all these reasons, you will definitely agree that medicine business is the only best business in Pakistani market situation.

So let’s get to it.

11 Big Reasons Why Medicine Biz is the Best Business in Pakistan!

1. Demand
2.  Adulteration
3. Return on investment (ROI)
4. Requires little experience to manage
5. Requires little to modest investment
6. Immense shelf life, worth, utility, demand of the products
7. Breakeven is achieved quite fast
8. Least bargaining from customer end sadly
9. Little to modest fixed/variable cost thus far too much in net profit
10. Requires no marketing, branding only doctor prescription or a disease
11. Count as Essential Business thus must be kept open in pandemics, wars

Demand

According to World Bank, Pakistan population in 2016 was 188 million, that is around 19 caror which makes it the sixth most populous country in the whole world and add to that the fact that Pakistanis spend the most on health in the region.

Now consider these two facts together and just imagine the demand for medicine, it is huge!

In other business niches like garments, Pakistanis often buy on eid or marriage occasions, very few spends on garments like every second week.

Likewise although property business can provide quite healthy return on investment still people don’t do it all the time, the same is true for automobiles sector but we all know people don’t buy cars every week while when it comes to medicine, it becomes a necessity, that must be fulfilled.

I mean just imagine, according to a research every third individual in Pakistan is mentally ill, now imagine the demand for medicine for just this one, single category. Consider this fact in terms of the other two facts mentioned above.

Adulteration:

Chai me milawat (adulteration in tea), attay me milawat (adulteration in wheat), masalo me milawat (adulteration in spices), cheeni me milawat (adulteration in sugar), her cheez me milawat (adulteration in everything), adulteration is like a cancer wide spread in Pakistan.

Take the example of one single commodity; milk, according to a research over 70-80% of total milk in Pakistan is adulterated.

This is the case with single commodity.

You must have come across a kind of sugar that doesn’t make your cup of coffee or tea sweet even if you add four spoons of it, well, again, that is because this time politicians are involved in adulteration.

The end result of constantly eating adulterated food is disease, no wonder every third or fourth person we meet has some kind of stomach problem or some weird health condition.

And all these adulteration's results in increase in demand for medicine and that’s the second reason why medicine business is the best business in Pakistan.

And you know why most of us prefer home food over food cooked and sold in bazaars, so that is another reason why even though food business has healthy ROI won’t do as great as medicine business.

Return on Investment (ROI)

Medicine niche is probably the only niche where return on investment can touch even 100%, that means if you invest one rupee in medicine, you will not only earn that one rupee back but also one more rupee in profit too.

Normal ROI in this niche is somewhere between 7%-70%, which makes it one of the healthiest business sector in Pakistan in terms of ROI.

To know more about medicine ROI you should read the article I mentioned at the beginning of this one, that one quite amply explains how the ROI is between 7%-70%.

Okay time for the fourth reason.

Requires Little Experience To Manage

Running a medical store doesn’t require years of experience, you can successfully run a medical store after 4-6 months of practice with anyone who is already running this business.

I have already written an easy well thought-out post on starting & managing medicine business in Pakistan, do check out this article, you will learn not only all the tricks of the trade but the whole trade itself.

Requires Little To Modest Investment

Entry into this business is far too easy, you don’t need lakhs of rupees to start this one although couple of lakhs will help you really set things up, still you can launch a successful medicine business with like 50 thousand to one lakh rupees but that all depends on your business acumen, you will need to have some really good relations in the industry along with really flexible credit policy with your suppliers to start it with that much amount.

Although I will suggest starting with at least couple of lakhs.

Immense Shelf Life Of The Products

Unlike other business niches in medicine products have quite a long shelf life, that means no worries of fast approaching expiry, decay or products loosing utility, demand over time.

For instance product worth, utility, market perception changes over time for instance target market perception about a car, a mobile phone changes with passage of time, a car worth today won’t worth the same ten years from now but disprin pills worth the same as twenty years back, hope you got my point.

Now demand of disprin pills is currently more than what it was twenty years back but you won’t find demand for a specific car or a cell phone increasing over time constantly rather it diminishes, decreases over time.

Beside all of that, in medicine business, you target the whole class of buyers, from lower lower class to middle middle class to upper upper class to elite thus earning maximum in profits while in case of smart phones, cars, property, food, garments business your target market usually starts from middle class.

Break-even Point Is Achieved Quite Fast

Due to high, all seasons demand, constant increase in utility, whole class of buyers, cancer like adulteration etc sales are usually quite high, sharp and constantly increasing which means you earn your whole investment in very short time period.

While automobiles, smart phones business, garment business you don’t have high, all season demand, neither you have constant increase in utility, nor whole class of buyers etc which makes medicine business the best among all.

Least Bargaining From Customer End Sadly!

Sadly because medicine business although makes people super rich but at the cost of suffering of poverty stricken people, I personally don’t like what medicine companies are charging from people, I have seen pills, that cost no more than 10 rupees being sold at around 150 to 200 rupees.

This is perhaps one the big reason I despise this industry but that is exactly what results in immense ROI.

The other thing that contributes to high ROI is customer lack of knowledge about medicine field, his or her persistence on being given only doctor prescribed drugs because we Pakistanis consider doctors prescription to be something really important, buying any other similar drug outside of prescription for us amounts to a serious health risk.

And medicine industry cash on our this same fear, ignorance. Medicine manufacturers, suppliers, wholesalers offer doctors high percentages, free visas, free umrahs tickets, free cars, bikes etc on sales of their product and what doctors do, they write prescriptions of those drugs.

And to give doctors those things companies/suppliers/wholesalers charges higher in terms of price from the end consumer and so in actual it is the buyer that pays for the doctor sahib free car, free visa, bike, high ROI.

Now imagine having a cloth business and customer constantly haggling about price, quality and all that...daymm!

Personal Suggestion about buying medicine: My personal suggestion would be, whenever you go for buying medicine, ask the medical store, pharmacy sales person to give you the same drugs (prescribed by the doctor in prescription) in the same formula from multinational firms, why ? 

Simply because multinational company drugs tend to be a lot more cheaper and way better in quality then those doctor written in the prescription just so that he/she gets his/her free car etc

Little To Modest Fixed/Variable Cost Thus Far Too Much In Net Profit

Yep, unlike other businesses you don’t need big warehouses to store your products, you don’t need big trucks to supply your products to your customers, you don’t need a whole group of people to manage your business affairs.

A successful medicine business (retail, wholesale, distributor) can be run with just 3-5 guys with one being you and couple of them being the counter sales guys, paying those guys 8-15 thousand monthly will just keep them working for you they way you desire.

Your fixed costs like rent, fuel and variable costs like salaries, mess tends to be almost negligible and so you earn far too much in net profit.

Plus it’s easy to sell medical products, you won’t need to worry about customers, as you will get them anyway due to health issues in Pakistan, adulteration etc, all you will need to do is to sit and manage.

But for instance in property business you would consider inflation, purchasing power, political & security situation, location etc to make good ROI but we all know how is inflation, purchasing power of target market, precarious political, security situation in the country.

And yeah it is likely that some qabza group, some gang rob you off of your most profitable property, land by hook or crook!

Requires No Marketing, Branding Only Doctor Prescription Or A Disease

Businesses need marketing, branding to get the word out, to achieve mind share, to make the buzz, to make your brand/business stand out in the clutter but when it comes to medicine business you don’t need any of that.

All you need is doctor prescription, once a doctor writes your prescription, the drugs you are dealing in, you will get customer no matter what, even if the drugs you are dealing in are made of full rubbish dirt, they will sell and perhaps that is why fake medicine business so rampant in Pakistan.

Now imagine you are somewhat aware of drugs use and you have your own medicine business, we know a lot of Pakistanis don’t go to the qasabs (butchers) 😐 aka doctors because their fees are dreadful and so they come to you and ask you to give them something that can fix them and so you sell them the one thing that earns you the maximum ROI (sad but true! 😒).

Just imagine, will you buy a certain car at a certain price just because a car dealer told you so ? will you buy a certain smart phone at a certain price just because the dealer said so, nope you won’t, you will survey, check at least five places to make a decision but once the doctor writes it, you don’t even think about it, hope you got my point!

Count as Essential Business thus must be kept open in wars, pandemics

Its 2020 and we all know how it is turning out for medicine businesses world over, every other business is facing lock downs, lossess, huge drops in sales due to corona virus pandemic but not medicine business and it again proves that indeed medicine business is the best business in Pakistan.

That’s it, as you guys I provide a bit boring, lengthy ops 😓 I mean quite interesting, brief, easy how-to’s, valuable insights on small business, startups, marketing and blah blah 😉 with no beating around the bush but straight practical stuff, if you don’t believe me, read this article on how to manage any business and you definitely will then!

Once you believe me 😉, believe in my claims, then the next obvious step is to subscribe to this kick-ass website of mine without wasting a second!

Even if you don’t believe me you need to subscribe 😜

That’s it, don’t forget to share it on your stupid facebook 😐, twitter and all that and yeah don’t be scared of commenting, sharing your unfathomable thoughts! 😓