Pharmacist Julio Iranzo decided to buy new premises to move his pharmacy and also modernise his business in the new facilities in the Valencian neighbourhood of Patraix. To make the Nova Patraix Pharmacy a reality in the best conditions, he sought financial advice from Kaizen Consulting and the result has been more than satisfactory. It has obtained conventional and alternative banking solutions, leasing for technological equipment and financial consultancy support to successfully carry out its business plan. Julio Iranzo details the process in this interview:
– Why did you turn to Kaizen Consulting?
– I wanted to find the best way to finance the project. It is an important investment, not only because of the economic amount but also because it involves the last major project to be undertaken after 20 years in the sector: it is not just acquiring new premises for the pharmacy and modernising the facilities with new equipment, robots… It involves the consolidation of a modernisation project and an opening up to new realities such as the incorporation of AI. An acquaintance recommended Kaizen Consulting to me because he had obtained a good mediation with several entities and I contacted them. I explained my needs and we began to work on liquidity and to explore leasing formulas to obtain the new equipment. These operations have to be analysed from the perspective of business sustainability, but without losing sight of such important aspects as taxation.
– I understand that pharmacies have special financing needs. What are they?
– If we leave aside the most important financing for a pharmacy, which is the acquisition of the licence and is valued according to its goodwill, the rest of the needs of pharmacies are aimed at financing projects that allow them to modernise and become more efficient in all their processes. From furniture, storage and dispensing robots, equipment for the development of SPD (Personalised Dispensing Systems)… Of all the investments, the most relevant today are in technology. Pharmacy is a sector that must adapt its structures and modernise processes to provide an adequate service.
– What has Kaizen achieved for you and how has it helped you?
– I had no experience in leasing. I had heard about alternative liquidity formulas to traditional banking. But without their advice it would have been impossible to access this type of operation, which is becoming increasingly common in the market, but difficult for SMEs to access. Kaizen Consulting carried out an analysis of the financial situation to offer me the best financial solution, looking at my business from a global point of view. It was not about looking for a one-off solution, but about achieving the best financial position in the medium and long term. Assessing cash flow needs and stress scenarios without neglecting tax issues. Every project needs adequate financing so that projects are not frustrated by inadequate financing. I, as a small entrepreneur, need a global vision of my business in order to be able to manage the time I spend on each area of work. A pharmacist may know a lot about medicines, which is really my job, but not about financial markets, new financing instruments or how to optimise them fiscally. For that, it is crucial to have someone like Kaizen Consulting.
Julio Iranzo, in his office at the Nova Patraix Pharmacy in Valencia.
– You have resorted to alternative banking solutions, which is unusual for an SME. What has this brought you?
– I have dared to change and try other formulas. Traditional banking is deeply rooted in Spain, and in this respect we have a lot to learn from other countries where alternative banking has a much greater presence and activity in the business world. They are financiers with solutions that can be more agile and competitive. I would not have had access to these alternative entities without mediation such as Kaizen Consulting.
– You have also entered the consultancy service. Why?
– I got into consulting because it is an extraordinary tool for any company with a significant turnover. It is the way to have a proper periodic follow-up. With Kaizen, I have outsourced what would be the financial department, the business planning and development consultancy. This allows me to focus on my management role in the pharmacy and not on putting out fires on a daily basis. They are specialists and it is preferable to delegate these financial issues to real specialists. I still make the decisions, but the field work of my business plan, control and planning is done by the Kaizen team.
– Do you recommend outsourcing this part of management?
– Yes, it certainly is. For companies that do not have their own financial department or even for them, because it is good to open up the range of financial options that can be accessed with specialised advice. I have found that I waste too much time and energy with this management, which in reality I should devote to my customers, to solving medication problems or pharmacy processes. Financial and economic issues are time-consuming and unproductive. It is much better to leave it in the hands of experts.
– How has it been working with Kaizen Consulting?
– Their work is agile, the people from the different areas of the team are tremendously involved in all operations. They look for all possible alternatives with complex scenarios and I can say that their dedication is extraordinary.
