Instead of waiting for a pharmacy owner to recognise your value, find a business where you can demonstrate it.
By Pharmacrib
Introduction: There Is Another Way to Negotiate
For years, conversations about the remuneration of pharmacists in Ghana have focused on salaries, superintendent fees and the difficulty of finding pharmacy owners willing to pay what pharmacists believe their services are worth.
These are legitimate concerns. But perhaps we also need to rethink how we approach the problem.
What if, instead of negotiating only for a higher salary or a superintendent fee, pharmacists began exploring opportunities to acquire an ownership stake in pharmacies they could help build?
Consider a pharmacy that is struggling to meet its financial obligations. Its owner has invested substantial capital, yet sales remain disappointing, expenses continue to mount, and the business is not delivering the returns originally anticipated.
The owner may be tired. They may even be considering selling the business.
Now imagine that a superintendent pharmacist working in that facility can identify operational problems, improve inventory management, introduce better business processes and develop services that increase profitability.
Could that pharmacist negotiate an equity stake in exchange for helping turn the business around?
Absolutely—provided there is a credible business case and a properly structured agreement.
But the opportunity requires a different mindset.
1. Stop Looking Only at Salary. Start Looking at Business Opportunities.
Many pharmacists approach their careers by looking for employment opportunities and negotiating the best possible remuneration.
There is nothing wrong with that. A fair salary is important, and professional expertise should not be undervalued.
However, employment is not the only possible route to financial growth.
A superintendent pharmacist may have the knowledge to improve a pharmacy’s operations, but that knowledge can also be applied to building a business.
Think about the pharmacy where you currently work.
- Are sales consistently below expectations?
- Is the business losing money through expired products, poor stock management or inappropriate purchasing?
- Are fast-moving products frequently unavailable?
- Is there little effort to retain customers?
- Are operating expenses poorly controlled?
- Are there opportunities to introduce additional pharmacy services?
- Does the owner understand the facility’s actual financial performance?
If you can identify these problems and develop practical solutions, you may have something valuable to offer beyond your ordinary professional duties.
The question becomes: can you turn that value into a mutually beneficial business arrangement?
2. Consider the Pharmacy Owner Who Is Already Struggling
It can be difficult to convince someone starting a pharmacy that they should give you equity.
At the beginning, the owner may have ambitious projections. They may believe the location is perfect, demand will be strong and the business will quickly become profitable.
They have committed their capital and are optimistic about the future. They may see no reason to surrender ownership to someone they could simply employ.
The situation can be different when a business has been operating for some time and the financial realities are becoming apparent.
Consider a hypothetical pharmacy owner who wants to sell a facility for GH₵600,000, even though daily sales are only around GH₵1,500.
Those sales figures alone do not establish the business’s value. The pharmacy may have valuable stock, equipment, property rights or other assets. Nevertheless, they raise important questions about whether the asking price is supported by the business’s financial performance.
How much gross profit does the pharmacy generate? What are its operating expenses? Does it have outstanding debts? How much working capital does it require? Is it profitable, and what explains its current performance?
These are the questions that should inform negotiations.
An owner who has already experienced the challenges of running the business may be more willing to consider an alternative arrangement—particularly if selling has become difficult or the business needs a turnaround.
This is where a superintendent pharmacist with a credible plan may find an opportunity to negotiate equity.
Rather than asking the owner to surrender a portion of a successful business, the pharmacist can propose helping recover an underperforming one.
The proposition is different: let us see whether we can make this business worth more together.
3. Build a Business Case Before Asking for Equity
Do not approach a pharmacy owner simply because you believe you deserve a stake in the business.
Prepare a business case.
Start by understanding the facility’s current position. Review available sales records, purchasing patterns, gross margins, operating expenses, stock losses, expiry records, customer demand and other relevant indicators.
Identify the problems you believe can realistically be addressed.
For example:
Inventory management: Are purchasing decisions based on actual demand? Are slow-moving products tying up capital while essential fast-moving products are unavailable?
Sales performance: Are there opportunities to improve customer retention, product availability, service quality and the way the pharmacy serves its community?
Profitability: Are discounts, operating costs and purchasing practices affecting gross margins?
Clinical services: Could appropriate, professionally delivered services create additional revenue while improving patient care?
Business systems: Would better record-keeping, stock control and performance monitoring help the owner make more informed decisions?
Then develop an action plan.
State what you intend to change, the resources required, the indicators you will monitor and the period over which progress will be assessed.
Be realistic. Increasing sales does not automatically increase profit, and no pharmacist can guarantee a turnaround without understanding the business’s underlying challenges.
The stronger your analysis, the more credible your proposal becomes.
4. Make the Owner an Offer They Can Understand
Imagine approaching the owner with the following proposal:
“I believe this pharmacy has opportunities that we are not fully exploiting. I have identified areas where we could improve stock management, customer retention, profitability and business operations. I am willing to take an active role in helping turn things around. Rather than discussing only my remuneration, I would like us to explore an arrangement under which I receive a defined ownership stake in exchange for my additional contribution to the growth of the business.”
Notice the difference.
You are not demanding equity simply because the pharmacy requires a superintendent pharmacist. You are presenting a business proposition.
The owner can assess your proposal against the cost of alternative arrangements, the potential benefits of your intervention and the risks involved.
You must also be prepared to explain why your proposed equity percentage is reasonable.
Will you receive shares immediately? Will you earn them over time? Will part of your compensation be deferred? Are you contributing capital? Will you be responsible for implementing agreed business improvements beyond your ordinary duties?
These details matter.
Equity should reflect the commercial arrangement, the value being contributed, the risks assumed and the rights being granted—not an arbitrary percentage.
5. Never Exchange Your Salary for a Promise of Future Wealth
This is an important point.
A pharmacist negotiating equity should not automatically agree to work without a salary because the business is struggling.
You still have personal expenses and professional responsibilities. Your labour has value today, even if the business does not yet generate a profit.
Your agreement should distinguish between two things:
- Professional remuneration: The salary or fee you receive for performing your agreed role.
- Equity participation: Your ownership interest and the potential financial returns associated with it.
The salary should be agreed in advance and should not depend solely on whether the business makes a profit. If the owner cannot afford the proposed arrangement, that reality should be discussed openly before work begins.
If you agree to defer any portion of your remuneration, document the amount, payment terms and consequences of non-payment.
Do not allow the promise of equity to become an excuse for unpaid work.
And remember that equity does not guarantee dividends, appreciation or a profitable exit.
6. Protect the Value You Help Create
Suppose you enter into an arrangement with a struggling pharmacy.
Over the next two years, you help improve its purchasing practices, reduce avoidable stock losses, strengthen customer retention and improve profitability.
The business becomes more valuable.
Then the owner receives an offer from another buyer and decides to sell.
What happens to your equity?
If the agreement is vague, this could become a serious dispute.
Before beginning the arrangement, discuss and document what happens if the business is sold, the owner transfers shares, either party wants to exit or the working relationship ends.
Depending on the structure, relevant protections may include:
- Properly documented share ownership and voting rights.
- Clear provisions for the transfer or sale of shares.
- An agreed method for valuing the business or your ownership interest.
- Tag-along or other negotiated rights if the majority owner sells.
- A right of first refusal or a properly structured purchase option, if you want the opportunity to acquire the business.
- Dispute-resolution procedures and clear exit provisions.
A right of first refusal is not the same as an automatic right to buy the business. Its operation depends on the precise terms of the agreement.
The objective is to ensure that your rights are clear before your contribution begins to create additional value.
Do not wait until the business is successful to ask what happens to your stake.
7. Establish the Business’s Value Before You Negotiate
Valuation can become one of the most contentious parts of an equity arrangement.
An owner may believe a pharmacy is worth GH₵600,000 because of the money invested in it, the years spent operating it or the price they hope to receive.
But the amount invested is not necessarily the current market value.
A proper assessment may need to consider stock, equipment, other assets, liabilities, outstanding debts, working capital, sustainable earnings, location, goodwill and the terms under which the business operates.
Where appropriate, obtain an independent valuation.
It is also important to establish whether you are negotiating equity in an existing company or buying into a business that will be restructured. Those arrangements can have different implications for liabilities, ownership and control.
If the pharmacy has significant debts or requires additional capital to recover, your agreement should address who bears those costs.
Otherwise, you could end up owning part of a business that continues to consume money without delivering the anticipated returns.
8. Put Everything in Writing Before You Start
A handshake and a verbal promise are not sufficient protection for an arrangement of this importance.
Before implementing your turnaround plan, seek appropriate legal and financial advice.
Depending on the structure, the documentation may include a shareholders’ agreement, share issuance or transfer documents, amendments to company documents and an agreement defining your professional role and remuneration.
The documents should clearly state:
- The percentage or number of shares you will own.
- How and when ownership is acquired.
- The rights attached to those shares.
- Your salary and other compensation.
- The responsibilities of each party.
- How performance will be measured, where relevant.
- What happens if additional capital is required.
- How a sale, transfer, resignation or dispute will be handled.
Ensure that the arrangement complies with applicable company law and Pharmacy Council requirements. Ownership of shares does not replace the professional obligations associated with being a superintendent pharmacist, nor should equity be treated as a substitute for the required regulatory arrangements.
Do this before you begin making substantial additional contributions to the business.
It is much easier to negotiate clearly at the beginning than to argue about an unwritten promise after the business improves.
9. Not Every Struggling Pharmacy Is Worth Saving
There is a final caution.
A pharmacy with low daily sales is not automatically a good investment opportunity. It could have a poor location, an unsustainable cost structure, inadequate working capital, substantial liabilities or limited prospects for recovery.
Before negotiating equity, establish whether the business is genuinely capable of improvement.
Ask yourself:
- Is there sufficient demand to support the business?
- Can its operating model become profitable?
- Does the owner have the resources and willingness to support the turnaround?
- Are the problems within your ability to address?
- Is the proposed ownership stake proportionate to the contribution expected?
- Would you still accept the arrangement if the business took longer than expected to recover?
If the answers are unfavourable, walking away may be the better decision.
Equity is not compensation for taking on an impossible task.
Conclusion: Find the Business Where Your Contribution Can Change the Outcome
Superintendent pharmacists should not limit their financial ambitions to negotiating salaries and professional fees.
There may be opportunities to participate in the ownership of pharmacies, particularly where an owner needs more than routine professional supervision and is willing to partner with someone who can help rebuild the business.
But the opportunity must be approached with commercial discipline.
Understand the business. Identify the problems. Prepare a credible turnaround plan. Negotiate a fair salary and a clearly defined ownership interest. Establish the business’s value. Protect your rights in writing.
Most importantly, distinguish between being legally necessary to a business and being commercially valuable to its growth. Both matter, but the strongest case for equity comes when you can demonstrate the additional value you are prepared to create.
The goal should not be to take advantage of a struggling pharmacy owner. It should be to build an arrangement in which the owner has a realistic opportunity to recover their investment and the pharmacist has a fair opportunity to share in the value they help create.
Sometimes, the opportunity is not in asking for a piece of a successful pharmacy. It is in finding a struggling pharmacy that you can help make successful—and negotiating your stake before the turnaround begins.
Disclaimer: This article is for general educational purposes and does not constitute legal, investment or financial advice. Each proposed arrangement should be assessed on its own merits, with appropriate professional advice and in compliance with applicable Ghanaian laws and regulatory requirements
