DOING BUSINESS SINCERELY WITH HEART

Since he was child, Gideon Hartono - the owner of franchise pharmacy Apotek K-24 from Yogyakarta, had a dream to be a doctor. However, when he achieved his dream, Gideon changed his profession to be an entrepreneur. He even succeeded to develop his franchise pharmacy business which just got awards from Indonesia World Record Museum (MURI) - as the first chain pharmacy in Indonesia that opens for 24 hours non stop every day!

In fact, his choice to be an entrepreneur was started by his disappointment because of not able to take specialist doctor program in his alma mater, Medical Faculty, Gadjah Mada University, because his status as an Indonesian citizen with Chinese blood in him. While in fact, being a specialist doctor was every doctor’s dream, including him. Knowing that his career as a specialist doctor was impossible to develop, the man who was born in Yogyakarta on 10 October 1963, started to learn business, while practicing as medical doctor in Puskesmas (Community Health Center) Gondokusuman II, Yogyakarta.

“In 1980s, it was hard for Indonesian citizen with Chinese descended like me to study at Medical Faculty of public university, moreover taking specialist doctor program. If I did not take it, my career as a doctor would be stuck as a medical doctor,” said the alumni of Medical Faculty of UGM during his interview with Suara Karya in the branch office of Apotek K-24 in Jakarta, Friday (23/6)

He did not want to keep focusing on discriminative action that happened at that time. Gideon chose business as his income, while doing his dream as a doctor. The business he established was not that far from his hobby since he was teen, photography business.

With the money he saved from the photo competition, this man opened a photography business named Agatha Photo. “In the evening, after practicing in Puskesmas, I went to Agatha Photo which was usually handled by my younger brother, Tulus Benyamin. At that time, I never felt tired of working from morning to night,” explained by Gideon as he reminisced his past.

The business that he did sincerely came with fruition. The photo studio he established in a garage was no longer serving for photography only, but also video shooting for wedding and production house. He even established Gardu AD - An advertising company that produces television advertisement.

“I no longer manage Agatha Video. I let my younger brother, Tulus Benyamin, to manage it,” said Gideon who are in leave as civil servant for three years.

When he was asked why he did not take the chance to study specialist program in other universities outside Yogyakarta, Gideon said that at that time he did not have choice. Because of the family condition, he could not take specialist program in the outside of Yogyakarta.

“I came from a simple family. My parents were just selling mochi, which was not salable in the rainy season. Therefore, when I know I could not register for specialist program at UGM just because I am Chinese descended, I gave up. Meanwhile studying in other cities was impossible because of the limited family economy,” said the fifth child of seven siblings, son of Hadi Purnomo and Linawati.

Even though he was suffering because of the discrimination, Gideon did not hold grudge. In running his business, he tried hard to increase tolerance. It can be seen from the philosophy of K-24 logo which is unique by combining green, red, yellow, and white.

“It was the picture of real condition in Indonesia which is plural in culture, religions, languages, and many more. The green that is dominating represents Islam. Red represents Christian, Yellow represents other minority religions. Those three colors combined result beautiful composition. That is what I want to apply it in pharmacy business.” he said it excitedly.

Whoever franchising Apotek K-24 has to agree philosophy of plurality and anti-discrimination from Gideon. “If there is a Catholic franchisee who wants the staffs to have the same religion with him, well, it cannot happen. I don’t need his money,” he stated.

Therefore, religion tolerance in K-24 circle is very high. There was a Moslem franchisee who wanted the pharmacists whose religion is Christian and ethnic is Chinese. Actually, K-24 provided four candidates in which two of them are Islam. “My principal is do not discriminate. So, we have to keep learning from each other and do not judge.” he said it calmly.

The man who was registering as candidate for the vice major of Yogyakarta once said, Apotek K-24 was born from his hardship in finding medicine during the night and holiday. Even if there is medicine, the price is much more expensive than usual.

“That condition will disadvantage the customers. They really need the medicine so that they will pay the amount of money asked by the pharmacist. It is unfair,” said Gideon.

Opens for 24 Hours Non-Stop

Learning from that experience, the husband of Drg. Inge Santoso, Sp. Ort, established Apotek K-24 In Yogyakarta. K-24 is the abbreviation for Komplet 24 (complete for 24 hours). That pharmacy opens for 24 hours with three shifts, which are 07.30-15.30,15.00-22.00, and 21.30-07.30.

Gideon admitted that he did not have a chance to do market research beforehand. He just relied on his business instinct, that people in Yogyakarta still needs pharmacy that serves them for 24 hours non stop. Even so, the first outlet that relied on that instinct, made Gideon spent Rp. 400 million of his saving.

The first three months, people’s response were nothing special. Entering the next three months, Gideon’s business instinct started to work greatly. The visitor of his pharmacy that never closes since it is opened even during public holiday, - kept increasing from day to day. The success of the first pharmacy launched in Jl. Magelang motivated him to open the next outlets in other place.

On March 24, 2003, the second outlet of Apotek K-24 was established in Jl. Gejayan. Then, On August 24, 2003, the third outlet of Apotek K-24 was established in Jl. Kaliurang. Therefore, three of them are still in Yogyakarta. On February 24, 2005, the outlet of Apotek K-24 was opened in Semarang. The father of two sons loves the 24th. Besides for naming his pharmacy, the launching of its outlet was always done on the 24th in each month.

Moments ago, Gideon got award from MURI because K-24 is the first chain pharmacy that since it was first opened until now never closed. The price of the medicine does not change as well, during the day or night. In preventing the worst condition, starting from 23.00, people can only buy medicine in Apotek K-24 from a special hole prepared.

Now, the pharmacy that hires more than 90 employees prepared 5000 items of medicine, had 350-500 transactions in each month, with income for about Rp. 250 million to Rp 300 million per outlet.

Gideon revealed that he just wanted to buy medicine from official distributor or the medicine has invoice attached. “Actually, I got a lot of offers for illegal medicine with very cheap price, but I do not want to take it because its source is unclear,”

He admitted that he take margin for 17%-25% from the medicine he sells, even though there is chance from the distributor to get profit up to 20%-40%.

Gideon planned to expand the chain of Apotek K-24 to reach all cities in Java by franchise system. There were several people who proposed for franchise but the outlets which are ready to open are only two outlets, one in Yogya and the other in Surabaya. In order to get franchise, investor has to prepare Rp. 300-Rp. 600 million for those who just started.

“For investor who has pharmacy business but not developed well and want to join Apotek K-24 chain, obviously the investment is lesser than that,” said Gideon by mentioning the target for next year that Apotek K-24 will open new outlets until 40 outlets. Until 2010, Apotek K-24 targeted to open 500 outlets in Indonesia by franchise system.

Gideon admitted that opening franchise business is not hard. We just need to cooperate with pharmacist, “However, the most important thing is how we build our pharmacies to be able to compete with others,” said Gideon.

He showed an example, with the capital of Rp. 150 million, maybe someone can start his own pharmacy. However, most of it, Rp. 100 million of that budget will be spent to rent a place, renovation, and other utilities. The leftover is medicine stock which is just Rp. 50 million. “With that amount of money, we get nothing if we open pharmacy by ourselves,” he said.

Still with promotion tone, Gideon compared, if joining his franchise with the same capital, Rp. 150 million to Rp. 180 million, you can store 5800 items of medicine. Because, he said, by franchise chain, an outlet does not have to buy medicine in great number. Franchisor has to distribute its supply, “without chain, it needs around Rp. 600 millions”

“If you do the right strategy, monthly income for RP. 270 million to RP. 330 million will be earned. From that amount, the franchisee, has to pay the royalty fee 1.2% and joined promotion budget for 0.3%.”

The other large budget which has to be handled by the franchisee is human resource. Because it opens for 24 hours, partner has to hire two pharmacists, and 12 staffs. Electricity also spends a lot of budget.