Free Pharmacy Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $160,000 for the development of a pharmacy while showcasing the expected financials and operations over the next three years. Pharmacy, Inc. (“the Company”) is a New York based corporation that will provide prescription drugs, over the counter drugs, and general merchandise to customers in its targeted market. The Company was founded in 2009 by John Doe.
1.1 Products and Services
The primary operations of the business will be the distribution of pharmaceuticals to customers within the target market. The Company will earn gross margins of approximately 20% on all prescription drugs distributed the business. At the onset of operations, the Company will have one full time pharmacist and an assistant manage the distribution of prescription drugs to customers. In addition to prescription drugs, the business will sell general merchandise and over the counter medications that will enhance the revenues of the business. General merchandise will include candy, magazines, and other items typically found in general merchandise stores. The third section of the business plan will further describe the services offered by the Pharmacy.
1.2 The Financing
Mr. Doe is seeking to raise $160,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Pharmacy’s mission is to become the recognized leader in its targeted market for providing pharmaceutical products and general merchandise to the local general public.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the pharmaceutical industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals within the target market.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Pharmacy, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Pharmacy requires $160,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Pharmacy, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Pharmacy. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the products offered by the Pharmacy.
3.1 Sales of Medication
As discussed in the executive summary, the primary source of revenue for the business will come from the direct sale of prescription medications sold through the Pharmacy’s location. One of the most interesting aspects of this segment of the business is that it will be immune from changes in the general economy as people will continue to require specialized medications for their health and most people have private insurance, Medicare, or Medicaid reimbursement for their drug costs. The Company will have a full time pharmacist and pharmacy assistant ensure that all drugs are handled and dispensed properly. Mr. Doe is currently obtaining the proper licensure so that the business can distribute prescription medication from its retail location.
3.2 General Merchandise and Soft Medical Product Sales
In addition to the sale of prescription medications, the business will also sell a variety of over the counter and soft medical goods including pain relievers, products related to women’s health and hygiene, oral hygiene products, and other over the counter items typically found within pharmacies. The Company will also sell a number of general merchandise items including candy, stationery, small toys, magazines, and other goods related to general merchandise stores.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the pharmacy industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is in recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows. Many economists expect that this recession will continue until mid-2009, at which point the economy will begin a prolonged recovery period. However, pharmacies operate with great economic stability as people will continue to require medications despite drawbacks in the general economy. Additionally, and as stated earlier, many people have health insurance that covers these drug costs.
4.2 Industry Analysis
The retail distribution of pharmaceutical products is one the United States’ largest industries. Each year, the 40,300 retail pharmacy companies in the country aggregately generate more than $153 billion dollars of revenue. The industry employs more than 780,000 people and provides payrolls in excess of $15 billion dollars per year. The industry is expected to grow significantly over the next fifteen years as more people in the “Baby Boomer” generation move into their senior years. As such, they will require greater use of prescription medication. Based on information from the US federal government, the industry is expected to have an annual average growth rate of 6% per year during the next fifteen years.
4.3 Customer Profile
In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Pharmacy intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Pharmacy.
5.1 Marketing Objectives
• Establish relationships with referring physicians, dentists, and allied health professionals.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies that will allow the Pharmacy to easily target men and women within the target market. These strategies include traditional print advertisements and ads placed on search engines on the Internet. Below is a description of how the business intends to market its services to the general public. The Pharmacy will also use an internet based strategy. This is very important as many people seeking local services and products, such as retail pharmacies, now the Internet to conduct their preliminary searches. Mr. Doe will register the Pharmacy with online portals so that potential customers can easily reach the business. The Company will also develop its own online website showcasing hours of operation and directions to the Pharmacy’s location. The Company will maintain a sizable amount of print and traditional advertising methods within local markets to promote the pharmaceutical products and general merchandise that the Company is selling.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Pharmacy will have an annual revenue growth rate of 16% per year.
• The Owner will acquire $160,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
The Company’s revenues are not sensitive to changes in the general economy. As discussed earlier, the business provides life critical medications to its customers and as such, the business will not suffer any major declines in revenues despite deleterious changes in the economy. However, sales of general merchandise may slow during economic recessions, but the large pharmacy based revenues will ensure the continued profitability of the business.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis