Pharmacy Business Plan and SWOT Analysis

Pharmacy Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Pharmacy Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Pharmacy business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready!
  • Complete Industry Research
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PDF Format
  • Meets SBA Requirements

The gross margins generated from the sale of pharmaceuticals and biologics is somewhat low. Most pharmacies generate gross margins of 20% to 30% on the sale of medications. It should be noted that these businesses are able to generate higher-margin revenues from the sale of general medical supplies and soft medical supplies that are available without any type of prescription. Almost all financial institutions provide capital to pharmacies given the highly predictable streams of revenue that are generated on a monthly basis. Most importantly, most financial institutions will provide capital for every aspect of the pharmacy given that they you have ongoing inventory acquisition needs, cash flow needs, and working capital needs. Most banks will provide loans and lines of credit against the anticipated receivables of a pharmacy given that it usually takes anywhere from 90 days to 120 days to receive payment from private insurance companies as well as publicly funded health systems.

A pharmacist that is looking to establish a new location is going to need a business plan not only for capital raising purposes but for licensing purposes as well. This business plan should include a thorough examination of the local market, number of other pharmacies in operation, population density, population size, median household income, median family income, and the number of people that are over the age of 65 that qualify for Medicare or Medicaid. This business plan should also include a three-year financial model that has a profit and loss statement, cash flow analysis, breakeven analysis, balance sheet, and a business ratios page that can showcase to potential lender that the pharmacy will be economically viable within the first year of operation.

Of second importance to the business plan, is the pharmacy marketing plan. This document should focus heavily on how ongoing referrals will be produced from physicians as well as regional hospitals. One of the most important aspects to a pharmacies marketing operations is to have a very accessible and highly visible retail location. In fact, most other marketing expenditures are limited as compared to the fact that a pharmacy that has a strong retail location will remain profitable due to its signage. Of course, in today’s world – it is imperative that a pharmacy also maintain an online marketing presence. Usually, a website that showcases the location, hours of operation, biographies of staff pharmacists, and other general information is sufficient for this purpose. Some pharmacies do maintain profiles on popular social networking platforms such as FaceBook and Twitter, but this can be somewhat limited given that most people do not address their pharmaceutical needs on social media.

Beyond the marketing and business plan, a pharmacy SWOT analysis is usually developed as well and presented to a lender or potential funding source. As it relates the strengths, pharmacies are always able to remain profitable given the fact that they provide critical medications to their customers. For weaknesses, the gross margins are somewhat moderate and there are very high operating expenses associated with a pharmacy. For opportunities, many pharmacies will take to providing ancillary services such as compounding drugs in order to substantially boost their revenues. However, a pharmacy that provides count compounded pharmaceuticals is extremely expensive to develop and maintain. It should be noted that the profits from this type of service are extremely high. For threats, like any other healthcare business a pharmacy is subject to changes in reimbursement from both Medicare/Medicaid is well as private insurance. As such, a pharmacy should have a qualified CPA work with them to ensure that any type of decline in reimbursement will not impact their overall profitability.