BUSI NESS PL AN
[YEAR]
Pharmacy Store
Bringing the medicine at your door
John Doe
10200 Bolsa Ave, Westminster, CA, 92683
(650) 359-3153
info@upmetrics.co
https://upmetrics.co
Table of Contents
Executive Summary 4
Objectives 5
Mission 5
Keys to Success 5
Financial Summary 5
Net Profit 6
Chart 6
Company Summary 7
Business Ownership 8
Start-up Summary 8
Summary Chart 10
Chart 10
Products & Services 11
Business Model Description 12
Market Analysis 13
Market Segmentation 14
Mail order customers 14
Walk-in customers 14
Target Market Analysis 14
Target Market Segment Strategy 15
Strategy and Implementation 16
Competitive Edge 17
Marketing Strategy 17
Sales Strategy 17
Sales Forecast 17
Chart 18
Milestones 18
Web Plan 19
Development Requirements 20
Management 21
Personnel Plan 22
Financial Plan 23
Important Assumptions 24
Break-even Analysis 24
1 / 29
Projected Profit and Loss 24
Projected Cash Flow 25
Balance Sheet 27
2 / 29
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[YEAR ] Bus ines s Plan | Phar mac y Stor e 3 / 29
1.
Executive Summary
Objectives
Mission
Keys to Success
Financial Summary
[YEAR ] Bus ines s Plan | Phar mac y Stor e 4 / 29
GoodRx Pharmacy's main goal is to provide prescription medications for our
customers at the lowest prices on the market. We will be able to sell
prescriptions at reduced prices by carefully maintaining efficiencies in our
operations and by targeting a specific segment of the market - those customers
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who pay for their prescription medications themselves.ToByunlock
focusing on this
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Objectives
The objectives for the first three years include:
1. Exceed customer expectations with superior pricing
2. Increase the number of customers by more than 30% per year
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3. Develop a business that survives off its own cash flow
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Mission
GoodRx Pharmacy's mission is to provide our customers with the best prices
for their prescription medications. Our convenience and services will exceed
the expectations of our customers.
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Keys to Success
The keys to success are:
Satisfy our customers so they will return again and again
Maintain low overhead and operating costs
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Provide better prices than all our competitors
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Financial Summary
[YEAR ] Bus ines s Plan | Phar mac y Stor e 5 / 29
Net Profit
Sales Gross Margin Net Profit
1.50M
1.00M
500.00k
-500.00k
Year1 Year2 Year3
Financial Year Sales Gross Margin Net Profit
Year1 200000 100000 -100000
Year2 600000 400000 200000
Year3 1000000 500000 400000
[YEAR ] Bus ines s Plan | Phar mac y Stor e 6 / 29
2.
Company Summary
Business Ownership
Start-up Summary
[YEAR ] Bus ines s Plan | Phar mac y Stor e 7 / 29
The GoodRx Pharmacy is located in Portland and offers prescription
medications at discount prices to our customers by mail order or at the
storefront.
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Business Ownership
The GoodRx Pharmacy is an Oregon limited liability corporation. The majority
of the stockholder is John Redleaf.
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Start-up Summary
The GoodRx Pharmacy will incur the following start-up equipment costs:
Office equipment including chairs, file cabinets, and desks.
Front counter, storage bins, cash register.
Three computer terminals.
Main computer server with a laser printer, and back-up system.
Software: Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk
Reference software detailing side effects, and other information pertinent to the customer.
Assorted boxes for shipment.
Scales for shipping.
Please note that these items will be used for more than one year and will, therefore, be labeled long-
term assets, depreciated using G.A.A.P. approved straight-line depreciation.
Start-up Expenses Amount
Legal $1,000
Website development $1,000
Total Start-up Expenses $2,000
Start-up Assets Needed
[YEAR ] Bus ines s Plan | Phar mac y Stor e 8 / 29
Start-up Expenses Amount
Cash Balance on Starting Date $140,500
Other Current Assets $0
Total Current Assets $140,500
Long-term Assets $8,500
Total Assets $149,000
Total Requirements $151,000
Funding
Investment
Seed Funding $50,000
John $51,000
Friends and Family $50,000
Total Investment $151,000
Current Liabilities
Accounts Payable $0
Current Borrowing $0
Other Current Liabilities $0
Current Liabilities $0
Long-term Liabilities $0
Total Liabilities $0
Loss at Start-up ($2,000)
Total Capital $149,000
Total Capital and Liabilities $149,000
[YEAR ] Bus ines s Plan | Phar mac y Stor e 9 / 29
Summary Chart
Amount
150.00k
100.00k
50.00k
0
Expenses Assets Investment Loans
Summary Amount
Expenses 2000
Assets 100000
Investment 120000
Loans 5000
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3.
Products &
Services
Business Model Description
[YEAR ] Bus ines s Plan | Phar mac y Stor e 11 / 29
The GoodRx Pharmacy offers a wide range of prescription drugs to patients
based in Oregon or nationally. Both generics and name brands are offered.
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Business Model Description
In order for a customer to purchase medications mail order, they must first
contact The GoodRx Pharmacy over the phone. The customer then needs to
either mail in the prescription, fax it, or email it. Once it is received and
payment arrangements are complete, the meds will be sent out to the customer
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via U.S.P.S. or U.P.S. Local customers may stop by the storefront to pick up
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[YEAR ] Bus ines s Plan | Phar mac y Stor e 12 / 29
4.
Market Analysis
Market Segmentation
Target Market Analysis
Target Market Segment Strategy
[YEAR ] Bus ines s Plan | Phar mac y Stor e 13 / 29
The GoodRx Pharmacy's target market consists of two different groups, local
customers or walk-ins, and mail-order customers.
The GoodRx Pharmacy will employ two different strategies to reach these two
diverse market segments. To unlock help try Upmetrics!
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Market Segmentation
The GoodRx Pharmacy's customers can be broken down into two different groups, mail order
customers and walk-in customers:
This group of customers orders their medication through the mail in an effort to
save money. Generally, the mail order customers are older in age, typically
over 50. In general, elderly customers consume more medication relative to
younger people. The mail order customer will typically purchase maintenance
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medications - prescriptions for an ongoing ailment thatTo
requires regular
Mail order customers
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This group of customers are also looking for the lowest prices for their
medication. However, they tend to purchase medications monthly at their local
pharmacy, often at a higher price. There is not a common demographic for this
group of people, other than living in the Portland metropolitan area. Some of
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these customers will pay for the medications out of pocket and some will
Walk-in customers
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Target Market Analysis
Potential Growt CAG
Year1 Year2 Year3 Year4 Year5
Customers h R
Walk-in 8.00
customers 8% 345,887 373,558 403,443 435,718 470,575 %
Mail order 77,462,43 9.00
customers 9% 54,876,345 59,815,216 65,198,585 71,066,458 9 %
[YEAR ] Bus ines s Plan | Phar mac y Stor e 14 / 29
Potential Growt CAG
Year1 Year2 Year3 Year4 Year5
Customers h R
77,933,01 8.99
Total 8.99% 55,222,232 60,188,774 65,602,028 71,502,176 4 %
Target Market Segment Strategy
The GoodRx Pharmacy will seek to attract two different groups of customers
and will thus have two strategies to attract them.
We anticipate that by far our largest group of customers will be those who order
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through the mail. These customers will be targeted through help try Upmetrics!
an advertising
campaign in magazines and newsletters that have an older (>55) audience who
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[YEAR ] Bus ines s Plan | Phar mac y Stor e 15 / 29
5.
Strategy and
Implementation
Competitive Edge
Marketing Strategy
Sales Strategy
Milestones
[YEAR ] Bus ines s Plan | Phar mac y Stor e 16 / 29
The GoodRx Pharmacy will use their website to develop visibility and disseminate information.
Competitive Edge
GoodRx Pharmacy's competitive edge is superior pricing. To do that we must
maintain our position as the low-cost provider by painstakingly ensuring that
costs are kept low through operating efficiencies.
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We will be able to do that by eliminating some of the services traditionally
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Marketing Strategy
The marketing strategy will be based on targeted advertisements, appealing to
the customer's sense of value. The marketing campaign's goal will to be
increase awareness of The GoodRx Pharmacy with their target market.
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Sales Strategy
The sales strategy will be based on generating long-term relationships with
customers. To facilitate that, we will provide medications at superior prices,
have meds in stock for both quick shipment and storefront pick up, and provide
superior customer service. All sales agents will be trained to provide friendly,
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knowledgable customer service. By keeping to these simple, yet effective,
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During the first two months, we will focus on setting up the storefront and
generating both local and national visibility. Sales activity will begin in month
three. Sales during months three through five there will mainly consist of local
business through the storefront. In month six we expect to see a jump in sales
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from mail order. Sales will grow steadily from month sixToon.
Sales Forecast
[YEAR ] Bus ines s Plan | Phar mac y Stor e 17 / 29
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Walk-in customers Mail order customers
20.00k
15.00k
10.00k
5.00k
0
Year1 Year2 Year3
Financial Year Walk-in customers Mail order customers
Year1 1550 10000
Year2 1800 12000
Year3 2050 14000
Milestones
The Discount Drug Dealer will have several milestones early on:
Office/business set up.
Establishment of the first strategic relationship.
Profitability.
Milestone Start Date End Date Budget Manager Department
Office/business set
up 1/1/2001 5/1/2001 John Executive
Establishment of the
first strategic Business
relationship 1/1/2001 7/1/2001 John Development
Profitability 1/1/2001 11/1/2002 Everyone Finance
Totals $0
[YEAR ] Bus ines s Plan | Phar mac y Stor e 18 / 29
6.
Web Plan
Development Requirements
[YEAR ] Bus ines s Plan | Phar mac y Stor e 19 / 29
The website will be used for the dissemination of information as well as a
mechanism for email communication. Initially, there will be no ordering through
our website since we do not expect that method to be widely used and trusted
by our target customers.
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Development Requirements
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[YEAR ] Bus ines s Plan | Phar mac y Stor e 20 / 29
7.
Management
Personnel Plan
[YEAR ] Bus ines s Plan | Phar mac y Stor e 21 / 29
John Reeleaf has experience working with a major drug manufacturer, Eli Lilly,
as a drug representative. He was able to see first hand the profitability
associated with the prescription drug industry, as well as the inefficiencies with
which most companies are plagued.
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John graduated with an MBA from the University of Oregon's innovative
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Personnel Plan
The Discount Drug Dealer will employ the following people:
Sales agents/phone representatives: two at month three, an additional person at month sixth.
Pharmaceutical technicians: two at month two, a third at month six.
Pharmacists: month two.
Order fulfillment agents: two for month five, a third for month eight.
Counter person/phone representative: one at month three.
Personnel Plan Year1 Year2 Year3
CEO (John) $48,000 $52,000 $60,000
Pharmacist $55,000 $60,000 $60,000
Pharmacist technician $27,500 $30,000 $30,000
Pharmacist technician $27,500 $30,000 $30,000
Pharmacist technician $17,500 $30,000 $30,000
Sales agent $19,200 $23,040 $23,040
Sales agent $19,200 $23,040 $23,040
Sales agent $11,520 $23,040 $23,040
Counter person/phone rep. $14,400 $17,280 $17,280
Counter person/phone rep. $14,400 $17,280 $17,280
Order fulfillment $14,400 $17,280 $17,280
Total People 11 11 11
Total Payroll $268,620 $322,960 $330,960
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8.
Financial Plan
Important Assumptions
Break-even Analysis
Projected Profit and Loss
Projected Cash Flow
Balance Sheet
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The following sections will outline important financial information.
Important Assumptions
The following table details important financial assumptions.
General Assumptions Year1 Year2 Year3
Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0.00% 0.00% 0.00%
Calculated Totals
Payroll Expense $268,620 $322,960 $330,960
New Accounts Payable $524,386 $872,053 $939,847
Break-even Analysis
The Break-even Analysis indicates that $72,494 will be needed in monthly revenue to reach the break-
even point.
Break-even Analysis
Monthly Units Break-even 725
Monthly Revenue Break-even $72,494
Assumptions:
Average Per-Unit Revenue $100.00
Average Per-Unit Variable Cost $53.00
Estimated Monthly Fixed Cost $34,072
Projected Profit and Loss
The following table will indicate the projected profit and loss
[YEAR ] Bus ines s Plan | Phar mac y Stor e 24 / 29
Year1 Year2 Year3
Sales $376,280 $967,265 $1,071,877
Direct Costs of Goods $198,615 $499,243 $551,358
Other Production Expenses $0 $0 $0
------------ ------------ ------------
Cost of Goods Sold $198,615 $499,243 $551,358
Gross Margin $177,665 $468,022 $520,519
Gross Margin % 47.22% 48.39% 48.56%
Expenses:
Payroll $268,620 $322,960 $330,960
Sales and Marketing and Other
Expenses $8,400 $8,400 $8,400
Depreciation $1,704 $1,704 $1,704
Leased Equipment $0 $0 $0
Utilities $4,800 $4,800 $4,800
Insurance $3,600 $3,600 $3,600
Rent $24,000 $24,000 $24,000
Payroll Taxes $40,293 $48,444 $49,644
Other $0 $0 $0
------------ ------------ ------------
Total Operating Expenses $351,417 $413,908 $423,108
Profit Before Interest and Taxes ($173,752) $54,114 $97,411
Interest Expense $0 $0 $0
Taxes Incurred $0 $16,234 $29,223
Net Profit ($173,752) $37,880 $68,188
Net Profit/Sales -46.18% 3.92% 6.36%
Include Negative Taxes FALSE TRUE TRUE
Projected Cash Flow
The following chart and table will indicate the projected cash flow.
[YEAR ] Bus ines s Plan | Phar mac y Stor e 25 / 29
Year1 Year2 Year3
Cash Received
Cash from Operations:
Cash Sales $376,280 $967,265 $1,071,877
Cash from Receivables $0 $0 $0
Subtotal Cash from Operations $376,280 $967,265 $1,071,877
Additional Cash Received
Non-Operating (Other) Income $0 $0 $0
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $376,280 $967,265 $1,071,877
Expenditures
Expenditures from Operations:
Cash Spending $23,941 $55,628 $62,138
Payment of Accounts Payable $492,074 $829,288 $931,060
Subtotal Spent on Operations $516,015 $884,916 $993,199
Additional Cash Spent
Non Operating (Other) Expense $0 $0 $0
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
[YEAR ] Bus ines s Plan | Phar mac y Stor e 26 / 29
Year1 Year2 Year3
Subtotal Cash Spent $516,015 $884,916 $993,199
Net Cash Flow ($139,735) $82,349 $78,678
Cash Balance $765 $83,114 $161,792
Balance Sheet
The following table will indicate the projected balance sheet.
Year1 Year2 Year3
Assets
Current Assets 2001 2002 2003
Cash $765 $83,114 $161,792
Other Current Assets $0 $0 $0
Total Current Assets $765 $83,114 $161,792
Long-term Assets
Long-term Assets $8,500 $8,500 $8,500
Accumulated Depreciation $1,704 $3,408 $5,112
Total Long-term Assets $6,796 $5,092 $3,388
Total Assets $7,561 $88,206 $165,180
Liabilities and Capital
Accounts Payable $32,313 $75,078 $83,865
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $32,313 $75,078 $83,865
Long-term Liabilities $0 $0 $0
Total Liabilities $32,313 $75,078 $83,865
Paid-in Capital $151,000 $151,000 $151,000
Retained Earnings ($2,000) ($175,752) ($137,872)
Earnings ($173,752) $37,880 $68,188
Total Capital ($24,752) $13,128 $81,316
[YEAR ] Bus ines s Plan | Phar mac y Stor e 27 / 29
Year1 Year2 Year3
Total Liabilities and Capital $7,561 $88,206 $165,180
Net Worth ($24,752) $13,128 $81,316
[YEAR ] Bus ines s Plan | Phar mac y Stor e 28 / 29
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