Inoyatov Shukhratbek (Bek)

2018105712
Start-Up and Business modeling
Assignment: Business Plan

Pharmacy Business Plan

CONTENT
1. Brief Investment Memorandum
2. Description of the business, product or service
3. Description of the sales market
1. The target audience
4. Sales and Marketing
5. Production plan
1. Stage 1
2. Stage 2
3. Stage 3
6. Organizational structure
7. Financial plan
8. Risk factors

1. Brief Investment Memorandum

The pharmacy business is one of the most stable and promising in any country. As
I come from Uzbekistan, I want to set up my business in my home country. The
need for medicines is not only decreasing, but on the contrary, is increasing every
year. In this business plan, I will consider opening a pharmacy in a shopping
center. For a successful start, it is necessary to correctly carry out organizational
measures and develop a competent development strategy.
This type of business involves high investment costs, but it also has a high
profitability.

Project goal : opening and maximizing the profits of a pharmacy.

The main factors for the success of a pharmacy :

 high mark-up for medicines;

 stable high demand;
 a large assortment;
 available location;
 high average check;
 high quality of service.
Using US dollars to make calculation easier

The initial investment amount is $12,000

The break-even point is 3 months.

The payback period is 14 months.

Average monthly profit for the first two years of the project is $1,050

2. Description of the business, product or service

Pharmacies have always been a profitable business, and in our time they have
become even more relevant and profitable business.

The scope of the organization  is the sale of pharmaceutical and

parapharmaceutical products.

The location of the pharmacy  is a large shopping center with high traffic of
people. Shopping centers are characterized by high investment costs, but at the
same time, high turnover, lack of competition, quick break-even point, and high
profitability.

This happens as a result of the fact that people come to shopping centers with
money, ready to buy, and therefore there is a large proportion of spontaneous
purchases in these outlets. Parapharmaceuticals and medicinal cosmetics are
especially popular here.

A number of laws establish clear functional responsibilities of each institution that

sells medicines.

The main functions of a pharmacy include the following:

1. Sale of medicines and homeopathic remedies to people and health care

institutions. The sale is possible both with a prescription of the attending
physician and without it.
2. Sale of personal hygiene products, medical products, various devices. Also,
pharmacies can sell medicinal plant-based natural raw materials.
3. Packaging of medicines and herbal preparations for further sale.
4. Sale of medicines and drugs to categories of people who have benefits in
accordance with the domestic legislation of the country.
5. Consulting and informing people about taking medications, their storage,
their effect and influence on the human body.
6. Providing first aid if needed in an emergency.
3. Description of the sales market

According to Uzstat data, over the past 10 years, the average annual growth rate
of the index of the physical volume of retail sales of pharmaceutical, medical and
orthopedic goods is 8.3%. This index characterizes the total change in the mass of
commodities in the current period compared to the previous (base) period and
shows how the turnover has changed as a result of changes in only its physical
volume, excluding the influence of price changes. The dynamics of this indicator is
presented in the table.
These indicators indicate the growth of the pharmaceutical industry over the past
10 years. Although there is a slight decline in 2015 due to a sharp rise in the cost
of imported medicines, this does not make this area less promising. For the most
successful entry into this market, you need to understand your target audience,
as well as develop the most effective ways to promote products.
The target audience

The most promising segment for pharmacies is women, both working and
housewives, aged 30 to 45, mostly with children. They value their time, spend
money wisely, love to please their loved ones, are responsible for the health and
well-being of their family and children.

They want to see in the pharmacy not only medicines, but also beauty and health
products, baby food. The main thing here is the convenience of choice, speed of
service, comfort, and a friendly atmosphere.
4. Sales and Marketing

A few weeks before the opening of the pharmacy, it is worth starting to engage in
advertising.

Ways to attract new customers:

 social media advertising;

 local media advertising, transport advertising;
 distribution of promotional leaflets.
When developing an advertising campaign, it is important to take into account
the following basic nuances:

 Pay attention to branding. It is very important to choose a bright,

memorable brand. It is important that the consumer is tied specifically to
the name, setting, and not to the address of the store and the staff
working in it. In addition, it is the brand that helps to build customer
confidence and develop loyalty to the store.
 Advertising on the Internet (advertising on social networks).
  Loyalty system. Offer all new customers a discount card, or a card on
which they can accumulate bonus points. This will attract new customers
and retain old ones. People are always happy if they are given a
discount, even if it will be 2-3%.
 Price policy. Always keep track of your competitors' prices. You should
keep them at the level, or within ± 3-5% for expensive goods, and ± 10%
for goods of the middle and low price category.
 At the opening, it is necessary to place in the hall drugs that are actively
promoted by a distributor or manufacturer and currently have a
powerful advertising campaign in the media.
 Make an open display of goods, which increases sales by 20-30%.
5. Production plan

The main goal of the project is to open a pharmacy and maximize its profits.
Stage 1

Review of the real estate market for the selection of the optimal premises.

Features of finding a place

It is better to consider large shopping centers to open a pharmacy.

The popularity of the shopping center is of great importance here. The presence

of a good "anchor" in the form of a shopping hypermarket.

The second point is the location of the outlet in the very center. The pharmacy
should be tied to a grocery store, located at the entrance to a hypermarket or
somewhere nearby.

Requirements for store premises:

 The area of the premises for the pharmacy must be at least 12 square
meters.
 There must be good lighting, air conditioning, ventilation system in the
room.
Stage 2

Registration of a legal entity.

When organizing your own pharmacy, special attention must be paid to

organizational and legal issues. It is very important to have all the necessary
information and work according to the law in order to avoid various fines.

 Organizational and legal form - individual entrepreneur or LLC.

 It is more profitable for an entrepreneur to choose the simplified tax
system “Income minus expenses” 15%.

 Pharmacy activity requires compulsory licensing . This is the most

difficult and time consuming part. It can take about two months to
receive all notifications, permits and licenses, and for an inexperienced
one, up to six months.
Obtaining a license involves:

1. requirements for reconstruction, equipment and fittings (water supply,

sewerage, ventilation, access zones, refrigerators, cabinets, etc.);
2. appropriate documentation, including requirements for lease (sublease)
agreements;
3. requirements for specialists: pharmacists and pharmacists (their work
experience cannot be less than 3 years);
4. if the form of ownership is an individual entrepreneur, then an individual
entrepreneur must be a certified pharmacist, otherwise the company must
be registered as a joint stock company.
 It is necessary to obtain permission from the SES to conduct this type of
activity. As a rule, the conclusion of the SES is issued for a specific room
and for a clearly specified period of time. If I decide to change the
location of my pharmacy, then I need to re-obtain the conclusion of the
Sanitary and Epidemiological Service.
  It is necessary to conclude agreements with organizations that will be
engaged in cleaning and disinfection of the premises, as well as the
removal of solid household waste.
 It is necessary to develop documentation that will regulate the internal
work of the pharmacy (regulations, working hours, employment
contracts, etc.)
Stage 3

 Staff recruitment;
 Supplier search;
 Advertising campaign;
 Repair of the premises;
 Purchase of the necessary furniture;
 Installation of equipment;
 Grand opening;
 Advertising campaign according to the plan of annual promotions;
 The current work of the pharmacy.

6. Organizational structure

Staffing table:

 director - 1,
 seller / pharmacist - 2,
The total number of staff is 3 people.

Any business, whatever you do, is based on competent and qualified personnel. If
you are going to open a pharmacy, then the selection of personnel should be
treated with special attention.

Requirements for all candidates:

 active life position;

  high communication skills;
 benevolence;
 honesty;
 discipline;
 a responsibility.
The manufacture and sale of various medicines can only be dealt with by
specialists with proper medical education. As a rule, pharmacists work in
pharmacies, educated in colleges and institutes.

Pharmacy staff should be familiar with the assortment of medicines, be fluent in it

and be able to give qualified advice. The management of the company needs to
increase the interest of personnel in the work, guaranteeing them career
growth. Pharmacy employees will not have any restrictions on promotion, except
for achievements in work and the degree of competence. An important aspect is
also a calm and friendly atmosphere in the team, which ensures high
productivity. When recruiting personnel, the company's management must take
into account the factor of psychological compatibility of personnel. In addition,
employee motivation should be stimulated by a constant increase in salaries, the
rate of which will be approximately 100% over three years.

7. Financial plan

Opening investments

Registration, including obtaining licenses $2000

Training $950

Repair $2000

Signboard $500
 Advertising campaign $700

Equipment purchase $6000

Other $200

Total $12350

Monthly costs

Payroll (including deductions) $1300

Rent $1000

Utilities $150

Advertising $300

Purchase of goods $9000

Accounting services (outsourcing) $150

Unexpected expenses $100

Total $12000
The sales plan for 24 months taking into account the seasonality, the forecast of
the investment efficiency and the calculation of the economic indicators of the
business are presented in the financial model.
8. Risk factors

Before opening a pharmacy, it is worth considering the possible risks associated

with this activity.

 Exchange rate fluctuations affecting the cost of imported drugs.

 Changes in the legislation governing the sale of drugs.
 Limited cash.
 Intense competition.

The pharmacy business is a field of activity that is closely monitored by the

state .

Errors, negligence, misunderstandings, deliberate deception in the work of an

enterprise can lead to serious, negative consequences for all parties. Thus, before
starting planning, in addition to studying the legislation, consultations with
pharmacists are desirable, or an independent in-depth study of the topic.