VII.

Business Plan Outline for a Start-Up

Outline: Concept, People, Context, Opportunity, Strategy and Projections

Business Concept: Pharmaceutical 3PL in the MENA

The pharmaceutical industry in the Middle East and North Africa (MENA) is undergoing transformation as multinational companies are
establishing legal entities in Saudi Arabia, Algeria, etc. due to increased flexibility from governments. These multinational companies
often face challenges in establishing their own warehouses due to complex regulatory requirements, logistical hurdles, and cultural
differences leading them to turn to third-party logistics (3PL) providers

From the other side some companies like DHL, Aramex and Agility operating in the MENA region may have up-to-date warehouses but
those warehouses do not fully meet the latest regulatory requirements of pharmaceutical warehousing which is constantly evolving.
Moreover, those companies lack the know-how of robust healthcare standard operating procedures (SOPs) which involve temperature
control systems, environmental monitoring systems, Mapping, validation, certification and training.

The new 3PL startup company will establish itself in the pharmaceutical warehousing and distribution market in the MENA region. By
hiring experts in the industry, developing robust SOPs, and building an efficient setup, the company can position itself as a trusted
partner for both multinational pharmaceutical companies to manage their warehousing and distribution operations allowing them to focus
on innovation and product development while entrusting their logistics needs to experienced partners as well as to support existing
distributors who are looking for upgraded facilities, robust SOPs and access to new technologies allowing them to focus on promotion.

By providing these benefits to both multinational pharmaceutical companies and existing distributors, the new (3PL) startup company
has the potential to establish itself as a major player in the pharmaceutical warehousing and distribution market in the MENA region. Its
success will depend on its ability to effectively execute its strategy, build strong relationships with its partners, and adapt to the ever-
changing regulatory landscape. Additionally, offering a full spectrum comprehensive range of 3PL services the startup is poised to
become the premier 3PL partner for pharmaceutical companies in the MENA region, contributing to the region's growing healthcare
demand and infrastructure

Our services will include:

 Customs clearance
 Temperature-controlled warehousing and transportation: 15°-25° and 2°-8°
 Invoicing
 Distribution
 Cash Collection Services

This start-up business will be sustainable due to several factors and this will encourage investors to invest.
 Growing market: The MENA pharmaceutical market is expected to grow at a CAGR of 8.5% from 2023 to 2030
 The MENA region is a relatively underserved market for 3PL pharmaceutical logistics services
 Tailored and focused services
 Experienced team

Due to the aforementioned, there is an assurance for investors that the industry is attractive, the team is capable, the proposed business
can be scaled up or sold, the context is favorable and the project is profitable.

The People: Pharmaceutical 3PL in the MENA

The reputation of the 3PL management team is critical to the success of the business. The team will have relevant skills and experience
to manage a complex 3PL operation; most importantly the team will be chosen based on a proven track record of success in the 3PL
pharmaceutical industry.
The company will be a family business with a comfortable approach to share the control with investors

Context: Pharmaceutical 3PL in the MENA

Is this the right time and place for this venture?
The MENA region is a promising market for a new pharmaceutical 3PL company due to increase demand on for preventive care as well
as demand for chronic disease management and long-term care. Governments in the MENA region are providing flexibilities for
multinational companies to open legal entities but they face challenges in establishing their own warehouses due to complex regulatory
requirements, moreover the existing distributors lacks the up-to-date warehouses and the well-known companies like DHL and Aramex
lack the know-how.

Macroeconomic environment including sector environment

The macroeconomic environment of the MENA pharmaceutical 3PL business is complex and constantly evolving. However, there are a
number of key trends that are shaping the industry, including economic growth, population growth, rising incomes, growing healthcare
awareness, government investment, regulatory changes, also it is important to consider other factors such as disrupted supply chains,
increased the cost of energy and transportation, inflation, currency fluctuations, political instability and trade barriers:
Political and legal environment
Political Factors Political stability, Government policies and Trade agreements
Legal Factors Pharmaceutical regulations, Intellectual property rights (IPR) protection and Data privacy laws
Social environment
Social Factors Influencing Pharmaceutical 3PL in MENA include population demographics, healthcare awareness and access, public
health priorities, cultural diversity and sensitivities, local partnerships and collaborations and social responsibility and ethical practices
Technological environment
Leveraging technology for efficiency and transparency, Warehouse Management Systems (WMS), Transportation Management Systems
(TMS), Track and Trace Systems, RFID and Barcoding Technologies: RFID (Radio Frequency Identification) and barcoding technologies
are used to automate data capture and track individual items throughout the supply chain
Environmental environment
Carbon footprint, hazardous waste management and energy consumption

Opportunity: Pharmaceutical 3PL in the MENA

Pharmaceutical industry will be the aim to address which is structurally attractive industry. MENA region is a promising market for a new
pharmaceutical 3PL company. The pharmaceutical industry in the region is expected to grow at a CAGR of 8.5% from 2023 to 2030 also
the MENA region is becoming increasingly integrated economically. This is making it easier for businesses to operate across borders.
This can be beneficial for the new startup 3PL company to expand its reach into new markets.

Opportunities and Differentiation:

 Focused Services
 Technology integration
 Partnerships with multinational companies and local distributors
 Compliance with regulations
 Expanding into underserved markets
 Promoting sustainable practices
 Partnering for community development:
 Implementing Energy-Efficient Warehousing
 Raising Environmental Awareness:
 Investing in Innovation:

Strategy: Pharmaceutical 3PL in the MENA

The new 3PL startup company has a promising strategy to establish itself in the pharmaceutical warehousing and distribution market in
the MENA region. By hiring experts in the industry, developing robust SOPs, and building an efficient setup, the company can position
itself as a trusted partner for both multinational pharmaceutical companies and existing distributors.

For multinational pharmaceutical companies: Expertise and compliance, Efficient and cost-effective operations and scalability
For existing distributors: Upgraded facilities and SOPs, focus on promotion and access to new technologies.

Vision To be the leading pharmaceutical 3PL provider in the MENA region, recognized for our unwavering commitment to excellence,
innovation, and sustainability in delivering pharmaceutical products that improve lives.

Mission To provide seamless, secure, and temperature-controlled pharmaceutical logistics solutions that empower our customers to
deliver normal and life-saving medications to patients across the MENA region with unparalleled efficiency, transparency, and
environmental responsibility.

Core Values Customer Focus, Innovation, Integrity, Sustainability and Teamwork

Business model (How the company will make money?)

By providing a comprehensive range of services, the new pharmaceutical 3PL company in the
MENA can become a one-stop shop for pharmaceutical companies, offering them the
convenience and expertise they need to manage their supply chains efficiently and effectively.
The new pharmaceutical 3PL company in the MENA will make money by providing a variety of
services including:
 Warehousing and storage
 Transportation
 Customs clearance
 Cash Collection
The company can also generate revenue from additional services, such as:
 Inventory management:
 Order fulfilment
 Return management
 Cold chain management
 Consultation services

Attracting, acquiring, and retaining customers is crucial for the success of any business, and the pharmaceutical 3PL industry is no
exception. To thrive in the competitive MENA market, the new pharmaceutical 3PL company must implement effective strategies to
attract, acquire, and retain customers such as:
 Building a strong reputation, develop a deep understanding of customer needs and build strong relationships and partnerships
 Offer specialized pharmaceutical logistics solutions and emphasize innovation and technological advancements
 Offer competitive pricing and value propositions and provide exceptional customer service
 Implement effective marketing and sales strategies
 Continuously innovate and adapt to the evolving market

The average time it takes to acquire a customer in the pharmaceutical 3PL industry in the MENA region can vary depending on several
factors, such as the size and complexity of the customer, the company's sales cycle, and the overall competitiveness of the market.
However, in general, it can take anywhere from a few months to a year or more to close a deal with a new pharmaceutical customer
while we will aim to acquire customers within 3-6 months based on the high level of services and differentiation.
The payment terms for pharmaceutical 3PL services typically vary depending on the specific agreement between the 3PL provider and
the customer. However, in general, customers are typically expected to pay for services within 30 to 60 days of receiving an invoice
while we will provide flexibility up to 90 days then we will pay our suppliers within 30 to 45 days after receiving payment from our
customers.

The flexibility of cash collection and payment can vary depending on the size of the customer, the complexity of the services and the
competitiveness of the market.

Based on the key strategies, internal competencies and competitor differentiation mentioned above we will be able to execute those
strategies rapidly so that the company will increase its chances of success and achieve rapid growth. The company is expected to see
significant growth in its revenue and customer base in the first two years of operation, and it can continue to grow at a healthy rate for
many years to come.

Launching and sustaining a successful new pharmaceutical 3PL business in the MENA region will require from us a combination of
strategic planning, operational excellence, and a deep understanding of the market and regulatory landscape.
 Strategic Focus and Differentiation
 Operational Excellence and Efficiency
 Regulatory Compliance and Expertise
 Market Understanding and Customer Focus
 Partnership and Collaboration
 Technology Adoption and Innovation
 Talent Acquisition and Retention
 Financial Management and Sustainability
 Corporate Social Responsibility and Environmental Awareness
 Adaptability and Agility

Marketing Strategy
Hereunder a comprehensive overview of the marketing strategy for our new pharmaceutical 3PL company in the MENA region:
Segment Focus: [All Segments]
 Large pharmaceutical companies: These companies have complex supply chains and require a high level of expertise
 Medium-sized pharmaceutical companies: These companies are looking for cost-effective and reliable 3PL solutions
 Small pharmaceutical companies: These companies may not have the in-house expertise or resources
 Local Distributors looking for upgraded facilities, robust SOPs and access to new technologies
Positioning/Differentiation:
The new 3PL startup company can position itself as a leading provider of high-quality, compliant, and cost-effective pharmaceutical
warehousing and distribution services in the MENA region. By leveraging its team of experts, state-of-the-art facilities, and commitment
to innovation, the company can cater to the specific needs of both multinational pharmaceutical companies and existing distributors.
key positioning points:
Expertise and Compliance
Efficient and Scalable Infrastructure
Partner-centric Approach
Commitment to Innovation
Salesforce:
The company will have a salesforce that is experienced in selling to large, medium-sized, and small pharmaceutical companies. The
salesforce will be well-versed in the company's product and service offerings and will be able to effectively communicate the company's
value proposition to potential customers. 20-50 sales force employees depending on the country size and business size
Pricing:
We will develop a pricing strategy that is competitive and attractive to its target market. The company will also consider offering a variety
of pricing options, such as fixed fees, variable fees, and tiered pricing. [-10% to -20%] vs. competition.
Promotion:
We will use a variety of promotional channels to reach to target market, including industry events, online marketing, public relations and
direct marketing.
Channel Selection and Outlets:
We will use a combination of direct and indirect channels to reach its target market. The company will sell directly to large
pharmaceutical companies and use indirect channels, such as distributors and brokers, to reach medium-sized and small
pharmaceutical companies.
We will also consider partnering with other healthcare providers and logistics companies to expand the reach and offer a wider range of
services to our customers.
Operations Strategy
Hereunder is a comprehensive overview of the operations strategy for a our new pharmaceutical 3PL in the MENA region
Manufacturing
The company will not be directly involved in manufacturing pharmaceutical products. However, the company will need to have a strong
understanding of the manufacturing process in order to effectively manage the supply chain for its customers.
Technology
The company will adopt a variety of technologies to support its operations. These technologies will help the company to improve
efficiency, transparency, and customer service. Warehouse management systems (WMS), Transportation management systems (TMS)
and Data analytics
Supply Chain Management
The company will develop a robust supply chain management (SCM) strategy to ensure the efficient and effective delivery of
pharmaceutical products to its customers. This will include supplier management, inventory management, storage management and
distribution management
Customer Service
The company will provide its customers with high-quality customer service. This will include providing accurate and timely information,
responding to inquiries promptly, and resolving issues quickly, so we will invest in customer service operations:
 A dedicated customer service team
 A customer relationship management (CRM) system
 A self-service portal
Growth Strategy
We will prefer to have an internal growth in the first 5 years by investing in new resources and capabilities, expanding into new markets,
developing new products or services, or increasing our capacity. The internal growth will provide greater control over the growth
process, and will improve our brand recognition as well as provide a greater ability to protect intellectual property.

After 5 years of growth and developing resources and capabilities to grow we can consider acquisitions to grow faster and access to new
markets, products, or services. Ultimately, before taking the acquisition step we will carefully consider our financial resources, strategic
goals, and the availability of attractive acquisition targets before making such a decision.

Systems and Control Strategies

Hereunder an overview of the key systems and control strategies for a new company
The company will implement a comprehensive set of systems and controls to ensure the efficient and effective operation of its business.
These systems and controls will help to ensure that the company is compliant with all applicable regulations, that its financial information
is accurate and reliable, and that its operations are safe and efficient.
 Quality Management System (QMS)
 Warehouse Management System (WMS)
 Transportation Management System (TMS)
 Financial Management System (FMS)
 Internal Control Procedures
HR Strategy
The new company will develop a comprehensive HR strategy to attract, retain, and develop a highly skilled workforce. This strategy will
address the following key areas such as recruitment and selection, training and development, performance management and
compensation and benefits
Financial Strategy
The company will develop a sound financial strategy to ensure the long-term profitability and sustainability of the business. This strategy
will address the following key areas such as financial planning and budgeting, capital budgeting, risk management and financial reporting
Working Capital Strategy
The company will develop a working capital strategy to manage its short-term cash flow. This strategy will address the following key
areas:
 Inventory management
 Accounts receivable
 Accounts payable
Distribution of Profits
The company will develop a policy for the distribution of profits to its shareholders. This policy will be fair and equitable to all
shareholders, and will take into account the company's financial performance and its long-term goals.
 Reinvest profits in the business
 Pay dividends to shareholders
 Create a reserve fund.
The company will also establish rules for the transferability of shares. These rules will protect the interests of all shareholders, and will
comply with all applicable laws and regulations.
Organization Structure
The company will develop an organization structure that is appropriate for its size and complexity. This structure will clearly define the
roles and responsibilities of all employees, and it will ensure that there is clear communication and accountability throughout the
organization.
Will prefer to have a flat organizational structure to improve communication and decision-making
Ownership, Board Members
The company will identify the family owners and establish a board of directors. The board of directors will not interfere in the day to day
business but will be responsible for overseeing the company's management and ensuring that it is operating in the best interests of its
shareholders. The matrix will be as follows:
 Shareholders who are the owners and will have the right to vote on company matters, such as the election of the board of
directors.
 Board of directors will be responsible for overseeing the management. The board of directors is elected by the shareholders.
 Key Management will responsible for the day-to-day operations of the company and appointed by the board of directors.
Exit Strategy
Some potential exit strategies that will be considered for an exit strategy are:
 Initial Public Offering (IPO)
 Strategic Acquisition
 Management Buyout (MBO)
 Secondary Sale
 Employee Stock Ownership Plan (ESOP)
The best exit strategy will depend on a number of factors, including the company's financial performance, its growth prospects, and
the availability of potential buyers. Here are some additional considerations for choosing an exit strategy:
 Timing:
 Valuation
 Taxes

Projected Financial Statements

3 years income statement

YEAR 1
Revenue Expenses
 Warehouse and storage fees $2,000,000  Salaries and wages $1,200,000
 Transportation fees $1,500,000  Rent and utilities $200,000
 Packaging and labeling fees $500,000  Depreciation and amortization $100,000
 Customs clearance fees $250,000  Insurance $50,000
  Track and trace fees $100,000  Supplies and materials $200,000
 Total revenue $4,350,000  Marketing and sales expenses $100,000
 General and administrative expenses $50,000
 Total expenses $1,900,000

Net income $2,450,000

YEAR 2
Revenue Expenses
 Warehouse and storage fees $2,500,000  Salaries and wages $1,350,000
 Transportation fees $2,000,000
 Packaging and labeling fees $600,000  Rent and utilities $220,000
 Customs clearance fees $300,000
 Track and trace fees $120,000
 Total revenue $5,520,000  Depreciation and amortization $120,000

 Insurance $55,000

 Supplies and materials $250,000

 Marketing and sales expenses $120,000

 General and administrative expenses $60,000

 Total expenses $2,175,000



Net income $3,345,000

YEAR 3
Revenue Expenses
 Warehouse and storage fees $3,000,000  Salaries and wages $1,500,000
 Transportation fees $2,500,000  Rent and utilities $240,000
 Packaging and labeling fees $700,000  Depreciation and amortization $140,000
 Customs clearance fees $350,000  Insurance $60,000
 Track and trace fees $140,000  Supplies and materials $300,000
 Total revenue $6,690,000  Marketing and sales expenses $140,000
 General and administrative expenses $70,000
 Total expenses $2,450,000

Net income $4,240,000

The company's revenue is expected to grow steadily over the next three years, driven by increasing demand for pharmaceutical logistics
services in the MENA region. The company's expenses are also expected to increase, but at a slower rate than revenue, resulting in an
increase in net income. The company's profitability is expected to be strong, with net margins of over 50%. This is due to the company's
high-margin business model and its focus on providing high-quality services to its customers.

3 years statement of cash flows (cumulative cash flows)

Cash from Cash from Cash from Net Cumulative

Operating Investing Financing Change in Cash Flow
Year Activities Activities Activities Cash
2024 4,350,000 1,900,000 500,000 1,950,000 1,950,000
2025 5,520,000 2,175,000 565,500 2,779,500 4,729,500
2026 6,690,000 2,450,000 637,000 3,603,000 10,282,500