First Slide IX.

Financial Plan
A.In Assessing Risk we must assess the Strength, Weaknesses, Opportunity Assumption
and Threat that the company has in order minimize and maximize the effect. Financial plan assumptions are the underlying estimates and predictions that a
Strength and weaknesses financial plan is based upon.
● People A pro forma income statement is often used to project future financial
● Community performance based on assumptions and estimates. It helps businesses and
● Marketing investors evaluate the potential profitability of a business venture or forecast
● Finance financial outcomes under different scenarios. The elements of a pro forma
Opportunities and Threats income statement typically include:
● Political ● Sales
● Economical ● Total revenue
● Technological ● Cost of Sales
● Legal ● Gross Income
B. New Technologies ● Expenses
● Automated Dispensing Units (ADUs) ● Net profit
● Prescription Drug Monitoring Programs (PDMPs) Projected Cash flow - Estimated future cash inflows and outflows over a
● Medication Therapy Management (MTM) specific period, typically used to forecast a business's liquidity and ability to
● Mail-order pharmacies meet financial obligations.
● Computers streamline Balance Sheet: A financial statement that provides a snapshot of a company's
C. Contingency plan assets, liabilities, and equity at a specific point in time.
-that includes a plan B in order to prevent a loss of production. Break- even Analysis
RISK ANALYSIS is a financial calculation that weighs the costs of a new business, service or
● Dispensing Errors product against the unit sell price to determine the point at which you will
CONTINGENCY PRIORITIZATION break even
● The need for a proper service of pharmacy to avoid this kind of mistake. Sources & Application of Funds
SCENARIO BUILDING Uses of Funds: The allocation of funds for various purposes, such as purchasing
● Medication errors can result in severe patient injury or death. inventory, equipment, or advertising.
CONTINGENCY PLAN DEVELOPMENT 1. Pharmaceutical Products
● To solve the Issue, individuals must confirm that the clients will receive 2. Working Capital Required
the proper medicine. Source of Funds: The origin of funds used to finance business activities,
MONITORING, EVALUATING AND UPDATING including Bank Loan & Owners Investment
  Make sure the prescription is implemented properly,

Appendix WHY SOME BUSINESS PLAN FAILS?

It contains any backup material that is not necessary in the text of the● poorly prepared business plan
document. ● Goals set by the entrepreneur are unreasonable.
It may include: ● Objectives are not measurable.
● Letters from customers, distributors, or subcontractors. ● Objectives should be specific and not so mundane as to lack any basis of control.
● Secondary data or primary research data used to support plan decisions. ● The entrepreneur has not made a total commitment to the business or to the
● Leases, contracts, or other types of agreements. family. Entrepreneur must put his/her heart in the business and their business
● Price lists from suppliers and competitors. should be their passion.
USING AND IMPLEMENTING THE BUSINESS PLAN ● The entrepreneur has no experience in the planned business. Generally, a lack of
• The business plan is designed to guide the entrepreneur through the first experience will result in failure unless the entrepreneur can either attain the
year of operations. necessary knowledge or team up with someone who already has it.
• The strategy should contain control points to ascertain progress and to● The entrepreneur has no sense of potential threats or weaknesses to the
initiate contingency plans if necessary. business.
• Without good planning employees will not understand the company’s goals. ● The entrepreneur should also document customer needs before preparing the
• Businesses fail due to entrepreneur’s inability to plan effectively. plan. However, some entrepreneurs neglect this part and already process to
MEASURING THE PLAN PROGRESS the plan. Customer needs can be identified from direct experience, letters from
• Business plan projections are made on a 12-month schedule but the customers, or marketing research. A clear understanding of these needs and
entrepreneur should frequently check on: how the entrepreneur’s business will effectively meet them is vital to the
o Cash flow projections success of the new venture because through the documentation,
o Inventory control entrepreneurs can use this to update or enhance the business plan.
o Production control
o Quality control
o Sales control
o Disbursements
o Web site control.
UPDATING THE PLAN
● Entrepreneurs must be sensitive to changes in the company, industry, and
market.
● Determine what revisions are needed if changes are likely to affect the business
plan.
This helps entrepreneurs to:
● Maintain reasonable targets and goals.
● Keep the new venture on a course to high probability of success.