BUSINESS PLAN

FOR

LTD
 Table of Content

General Information

Mission Statement

Operation Description

Competitive Analysis

SWOT Analysis

Marketing Strategies

Current Trends in Pharmacy

Start-Up Cost

Acknowledgement and Disclaimer

 GENERAL INFORMATION

Business Name: Pharmacy & Store

Location: Kubwa, Abuja

Business Type: Retail Pharmacy and Convenience Store

Ownership Structure: Sole Proprietorship

Business Registration: [Registration Number]

MISSION STATEMENT

XYZ Pharmacy & Store aims to provide high-quality pharmaceuticals, health

products, and convenience items to the community. Our mission is to promote
health and well-being by offering a wide range of products and services in a
customer-friendly environment.
 EXECUTIVE SUMMARY

XYZ Pharmacy & Store is a retail establishment with a focus on pharmaceuticals,

health and wellness products, as well as convenience items. With a budget of 40
million Naira, the business will be located in a strategic and easily accessible area
to serve the community effectively. The store will offer a diverse range of
pharmaceuticals, OTC medications, beauty products, snacks, and beverages,
creating a one-stop-shop for customer convenience.

Our pharmacy will provide both standard practice drug dispensing, immunizations,
and limited compounding services. Both prescription and over-the-counter
counseling services will be provided to patients receiving medications, and any
other general questions from patients. Inventory will be purchased through
Community Pharmacy Alliance, which will offer the best competitive prices
available to a newly starting independent pharmacy. As of now, XYZ will oversee
operations, which will include a full-time pharmacist (with XYZ acting as relief as
needed) and two full-time technician positions.

The pharmacy will be open 8am to 10pm Monday through Friday, 10am to

8pm on Saturdays, and closed on Sundays.

Business Overview:
XYZ Pharmacy & Store is a pioneering retail establishment that combines a fully-
fledged pharmacy with a comprehensive convenience store. Located strategically in
Kubwa, Abuja, we aim to provide high-quality pharmaceuticals, health products,
and daily essentials to the community. Our mission is to promote health and well-
being by offering a diverse range of products and services, creating a one-stop-shop
for customer convenience.

Market Opportunity:

The pharmaceutical and retail industry in Kubwa is witnessing steady growth,

driven by increasing health awareness and a growing population. XYZ Pharmacy &
Store is positioned to capitalize on this opportunity by providing superior customer
service, a wide product range, and a customer-friendly environment.

Investment Overview:

With a budget of 40 million Naira, XYZ Pharmacy & Store will secure a prime
location, invest in state-of-the-art equipment, and curate a diverse inventory of
pharmaceuticals, OTC medications, beauty products, snacks, and beverages. Our
investment prioritizes technology integration, ensuring efficient operations and a
seamless customer experience.

Competitive Edge:
Our strategic location, experienced management team, and commitment to customer
satisfaction set us apart from competitors. We leverage emerging trends in health
and wellness, offering a unique shopping experience that extends beyond traditional
pharmacies. Our quality of service will extend to all aspects of pharmacy including
medication therapy management (MTM) services, drug delivery, and over-the
counter counseling. With the additional focus on customer service, we are more
likely to receive reimbursement for MTM services and maintain repeat customers.
Other competitive threats include in-network only pharmacy services and mail order
pharmacies. This impediment is mostly unavoidable.

Financial Projections:

XYZ Pharmacy & Store's financial projections indicate steady revenue growth over
the first five years. With meticulous cost management and strategic marketing
efforts, we aim to achieve profitability by the end of year two. The projected cash
flow and balance sheet demonstrate our commitment to financial sustainability and
responsible business practices.

MARKET ANALYSIS AND RESEARCH

The pharmaceutical and retail industry in Kubwa is growing steadily, driven by

increasing health awareness and population growth. The target market includes
individuals seeking pharmaceuticals, health-conscious consumers, and convenience
shoppers. Competitive analysis indicates opportunities to provide superior customer
service and a broader product range compared to existing competitors.

SWOT ANALYSIS

Strenght Weakness Opportunity Threat

  Strategic  Initial  Growing  Competitio
location capital health and n from
 Diverse Investment wellness Established
Products  Dependence Trends pharmacies
range on external  Collaboratio  Regulatory
 Experienced support n with changes
Managemen Healthcare  Economic
t provider downturn
 E-commerce
expansion

Marketing Strategies

The general marketing strategy for our upcoming pharmacy will be mostly focused
in a grassroots form of marketing. The main street location of the pharmacy offers a
prime location for such marketing. To form an initial customer base we will reach
out directly to both primary care practitioners in the area, as well as the two nearby
dentist offices, and veterinary clinic. This reach out should be adequate to bring
patients into the pharmacy. The next stage of marketing will involve securing
patients with the nearby LTC facility to establish a delivery service that is more
favorable than local chain pharmacies. Other marketing opportunities could involve
mutual marketing with local businesses, such as restaurants. This can be in the form
of informative pamphlets, business cards, or free pens, while their business is
bolstered by patients waiting for medications to be filled or being pulled to the area
by the pharmacy. Online marketing in the form of a Facebook and Twitter page will
also be utilized to connect and inform patients on a regular basis.

PROSPECT FOR GROWTH

XYZ Pharmacy & Store aims for sustainable growth by expanding product lines,
leveraging technology for inventory management, and building a loyal customer
base. Future plans include opening additional branches and exploring e-commerce
avenues.

Current Trends in Pharmacy : Covid-19

Over the last two years the Covid-19 pandemic has drastically changed how
pharmacies have operated and the role pharmacies have in the healthcare system.
Changes brought by the pandemic include increased interest in at-home delivery,

immunization services, staff shortages, and Covid-19 testing services.

A robust delivery system is a necessity in the current climate and one of the
most important steps in establishing our independent pharmacy. We also anticipate

there will be more than enough room for a counseling room with which to deliver

immunizations and general counseling. That being said there will not be testing

services (beyond at-home OTC testing) available both due to space constraints and

risk of staff exposure.

Having an already limited staff puts the store at risk for illness related absences, but
this obstacle is mostly unavoidable at this time. Standard masking, distancing, and
protective personal equipment will be provided and required to be used by staff
during any patient interaction.

Medication Therapy Management, Adherence Programs, and Automatic

Refill

Patient adherence and drug management is the cornerstone of pharmacy

practice. Both medication synchronization and automatic refill programs are useful

tools to ensure patient health and status as a customer of the pharmacy. These

programs will be offered by the system of our independent pharmacy for customers

to ensure customer adherence and retention. Similarly, use of the Outcomes MTM

service will also be an important source of customer engagement and secondary

revenue for the pharmacy.

This service will be offered and is especially pertinent to LTC residents who
are most likely to have a large number of medications, and insurance plans that

offer and reimburse for MTM services.

FUNDING REQUIREMENT

The total funding requirement for XYZ Pharmacy & Store is 40,000,000 Naira.
This will cover the cost of rent, shelving, equipment, technology, security,
inventory, and operational expenses.

PROFORMA INCOME STATEMENT (FIRST YEAR)

Income 63,770,00

Cost of goods sold

Opening inventories 25,000,000

purchase 60,000,000

Closing Inventories -42,486,667 42513333

Gross profit 21,256,667

Operating and
Administerative Expenses

Annual rent of Shop 4,500,000

Pharmacy wooden shelves 1,000,000

 Supermarket aluminum shelves 2,350,000
(Single x 20/ Double x10)

Superintendent Pharmacist/staff 3,150,000

salary

PCN Inspection fees 100,000

Utilities 240,000

Office supplies 200,000

11,540,000

Net profit 9,716,667

Profit sharing

X Business (30%) 2,915,000

Y (owners) 70% 6,801,667

 Balance Sheet

current Asset

Cash and Cash equ 800,000

Inventories 42,486,667

Non Current Asset

property, plant and

7,815,000
equipment net

Total Asset 51,101,667

Liabilities

payables 8,186,667

Equity 40,000,000

Retained earnings 2,915,000

Total Liability and Equity 51,101,667

 BREAK EVEN POINT (BEP)

BEP = Fixed Costs ÷(Contribution Margin)

Where Contribution Margin is calculated as:

Contribution Margin = (Revenue - Variable Costs) ÷ Revenue

Fixed cost= 11,100,000

Variable cost= 440,000

Revenue= 63,770,000

Contribution Margin = (63,770,000 - 440,000) ÷63,770,000

CM= 0.993

BEP = 11,100,000÷0.993

BEP ≈ 11,178,247

Therefore, the Break-Even Point is approximately 11,178,247. This means that the
business needs to generate revenue equal to its total costs to cover both fixed and
variable costs. Beyond this point, the business starts making a profit.
This comprehensive business plan outlines the vision, goals, and operational aspects
of XYZ Pharmacy & Store. It is designed to provide a roadmap for success and
guide the efficient use of the allocated budget for sustainable growth.