Pharmacy Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Management Team IX. Financial Plan. Dave Lavinsky , July 6, In all, the success setting up a pharmaceutical manufacturing plant, and indeed any other business, will depend on factors such as the drive and willingness to take calculated risks, having an eye on the future trends that will shape the industry, cultivating excellent customer service and support and placing a premium on research and development.
All too often, lots of pharmaceutical manufacturing businesses have closed shop. On close examination, the problems that led to this situation has been due to inadequate planning. This happens through a rushed or shabbily written plan or as a result of lack of its implementation. No matter how good a plan is, none or partial implementation renders it useless. EV Pharmaceuticals is a new and registered pharmaceutical manufacturing business to be located in Salt Lake City, Utah.
We bring expertise as well as experience into the field of drug making. These drugs range from anti-malarial drugs to mood stabilizers as well as hormone replacements. Further reference to this will be made shortly. We have obtained all and fulfilled all regulatory guidelines which are relevant to our smooth operations.
At EV Pharmaceuticals, we produce a wide range of pharmaceutical products. These consist of antipyretics, stimulants, antibiotics, stimulants, anti-malarial drugs, tranquilizers, oral contraceptives, analgesics as well as mood stabilizers.
All of these have their functions and will be produced while abiding to all regulatory and minimum requirements. In addition to the production of these pharmaceutical products, we will also offer advisory services to professionals who may require such.
At EV Pharmaceuticals, our vision is to be a major name in the pharmaceutical business. We are not only seeking to break into the league of major players but to be known for quality. To achieve this brand recognition, a lot of work needs to be done which we are capable of.
Our mission is to make quality drugs accessible to users across the United States. We will be using cutting edge technology to achieve our aims. Our operations are also research focused. This enables us to develop or improve on available medications for different conditions. Running a successful pharmaceutical manufacturing business requires significant funding.
In other words, the pharmaceutical manufacturing industry is capital intensive. This will be obtained through loans from 2 major banks. Funds raised will be used in the purchase of equipment a factory space as well as storage and distribution vehicles. We have decided to gauge our performance by taking a SWOT analysis. This process has been revealing and has shown areas that need to be improved on. This analysis was carried out by a reliable independent business consulting firm. The findings are summarized as follows;.
Our strength as a business lies in our capacity to anticipate problems and proffer far-reaching solutions before they arise. This is made possible through our pool of highly qualified manpower who have been carefully selected. Their quality reflects in our ability to run a thriving business that is able to withstand the odds. In spite of our strength in identifying and creating solutions to problems before they arise, we still have a weakness. This comes in the form of our size.
This limits our reach in the short-term. We view this weakness as only temporary as we embark on expanding our operations once the conditions are right. Where others see problems, we see opportunities. We have assembled a highly motivated workforce.
Therefore we are constantly researching using the best scientific procedures as well as state-of-the-art equipment. There are threats that may affect our operations. These include unfavorable government policies that may be made and implemented. Another area that can affect our business is when there is an economic meltdown.
Any of these could pose a serious challenge to our business operations. Based on available information on the performance of the pharmaceutical manufacturing industry in the past 5 years, there is great potential for profitability. We have done our research and have created a three-year financial projection. The results have been encouraging and show the following;. Our competitive advantage exists in the form of our common passion as a team of professionals.
So, doctors, scientists and pharmacists are closely connected for making a convenient customer support portal for better drug supply at low cost. Discount pharmacies are byproduct of the innovative thoughts nurtured by experts. The collaborative venture in the pharmaceutical industry has made a strong platform for pharmacy business owners to sell affordable medications at discounts. Customers get promotional codes on different types of generic medications.
It is much more cost efficient. It is much affordable to a young guy. Result is also same. So as a pharmacist, offer your customers what you have in stock. Discount pharmacies are the places for buying cheap generic medications. Brick and mortar discount drug stores reduce the cost of buying valuable medications. Well, think whether you are fitted to drug selling industry.
A discount drug store needs to have only cheap medications which must be good. Customers will get their drugs by showcasing prescriptions. Now, tailor a business plan identifying the trend in the market. You have handful options to use. As a local guy, you can apply for loan for industry running. Banks will give you support to invest in the pharmaceutical industry. Next steps include the easy refinancing, recruitment of competent employees, assistants , the availability of good medications at discounts and drug safety programs to minimize the threat.
People need proper medical assistance from a vendor. Americans are habituated to consume sleeping pills, anti-anxiety drugs and self-boosting capsules to have energy in excess. They are fast, sophisticated and crazy to travel for exploration. Well, most of American customers are seen buying drugs from online pharmacies which offer discounts. These online discount pharmacies assist busy Americans to have affordable qualitative medications at considerably cheap prices. The local stores for drug selling are not permitted to sell non prescription drugs.
They need prescriptions. However, comparatively online pharmacies have good options to help customers to purchase non prescription drugs. Buy medications from vendors at any point of time. So, if you want to modernize your retail drug store, design an affordable business plan to start selling generic medications at discount drug stores without putting a band of legal obligation. The online pharmacy is not a local departmental store.
The virtual shopping cart or pharmacy is actually run through internet. Its customers place orders at the shopping cart and complete transactions instantly. Vendors are liable to ship products to the customers. Now you must have a site which supports mobile phones, computers and different smart devices. Consumers will cross check list of drugs available in their areas. You have a group of employees who manage customers online.
Usually, online pharmacies have no go-down or small warehouses. They are professional and hire moving companies for product shipment. It is a chain for drug supplying. No manual paperwork is conducted. Nor is there any option for meeting customers physically. So, the whole transaction is done via internet. E-commerce infrastructure is easy to operate.
This marketing strategy is extensive to help local traders to go for vast venture to reach million customers on a single go. So, this opportunity is also open to you to have scum of the profits to upgrade your own life. Online discount pharmacy is open regularly round the clock. Customers from different locations hit the online drug store and buy medications.
Prices of these lifesaving drugs, sanitary pads, healthcare pills and antibiotic pills are affordable. Discounts of these medications are attractive to impress economical class. Like Rite Aid, you can also have a chain meds service to bring more fluent drug delivery options to customers. Give individualized service by keeping personal records of patients after clearing transactions. In future, if the customers have allergies or infections, try to avoid supplying medications which are not prescribed.
Besides, help them to choose the prefect meds from the inventory. Unlike local drug store, online discount pharmacies have multi channels to get customers. If you have licenses or permit to export medications to market abroad, strategy vastly. Then, you are also a good exporter with permits to deal with overseas clients. Online platform for medication selling is now modernized. The shopping carts online must have fast content management, instant credit checking while making payment, quick transactions and free registration.
The prescription refill process must be fast and easy. On the other side, the non prescription generic or brand medications should be supplied to have more positive visitors to hit your e-commerce website. Go through ins and outs of pharmaceutical business plan, pharmaceutical business plans sample, and retail pharmacy business plan including new templates. In the pharmacy business, the product quality is a must. A vendor or pharmacist should not earn money by delivering expired meds to patients.
He should have social obligations to maintain for fairness in pharmacy business. Same way, he is also responsible to process the orders. If meds are delivered late then patients can die. If it is urgent, then shipping process must be fast. Overnight drug supply is not cost effective.
Extra processing charges are borne by the buyer. When your pharmacy business blooms, you must have some better options to make your customers happy. Your online pharmaceutical has few exceptional features which are unbeaten to take your pharmaceutical to million customers outperforming rivals.
Pharmaceutical companies must facilitate customers to have their drugs at discounts. Quality of the drugs must not be low. For this reason, there must be analysts and experts to make their comments based on the products meant for sale.
Customers will talk to consultants for getting pharma template. They will go through reports, comments and reviews to have ideas about the quality of meds kept for being sold. Your online med supply stores should be compatible with multiple devices including smart phones.
Customers are interested to cross check regular information and updates on their mobile phones. Your e-commerce portal is connected with vast network to support such a sophisticated device. Online customer management center assists new customers to buy products. For this reason, people feel free to go for buying expensive brand meds from the best pharmacy online.
Jot down pros of running a discount pharmaceutical online. Why do people want to buy products online? What is the difference between a local med store and the pharmaceutical on internet? What type of med is sold online? What are the most important pros of buying meds from online pharmacies?
Is it cost effective or less time consuming to make deals with online vendors? Well, there are more such questions which can be highlighted for discussion. Nor is there any need to entertain customers at the shop. So, investors are not required to buy the land for constructing a big set-up to sell packets of life saving meds, boosters, and health tonics.
Online meds stores are operated by pharmacists through broadband. It is a different setting to attract people for business related transaction. They must be educated. Well, your pharmacy business promoting campaigns should encourage customers to know about the good aspects of online transactions. First of all, post few blogs, photos, slide shows and of course glossy video clips on home screen to lure newbie customers to have a fast look at the site.
After visiting the site, they will be energized to read content, check photos, videos, slide shows and navigate in the site. Online free start-up pharma template will make you more confident. Site accessibility, information delivery, transaction method, registration, product buying as well as packing for shipment, prices of medications, and way of billing must be innovated.
Therefore, ask your website designers to upgrade the site nicely to make it much more compatible with the latest i-devices. Ask them to assist you to change the old policy. Crazy customers in America, Canada, the UK and other parts in Europe have tendencies to buy non-prescription drugs which are not recommended or prescribed by doctors.
They have to pay higher prices to get packets of sedatives or anti-anxiety pills from the local market. Often they are addicted to spurious drugs which enhance the scope of faster deterioration in the health management. They are drug addicted and therefore proper counseling is needed. However, when they hit the online sites or med stores on internet, the surprising gifts are waiting for them.
At a time, it is possible to buy different meds from stores without providing prescriptions. Secondly, they have facilities to deal with a number of drug stores in this online drugstore industry. Promotional offers and discounts are offered to customers as well. At first, when you establish a small size pharmacy, you require the base to stand.
It is the ground for you to start building up a strong long lasting structure. It is a dynamic policy to enhance the much faster business promoting. Minimum investment is needed to run a pharmacy business. So, the product selling base is required first to ensure the good prospect in this meds supply industry.
How to achieve success depends on the strength, resilience, willing force, and lot of energy to do the hard work out. Maybe, it is time consuming but success will come through devotion, hard struggles, and meticulous research to find the best opportunities to be successful entrepreneur with a solid pharmacy business structure. Invest in the best market where there is excellent ambience to gear up the money earning.
It is one of the best things for you to locate the area where you will open the small drug store with innovated structure, and other facilities to tempt customers. It stands to reason; you require lot of plans to design. When you have the dream projects to implement for the business expansion, you must have someone to take you to the last resort successfully.
Many of start-up entrepreneurs are not well organized due to the lack of experience in pharmacy business planning as well as endorsement policy. Well, in this case, a professional business planer needs to be hired for innovating the business plans before investing in the pharmacy industry.
Money is needed but you should have excellent projects which have lot of information, data, template, strategy, table of content and resources to let the pharmacy business run smoothly. Research, probing, intuition and self-discovery study are important to aspiring pharmacy entrepreneurs. To become an experienced entrepreneur, you will have to have strong desires to probe deeply.
This research oriented mind will give you a booster to scale up in the industry with success. The start-up pharmacy business must be expanded. The profits must be generated. The mobility in the business promotion should be uninterrupted. The longevity of the pharmacy business should be surprisingly longer. Therefore, concentrate on different aspects of commercial management.
Brand name of your business works as a booster. It is the workforce. It is the vehicle with a new strategy for you to start the business smoothly. Who will track your business? Brand name is the sign of identification. People will be familiar with your company through the brand name. So, choose the most suitable name for your pharmacy.
Well, maybe you have lot of confusion how to configure the brand name and logo. Really it is much important to you. A cumbersome brand name is not easy to understand. If the name of the pharmacy is long and technically intricate, people are not able to read the brand name easily.
So, select the relevant short and attractive words to name your med store. Obviously you need a strategy to conduct more productive business branding. Million dollars are overspent in the business promotion campaigns. Giant entrepreneurs have lot of money and they spend financial resources to promote business.
Gifts, discounts, and promo codes are offered by these multinational companies. Well, you are a small entrepreneur and you need to earn more money. In the beginning, you have few attractive projects to inaugurate the small business.
Well, strategically, you must advertise your products. Advertisement agencies can make your dream productive through lot of ground work, plans, programs and tips. Hire the top notch advertisers who will make a brief-up covering the most important areas of pharmacy business.
Your online advertisements, ads and video clips showcase the med store to impress customers. Certainly, you must have some awesome product endorsement publicizing projects. How to promote the pharmacy business? The objective of your promotional expedition lies in the expansion of the customer management platform with more opportunities to build up the foundation for rejuvenating the business. Business branding through internet is the weapon for you to convey the best message to people.
Your strategy to run business must be effective. What type of medication do you need to sell? Are you a drug retailer? Are you able to sell cheap generic meds? What sort of med do you have in stock? People need better price tags.
They are economical. They have the least interest to buy brand meds. Well, your discount drug pharmacy is very much modernized with the stock of high caliber generic medications, life saving meds and qualitative drugs at discounts. Next step is to have all legal papers, and documents. The paperwork must be done step-wise. First of all, you have to apply for a license. It is the passport for your pharmacy to run.
Certainly, it is not easy. Drug licenses are approved only after several surveys, cross verifications and probing. Right now, government and FDI are not flexible to issue drug licenses easily. Drug addiction is now accelerating to make young generation incompetent. They have lot of drug buying options. Fake dealers and spurious drug suppliers are seen tempting customers.
Therefore, you must be fair and honest to have your licenses legally. In this connection, meet an attorney who will advise you how to get the drug license from the superior authority. Smartly speaking, it is not entirely difficult. The legal power will assist you to convince the concerned authority to have the original drug license. In the beginning, it is the most unavoidable assignment to contact a group of legal experts to ensure the advertising project completion successfully.
Pharmacy business must not be dried up after few weeks. You should not backtrack in shame. Bold and strong entrepreneurs must have energy to prioritize the collection of important components to format a new strategic version of business plan to nourish the pharmacy outlet dynamically. It is a must to maximize the vast media exposure, business branding, meticulous analysis and study to probe deep with good motif to locate the most fruitful niche to speed up the business promotion.
Your decision must not be obscure because of the disorders created by your subordinates. Therefore, organize your team to finalize the business branding program and innovative commercial management strategy with the resolution of giving thousand horsepower to your small med store to gain speed. Design futuristic advertising projects. Calculate how much fund is required to establish a single compartment as a small street outlet for selling generic meds.
Money you need must be available. If you are not so lucky to arrange fund immediately to overtake hurdle, you must not be found being in lethargic state. Business loans, short term financial aids, and good financial support from different agencies are obtained without complicated paperwork.
Financial assistance must be required to buy packets of brands drugs, install computers, and other tools to decorate the drug store. Customers are different in nature. Nor are they on same strings. Well, study and then evaluate the mindsets of customers. Choose the area where you will get positive customers to sell drugs.
Reinvent new strategy to promote pharma. Specific groups of customers need to make walk-in visits to the outlet to purchase meds. This sort of customer has the habit to go to the local med store to buy meds. They are literate. However, many laymen in the lower middle class are interested to buy prescribed meds from the pharmacies.
Secondly, there is another group of people. They are online buyers. They have money to go to the online pharmacy to purchase drugs. Basically, generic medications, and different types of stress management pills they buy from online stores. Prescriptions are not a must for them to buy Viagra, Cialis, Soma or any cheap generic medication to consume. Apart from this economical class, the enriched and affluent high profile buyers opt for brand meds. Now these medications are very expensive. Even vendors of publicizing portal are not capable of storing different types of brand medications for sale.
So, tailor a compact financial budget which must include the overall cost of storing brand, generic and local meds at discounts. The product sale must be fast. Drugs which stored in your refrigerator must be qualitative.
Strategies are applicable to the drug selling. Promotional campaigns are conducive to the faster development of the business. However, forecast is needed to evaluate the vision of yours in the long run. In the first year, estimate the profit percentage. Then you must compare whether you are a gainer or loser. Moderate revenue collection is also good as you are a novice entrepreneur. Answering these questions will give you a good start in writing your business plan. It can be challenging to write a business plan for a drug and alcohol treatment center without access to the most recently updated economic and demographic information for your area.
MasterPlans can help. Based in Portland, Oregon, MasterPlans has helped more than 8, previous clients craft business plans to convince lenders and investors to support their ideas. Call us today for a free consultation.
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This size customer base comprises 4. The company believes that this sales goal is attainable within the next five years. The table below shows the percentage of the alternative health care market segment required to meet projected sales. The market potential for pain relief products is huge. By narrowing the focus to product category sales, the potential becomes more exact. Management believes that these goals are attainable. The table below shows what percentage of the topical analgesic market will meet Pain Away's sales projections.
The focus can be narrowed further to the homeopathic product category, which is growing at a rapid rate at this time. Some market-trackers say that retail sales haven't grown enough to support the existing number of homeopathic manufacturers and that a shakeout will consolidate sales in the hands of fewer manufacturers. The forseeable trend, however, is progressive growth from the fringes to mainstream markets, and at a rapid rate.
The table below again shows percentages of this dollar volume required to meet sales projections. At first glance these percentages may seem daunting. However, the manufacturers supplying this niche are relatively few in number and therefore hold significant market shares A new player can get a reasonable market share with the right product and marketing plan. The mainstream merchandising of homeopathic products started in the early '90's and has been tested as a lucrative direction.
Company management is very confident that Pain Away will gain enough share points to capitalize on the rapid growth of this product category. Pain Away will not remain in the homeopathic niche. Its effectiveness will make it competitive with mainstream topical angalgesics. The company will also develop an international market.
A 10,unit order has already been received from a distribution company in Hungary and is awaiting final approval from the Hungarian State Department of Pharmacy. A small order was also sent to well-known sports figure in Spain. Discussions are underway for this individual to start large-scale distribution. The homeopathy market in the UK is estimated at 18M pounds and in Germany at M pounds, so European marketing could be strengthened by the homeopathic identity alone. In Germany, an independent division of the German Federal Health Agency publishes monographs on the safety and efficacy of herbal medicines.
The company believes that Pain Away would fare excellently under such review and will carefully research and plan when and how to reach such markets. There are many companies competing for shares of the 3. The major players are the internal analgesic manufacturers:. The balance of the OTC internal analgesic market is held by private label companies and "others.
The major players have:. An important competitive strength of Pain Away is that it is topical - pain relief is accomplished without risk of overdose and consequent risk of serious side effects. This competitive strength derives from a previously noted shift in the market from internal to topical analgesic use.
Management is ever mindful that mainstream pharmaceutical companies are watchful of the homeopathic market and will act accordingly should market share be lost to homeopathic remedies. Becoming a viable acquisition candidate to any one of its major competitors is a realistic goal.
Pain Away management is committed to quality product development and is also open to strategic alliances which would enhance its market capability. The competition in the topical analgesic market is head-to-head. The top competitors are:. The basis for the competitive analysis is Pain Away's most competitive feature:.
All topical analgesics contain counter-irritants, including camphor, menthol, methyl salicylate, eucalyptus, wintergreen, and even the popular capsaicin. These ingredients, even when blended, act primarily to cause a superficial inflammation on the skin. This inflammation serves to hide the pain by deadening pain receptors in the skin.
What distinguishes Pain Away from all of the above products is that the eleven active homeopathic ingredients stimulate the blood flow in the body's micro-capillaries and act synergistically with the body tissue. This stimulates the body's own self-healing. Pain is treated at its source. Company management believes that the unique effectiveness of Pain Away will give it competitive clout.
The issue then becomes how to compete. Although Pepperub Pepper and Vapol Athens enjoy the largest market share, they are vulnerable to new product introductions. Menthol Plus Lucia held the top position in this category last year until Pepperub was re-packaged and relaunched with line extensions. That relaunch along with a relaunch of Zanprin boosted sales of both brands and put Pepperub back on top. Pepperub, Vapol, and Mentholplus are all menthol-based products.
Zanprin is a capsaicin-based product and has boosted usage of its relatively new ingredient. Company management believes that Pain Away is generally more effective than Pepperub and Vapol. However, these venerated brand names, large advertising budgets, and consumer loyalty are formidable competitive advantages.
Pain Away will focus on other competitors in order to gain a market position. Menthol Plus is a menthol-based product which Pain Away has encountered head to head in the sports market. This price difference is of little concern because Pain Away will promote itself as a high value product. The topical analgesic, alternative health, and homeopathic markets all support pricing based on perceived product value. The company plans to acquire other brands no topical analgesics and extend its other lines in order to generate sales growth.
The company sells another topical analgesic which is doing well in sales but has not reached the same position as Menthol Plus. Pain Away will monitor the life cycle of Menthol Plus and move to gain any market share it might lose. Zanprin, made by Skin Care Corp. Capsaicin, derived from cayenne peppers, has created a new segment in the market and is very popular. Other companies are making capsaic in products but Skin Care Corp.
It had been marketed for seven years to physicians and kept behind the counter, carrying the credibility of a prescription product. In early , the product was re-packaged for shelf space and supported by TV ads. Skin Care Corp. Skin Care claims to be the first in the industry to develop their highly purified version of capsaicin for a pharmaceutical base. Zanprin distinguishes itself by promoting controlled clinical studies which have supported its effectiveness.
Skin Care claims that such clinical trials don't apply to other, less pure, capsaicin formulas. This scientific feature enhances product credibility among physicians and pharmacists. The management of Pain Away Ltd. Advertising and promotion expense is critical. With proper capitalization, Pain Away can compete because the Pain Away homeopathic formula is unique and effective.
Many capsaicin users, including Zanprin users, have complained about the burning sensation caused by capsaicin. Pain Away will stand up to any topical analgesic on the market and do very well with comfort, safety, and effectiveness.
The company needs to get this message out. The seven-year product life of Zanprin, supported by unique and heavy TV advertising, gives Zanprin quite an edge. Zanprin is now a "new" growth product and Pain Away can grow behind it, by comparing ingredients and effectiveness at every turn. Zanprin is not the "only brand with physician endorsement and specific clinical support. The product is heavily endorsed, and more medical support is developing. Many of Pain Away's sales to date have been to health professionals.
Regarding clinical support, Skin Care's success with this strategy underscores the strategic importance of Pain Away's plans for controlled clinical studies. Speaking of "highly purified" formulas, Pain Away can compete strongly with any formula on the market, especially capsaicin-based.
The company wants to discuss purity of ingredients and formula and will do so in all promotional efforts. The remainder of the products listed in the top competitor list have of course the same advantages that any established company with significant market share has.
Beyond these immediate competitive advantages, Pain Away can compete, again, on the ingredient effectiveness basis. Aspratin, an odorless rub which contains Salycin, sold well when it was introduced in It held third place among topical analgesics at the end of It has since been surpassed by capsaicin-based Zanprin. Bioderm developed Capcreme and lowered its price when Zanprin was relaunched. Capthol was recently developed by the long-established Men-Thol Co. Salicreme is a methylsalicylate product which has shown flat growth and has lost market share.
Lyptum was a rapid-growth product in but has since lost market share. Besides the well-established brands like Pepperub, the products which are gaining in this market are the capsaicin-based. This product category is known to be affected by product innovation and development. With proper support, Pain Away will take a respectable market share. The competition takes place in the drug chain arena. Among the growing number of drug chains which are giving shelf space to homeopathic products are: Walgreens, Medicine Shoppes International, Thrifty Payless, Eckerd Corp.
The crossover of homeopathy from health food stores, where sales are still strong, to mass markets is gaining momentum. As mentioned earlier, there are relatively few companies supplying homeopathic products to the mass market. Health System, Homeopathic Co. Homeopathic Co. All the topical analgesics listed above are arnica-based, with few other ingredients. Arnica Montana is the premier homeopathic medicine for the treatment of shock and trauma to the muscle.
These formulas come the closest to Pain Away's because they contain some of the essential homeopathic pain-reducing ingredients. Pain Away's formula, however, blends more ingredients than any other homeopathic topical analgesic on the market. This more inclusive formula gives the product wider applicability. But, this is a value-priced market, so price is not a critical variable. As has been noted, the topical analgesic category, including natural ingredient, is rapidly influenced by new clinical studies and product innovations.
There are three main sources of new competition:. Increase market share by reducing market share of competitors. This strategy will capitalize on the market development to date and capture a share of markets held by existing pain-relieving topical applications. The key benefit is that conventional pain-relievers mask pain while Pain Away stimulates the body's own healing ability to directly battle an ailment.
Another benefit is that homeopathic remedies have no known side effects while many pain-relievers, especially those ingested, have side effects. Neither will Pain Away interfere with any medication. One objective of planned controlled studies on the effectiveness of Pain Away is to use scientific evidence to help bridge the narrowing gap between natural and conventional medicine.
Product studies will support this marketing strategy. Expand a growing new market for alternative health care by positioning to lead this growing market. This strategy addresses the The company has already been approached by two large Multi-Level Marketing companies. This strategy would involve creating private labels for a large customer.
Of utmost consideration with this strategy is product identity and how this channel of distribution would affect it. This channel of distribution usually requires more price mark-up than the product would tolerate. The company envisions its role in this type of strategic alliance as conducting scientific studies to increase the credibility of TPR and in developing new products.
This strategy remains an option which could preclude other strategies under mutually acceptable terms. Building on an initial order from a health product distribution company in Hungary, Pain Away Ltd. This strategy would be developed only after a US market position was established. The company is moving from start-up stage into its first growth stage.
Market strategy to date can be succinctly described as selling "one jar at a time. This strategy has targeted any end-user willing to try the product. As the company moves away from direct selling, a strategy which proved to be an excellent market test, into mass-marketing, identified market segments are being matched with appropriate distribution channels.
The plan now is to expand and concentrate more on helping the consumer develop product preference by heavy advertising of the brand name, the benefits of the product, the ease of use, and the guarantee. Company expectations are that all advertising will be enhanced by results of controlled studies of product effectiveness.
The company intends to expand regionally, based on existing markets and consumer profiles e. The national market will only be tested by placement in catalogues with a distribution of million. As regional sales grow and as the product gains recognition, then a national marketing strategy will take shape.
Company management have begun discussions with a major marketing communications agency Fortune client list who themselves approached Pain Away. The marketing and sales outline is as follows. Launch plan would include a national sales meeting and all necessary materials. Concentrate on the pharmacist community via co-op direct mail.
Pharmacist recommendation at the purchase counter does affect sales. The production process takes place in a standard homeopathic laboratory where raw materials are blended. There are no significant health or safety risks involved. Production orders are processed by purchase order for finished product. Some raw materials are usually on hand but more are ordered against purchase order requirements.
Jars are ordered from a separate manufacturer and sent to the homeopathic laboratory to be filled, packaged, and shipped to Pain Away Ltd. The homeopathic laboratory has the capacity to fill all projected orders. As orders increase, Pain Away management will consider using a fulfillment service and more drop-shipping to wholesale customers. This figure has been consistent throughout production to date and is based on the complete production cycle.
The production process does not require any specialized or proprietary machinery. The critical factors in the production process are the highest quality of raw materials and the incubation process, which assures a stable finished product. The eleven active ingredients are then mixed into the emulsion, which incubates for about 48 hours in large vats, while monitored for any fungal invasion.
The finished product is then lab-tested for potency, which is done by lot number the company gets lot samples. Filling is currently done by gravity-feed. The manufacturer might advance to computerized filling. One batch is gallons. Lead time from order to packaged product is 4 weeks. Only a skilled and experienced manufacturer can produce the formula. Even other homeopathic manufacturers not familiar with a cream-based product would have difficulty with the production process. General topical analgesic manufacturers would need to become familiar with the raw materials and the production process in order to blend Pain Away's eleven active and ten inert ingredients.
The company currently has one back-up manufacturer, which has never been used. The company administrative staff consists of 5 people recently reduced by 3 including the 3 officers. The two employees are paid an hourly wage. The staff are not unionized and there is no expectation of such.
The labor supply in the region is more than sufficient to meet all future staffing needs. The sales force is comprised of independent agents who are paid on commission. Currently, the laboratory procures all production materials. There are no shortages of key components, and multiple sources are available. All production is sub contracted out. Only fulfillment and shipping are done in-house. The company has formed a strong working relationship with Herbal Laboratories, which is the key subcontractor.
Although management has selected a back-up manufacturer, the existing relationship with Herbal Labs has been more than satisfactory, so no change is foreseen. Other subcontractors supplying jars, labels, and boxes are used based upon price and service and can be replaced. Standard office equipment is used for administrative functions. All production equipment at Herbal Laboratories is new and there is nothing that would cause production to be stopped for any appreciable time.
The company facility is a single-story 1, square foot, cement block structure on about a two-acre cleared lot that is leased in one-year increments. The facility is located in northern Dutchess County, NY. All necessary commercial and industrial infrastructure is in place. The facility is easily accessible from major thoroughfares. The general area has been and is recovering from the closing of 2 large industrial facilities, so there's been anoticeable decline in property values.
There is, however, a regional effort to re-direct the area to rely more upon small and entrepreneurial business. Management plans to purchase the building in order to add an appreciable fixed asset and to reduce expenses. The structure is easily expandable, so the company will not have to move during its critical growth stage.
Active homeopathics are not patentable. Management is exploring establishing a trademark and a formula patent. Plans for the immediate future include forming a research alliance with a university, hospital, or research group in order to develop a protocol for applying the "rigorous scientific standards" against which the effectiveness of Pain Away can be proven. These expenditures are intended for controlled studies proving effectiveness, and for continuation of developing applications for animals.
Management is sales-marketing oriented and does not want to develop only a research lab. Company management is currently investigating an SBIR grant. Pain Away's ingredients are in total compliance with FDA standards.
Peale cultivated a working relationship with FDA representatives during the initial research and wisely intends to sustain such. Product liability insurance is underwritten. A buy-sell agreement among officers exists but is not yet backed by insurance. Key employee insurance is also yet to be written. All taxes are current. The company pays standard payroll, Social Security, and corporate taxes. The product is sales tax exempt in many states. Company principals first formed an S-corporation under the name Peale Inc.
The realization of the likelihood of international sales prompted management to form Pain Away Ltd. Peale Inc. Both companies are run by the same management team. There is comingling of funds. This proposal seeks financing for Pain Away Ltd. Return on the investment will derive from the sale of the product Pain Away itself and any other products which the company sells. The officers were invited to participate in an annual meeting of the newly formed FDA committee on natural medicines.
This committee works on the bases for regulations, compliance, and claims for the natural ingredient industry, covering vitamins, herbs, and homeopathy. A board of directors will be developed in the near future. There is interest from the medical, nutritional, and professional sports communities, as well as from a local bank.
Officers are:. The officers are primary key employees backgrounds in executive summary. Other key employees include:. Leslie Ottaviani - bookkeeper and office manager - known by management for 5 years and described as "a dedicated innovator with a true grasp for details. Julia Allen - administrative assistant - known by management for 6 years and described as "having people and problem-solving skills and works incredibly well under pressure.
All other fees paid on an ad hoc basis. Different attorneys have been used on an ad hoc basis finance closing fees will be paid by the company. Management is willing to negotiate any structure which suits the investor. The company is seeking an equity investor. Management will provide a seat on the company's board of directors. Ongoing reports of key ratios, profit-loss statements, balance sheets, and annual audits would be provided to the investor.
It is management's intent that the investor will enjoy returns on investment in excess of that of alternative investments, as a privately held company, while providing investor liquidity of his investment by taking the company public at its earliest opportunity. If the current financing proposal is accomodated, then the line of credit can be increased. Officers' "sweat equity" is immeasurable.
At EV Pharmaceuticals, we produce a wide range of pharmaceutical products. These consist of antipyretics, stimulants, antibiotics, stimulants, anti-malarial drugs, tranquilizers, oral contraceptives, analgesics as well as mood stabilizers.
All of these have their functions and will be produced while abiding to all regulatory and minimum requirements. In addition to the production of these pharmaceutical products, we will also offer advisory services to professionals who may require such.
At EV Pharmaceuticals, our vision is to be a major name in the pharmaceutical business. We are not only seeking to break into the league of major players but to be known for quality. To achieve this brand recognition, a lot of work needs to be done which we are capable of. Our mission is to make quality drugs accessible to users across the United States. We will be using cutting edge technology to achieve our aims. Our operations are also research focused.
This enables us to develop or improve on available medications for different conditions. Running a successful pharmaceutical manufacturing business requires significant funding. In other words, the pharmaceutical manufacturing industry is capital intensive. This will be obtained through loans from 2 major banks. Funds raised will be used in the purchase of equipment a factory space as well as storage and distribution vehicles. We have decided to gauge our performance by taking a SWOT analysis.
This process has been revealing and has shown areas that need to be improved on. This analysis was carried out by a reliable independent business consulting firm. The findings are summarized as follows;. Our strength as a business lies in our capacity to anticipate problems and proffer far-reaching solutions before they arise. This is made possible through our pool of highly qualified manpower who have been carefully selected. Their quality reflects in our ability to run a thriving business that is able to withstand the odds.
In spite of our strength in identifying and creating solutions to problems before they arise, we still have a weakness. This comes in the form of our size. This limits our reach in the short-term. We view this weakness as only temporary as we embark on expanding our operations once the conditions are right. Where others see problems, we see opportunities. We have assembled a highly motivated workforce. Therefore we are constantly researching using the best scientific procedures as well as state-of-the-art equipment.
There are threats that may affect our operations. These include unfavorable government policies that may be made and implemented. Another area that can affect our business is when there is an economic meltdown. Any of these could pose a serious challenge to our business operations. Based on available information on the performance of the pharmaceutical manufacturing industry in the past 5 years, there is great potential for profitability. We have done our research and have created a three-year financial projection.
The results have been encouraging and show the following;. Our competitive advantage exists in the form of our common passion as a team of professionals. These consist of people with varied expertise in the field of pharmacy, branding, marketing, administration and product design and distribution. We are all bonded by the common passion to provide only the best pharmaceutical products.
Nobody wants to be plagued by ailments. However these can come at any time due to a variety of reasons. It is a fact that most people take different medications for different reasons. This presents us with a huge market to cater for. By filling the need for quality medication, our pharmaceutical manufacturing business caters for the needs of a wide market.
If you have read to this point, you should have gained a better understanding of how this works. Our pharmaceutical manufacturing business plan sample stands as a guide to help you write one without much difficulty. We always state that implementation is equally important too.
In effect, the investor is exposed to the rigors of administering an existing pharmaceutical manufacturing plant, without having to commit funds to the venture. Dilip Shanghvi, founder of the largest pharmaceutical manufacturing company in India, Sun Pharma, began business in , with staff strength of 2 marketers and a small manufacturing facility.
A number of options can be picked; a mini factory that focuses on one product line like pain relievers or entering into partnership with a contract manufacturer to produce a line for one product. This step is necessary to test the waters market and to gradually gain market acceptability and share.
Develop a business plan for a pharmaceutical manufacturing business that focuses on niche generic drugs offering potential for growth. How much does it cost to start a pharmaceutical company? Starting a pharma company and going immediately into competition with older industry players, in more popular patent drugs, could spell doom for the new startup. This is because the markets for these type of drugs are usually saturated, hence it would require enormous resources and extensive marketing to establish a foothold in such markets.
So instead off with the production of anti-infectives drugs administered for the treatment of communicable diseases , a drug manufacturing company could decide to focus on drugs that help in the treatment and containment of lifestyle diseases, especially as most African nations begin to grow a large middle class. Drugs in this class include those for psychiatry, neurology and cardiovascular uses. The reasoning behind this strategy is that consumers, who desire to live longer, will more often than not, take such generic drugs, in order to boost their health and achieve longevity.
A newly established pharmaceutical manufacturing company must devise ways and means, by which end users can be exposed to its drug offerings. This will often involve taking unconventional paths in finding markets, obtaining agreement with hospitals and medical facilities, promotional trades and any other activity that will engender the sales of its products.
All these must be taken into due consideration when calculating the minimum investment to start a pharma company. At this early stage, the pharmaceutical manufacturing company must also draw up a robust distribution network, which will ensure that its drugs are available at all times. Necessary pharma company registration procedure and licensing must also be done. As the pharmaceutical manufacturing company gathers steam, as you evolve effective marketing and distribution networks, it becomes imperative that one keeps his focus on the big picture: transitioning into a large, profitable drug manufacturing outfit.
This will not happen by the wave of a magic wand. Rather the investor must save and plow back profits, into acquiring suitable and strategically located factory space, machinery and equipment. The cost of starting a pharmaceutical company must consider how raw materials will be sourced and be readily available in order to support full time production. In all, the success setting up a pharmaceutical manufacturing plant, and indeed any other business, will depend on factors such as the drive and willingness to take calculated risks, having an eye on the future trends that will shape the industry, cultivating excellent customer service and support and placing a premium on research and development.
All too often, lots of pharmaceutical manufacturing businesses have closed shop. On close examination, the problems that led to this situation has been due to inadequate planning. This happens through a rushed or shabbily written plan or as a result of lack of its implementation. No matter how good a plan is, none or partial implementation renders it useless.
EV Pharmaceuticals is a new and registered pharmaceutical manufacturing business to be located in Salt Lake City, Utah. We bring expertise as well as experience into the field of drug making. These drugs range from anti-malarial drugs to mood stabilizers as well as hormone replacements.
Further reference to this will be made shortly. We have obtained all and fulfilled all regulatory guidelines which are relevant to our smooth operations. At EV Pharmaceuticals, we produce a wide range of pharmaceutical products.
These consist of antipyretics, stimulants, antibiotics, stimulants, anti-malarial drugs, tranquilizers, oral contraceptives, analgesics as well as mood stabilizers. All of these have their functions and will be produced while abiding to all regulatory and minimum requirements. In addition to the production of these pharmaceutical products, we will also offer advisory services to professionals who may require such.
At EV Pharmaceuticals, our vision is to be a major name in the pharmaceutical business. We are not only seeking to break into the league of major players but to be known for quality. To achieve this brand recognition, a lot of work needs to be done which we are capable of. Our mission is to make quality drugs accessible to users across the United States. We will be using cutting edge technology to achieve our aims. Our operations are also research focused. This enables us to develop or improve on available medications for different conditions.
Running a successful pharmaceutical manufacturing business requires significant funding. In other words, the pharmaceutical manufacturing industry is capital intensive. This will be obtained through loans from 2 major banks. Funds raised will be used in the purchase of equipment a factory space as well as storage and distribution vehicles.
We have decided to gauge our performance by taking a SWOT analysis. This process has been revealing and has shown areas that need to be improved on. We expect to reach profitability by our third year and will generate substantial sales by year three. Your business plan can look as polished and professional as this sample plan. It's fast and easy, with LivePlan. Don't bother with copy and paste. Get this complete sample business plan as a free text document.
Download for free. The Discount Pharmacy Executive Summary executive summary is a brief introduction to your business plan. It describes your business, the problem that it solves, your target market, and financial highlights. Competition Competition takes many different forms in the pharmacy industry.
Why Us? Expectations Forecast Costs will be minimized by maintaining only one pharmacist and filling the void with pharmaceutical techs. We expect to reach profitability by our third year and will generate substantial sales by year three Financial Highlights by Year.
These centers make revenue from daily, weekly, monthly, and yearly stay fees paid by the patient or their insurance company. If you're considering opening a drug and alcohol treatment center, a business plan is the right place to start. How successful are they? Will those be the addictions your center focuses on? Answering these questions will give you a good start in writing your business plan. It can be challenging to write a business plan for a drug and alcohol treatment center without access to the most recently updated economic and demographic information for your area.
MasterPlans can help. Based in Portland, Oregon, MasterPlans has helped more than 8, previous clients craft business plans to convince lenders and investors to support their ideas. Call us today for a free consultation. Client Stories. I am an attorney I need an attorney. For example, sales territory demographics, drug use by demographics, and physician or hospital data is important for figuring out pharmaceutical marketing strategies.
Also, gather information necessary to write business plan basics, such as a company overview, product descriptions, current financial status and future growth projections. The prep work for writing a plan also includes assessing pharmaceutical sales business strengths, weaknesses, opportunities and threats.
This assessment provides a balanced business view, as well as the information necessary to manage barriers and to build on business assets. For example, a strength may be the ability to offer a highly popular drug or medication; a weakness may be that a sales territory is oversaturated with competition -- though on the other hand, there may be an opportunity to expand in another territory. A threat may be a looming drug supplier price increase. You don't need to start from scratch, as there are free business plan templates readily available online, and you can adjust them to suit a pharmaceutical sales business model.
Using a template allows you to forego the worry about how a plan should look so you can focus on content. Your finished product should be as long and it needs to be to create a functional business blueprint, but 20 to 40 pages are not uncommon. The last step is to regularly review and update your pharmaceutical sales business plan and sales progress.
A regular review helps with assessing and measuring actual drug sales versus projections. For example, if sales of a certain drug are hindered by FDA concerns, you can revisit your marketing and sales strategies for that product and make timely adjustments.