The Pharmacy Business Plan: A Complete Guide

First Financial Bank
Dec 15, 2020
You’ve made the decision – maybe even picked out the exact property – to build or buy a pharmacy. How do you sell your vision to a funder? Your pharmacy business plan is the answer.

We have been on both sides of the equation: as an independent pharmacist building a pharmacy business plan, and now, as someone who guides you through the funding process. Built based on that experience, we’ve created “The Pharmacy Business Plan: A Complete Guide” for you. This includes understanding what you need (or don’t need) to include in your pharmacy business plan:

1. Summary/Proposal

What a funder specifically needs to know “at-a-glance”. In addition to the usual business plan items of business description, mission statement, leadership team summary, financial summary, overarching growth plans and how much you are looking to finance, you also need to include:

Whether you are buying an existing pharmacy, OR building a new pharmacy
High-level demographics/market potential summary
Licensing status
Having a strong summary sets the stage for potentially positive responses to a pharmacy business plan.

2. Detailed Business Description

This is where you are going to dig in and describe your pharmacy business in detail. How your organization is going to be structured and serve your market:

  • Leadership team and respective biographies
  • Type of tax entity (single proprietor; LLC; etc.)
  • Number/types of employees (and if buying an existing business, which ones are you inheriting/ keeping – or not)
  • What types of products / services you are planning to offer on both the pharmacy and non-Rx sales sides
  • Who will be (or in the case of an existing pharmacy, who are) the customers
  • Paint a picture with details that can help the funder see your vision realized.

3. Market Potential/Location Analysis

Pharmacies serve specific markets geographically, as well as demographically. You’ll want to provide details about the depth and breadth of that local market, both in potential customers – and for existing pharmacies, current customers. Being able to answer additional questions about competition and your plans for optimizing your opportunity to earn that business is key.

It’s all about the details…

4. Sales and Marketing Strategy

You outlined the competitive landscape in the prior section – now you’ll need to lay out the details for attracting, retaining and growing the wallet share of customers.

5. Funds Request and Financial Projections

Time to get down to the nitty-gritty of asking for exactly what you need for funds, how you plan to use them plus how that relates to earnings potential and capability to repay the loan. If you are building a pharmacy, what of this is to be used for the capital outlay vs operating expenses for first x # of years? If you are buying an existing business, what are you planning to acquire as part of the assets, while mitigating the risk of liabilities? Clearly defined details and documentation are the core of a successful pharmacy business plan.

6. Additional Materials

Depending on your particular opportunity, there are additional appendices you’ll want to include:

  • Licenses
  • Existing agreement with a Group Purchasing Organization (GPO)
  • Resumes, credit histories and references for principals
  • And more.

Want to chat about your plan?

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