Writing a Business Plan

Service Description

Describe how the proposed service will build upon the existing business described in the previous section. Clear explanation of the new service What/How/Who defined Outline key indicators that will be used to evaluate the progress toward goals of the new service.

Operations

Describes process for delivery of new service Describes how new service will be integrated into existing day-to-day operations Description of strategies to ensure adequate staffing, record keeping/documentation, maintaining efficient workflow, insurance coverage needs, and compliance with laws and rules Describe methods for evaluation and improvement Evaluation tools: Brief outline of steps needed to implement new service and timeline associated with each step

Market Analysis

Generally consists of a fully developed SWOT analysis S= strengths, W= weaknesses, O= opportunities, T=Threats Provide information about unmet health needs in the community that the service will fulfill Collect this info from patient surveys, focus group surveys, local demographic data (http://www.census.gov) Analyze pharmacy records for pertinent information Provide information on pharmacy competitors and how this service will stand out from others in the market area Consider physicians in the market area and how they may help to refer patients to your new service Employer groups may also be a source of prospective patients to add to your service If relevant, consider having physicians and/or employers write letters in favor of the new service. Include these letters as part of the Appendices.

Management Team

Highlights upper management qualifications and experience Description of management team members' roles, duties, responsibilities, previous experiences, and how these relate to the new service Describes any specialized training or certifications held by key staff members Large project: May assemble an external board of advisors

Title page

Identifies the pharmacy and name of proposed service Identifies physical address, phone numbers, email addresses of principal employees involved Name of person(s) who wrote the business plan

Financial Plan - Projecting Revenue

If cash-paying patients are primary target, explain fees and rationale for setting them If local employers are a target, include projections for payment and services offered to the employer group If payment expected from a third-party payer, describe who and how much

Marketing Plan

Plan should help to answer these questions: 1. Who will buy and pay for the new service? 2. How large is the market? What is the demand? 3. What particular segments of the large market will be targeted? 4. Who are the stakeholders and how will they be educated about the new service? Marketing Plan consists of two major segments: 1. Market Analysis 2. Marketing Strategy

Marketing Strategy

Presents a plan for promotion of the new service How will the proposed promotional strategies reach the target market If people need to be hired, outline that here Examples of promotional activities: Promotional items should be included in Appendices Relationship marketing should be outlined Include estimated costs for advertising and promotional activities Tracking mechanisms should be outlined

Financial Plan

Shows expected revenue from new service Should project a break-even point Should attempt to project 3 and 5 years after start-up --Explanation of projection numbers should be included --Projection statements include Income and Expense statements, Balance Sheet, and Cash Flow statements Projecting revenue Projecting expenses Start-up financing Exit strategy

Executive Summary

Similar to an abstract in a medical journal Captures the essence of the business plan in a short/concise 1-2 page document Includes pharmacy's current status and future direction This section is usually written last, needs to catch the readers' attention No motivation here and the readers' will NOT likely read the entire document

Business plan components

1. Cover and title page 2. Executive summary 3. Table of contents 4. Business description 5. Service description 6. Marketing plan (marketing analysis and strategy) 7. Financial plan 8. Management team 9. Operations 10. Appendices

Develop a mission statement

Considerations: Intended customers Core values Services and products Goals and philosophy Desired public image *Gather important documentation

Financial Plan - Projecting Expenses

Plan should estimate initial and ongoing expenses Include: Start-up costs Fixed costs Variable costs Contingency measures

Start Up & Exit Strategy

Start-up How will new service be funded? Internal or External funding? Exit Strategy What to do if new service fails or owner no longer wants to participate

Business Description

This section should answer the following questions: 1. What is the pharmacy's physical layout, location, and hours of operation? 2. How many and what type of employees does the pharmacy have? 3. What is the daily prescription average? 4. What products and services are currently offered at this location? 5. How would you describe the current HR position? Staff well trained, positive work ethic, commitment to present positions?