pharmacy management

• one medical purchased by amazon

  • reaching 800,000+ lives
  • 25 US markets
• what does the Rx landscape look like?

  • where US adults get their Rx's (ages 18 - 24)
  • at a national chain (like walgreen's) [43%]
  • in a store pharmacy (like raley's) [35%]
  • at a community pharmacy [13%]
  • at a digital pharmacy service [9%]
  • note: mail order is contained w/in these numbers
• what does the Rx landscape look like? (cont.)

  • ages 25 - 34
  • national chain [42%]
  • in store pharmacy [32%]
  • community [14%]
  • digital pharmacy [12%]
• what does the Rx landscape look like? (cont.)

  • ages 55+
  • national chain [45%]
  • in store pharmacy [28%]
  • community [11%]
  • digital pharmacy [17%]
• open and closed

  • open question
  • prompts a longer, more meaningful response
  • it's not a one or two word answer question
  • it's not a yes/no question
  • can gain more information from this type of question
  • closed question
  • allows for a one or two word, yes/no response
• basic parts of a business plan

  • executive summary
  • business description (your vision)
  • market and competitive analysis
  • financial projections (budget)
  • business strategy
  • products/service
  • management team
  • operational plan
  • marketing plan
  • timeline
• executive summary

  • beyond all doubt, the single most important element of the business plan - like the abstract (attention grabber)
  • where you make a cohesive whole out of the bits and parts
  • 3 C's:
  • clear
  • concise
  • compelling
  • should be written "last" after all other parts of the business plan are completed (or almost completed)
• executive summary

  • elevator speech
  • that's what the opening sentences of the executive summary essentially are
  • ES must grab the reader's attention in the first 30 seconds. why?
  • first chance for reader to understand your basic business vision, concepts, and for you to highlight your optimism, confidence, and create intrigue w/ a great concept statement
• here are the goals of the executive summary

  • show that your concept is sensible
  • has been thoroughly planned
  • your team is capable, talented
  • the market is clear and exists
  • discuss significant competitive advantages
  • financial projections and why they are realistic
  • describe the excellent chance for success both clinically and financially
• operations

  • detailed view of your business descriptions but focusing first on the basics such as:
  • square footage and shape of pharmacy
  • workflow layout: shelves, POS, counters
  • hours and days open
  • emergency preparedness: alarm system, fire system, training
  • employee responsibilities and training (distributor help here)
• marketing plan

  • your message to the world about your pharmacy
  • usually focuses on a few specific attributes or differentiators
  • such as
  • free local delivery
  • complete wellness oriented pharmacy
  • couponing
  • fast and courteous prescription services and pt-pharmacist talks
  • incorporation of social media w/ Rx refill reminders and Rx ready for pick up (?)
  • other (compounding, pet Rx filling, etc.)
• marketing

  • be sure to have a clear message to your pts
  • decide in which marketing vehicles you will use, such as:
  • brochures
  • website
  • facebook
  • twitter - instagram
  • snapchat
  • blogs
  • pinterest, instagram or the current flavor of the month
  • print or broadcast media
  • emails, texts, tweets, etc.
  • networking: join organizations, public speaking, health fairs
  • tiktok
  • branding program such as good neighbor pharmacy
• financial and budgeting

  • the break even point
  • you're neither making money nor losing money
• break even point formula

  • basic formula:
  • fixed cost / (price - variable costs)
  • example:
  • $60,000 / ($2 - $0.80) = 50,000 units
  • swag must sell 50,000 units a month to break even
• financials

  • what financial forms do you need to include in a business plan?
  • income statement *** most important
  • cash-flow analysis *** most important
  • balance sheet
  • sources of funds (where is the money coming from?)
  • assumption sheet
  • start-up costs (if a brand new business ... these are one-time costs)
• financials (cont.)

  • my strong advice, get an accountant to help you!
  • first, income statement ...
  • for your first year, do monthly projections
  • for years 2 and 3: quarterly projections
  • if you are buying/managing/planning for an existing pharmacy,
  • use their actual income statements for the last three years
• components of income statement

  • for one month
  • total dollar sales
  • cost of goods sold
  • gross profit
• components of monthly expenses (to remember)

  • rent
  • salaries
• wait... what?

  • let's stop right here and reiterate
  • use an accountant
  • if you wanted to be an accountant, you would not have entered pharmacy
• income statement totals - components

  • gross dollar profit - 109101
  • total expenses - 74430
  • net dollar profit - 34671
  • net profit as a percent of sales - 34671/624938 or 5.55%
• financials - cash flow analysis

  • year one: monthly projections, after that quarterly
  • single most important projection ***
  • not about profit per se
  • more about money flowing in and out and how much you have in the bank
• financials - balance sheet

  • snapshot of overall pharmacy financial worth
  • equation: all of your assets (salary, everything you own) - total liabilities (credit line improvements, wells fargo auto) = net worth
• so how is amazon Rx doing?

  • roughly 2 - 3 % of amazon prime members say the Rx program is why they are members
• what does the Rx landscape look like? (cont.)

  • ages 35 - 54
  • national chain [41%]
  • store pharmacy [33%]
  • community [16%]
  • digital pharmacy [10%]