Pharmacy Business and Staff Planning

• Business plan

  • a formal document that contains background information about the intended opportunity and key participating members, in addition to describing and detailing the strategies and resources that will be employed to attain business goals
  • “it is a decision-making tool that can be used to assess the viability of a new venture and chart a course for achieving goals while assessing and balancing risk tolerance”
• 5 major contents areas of business plan:

  1. Background and general information
  2. Marketing
  3. Operations
  4. Finances
  5. Discussion or narrative of the decision-making criteria used to accept or deny the business venture
• Business profile

  • “generally a narrative that expounds on the mission and vision of the organization”
  • should be parsimonious, completed within one page, and verbally expressed in less than 1 minute, but preferably around 30 seconds
  • should define and describe the intended business, program, or project, and its niche in the marketplace
  • emphasis should be placed on how goals are to be achieved, and a time schedule of when these goals are expected to be achieved
• Goals are expected to be achieved through:

  • Gannt charts
  • Action plans
• Products and services

  • should clearly describe the products and/or services the business will provide
  • should address research and development efforts involved in design and development, and the need for and benefits of the products/services to consumers
• Market analysis and strategies

  • one of the most important elements of a business plan
  • should include: description of the industry, description of the specific sector in which your business intends to compete, SWOT analysis, competitive analysis
  • location and access
• Market analysis and strategies includes:

  • description of the industry
  • description of the specific sector in which your business intends to compete
  • SWOT analysis
  • competitive analysis
• Operations and management

  • should include personnel and organizational structure; work environment and workflow; and resources
  • types of organizations - virtual, horizontal, hierarchical, matrix
• Virtual organization

  • refers to an organization that outsources as many services as possible and employs only essential, core employees
• Horizontal organization

  • aka “flat” organization
  • refers to an organizational structure with few or no levels of intervening management between staff and managers
• Hierarchical organization

  • refers to an organization wherein every entity, with limited exceptions, is subordinate to at least one other entity
• Matrix organization

  • uses a team structure wherein team members are brought together from different disciplines and departments within the organization to work together on a project or process
• Financial and economic assessment

  • Should include an economic analysis describing a complete assessment of the economic environment of the proposed business or program including proforma cash flow statement and other start-up costs
  • 5Cs of credit
• Cost of sales

  • costs related to the sale of the product
• Professional fees

  • costs related to legal and accounting matters
• Technology costs

  • costs related to information technology
• Administrative costs

  • costs related to daily operation of the business
• Sales and marketing costs

  • costs related to marketing and advertising
• Wages and benefits

  • costs related to personnel
• Business plan and summary

  • should conclude with a brief summary or conclusions section that highlights critical elements of the plan
• Sole proprietorship

  • is an unincorporated company that is owned by one individual only
  • it is the simplest of the types of businesses, it also offers the least amount of financial and legal protection for the owner
• Partnership

  • is a business owned by two or more people
• General partnership

  • is the easiest type of partnership to form
  • every partner is considered as participating in the operations of the business, and there is unlimited liability for every partner
  • means that every partner’s personal assets can be used to repay the liabilities of the partnership
  • each partner is responsible for every other partner’s actions
• Limited partnership

  • has at least one general partner
  • general partner takes on unlimited liability for the partnership and manages the operations of the company
  • limited partners only take on as much liability as their financial stake in the business
• Limited liability partnership

  • are similar to general partnerships, where multiple partners are each responsible for the operations of the business
  • partners are not personally responsible for the actions of other partners or the debts of the business
  • this type of business is often restricted to certain professions, such as lawyers or accountants
• Limited liability company

  • one of the most flexible types of businesses
  • combine aspects of both partnerships and corporations
  • they retain the tax benefits of sole proprietorships and the limited liability of corporations
  • are able to choose between different tax treatments
  • benefit from limited liability status
• Corporation

  • are a separate legal entity created by shareholders
  • incorporating a business protects owners from being personally liable for the company’s debts or legal disputes
  • more complicated to create, as compared to the other three types of businesses
  • exist as a legally separate entity, will continue to exist even if the owner of the business passes away
• C corporation

  • most common form of incorporation
  • is taxed as a business entity and owners receive profits that are then also taxed individually
• S corporation

  • similar to a C corporation but may only consist of up to 100 shareholders
  • are pass-through entities like partnerships, so profits are not taxed twice
• Non-profit corporation

  • often used by charitable organizations,
  • are tax exempt
  • all forms of incoming cash flow must be utilized to spend on the organization’s operations or future plans
• “A goal without plan is just a wish” – Larry Elder
• eBay

  • started as sole proprietorship that eventually converted to a corporation
• Hewlett-Packard (HP)

  • began as partnership between 2 friends that eventually incorporated in 1947
• Chrysler

  • has maintained its status as a limited liability corporation since its inception
• Apple

  • continues to exist despite one of its co-founders passing away
• 5Cs of credit

  • Character
  • Capacity
  • Capital
  • Collateral
  • Conditions