As we are bringing more new clients on board we are finding that a lot don’t have a formal, written business plan. You may ask yourself if you have been in business for 5-10 years why do you need a business plan? Well, technically you don’t, but going through the steps and writing all this […]
As we are bringing more new clients on board we are finding that a lot don’t have a formal, written business plan. You may ask yourself if you have been in business for 5-10 years why do you need a business plan? Well, technically you don’t, but going through the steps and writing all this stuff down will be an awesome exercise for you and I think you’ll find that by doing this you will get a better feel and understanding for your business.
There are tons of ways to break it down, and lots of individual categories you can pull in but for running a pharmacy I personally would break it down like this:
- Executive summary
- Mission statement
- Values and culture
- Organizational Structure
- Industry Analysis
- SWOT Analysis
- Barriers to entry
- Marketing Analysis & Technology
- Products and services
- Marketing Strategy
- Management and Organization
- Professional and Advisory Support
A quick point about each of the items.
Executive summary should be a one page speech just talking about all the key points of your pharmacy. Think of it as if you were at a dinner party and someone was meeting you for the first time how you would describe your business and what you do.
Mission statement: Why do you exist in the market, and what value to you provide over the shop next door. Should be personalized to you, and highlight and attribute or two that are most important to you and your business.
Values and Culture: Spend a little time touching on what you think some defining values are at your shop, talk a little about the environment you like to maintain.
Goals: Jot down some goals for things you would like to achieve this year to five years down the road. Flesh them out, SMART goal format is always best.
Organization Structure: Draw out a flow chart of your employees and who reports to who. Also if you are thinking of expanding in the next few years it is a good idea to create a flow chart of what you want to look like in 3-5 years down the road so you can prepare for upcoming hires.
Industry analysis: Spend sometime doing some research on the state of independent pharmacy as a whole A great resource here if you have access to it is the NCPA digest.
SWOT analysis: Strengths, Weaknesses, Opportunities, Threats. Self explanatory, your good at some things, bad at others. You have some ways to make more money, and things that could shut you down. Think and note all that here.
Barriers to entry: Usually pretty high in pharmacy. Note special state and local regulations here.
Marketing Analysis and technology: Talk about how you are using online tools to reach customers as well as the current status of your website and social media tools.
Products and Services: What you stock, key suppliers, etc.
Location: An close up look at where you are at and what you are running your store. Talk about traffic flow, parking, store front, layout, etc.
Competition: Try to pick at least one chain, one independent, and one inside a hospital to get a better understanding of the market share each has and how they get clients.
Marketing strategy: Talk about key campaigns, buyer personas, inbound strategies, SEO/Adword campaigns, etc.
Inventory: Note how much your carrying, how much of your sq footage is dedicated to it, if your having to toss any inventory that goes bad, etc.
Management and organization: Talk about the roles all the employees take, scheduling, processes, best practices you follow.
Professional and Advisory team: Talk about your lawyer, marketing firm, accountant, and any other professional service people you are working with.
Financials: A balance sheet from last year, a cash flow statement, and sales projections are the three I find most important when looking at it from a marketing and growth prospective, your accountant can give you all sorts of sheets to put in here though.
Summation: Wrap it up and recap, talk about what you see happening in the next five years. In my opinion you should be looking to do one of three things, looking to maximize growth and possibly expand to another location, looking turn the store into a machine that runs itself so you can spend less time on a pharmacy business and more time on something else, or getting it primed to sell.
That’s it for now, keep your eye’s open for an ebook on this next month! Also if you found in writing this you might be ready for a new hire, click here to see our blog on hiring as a community pharmacist.