9175 Kingston Pike Knoxville, TN, 37923
A business Proposal/Plan
Date: May 7, 2021
Table of Contents
Section Page
Executive Summary …………………………………………………………………………………………………………3
Background and Description……………………………………………………………………………………………..6
Market and Competitor Analysis……………………………………………………………………………………….8
Operational Structure and Processes………………………………………………………………………………….10
Quality and Regulatory Issues………………………………………………………………………………………….14
Marketing Plan………………………………………………………………………………………………………………16
Financial Projections………………………………………………………………………………………………………18
Milestones, Schedule, and Action Plan……………………………………………………………………………..19
Exit Strategy………………………………………………………………………………………………………………….21
Conclusion ……………………………………………………………………………………………………………………22
References……………………………………………………………………………………………………………………..23
Supportive Documents…………………………………………………………………………………………………….24
Executive Summary
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Family Pharmacy is a newly innovated pharmacy that focuses on MTM., blood pressure, blood glucose, Hg A1c, and cholesterol screenings at our currently owned Family Pharmacy.
Mission Statement
Our mission is to create a friendly and healthy environment by providing a high quality of care with respectful and effective communication.
Vision statement
Our vision is to become one of the top retail pharmacy stores in TN.
Family Pharmacy will be in West Knoxville, TN. Knoxville has a total population of 191,000 individuals. The estimated median household income is $56,382 as compared to the Tennessee median of $51,340. We expect to obtain 55% of the local market share by December 2022. Walgreens and Kroger, which are across the street, will be significant pharmacy competitors. Considering our dedication, patients obtain the best care and guidance to improve their overall health and wellbeing.
The USA is still suffering from diseases such as diabetes, blood pressure, and high cholesterol. A pharmacist will run a family Pharmacy. A private room that another pharmacist runs, or a certified pharmacy technician, assists with screening for blood pressure, blood glucose, HgA1c, and cholesterol screenings, and providing MTM all in one visit. Family Pharmacy will be managed mainly by the Registered pharmacist and certified technicians to aid in processing payment. Patients wanting to be involved in Family Pharmacy will sign into a secured iPad located outside the registered area. After they will meet and discuss their goals, perform measurements, and then the pharmacists will provide her/his recommendation. The patient’s payment will be taken at the Pharmacy afterward. The patient may return for a follow-up visit anytime they want.
The Family Pharmacy will follow regulatory and standard requirements detailed in The American Diabetes Association’s (ADA’s) Standards of Medical Care in Diabetes is updated and published annually in a supplement to the January issue of Diabetes Care. To prevent our patients from any additional macro and microvascular complications. To assure the safety and the efficacy of the products that we will provide, the Family pharmacy will strictly comply with the Food and Drug Administration’s guidance and ensure all our products fall within Current Good Manufacturing Practices (CGMPs).
Besides, meeting all the legal requirements is also a critical investment needed to get our pharmacy business started. Obtaining relevant legal documents such as business registration certificates and the appropriate pharmaceutical board licenses is essential before getting any pharmacy business started. Such legal investments ensure that the entire pharmacy business operates within all the available legal boundaries.
The advertising component of Family Pharmacy will consist of brochures, television advertisements, and newspaper and online ads such as Facebook, Instagram, and Twitter advertisement. Family Pharmacy will need a $350,000 loan to start the business. We expect that our average annual expenses will be at least $250,000, and our gross income will be around $300,000. The majority of our revenue will grow from diabetes, hypertension A1c screening, MTM consultation, and product sales. We expect the payback period for our initial loan to be 2 years based upon our net income is around $250,000/year.
Family Pharmacy will fully operate in September 2021 to reach $120,000 in gross sales revenue by March 31, 2022. The expectation is to increase to a different location by September 2023. Our long-term market share goal is to control 25% of the diabetes products within 10-15years and at least have a 30% market share by year 5 of development. Failure to reach these goals would lead to the consideration of discontinuing services.
Background and Description
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Family Pharmacy is a newly innovated pharmacy that focuses on MTM, blood pressure, blood glucose, HgA1c, and cholesterol screenings at our currently owned Family Pharmacy. During 2019 The United States diabetes market growth reached a value of $49.4 Billion. Looking forward, the global diabetes market expects market to grow to $67.7 Billion by 2022. Family Pharmacy is an individual investigational business that hits into the essential crucial counseling.
Two key demographics our business is targeting are:
1.) elderly patients with permanent health issues who are uneducated about the value of their health screening.
2.) healthy people looking to increase their awareness about the importance of screening or just looking for a convenient place to shop.
Most pharmacies do diabetes and hypertension screening once or twice a year for a limited number of hours. But in Family Pharmacy, you will have an accessible screening daily and have a quality and individualized service. Still, also you will have a pharmacist who gives all his/her time to ensure that you understand everything about your health and all your health-related concerns, and all your questions are fully answered. The Family Pharmacy business will provide both two critical demographics at one convenient place.
Description
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Family Pharmacy is a newly innovated pharmacy that provides MTM, blood pressure, blood glucose, HgA1c, and cholesterol screenings to any patients. The patients will meet with a registered pharmacist and licensed technicians to review their medications and get up to date with all of their immunization and medication lists. Also, the pharmacist will get to screen the patients and consult them and answer any questions or concerns they may have.
The mission of Family Pharmacy is to create a friendly and healthy environment by providing a high quality of care with respectful and effective communication. Through these services, we hope to provide a relevant and much-needed service to our customers while improving the income of our Pharmacy. Clients can expect to pay a small upfront portion of copay and be rewarded with valuable improvements in their quality of life.
The expected outcome of Family Pharmacy is to affect the patients by improving their healthy being positively. We also anticipate that Family Pharmacy will positively impact the economic status of Knoxville County, possibly to the point of extension into new market areas.
Market and Competitor Analysis
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Potential Market
Family pharmacy will be opened in the West Knoxville area, which has a population of 191,000 people. The male-to-female ratio is evenly split at 50/50. The median age of the residents in this area is 31.8years, which is a great age to counsel them on their health or existing conditions before they get older. West Knoxville has an estimated higher median household income of $56,382 compared to the Tennessee median of $51,340. Most people in higher-income areas will be willing to educate themselves about their health, so this is an excellent population to target. The population size of West Knoxville has increased by 5.15% since 2010. We are about to implement this new business plan inside our already existing Family pharmacy at 9175 Kingstone Pike Knoxville, TN, 37923. This is location favors our goals because it is located at a shopping center where there is a clinic where patients can always pick up their prescribed medications. Behind Family Pharmacy, there is a substantial residential area with people of all ages ranging from infants to adults (> 65years old). To access the Walgreens and Kroger pharmacies, our great competitors, patients will have to walk/drive at least 0.5miles before making a U-turn to the opposite lane because there is a median strip separating the opposite lanes; this will be very inconvenient to the customers.
Target Market
The focus on health (MTM, blood pressure, blood glucose, HgA1c, and cholesterol) is an emerging concern in the United States, the U.S health system is trying to reduce the incidence of this disease and improve medication adherence, and that can be executed with the help of Family Pharmacy. The younger generation receives much more education about healthy eating habits. Still, the older generation needs extra counseling, making the West Knoxville area a good location with its advanced median age. We will be providing a lot of health services daily. Most patients might not be able to afford this, so we will allow clients to pay a small portion of copay upfront; Family Pharmacy is also located in an area with a higher income than the median state income.
Trends in Market
The estimated per capita income in 2017 was $47366 as compared to $30,576 in 2000. There is increasing buying power in Knoxville, Tennessee. In 2016 the market value for health and wellness was valued at 163.6 billion USD in the United States, and it is expected to reach 180 billion USD by 2021. Revenue from reached 31 billion USD in 2018 and is projected to add another billion USD to that revenue in 2020.
Market Share
Our goal is to reach a gross sales revenue of $120,000 through services provided and product sales by March 23rd, 2022 and expanding to a new location by September 2023. The estimated revenue generated by Walgreens and Kroger Pharmacies of nutritional supplements is ~ $950,000 annually. Projecting our goal revenue annually, we expect to control 53% of the local market through Family pharmacy.
Operations Structure and Processes
A Licensed Pharmacist and certified technicians will perform all other processes and services to ensure our customers are getting the valuable improvement to their quality of life and best health recommendations as possible. A Certified Pharmacy Technician will be processing payment for product sold and counseling. Operating Hours will include: M-F 8 am-8 pm, 9 am-5 pm Saturday, and closed on Sundays.
The Pharmacy will have a counseling area, a more private counseling room, an office, three registers, a drop-off window, a storage room, and a waiting area to seat up to 15 patients.
Patients who wish to receive services and counseling will sign in on a secure iPad located outside. Once the patient has signed in, the pharmacist will receive a notification. He/she will then get the paperwork ready and call the patient into the private room for whichever services they want; MTM could also be done at visits or over the phone. The patient will fill out a short questionnaire comprised of age, weight, health conditions, allergies, health/nutrition/exercise goals, and dietary restrictions. After reviewing the paperwork, our pharmacist will discuss goals and expectations with the patient and then make an appropriate recommendation based on their answers. A pharmacy technician will collect payment at the pharmacy register. Family pharmacy will accept cash or credit/debit payment, and insurances will also be accepted.
The equipment necessary for Family Pharmacy to implement this business plan are computers, printers, desks, chairs for patients to sit in the private room and waiting area, product to stock shelves, an advertisement for the service both inside and outside the store, iPad, informational pamphlets about dietary and nutritional supplements, scale, and measuring tape.
The personnel necessary will be Rebecca Smith, a graduate of the University of Tennessee with a Doctorate’s degree in Pharmacy. After graduation, she obtained her certificate to be a Licensed Pharmacist. She has six years of prior experience working with patients to improve their health, wellbeing and managing diseases at Parkside Medical Center in Knoxville, TN. Her duties and responsibilities will include assessing the patient’s health status, making appropriate recommendations, weighing, measuring, and calculating the patient’s body mass index. The certified pharmacy technician on duty will be responsible for collecting payment from the patient. All pharmacy technicians (7) working at Family Pharmacy have been approved by the Pharmacy Technician Certification Board and are up to date with license renewals and continuing education requirements. The following certified pharmacy technicians could potentially collect payment from the patient: Lexi (4 years’ experience), Tashia (3 years’ experience), Donald (10 years’ experience), Kevin (5 years’ experience), Leslie (8 years’ experience), Rust (1-year experience) and Robert (13 years’ experience)
During the business hours of Family pharmacy, there will be two pharmacists available and up to 4 certified pharmacy technicians to collect payment and assist patients with other services. Collecting payment will be the only aspect of Family pharmacy that anyone in the Pharmacy will be involved with other than the pharmacist who will be managing the pharmacist. The certified pharmacy technicians will report to their pharmacist and/or pharmacy manager for all pharmacy processes. If there is a question about the price, payment, or anything regarding the Family pharmacist, they will report to Mrs. Rebecca Smith’s.
Mrs. Rebecca Smith’s performance and Family Pharmacy’s business performance will be evaluated on March 1st, 2022. Mrs. Rebecca Smith’s performance will be evaluated semi-annually, and Family Pharmacy’s business performance will be evaluated quarterly after that. The performance evaluations will be performed by the owners (us).
SWOT analysis
Strengths
- Co-operating in both pharmaceutical and MTM, blood pressure, blood glucose, HgA1c, and cholesterol screenings services that meet the customer’s needs simultaneously and exact location will encourage patients for other medicines.
- Daily basis screening with certified pharmacists and technicians to ensure the best therapeutic outcomes, including outstanding customer service for all age stages, especially elderly patients, medically uneducated patients, and responding to the needs and expectations of public health questions.
- The excellent location of Family Pharmacy in a lively street connects downtown Knoxville with West Knoxville, surrounding it with great tenants.
Weakness
- Comparing other pharmacies, providing extra MTM blood pressure, blood glucose, HgA1c, and cholesterol screenings service will be considered an extra effort, time, and high cost for pharmacy compensations and business needs.
- We require extra private rooms equipped with the latest standards.
- Focusing on the MTM. program propaganda and getting distracted from our primary goal as a pharmacy business, and to be aware of misbranding advertising.
Opportunities
- Nowadays, there is excellent awareness of the importance of periodic health screening especially concerning COVID-19 national awareness. The increase in the labor market in Knoxville will have a positive effect on the improvement and development of the patient’s health and the significant increase in income to our Pharmacy. And since we will become the only ones in the surrounding region with certified pharmacists and technicians responsible for this service so far, it is a great opportunity to gain customer’s trust and build a strong reputation.
Threats
- Other retail pharmacies like Walgreens and Kroger, which are across the street or surrounding independent pharmacies, are aggressive market competitors. May offer better customer services or specialized products. Competitors’ pharmacies might be beginning a similar business plan to offer pharmaceutical and MTM, blood pressure, blood glucose, HgA1c, and cholesterol screenings programs services. Some patients do not need this extra service, considering pharmacists are only dispensers, not healthcare professionals.
Quality and Regulatory Issues
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As a new business in the pharmaceutical field, our two main goals are to ensure drug safety and effectiveness and facilitate access to medically valuable drugs. Our mission is not only to focus on the amount of desired outcomes achieved but also on the quality and accuracy of our products. To improve the health position, regulation is also required for a new career and existing products.
Regarding pharmaceutical quality and regulation of our products, we will accomplish drug’s life course activities by following recommendations of the United States Food and Drug Administration and Good Manufacturing Processes (GMPs), including inspection of manufacturing facilities, evaluate drug’s label and labeling, premarket screening, promotional activities, and post-marketing surveillance extended to drug’s intended for use in the diagnosis, treatment, prevention, and cure of disease. Our paramount responsibility as “Family Pharmacy owners,” we as pharmacists, with physicians, is to monitor drug’s benefits, risks, practical use, and its health consequences. The challenge for our new business is finding the right balance of interest for drug safety and efficacy in good timely manner access.
Overall foundation a new pharmaceutical business industry requires us to build trust for our customers by respecting their privacy following (HIPAA) policy Health Insurance Portability and Accountability Act of 1996, maintain regulatory compliance, inspiring consuming confidence with hard work creating life-changing medications, safeguarding against negative publicity to avoid consumer taking unintended medicines might interact with other medicines they are already talking results in unexpected side effect might occur later, and ensure compliance to prevent any misconduct by maintaining and documenting a pharmaceutical care plan allow communications between patients and staff, stay up to date following state and federal requirements in helping interpret laws and implementations, create training programs allowing staff to understand tasks and responsibilities to improve pharmacy quality assurance, documenting an annual audit checklist and schedule including previously asked questions during unexpected inspections to avoid future caught unawareness by due dates, finally choose a secure location for all related compliance records and information should be easy accessible from central of workplace.
Marketing Plan
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Family Pharmacy will promote and advertise these defined services to the elderly, but also all individuals. We want to provide our patients with screening services for the most common diseases to promote a better quality of life. Advertising and promoting strategies include but not limited to the following:
- Television advertisements: We will run a 30 second commercial in Knoxville local’s news three times a day for three months. This commercial will be on air Monday- Friday, during prime time. It will cost $80 for 30 seconds for a total of $9,600 for the three months.
- Brochures: We will print approximately 1,000 brochures detailing all of the services and products that we offer and be given to all the persons who visit the Pharmacy. They will cost $250.
- Newspaper: We will run a half-page advertisement in the Knoxville News Sentinel every week for three months. The weekly cost is $150 for a total amount of $1,800.
- Radio: The cost of a radio station advertising package in the three principal stations during prime-time hours, Monday- Friday from 6:00 am to 7:00 pm, would be $3,000 for three months. In this radio advertisement, we will announce that the first 500 people who visit Family Pharmacy will have a 10% discount on their total purchase and free screening.
- Social media: Family Pharmacy would be present on platforms such as Facebook, Instagram, and Twitter. Our budget for social media is $500/month. With this $500, we will hire a social media manager who will maintain and give follow-up and updates. We will pay $300/month, and the remaining $200 will be invested in ads on the different social media platforms. This plan is going to be run annually; the total investment cost is $6,00/year.
- Emails and text messages: We will be sending text messages and /or emails to all clients who have available refills. They will be sent individually according to the date on which each patient has the refill. We will also be using this service for patients who use the screening service to remind them when they have to do it again. For these to be possible, we would use an automated service; they offer 40,000 emails and text messages for $40 a month; this service would be annually for a total of $468.
All these announcements will begin in August, approximately two weeks before the opening of Family Pharmacy. They will be available until mid-November. After these three months, we will evaluate which of them was the most effective and continue to use it. Ads rates are suggested in exchange.
Financial Projections
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Investments Required
To open Family Pharmacy, we would need an initial loan of $350,000 to pay for the building, license, staff, marketing plan, buy merchandiser, and everything else we need for. Once Family Pharmacy has been opened and operating, the projected annual expenses will be $250,000 to cover the cost of staff, initial stocking shelves with products, maintaining product levels, and building maintenance. On a yearly basis, after the first year, these costs should decrease and stay the same given the economy does not collapse or something else happens. As Family Pharmacy grows, we will need to reassess our expenses and investments. However, we expect that our future expenditures would be at least $200,000 annually.
Sources of Revenue
We expect most of our revenue to grow from diabetes, blood pressure screening, A1c screening, MTM consultation, and product sales.
Potential Outcomes and Outlook
Hoping that everything goes well and that we have a good welcome in the community, we expect the payback period for our initial loan to be 2 years based upon our net income is around $250,000 annually.
Milestones, Schedule, and Action Plan
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| Milestone | Date | Department in Charge | Details |
| Legal requirements & documents | May 31, 2021 | Human Resources | In progress |
| Office area set up | July 15, 2021 | Executive | _ |
| Technologies, Software & store products | July 30, 2021 | Purchasing | _ |
| Advertisement | August 27, 2021 | Marketing | Begin approximately 2 weeks before Family Pharmacy’s opening. Available until mid-November |
| Official opening | September 11, 2021 | Executive/Teamwork | Full operation of Pharmacy |
| Gross sales revenue | March 23th 2022 | Finance | Goal to reach gross sales revenue of $120,000 through services provided and product sales |
| Quarterly pharmacist review | December 30, March 30, June 30, September 30, 2022 | Executive | The review has done every 3 months to assess pharmacists’ work |
| Quarterly store performance review | December 30, March 30, June 30, September 30, 2022 | Executive | The review has done every 3 months to assess Pharmacy’s progress, check up on cash flow, improve areas |
| 55% of local market share | December 2022 | Finance | Expect to obtain 55% of the local market share by next year December |
| Payback for an initial loan | August 2023 | Finance | Based upon our $250,000/year net income |
| Launch new location | September 2023 | Teamwork | It is based upon the performance of the first location and revenue. |
While these are our immediate goals, we plan to make Family Pharmacy a distinct facility that provides quality of care and a safe, reliable, and helpful environment for the community. So our expectation is for this program to succeed for us to expand to a second location, hopefully within two years. As mentioned previously, the long-term market share goal would be to control 25% of the diabetes products within 10-15years and possibly have a 30% market share by year 5 of development. We may not expand our business and perhaps consider discontinuation if we cannot attain these goals listed.
Exit Strategy
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We plan on taking very close precautions and monitoring so that we are not surprised by outcomes. We will be performing quarterly reviews to ensure that we return on our initial investment and marginal profit as projected. However, these preventative measures may still not be enough. We would consider terminating our business if we fail to achieve the goals stated previously, specifically if the cumulative loss exceeds $200,000 and we do not improve by the 18th month.
Our team is very proud and has confidence in the idea behind our company. It is essential for us to preserve our legacy and see Family Pharmacy continue. Because of that, if the opportunity presents, we would love to have a more competent partner, family member or employee, who is willing and able to take over. Transitioning the business to another with good background and knowledge of the business would be a win-win situation because we would still get to witness our idea succeed and see the community benefit. The exiting steps would first involve informing and working with our patients at least 3 months before closing/transitioning. This would create enough allotted time for them to find new measures for their wellbeing and decide which new journey to embark on. After that, we would work on the outplacement of our employees. Once we can find a definite, capable new leader, we would inform them of the transition and give them the option to decide if they would like to leave or work under the new leadership. This way, they are not left entirely without a job. If we cannot find a successor, our backup plan is to sell to another pharmacy or chain. We would still follow the same process mentioned previously for our patients and employees.
Conclusion
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Family Pharmacy is a patient-centered, community-driven establishment with the hopes of providing patients with not only screening services for common diseases but also overall suitable quality of life. Establishing a service such as Family Pharmacy in the community will ensure the safety and effectiveness of drugs and facilitate access to medications. The goal is to provide a safe, family-oriented, and accommodating practice site that today’s healthcare system lacks.
Reference
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- Knoxville, Tennessee. (n.d.). Retrieved from http://www.citydata.com/city/Knoxville-Tennessee.html
- Knoxville, Tennessee. (n.d) retrieved from
http://www.city-data.com/city/Knoxville-Tennessee.html.
- Digital pharmacist.com…. maintain pharmacy compliance with 5 easy steps!
- Diabetes drug reports and market share:
- ADA Standards of medical care in diabetes 2021 retrieved from:
- HOW MUCH DOES IT COST TO AIR A LOCAL COMMERCIAL IN KNOXVILLE https://beverlyboy.com/tv-commercial-production/how-much-does-it-cost-to-produce-a-commercial-in-knoxville/#:~:text=The%20next%20topic%20regarding%20your,times%20be%20considered%20location%20based.
