INTRODUCTION

Malaysian Pharmaceutical Society (MPS),is the national association for pharmacists

in Malaysia. Its motto is Service towards a healthy society. The society also represent the
interests of its member and also the general public by having representatives at the
Pharmacy Board and the Poisons Board of the Ministry Health, as well as having interest in
the customers affairs of the Ministry of Trade and Domestic Affairs and including other NonGovernmental Organizations.
The society aims to promote , maintain the honor and interest of the profession of
pharmacy . Moreover it helps to encourage and further the development of Pharmacy and
Pharmaceutical Education and to foster intra-professional relationship among members.
On the other hand, pharmacy can be defined in many ways. Pharmacy can be said
as
the branch of the health sciences dealing with the preparation, dispensing, and proper utiliz
ation of drugs or a place where drugs are compounded or dispensed. It is not the only place
to sell medicine but the art and science of preparing and dispensing drugs takes place here.

From the view point of the medical counsellor, pharmacies should be built as much
as possible due to the benefits of the medicines to the public. In addition, pharmacy is said
to be the mini clinic where you can always get your medicines if you are having shortage of
it. Besides we even can buy medicines for our illness such as headache, stomach ache,
vitamins, energy tonic and milk powder neither for babies nor adults.

Last but not least, we should have pharmacy in many places such as housing areas,
towns, near to the hospitals and even universities. As a responsible and good entrepreneur,
we have decided or planned to built a pharmacy at our TATIUC university.

PURPOSE

First of all, our main objective to start up a pharmacy business plan TATIUC is to provide
medications at superior prices. For an example, if the students, lecturers or the staffs of
TATIUC wanted to buy some medicines or vitamins, they always can get for the reasonable
and affordable price. They can save their budget for buying the medicines and many more.

Besides, by having a pharmacy in TATIUC it might help the students to save their time
for the sake to buy a medicince. Since the pharmacy is located at Kemaman town which is
located 3km far away from the university. Thus students can always save their time by going
to the pharmacy which is a stone throw away from the hostels.

In addition, we even can reduce the illness of the students, lecturers or the staffs of
TATIUC. For example, if anyone have minor problems or disease such as flu, headache and
sore throat they can the perfect and correct medicine as fast as lightning with the proper
prescription. They do not have to go to the hospital which is located far from the university.

Last but not least, by having a pharmacy in TATIUC, we can provide counselling of
dispensing of prescription and non-prescription drugs to the medical students. This might
improve and widen the knowledge of the students. They can get to know more about drugs
and the difference between harmful and non-harmful drugs

COMPANY BACKGROUND

Firstly the name of the pharmacy is TATIUC Pharmacy. This pharmacy will be
built on 28/11/2014. This pharmacy is located at TATI Universitiy and College, Jalan
Panchur,Teluk Kalong, 24100 KemamanTerengganu. In a simple way this pharmacy will be
located near to the entrance of TATIUC which will be beside the COOP Mart and the hostel
2(kediaman dua).

Besides this pharmacy will be fulfilled with traditional and modern medicines.
These medicines will have its own proper prescription and without any doctors or
pharmaciests prescription these medicines will not be distributed to the patients. Moreover,
these medicines have its level dosses that should be consumed. Due to that, the rules and
regulations of this pharmacy will be strictly controlled.

In addition, for the safety part of this pharmacy, we will have some CCTV
cameras in all direction of the pharmacy which means the four sides. There will be even
cameras out of the pharmacy. Next, we also had appointed two guards which will work on
two shifts, day time and night time.

Last but not least, we also had provided a mini lab in the pharmacy. We even
have the lab equipments to be used during experiments. Not only that we even had provided
the facilities to donate blood and pre-checking for diabetes and many others.

OWNERS AND PARTNERS BACKGROUND

ZULAILI

SANDRA

FAUZI

AFIQ

SAGITHA

ZARIN

We are five in a team starting from Zulaili Bin Mohammad, Ahmad Fauzie Bin
Mohamad, Mohd Afiq Izuddin Bin Fauzi and Luqman Zarin Bin Zaidi. We had planned to
built pharmacy for the benefits of students, lecturers, staffs and many others. To be detailed
Luqman Zarin Bin Zaidi will be the owner of the pharmacy, Sagitha and Sandra will be the
administrative managers meanwhile Zulaili Bin Mohammad, Ahmad Fauzie Bin Mohamad
and Mohd Afiq Izuddin Bin Fauzi will be the executive managers.

Besides we are going to work in a team and divide our duties. The first
investment will be ours. Since our owner of the pharmacy is one of the member in Malaysian
Pharmaceutical Society so its easy for us to get the informations and the proper procedure
to start up the pharmacy. Moreover Sagitha , Sandra , Haris, Zulaili and Afiq had attend to
the seminar for business planning

Name Of owner: Luqman Zarin Bin Zaidi

Identity card number: 880412115268
Permanent address: Lot 11284 lorong gong kuin 1, tok jembal , 21300
kualaTerengganu,terengganu
Email address: luqmanzarin17@gmail.com
Telephone number: 01114988500
Date of birth: 23 April 1996
Marital status: in relationship
Academic qualification: Master in marry
Skills: operation

Name Of owner: MOHD AFIQ FAUZI BIN FAUZI

Identity card number: 961219115033
Permanent address: LOT 1879 TAMAN NURYANTI KAMPUNG AIR TAWAR 22200 BESUT
TERENGGANU
Email address: mohdafiqfauzi@yahoo.com
Telephone number: 01129233623
Date of birth: 19 december 1996
Marital status: Single
Academic qualification: Master in medicine

Name Of owner: Sandra Vatheny a/p Subramaniam

Identity card number: 870108065040
Permanent address: No 3926 D , Jalan Telipot 15150 , Kota Bharu , Kelantan.
Email address: sandravatheny@yahoo.com
Telephone number: 0179066299
Date of birth: 7 July 1996
Marital status: Single
Academic qualification: Master in Business Administrative

Skills: Giving information on medicines and the uses

Name Of owner: Sagitha a/p Panirselvam

Identity card number: 870305115218
Permanent address:
Email address: sagi_chean@yahoo.com
Telephone number: 0165398343
Date of birth: 18 November 1996
Marital status: Single
Academic qualification: Master in Business Administrative

Name Of owner: Zulaili Bin Mohammad

Identity card number: 960616111234
Permanent address: 10224 Kampung Mak Chili Jalan Hasan Budu 24000 Kemaman
Terengganu
Email address: leeozil@coolmail.com
Telephone number: 0149405493
Date of birth: 16 June 1996
Marital status: Single
Academic qualification: Degree in Business Marketing
Courses attended: In Identify Medicine

LOCATION OF THE PREMISE

First of all, this pharmacy is located at TATI University and College, Jalan
Panchur, Telok Kalong, 24100 Kemaman, Terengganu. To be more detailed it is nearby the
main entrance of TATIUC.

This pharmacy covered 998 meter square feet. It is also secured with modern
and technical alarm system. Not only that , consists of two floors. The ground floor will be
occupied by medicines for customers meanwhile, the first floor will be used as the lab for
experiments , blood donating and equipment for pre-checking for diabetes and many others.

ADMINISTRATIVE PLAN
The mission of this business plan is to provide best reasonable price to customers
especially customers in TATIUC. Thus , attracts customers in TATIUC to buy medicines in
affordable price. This helps customers especially TATIUC students which facing budget
problems.

Besides, the main objective of this business plan is to helpTATIUC customers who is
facing major for the transportation. As the pharmacy had been built , it would be easy for the
customers to buy the medicines. Not only that , as the the rate of students whos getting sick
by the haze is increasing day by day. In this case , the amount of customers would be
increase day by day.

Not only that, the rate of business will increase as the day goes by with the
unpredictable customers. Moreover , this business plan helps TATIUC to gain profit income
within a year.

Scehudule and Responsibilities:

Working Hours : Sunday to Thursday ( 10 am till 7 pm)

: Friday to Saturday (10 am till 5 pm)

MARKETING PLAN
As for our market size , approximately 44 thousand half of whom fall within our target
market. Mostly , students of TATIUC is being targeted as their hostels are near to pharmacy.
The percentages of employment by industry are as follows: 28 percent services, 25 percent
wholesale and retail, 16 percent manufacturing, 14 percent government, 6 percent
transportation and communication, 6 percent finance and insurance, and 5 percent
construction.

One of the weakness point in this business plan are , this pharmacy is located near
to TATIUC coop mart. Thus , gives high competition as the coop mart provides the
medicines in reasonable price where customers could get the medicines .

TATIUC customers , mainly students , lectures and staffs are the target market for
this pharmacy business plan.

Financial plan
Capital
A
Expenditure

RM

Land & building

75,000

Machinery & equipment

15,000

Furniture & fixtures

10,000

Vehicle van (hire purchase)

25,000

Renovation cost

20,000

Sub total

RM

145,000

Working
B
capital(2 months)
Marketing

2,000

Production/operation

8,000

Administrative

8,000

Sub total

Other
C Expenditure
Pre-operating

18,000

RM

Business registration

2,000

Insurance

400

Road tax

200

Sundries

100
2,700

Deposits
Utilities (Telephone/water/electricity)

1000

Sub total

1000

Grand total

166,700

Add:
D COntigency cost (10%)

12,500

TOTAL PROJECT IMPLEMENTATION

137,500

COST

Depreciation schedules for fixed assets

Annual depreciation=(original cost of asset-scrap value)/assets economic life
Depreciation schedule
Type of asset : Van
Original cost : RM25,000
Economic life: 5 years
Scrap value : RM0
Method : Straight line
Year

Annual

Accumulated

Book value

Depreciation

depreciation

(RM)

(RM)

(RM)

25,000

5,000

5,000

20,000

5,000

10,000

15,000

5,000

15,000

10,000

5,000

20,000

5,000

5,000

25,000

i)

Plan for the Source of Funds available to finance the project implementation cost.

Equity Contributions

RM

Cash

27,500

Assets (land & building)

45,000

Sub total
B

72,500

External Sources
Hire purchase

20,000

Term loan

45,000

Sub total
C

RM

65,000

Others

TOTAL SOURCES OF FINANCE

137,500

Calculation of annual payment of principal and interest

Term loan

Hire purchase

Annual payment of principal:

Annual payment of principal:

RM45,000 / 5 yrs = RM9,000

RM20,000 / 5 yrs = RM4,000

Interest payment:

Interest payment:

Year 1: RM45,000 x 10% =

Year 1: RM20,000 x 8% =

RM4,500
Year 2: RM36,000 x 10% =
RM3,600
Year 3: RM27,000 x 10% =
RM2,700
Year 4: RM18,000 x 10% =
RM1,800
Year 5: RM9,000 x 10% = RM900

RM1,600
Year 2: RM20,000 x 8% =
RM1,600
Year 3: RM20,000 x 8% =
RM1,600
Year 4: RM20,000 x 8% =
RM1,600
Year 5: RM20,000 x 8% =
RM1,600

Term Loan Amortization Schedule

Loan amount:

Interest rate : 10%

RM45,000
Loan period : 5 years

Method : Annual rest

Year

Interest

Principal

Payment

Balance

(RM)

(RM)

(RM)

(RM)

45,000

4,500

9,000

13,500

36,000

3,600

9,000

12,600

27,000

2,700

9,000

11,700

18,000

1,800

9,000

10,800

9,000

900

9,000

9,900

Hire purchase Loan Amortization Schedule

Type of asset : Van
Cost of asset : RM25,000
Down payment : RM5,000
Loan amount : RM20,000
Interest rate : 10%
Loan period : 5 years
Method : Flat rate
Year

Interest

Principal

Payment

Balance

(RM)

(RM)

(RM)

(RM)

20,000

2,000

4,000

5,600

16,000

2,000

4,000

5,600

12,000

2,000

4,000

5,600

8,000

2,000

4,000

5,600

4,000

2,000

4,000

5,600

ii) Plan and view the business cash situation through the preparation of the
ProformaCashflow.
(1) Cash inflows: equity contribution in cash, term loan, cash sales, collection of
receiveable& sales of assets

(2) Cash outflows: operations, marketing& administrative expenditure, term loan

repayment.
(3) Cash deficits or surplus:
(4) Cash position:
Ending cash balance = beginning cash balance + surplus or (-deficit)

Example of pro forma Cash flow (annually)

YEAR
A

YEAR 1

YEAR 2

YEAR 3

Cash inflows:
Equity-cash

27,500

Term-loan

45,000

Cash sales

240,000

276,000

317,400

Total Cash Inflow

312,500

276,000

317,400

Cash Outflow:

Raw materials

36,000

37,800

39,690

Direct labour

36,000

37,800

39,690

Operation overheads

24,000

25,200

26,460

Sales commission

12,000

12,600

13,230

Entertainment allowance

6,000

6,000

6,000

Salaries & wages

60,000

63,000

66,150

EPF & SOCSO

12,000

12,600

13,230

Other administrative

24,000

25,200

26,460

Loan Repayment:

9,000

9,000

9,000

Principal

4,500

3,600

2,700

Operations Expenditure:

Marketing expenditure:

Administrative expenditure:

overheads

Interest
Hire purchase repayment:

5,000

Down payment

4,000

4,000

4,000

Principal

1,600

1,600

1,600

Capital expenditure:

23,000

Machinery & Equipment

7,000

Furniture & Fixtures

4,000

Renovation

2,700

1,500

1,500

Pre-operational Expenditure

800

Interest

Deposits
D

Total Cash Outflow

271,600

239,900

249,710

Cash Surplus/(Deficit)

40,900

31,600

67,690

Beginning Cash Balance

40,900

77,000

40,900

77,000

144,690

G Ending Cash Balance

Calculation of COGM

Raw Materials Used:

RM

Opening stocks(1/)

Add: Purchase of raw materials

36,000

Raw materials available

36,000

Less: Closing stocks(31/12)

3,000

RM

Direct materials

33,000

Direct labour

36,000

Prime cost

69,000

Manufacturing overheads

28,600

Work-in-process
Add: Work-in-process(1/1)

Less: Work-in-process(31/12)

0
0

Cost of goods manufactured

97,600

Calculation of Gross Profit (Manufacturing Entity)

RM

RM

SALES

240,000

COST OF GOODS SOLD:

Opening stock for finished goods (1/1)

Add: Cost of goods manufactured

97,600

Goods available for sale

97,600

Less:Closing stock for finished goods

3,000

(31/12)
94,600
GROSS PROFIT

145,400

Pro forma Income Statement for a Manufacturing Company

RM
SALES

RM
240,000

COST OF GOODS SOLD

Opening stock for finished goods(1/1)

Add:Cost of goods manufactured

97,600

Goods available for sale

97,600

Less:Closing stock for finished

3,000

goods(31/12)
94,600
GROSS PROFIT

145,400

LESS:OPERATING EXPENSES
Administrative expenses

96,000

Marketing

18,000

Ineterst:
Term loan

4,500

Hire purchase

1,600

Depreciation charges

7,200

Miscellaneous

2,700

Total operating expenses

130,000

NET PROFIT BEFORE TAX

15,400

a pro forma Balance Sheet for a Manufacturing Company

RM

RM

FIXED ASSETS
Land & building

45,000

Machinery & equipment

18,400

Furniture & fixtures

5,600

Renovation

3,200

CURRENT ASSETS
Cash

40,900

Closing stock for raw materials

3,000

Closing stock for finished goods

3,000

46,900

OTHER ASSETS
Deposits

800
139,900

TOTAL ASSETS
EQUITY
Capital

72,500

Accumulated profit

15,400

CURRENT LIABILITIES

87,900
0

LONG-TERM LIABILITIES
Term loan

36,000

Hire purchased

16,000

TOTAL EQUITY & LIABILITIES

52,000
139,900