Business Plan

PHARMACEUTICAL REPACKAGING PLANT

Founder: _______________________________

Address: ______________________

Phone: ________________________

E-Mail Address: _______@_______.com

Website: www.____________________.com
 i. EXECUTIVE SUMMARY:

The pharmaceutical repackaging plant provides services with the range of high quality
repackaging service of pharmaceutical products. The plant will be marketed primarily to the
pharmaceutical industry. These markets rely heavily on strong packaging to create awareness,
enhancing customer interest and ultimately sales. We will be able to sell our service at best
prices by carefully maintaining efficiencies in our operations and by targeting a specific segment
of the market - those customers or suppliers who pay for their medications themselves. By
focusing on this segment it gives us additional efficiencies - we avoid disruptions in cash flow
often associated with insurance payments and we can eliminate unnecessary services for the
type of knowledgeable, repeat customer taking maintenance-type medication.

We will operate from both mail order customers and those who visit in person. We will thrive
by employing friendly and knowledgeable personnel, which, along with our great prices, will
drive the repeat business that we will rely upon. We only expect that as the price of
repackaging continues to skyrocket, we will appeal more and more to the customer's sense of
value and convenience.

Our advertising, mainly through ads in magazines targeted at the over-55 crowd, will be
targeted at those who are looking to save money on a pricey but necessary and
regular expense.

The pharmaceutical repackaging plant will be led by an experience person who is passionate
about the pharmaceutical field. Costs will be minimized by maintaining only one pharmacist
and filling the void with pharmaceutical techs. We expect to reach profitability by our second
year and will generate substantial sales by year three. Improved technology and production
methods have made the rigid box a viable alternative to a folded box; this will serve to enhance
the marketing process of several potential customers or supplier. The scope for the provision of
a ‘pack-off facility’ further improves the range of services which our plant can offer its potential
customers.
 ii. GOALS AND OBJECTIVES:

The objectives for the first three years include:

 Exceed customer expectations with superior pricing

 Increase the number of customers by more than 30% per year
 Develop a business that survives off its own cash flow
 Modest revenues in first year, with slow and steady growth over the next two years.
 Increase gross margin significantly by the third year of operations.
 Achieve 20% of market value at the end of the third year of operation.

iii. MISSION:

The Pharmaceutical repackaging plant mission is to provide our customers with the best
services on best prices that bring goodwill in the market. Our convenience and services will
exceed the expectations of our customers. Our mission is to become the premier part of
industry. This will be achieved by offering reasonable prices, fast and environmentally sound
service, and maintaining 100% customer satisfaction.

iv. KEYS TO SUCCESS:

The keys to success are:

 Provide a market-needed service.

 Be as convenient as possible.

 Employ strict financial controls.

 Satisfy our customers so they will return again and again

 Maintain low overhead and operating costs

 Provide better prices than all our competitors

 Provide professional quality services on time and on budget.

 Develop a follow-up strategy to gauge performance with all customers.

 Implement and maintain a quality control and assurance policy.

v. MARKET ANALYSIS:

Demand for pharmaceutical repackaging products in US will rise 5.1% yearly. The potential
customers are both local and foreigners. Domestic customers include managed care groups; hospital
buying groups, physician groups, independent physicians, and medical supply. This comprehensive
study examines the US market for pharmaceutical re-packaging products, covering wide
market. Historical (2006, 2011, and 2016) data and forecasts for 2021 are presented for
pharmaceutical packaging products and markets. Statistics for product demand are provided in
dollars and units.

Market Analysis Pie

Physician Group
Managed Care
Hospital Group
Independent Practice
Foreign Market
Other

As indicated a niche market has been identified. Market research indicates the USA market for
repackaging. Pharmaceutical repackaging plant has set its sales target of year one, increasing in
slowly and steadily in three year. Year one target equates to a 10% share of the market.

There is the possibility of extending the business into the area of order fulfillment, which means
on-line re-packing of products for customers. This will lead to efficiency, costs savings and
shortened lead-time for potential customers. However, it is the director’s intention not to enter
this sector in the initial three years of operation.

Based on end-user, the market has been segmented into retail/community pharmacy, hospital
pharmacy, long-term care (LTC) pharmacies and mail order pharmacies. Retail/community
pharmacy segment is expected to remain dominant during the forecast period.

vi. MARKETING STRATEGY:

The marketing strategy will be based on targeted advertisements, appealing to the customer's
sense of value. The marketing campaigns will increase awareness of repackaging
pharmaceutical products with their target market. Nowadays, marketing approaches are very
customer-focused and services are oriented to satisfy customer needs. Services gain value in
order to find new markets and the purpose of marketing is to create an efficient production
process. At this point, industries are forced to use correct marketing strategies to differentiate
itself from its competitors and to provide the best customer satisfaction. Selecting the right
marketing strategies will decrease business costs, increase customer satisfaction and improve
the competitive capacity. Considering the complex profile of the marketing strategy selection
problem with many conflicting objectives, different criteria need to be taken into account for
deciding on the suitable strategy. Multi criteria decision making (MCDM) is a powerful tool
widely used for evaluating problems containing multiple and usually conflicting criteria.

vii. SALES STRATEGY:

The sales strategy will be based on generating long-term relationships with customers. To
facilitate them, we will provide our services at superior prices, keep stock for both quick
shipment and front pick up, and provide superior customer service. All sales agents will be
trained to provide friendly, knowledgeable customer service. By keeping to these simple, yet
effective, business practices, we expect that our customers will make this repackaging business
to the next level and achieve our sales goal. For some, consistency is an integral part of their
lives, so establishing long-term relationships will ensure a large, loyal customer base. One
method of achieving customer satisfaction is the awareness of the competitive environment.

By being aware of the services that are offered by the competitors, it will be much easier to
stand out as a preferred service provider. This sales strategy is based on the business
philosophy that it is less expensive to maintain current customers than it is to attract new users
ones.
viii. SALES PROGRAM:

Sales programs include direct wholesale sales to distributors. Sales materials, T.V promotions,
and support materials will be produced. Doctor’s materials will be included.

Direct sales will be by personal contact, direct mail, public relations, and media directed at key
industry segments. In addition electronic marketing will be deployed whenever it fits with the
buying patterns of a key group. A website and electronic commerce site will be utilized to
cultivate direct sales to key industry groups.

ix. PROMOTIONAL STRATEGY:

Public relations, industry media, will help in over-all industry awareness plans. Feature articles
and product reviews will help launch awareness. Direct mail to buying groups and ads in trade
publications will help with buyer impressions. Finally, all will be integrated with doctor’s
materials and T.V promotion once approval has been obtained to increase point-of-sale usage.

Social Media Strategy:

Social media advertising is a new tool in today’s world. All social media platform Facebook,
Twitter, LinkedIn and Instagram plays an important role in promoting services in a detailed way.

The Different Types of Social Media Platforms are:

 Social networking (Facebook, LinkedIn, Google+).

 Micro blogging (Twitter, Tumbler).
 Photo sharing (Instagram, Snapchat, Pinterest).
 Video sharing.

Promoting posts on social media is a great way of increasing the visibility. We will appear
nearer to the top and in more people’s News Feeds than if it wasn’t promoted. Once you know
which social media platforms you will focus on, you’ll need to sign up for an account and start
creating your business social media profiles, if you haven’t already. It’s important to keep
branding consistent when it comes to images and descriptions. Be complete as much of your
profile as possible to improve your chances of ranking in searches.
 x. COMPETITIVE EDGE:

Pharmaceutical repackaging plant has two competitive edges:

 Convenience: This competitive edge is made up of many different elements such as

convenient hours of operation, convenient location and convenience in terms of the
overall experience which is based on how quickly customers move through the process of
having pharmaceutical products re-package.

 Environmental sensitivity: This is a significant advantage because most competitors

cannot have the same commitment to the environment. It is rare for a business to be able
to take care of environmental sensitivity. Appearance is the main driver to this decision.
Re-packages products should have the fresh, crisp look for customers and it is important to
create a stamp of professionalism in the industry. It is more important for pharmaceutical
products to give off the appearance of environmental sensitivity to appeal new customers.

xi. SWOT ANALYSIS:

A SWOT analysis will help fine-tune your business strategy by examining internal and external
factors that may help or hinder your business. Identifying and understanding the strengths,
weaknesses, opportunities, and threats – that’s what SWOT stands for – allows you to address them
and make smarter decisions moving forward. The SWOT Analysis succinctly captures the strengths
and weaknesses of Pharmaceutical re-packaging business, and points to the opportunities and
threats that the market presents.
 STENGTH
- Permanent customers that help us
to breath in any circumstances. We
care for our permanent customers
with best services.
- Experienced employees with
specialist skills
- Proximity to Customer Locations
- Reduced Order Size
- Reduced Lead Time
- High Quality Service & Products
- Low Fixed Costs
OPPORTUNITIES
- Growing Market
- Offer an in-line packaging service
to customers
- Advance Production of main use
Items of customers to provide a
quick turnaround.
WEAKNESS
- Brand name not established.
- As we are more rigid to the
technology and as it is a new
business so we cannot upgrade the
technology straight away. Which
might be a disadvantage for our
business
THREATS
- New Entrant into Market
- Large Competitors
- Established Customer Relationships
and Loyalty
- Economic Turndown will reduce Sales
xii. ORGANIZATIONAL STRUCTURE:

C.E.O

Marketing manager Product manager

Distributors salesmen, designer, P.R manager Packaging (4), transport manager,

Direct salesmen, Telemarketing (2) Storage manager, quality control manager,

Secretary Accountant

CEO is considered the primary key manager/officer. His knowledge of the business, his history
of public appearances promoting the service, his increasing recognition by the health
community as an expert in natural medicine, and his charisma as a business professional
highlight his key role. Managerially, the other officers are thoroughly competent and could
manage the plant and market services without any guidance. At this critical early stage,
however, the plant needs an identity and a market position before the loss of any key managers
could be overcome. Once the premier service is securely launched and the product line is
expanded, the loss of any officer could be absorbed by continued proper management of the
company. Management believes that such a development is not far off, once the plant is
properly capitalized. Until such time, key person life insurance will be purchased.
xiii. PERSONAL PLAN:

Salary of personnel is reflected per one calendar month.

C.E.O $2500

Marketing manager $1000

Product manager $1000

Distributors salesmen $200 + 7% of sales

Direct salesmen $200 + 7% of sales

Designer 250%

P.R manager $400

Transport manager $350

Storage manager $350

Quality Control manager $350

Packaging (4) $150 (600$)

Telemarketing (2) $120 (240$)

Secretary $120

Total $7560
xiv. CONTINGENCY PLAN:

The main measures of contingency plan are:

 Incident response plan: This component of the plan primarily focuses on the immediate
response that is required when the incident first occurs. The plan outlines a complete
series of processes that guides others in anticipating, detecting, and mitigating the impact
on the business assets.

 Disaster recovery plan: This component of the plan primarily focuses on the preparation
for and then restoration of normal operations as soon as possible after the contingency has
occurred.

 Business continuity plan: This component of the plan primarily focuses on ensuring that
the critical business functions can go on when the contingency occurs. This may involve
facilitating business operations at a substitute location, until the business can restore
operations at the original location.

xv. OCCUPATIONAL SAFETY AND HEALTH:

The health and safety of our workforce is an extremely high priority for us, which is why we
undertake measures to prevent potential accidents and health hazards. In this regard, the
human resources activities support our plant in the optimal implementation and sustainable
execution of legally required standard as well as the prevention of occupational accidents.
Regular training ensures workers at our plant have the necessary qualifications and up-to-date
expertise. During safety audits, auction plans are developed which also address the changing
requirements for workplaces as a result of digitalization. The global rate of occupational
accidents per million hours worked was 15.8 due to their activities, 159 employees have a high
risk of job-related illness.
To maintain the health of our workforce throughout their working lives and beyond we offer a
broad spectrum of measures to keep employees physically and mentally fit. These include
ergonomically designed workplace and health days with stress tests and spinal screening.
Furthermore, we held information events about vaccination courses in autogenic training.

xvi. OVERVIEW OF RISKS:

Possibility Possible Implications

Business Strategy Risks:

Risks from acquisitions Improbable Significant

Product launches possible Significant

External and industry specific

risks

Customer market risk Possible Moderate

Macroeconomic risks Possible Significant
Risk of change in the Possible Significant
environment Possible Significant
Risks from the future
development of state
healthcare systems Possible Moderate
Tax risks Possible Moderate

Operational Risks

Production Risks Possible Moderate

Product liability risks Possible Significant
Energy and raw material prices Possible Significant
Human resources risks Possible Moderate
IT risks Possible Moderate
 Legal risks Possible Moderate

Financial Risks

Currency and interest rate risk Improbable Moderate

Credit risk Improbable Significant
Liquidity risk Improbable Moderate

xvii. FINANCIAL ANALYSIS:

a) Profit and loss statement:

The control and optimization of finances are primarily the responsibility of our repackaging
pharmaceutical plant. Our overriding objective is to safeguard liquidity at all times though active
control of currency and interest rate risk. We ensure an appropriate level of check and balance
on an ongoing basis through planning and central cash management.
PRO FORMA PROFIT AND LOSS YEAR 1 YEAR 2

Sales $441,822 $967,265

Direct Cost of Sales $176,729 $386,906

Other Production Expenses $0 $0

TOTAL COST OF SALES $176,729 $386,906

Gross Margin $265,093 $580,359

Gross Margin % 60.00% 60.00%

Expenses

Payroll $268,620 $322,960

Sales and Marketing and Other Expenses $8,400 $8,400

Depreciation $1,704 $1,704

Leased Equipment $0 $0

Utilities $4,800 $4,800

Insurance $3,600 $3,600

Rent $24,000 $24,000

Payroll Taxes $40,293 $48,444

Other $0 $0

Total Operating Expenses $351,417 $413,908

Profit Before Interest and Taxes ($86,324) $166,451

EBITDA ($84,620) $168,155

Interest Expense $0 $0

Taxes Incurred $0 $49,935

Net Profit ($86,324) $116,516

-19.54% 12.05%

Profit Yearly

150000

100000
Axis Title

50000

0
Year 1 Year 2
-50000

-100000
Axis Title
 b) Balance Sheet:

The following table shows the projected Balance sheet for two years:

PRO FORMA BALANCE SHEET YEAR 1 YEAR 2

Assets

Current Assets

Cash $69,525 $167,024

Inventory $28,838 $63,135

Other Current Assets $0 $0

TOTAL CURRENT ASSETS $98,364 $230,159

Long-term Assets

Long-term Assets $8,500 $8,500

Accumulated Depreciation $1,704 $3,408

TOTAL LONG-TERM ASSETS $6,796 $5,092

TOTAL ASSETS $105,160 $235,251

Liabilities and Capital Year 1 Year 2

Current Liabilities

Accounts Payable $32,484 $46,059

Current Borrowing $0 $0
Other Current Liabilities $0 $0

SUBTOTAL CURRENT LIABILITIES $32,484 $46,059

Long-term Liabilities $0 $0

TOTAL LIABILITIES $32,484 $46,059

Paid-in Capital $183,100 $183,100

Retained Earnings ($24,100) ($110,424)

Earnings ($86,324) $116,516

TOTAL CAPITAL $72,676 $189,192

TOTAL LIABILITIES AND CAPITAL $105,160 $235,251

Net Worth $72,676 $189,192

 c) Building and Construction Cost:

The costs of a constructed facility to the owner include both the initial capital cost and the
subsequent operation and maintenance costs. The magnitude of each of these cost
components depends on the nature, size and location of the project as well as the management
organization, among many considerations. The owner is interested in achieving the lowest
possible overall project cost that is consistent with its investment objectives.

It is important for design professionals and construction managers to realize that while the
construction cost may be the single largest component of the capital cost, other cost
components are not insignificant. For example, land acquisition costs are a major expenditure
for building construction in high-density urban areas, and construction financing costs can
reach the same order of magnitude as the construction cost in large projects such as the
construction of plants.

From the owner's perspective, it is equally important to estimate the corresponding operation
and maintenance cost of each alternative for a proposed facility in order to analyze the life
cycle costs. The large expenditures needed for facility maintenance, especially for owned
infrastructure, are reminders of the neglect in the past to consider fully the implications of
operation and maintenance cost in the design stage. In most construction budgets, there is an
allowance for contingencies or unexpected costs occurring during construction. This
contingency amount may be included within each cost item or be included in a single category
of construction contingency. The amount of contingency is based on historical experience and
the expected difficulty of a particular construction project. For example, one construction firm
makes estimates of the expected cost in three different areas:

 Design development changes,

 Schedule adjustments,
 General administration changes (such as wage rates),

Contingent amounts not spent for construction can be released near the end of construction to
the owner or to add additional project elements. Following are the most important building and
construction items with costs:
 ITEMS COSTS

Land $20,000
Water, Electricity and Gas $4,800
Pipe under driveway $8,000
Appraisal $1000
Clear lot $500
Gravel $100
Excavate $3000
Footings – Material $1200
Foundation – Material $8,447
Concrete Floors $10,000
Waterproofing $2000
Drainage system $15000
Termite treatment $2500
Framing – Material $13000
Windows $500 (per window)
Exterior doors $4500
Roofing – Material $4000(per square)
Roofing – Labor $70(per hour)
Brick – Material $500 (per thousand)
Brick – Labor $15 (per square foot)
Stucco $9 (per square foot)
Siding – Material $7.50 (per square foot)
Siding – Labor $4 (per square foot)
Electrical work – Labor $315 (per hour)
HVAC $6000