Material for Business Plan

Entrepreneurship, management and innovation

Group Task

The objective of this exercise is to train the student on how to commercialize pharmacy services and develop
an initial business plan.

Task list:
1. To discuss suitable pharmacy services that can be introduced and commercialized to a community
pharmacy.
2. To discuss major components of a business including income and expenditure.
3. To develop and write a business plan (should be submitted as a group report).
4. To draw a plan and a model for community pharmacy (should be presented as a layout or virtual 3-D
model (optional)).
5. To pitch an interesting business idea in less than 7 minutes trying to persuade the investors to invest
money in your business idea (should be presented as a video presentation).

Materials & Hints

1. Retail plan (please refer attachment)
2. Rental of premise RM15 000/month
st
3. Initial Capital RM200 000 (up to the 1 3 months)
4. Income includes cash sales, cash from debtors and loans/grants
5. Expenditure includes payments to creditors, cash purchases, licenses, wages, EPF, tax, rent, electricity,
water and telecom bills, postage, stationery, advertising, travel expenses, insurance bank/finance
charges & interest, leasing payments and capital expenditure

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 Material for Business Plan

A Business Plan

Writing a Business Plan

As part of business planning, you will need to thoroughly research the sector in which the business will
operate. A business plan is produced for two reasons. First of all, anyone that you are going to approach for
funding for the business needs to see that the proposal has been carefully researched. They will want to know
how the business will operate; why you consider that it will be successful; and what financial performance to
expect. Secondly, but no less important, you need to set out clearly your objectives and targets so that you can
monitor the performance once the business is up and running.

The content of a Plan

History of the business

If the business has been up and running for a while and now you propose to expand, or change direction, you
should include some details of when it first started; how it has performed financially; and how the new project
will build on the existing business.

The proposed business

You should include in this section an outline of the plan of business to set up, saying how it is different from its
competitors; its unique features (the Unique Selling Point, or USP); and why customers will choose your
pharmacy or products. The market research you carried out as part of estimating your cash sales will help you
with this.

Management of business
Anyone lending money for a business will want to be reassured that the person involved in running the
business will have the necessary management skills. This should include details of previous management
experience, identifying strengths and recognising any weaknesses by saying how to overcome these.

The market
It is very important that you identify the sector of the market that your business will operate in and whether
this is growing, static or contracting. You should set out the strategy for winning market share and keeping
customers loyal to you; identifying who will be the major competitors and how you will deal with any possible
threat to the business; pricing, advertising and selling.

Practical matters
In this section you should cover where the business premises will be; the equipment you will need; where your
supplies will come from; and other operating details (staff, rental etc).

The figures
As well as a business plan, you will also need to complete a cash flow forecast and a profit and loss forecast for
your new business venture. You should include notes explaining all the reasoning behind the figures you
include. These notes should identify anything that might affect these forecasts, to demonstrate that you have
anticipated the possibility that things may not go exactly according to plan.

The future
You should outline how you see the business growing and developing in the future. If you are looking to raise
money for your venture you should include details of how much you will need and how the money will be
repaid. Don't forget to make your business sound interesting to a prospective investor by stressing its unique
features and demonstrating how well you have researched the market.

Format of a Business Plan

10-15 pages length, 1.5 spacing, 12-point size font

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 Material for Business Plan

SHOP LOTS LOCATION

TAMAN PANCASITARA
CHERAS, 58000 KUALA LUMPUR

Exit Exit

LOT 1

LOT 4

LOT 9 LOT 6

Exit
Exit

3 meters

Hard wall Floor Plan & Group

Entrance
Glass window display Lot 1A & 1B: Group 1 & 5
Exit Emergency Exit (90cm width)
Lot 4A & 4B : Group 2 & 6
Lot 6A & 6B : Group 3 & 7
Lot 9A & 9B: Group 4 & 8
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