PHARMACY BUSINESS

AND
STAFF PLANNING
 OBJECTIVES
• IDENTIFY THE VARIOUS TYPES OF BUSINESS ENTITIES AND THEIR CHARACTERISTICS
• EXPLAIN THE BENEFITS OF DEVELOPING A BUSINESS PLAN
• OUTLINE ITEMS THAT SHOULD BE INCLUDED IN A BUSINESS PLAN
• DIFFERENTIATE AMONG TYPES OF ORGANIZATIONAL STRUCTURES
• DEFINE SENSITIVITY ANALYSIS AND EXPLAIN HOW IT CAN BE USED AS A PLANNING
TOOL
• LIST THE VARIOUS COSTS THAT SHOULD BE CONSIDERED WHEN ESTIMATING START-
UP COST
• RECOGNIZE THE IMPORTANCE OF IMPLEMENTING A STRATEGIC HUMAN RESOURCE
PLAN.
• EXPLAIN THE STEPS OF A PROACTIVE HUMAN RESOURCE PLAN
• IDENTIFY COMPONENTS OF PROFESSIONAL AND CULTURAL COMPETENCE.
• PHARMACY LEADERS AND MANAGERS SHOULD DEVOTE
SIGNIFICANT TIME AND ENERGY TO PLANNING.

• “ A GOAL WITHOUT A PLAN IS JUST A WISH” – LARRY ELDER

• PHARMACY BUSINESS AND STAFF PLANNING IS A NECESSARY FOR

PHARMACIST MANAGERS AND LEADERS, THEY ARE ALSO
IMPORTANT TO PHARMACIST WHO DO NOT UPHOLD A FORMAL
MANAGERIAL AND LEADERSHIP POSITIONS.
 WHY IS IT NECESSARY FOR A
PHARMACIST TO UNDERSTAND
THE BUSINESS ENVIRONMENT
AND ITS NUANCES?
 A PHARMACIST SHOULD FAMILIARIZE
THE VARIOUS TYPES OF BUSINESS
ENTITIES AND THEIR CHARACTERISTICS
 WHY IS IT IMPORTANT TO PLAN CAREFULLY?

• CAREFUL PLANNING IS CRITICAL TO THE BUSINESS

SUCCESS, WHETHER ONE IS STARTING A PHARMACY
RELATED BUSINESS/PROGRAM/PROJECT, IS A
MANAGER AT AN ESTABLISHED ENTERPRISE, OR IS A
STAFF PHARMACIST PROPOSING AN EXPANDED
SERVICE
 BUSINESS PLANNING
• BUSINESS PLAN

-A FORMAL DOCUMENT THAT CONTAINS BACKGROUND INFORMATION

ABOUT THE INTENDED OPPORTUNITY ( EG. BUSINESS, PROGRAM,
PROJECT) KEY PARTICIPATING MEMBERS IN ADDITION TO DESCRIBING AND
DETAILING THE STRATEGIES AND RESOURCES THAT WILL BE EMPLOYED TO
ATTAIN BUSINESS GOALS.
-ARE DECISION-MAKING TOOLS THAT CAN BE USED TO ASSESS THE
VIABILITY OF A NEW VENTURE AND CHART A COURSE OF ACHIEVING
GOALS WHILE ASSESSING AND BALANCING RISK TOLERANCE.
 BENEFITS OF DEVELOPING A BUSINESS PLAN.
• ASSISTS IN DEVELOPING A SOUND BUSINESS CONCEPT WITH A UNIQUE NICHE IN ASTABLE
AND PREFERABLY, GROWING INDUSTRY.
• HELPS TO FOCUS ON OBJECTIVES AND GOALS AND FACILITATES UNDERSTANDING OF THE
TARGET MARKET USING APPROPRIATE DATA AND ANALYSES
• IDENTIFIES THE STRENGTH, WEAKNESSES, AND OMISSIONS IN AN INITIAL ASSESSMENT OF THE
BUSINESS.
• SERVES AS A SELLING TOOL IN DEALING WITH IMPORTANT RELATIONSHIPS, INCLUDING
TARGET MARKET, STAFF, INVESTORS AND LENDERS (BANKS).
• ASSESSING THE NEED FOR A BUSINESS, SERVICE OR
PROGRAM IS AN INTEGRAL, PRELIMINARY ACTION THAT
NEED TO BE COMPLETED PRIOR TO DRAFTING A
COMPREHENSIVE BUSINESS PLAN.
• ACCORDING TO THE ENTREPRENEURSHIP: SUCCESSFULLY
LAUNCHING NEW VENTURES, THOSE PERSONS PROPOSING
A NEW CONCEPT SHOULD NOT NEGLECT THE FEASIBILITY
ANALYSIS.
FOUR THINGS SHOULD BE INVESTIGATED IN
FEASIBILITY ANALYSIS
 PRODUCT/ SERVICE

WILL MY PRODUCT OR SERVICE SELL, AND

HOW MUCH PROFIT WILL BE MADE?
 INDUSTRY/ TARGET MARKET

• WHAT SIZE IS THE MARKET, AND IS

THERE A POTENTIAL GROW?
 ORGANIZATIONAL FEASIBILITY

HOW EFFECTIVE IS MY TEAM, AND DO THEY

HAVE THE RIGHT SKILLS?
 FINANCIAL FEASIBILITY

•HOW MUCH MONEY IS NEEDED TO START

THE BUSINESS AND WHAT IS ITS EARNING
POTENTIALS?
PARTS OF THE BUSINESS PLAN
 EXECUTIVE SUMMARY

• BRIEFLY SUMMARIZE THE HIGHLIGHTS OF THE

BUSINESS PLAN. THIS ELEMENT SHOULD BE LESS
THAN TWO PAGES AND MAKE THE READER EXCITED
TO READ THE REST OF THE PLAN.
 BUSINESS PROFILE

• DEFINE AND DESCRIBE YOUR INTENDED BUSINESS

AND EXPLAIN HOW YOU PLAN TO ACHIEVE GOALS
• IT INCLUDES THE TIMELINE TO ACCOMPLISH A TASK
AND REVIEW THE PLAN
• IT ALSO INCLUDES THE MISSION AND VISION
STATEMENTS
 ACTION PLAN

OUTLINE A SERIES OF STEPS NEEDED TO

ACCOMPLISH A GOAL, MAYBE USED AS
AN ALTERNATIVE TO GANTT CHART
 PRODUCTS/ SERVICES

DEFINE WHICH PRODUCTS/SERVICES WILL

BE OFFERED BY THE BUSINESS
 MARKET ANALYSIS

USED TO DETERMINE THE NEED FOR AND

BENEFIT OF PRODUCTS OR SERVICES IN
RELATION TO SIMILAR PRODUCTS OR SERVICES
THAT MAY BE ALREADY AVAILABLE.
 MARKETING ANALYSIS AND PLANS

PROVIDES AN OVERVIEW/ANALYSIS OF THE TARGET,

INCLUDING THE IDENTIFICATION OF COMPETITORS AND THE
MARKETING STRATEGIES OF THE BUSINESS AS WELL AS
EXPANDING AND THE SWOT ANALYSIS.
 SWOT ANALYSIS

INCLUDES INVESTIGATING AND DETAILING

THE STRENGTH AND WEAKNESSES,
OPPORTUNITIES AND THREATS OF THE
BUSINESS.
 COMPETITIVE ANALYSIS

IDENTIFIES COMPETITORS AND ASSESS THEIR

STRENGTHS AND WEAKNESSES RELATIVE TO THOSE
OF YOUR BUSINESS
 OPERATIONS AND MANAGEMENT

DESCRIBE THE INTENDED ORGANIZATIONAL

STRUCTURE AND OPERATIONS INCLUDING ASSIGNED
RESPONSIBILITIES AND TASKS, WORKFLOW, AND
REQUIRED RESOURCES AND EXPENSES. ADDRESS
STAFFING/ PERSONNEL PLAN.
 ORGANIZATIONAL CHARTS

IS COMMONLY USED TO DISPLAY AN

ORGANIZATION’S STRUCTURES AND
ILLUSTRATES FORMAL LINES OF AUTHORITY AS
WELL AS RELATIONSHIPS BETWEEN POSITIONS
WITHING THE ORGANIZATIONS.
THREE TYPES OF ORGANIZATIONAL STRUCTURES
 HIERARCHIAL ORGANIZATION
STRUCTURED SO THAT EVERY ENTITY IN THE OORAGNIZATION, WITH
LIMITED EXCEPTIONS, IS SUBORDIANTED TO ATLEAST ONE OTHER
ENTITY.
ADVANTAGES: CLEAR DELINEATED AUTHORITY AND RESPONSIBILITY,
DEFINED MECHANISMS FOR PROMOTION, EFFECTIVE USE OF
SPECIALIZED KNOWLEDGE AND LOYALTY TO MANAGEMENT.
DISADVANTAGES: SLOW TO CHANGE TO MEET IDENTIFIED NEEDS
OOF CONSUMERS OR EMPLOYEES, POOR COMMUNICATION.
 FLAT ORGANIZATION

REFERS TO AN ORGANIZATIONAL STRUCTURES WITH FEW OR NO

LEVELS OF INTERVENING MANAGEMENT BETWEEN STAFF AND
MANAGERS.
ADVANTAGE: INCREASED COORDINATION AND DISTRIBUTION OF
INFORMATION, IMPROVED COMMUNICATION AND INCREASED SELF-
ACTUALIZATION AMONG EMPLOYEES
DISADVANTAGES: FEWER OPPURTUNITIES FOR ADVANCEMENT AND
GREATER ROLE OF AMBIGUITY
 MATRIX ORGANIZATION

USES A TEAM STRUCTURE WHEREIN TEAM MEMBERS ARE BROUGHT TOGETHER FROM DIFFERENT
DISCIPLINE AND DEPARTMENTS WITHIN THE ORGANIZATION TO WORK TOGETHER ON A
PROJECT OR PROCESS.
ADVANTAGES: RESOURCES SHARING, DIVERSITY OF EXPERTISE, IMPROVED COMMUNICATION
ACROSS DEPARTMENTS AND MINIMIZATION OF PROJECT COSTS.
DISADVANTAGES: DIFFICULTIES IN COORDINATING TASKS AND IDENTIFYING RESPONSIBILITY
FRO FAILURES.
 FINANCIALS/ECONOMIC ASSESSMENT

PROVIDE A COMPLETE ASSESSMENT OF THE

ECONOMIC ENVIRONMENT IN WHICH YOUR
BUSINESS WILL OPERATE INCLUDE THE ONE
YEAR CASH FLOW.
 SENSITIVITY ANALYSIS

IT EXAMINES HOW DIFFERENT VALUES OF AN

INDEPENDENT VARIABLE MAY AFFECT A
DEPENDENT VARIABLE BASED ON THE CHANGES
IN ASSUMPTIONS UPON WHICH PROJECTIONS
ARE DETERMINED.
 THE FOLLOWING COST SHOULD BE CONSIDERED UPON
PUTTING A BUSINESS
• COST OF SALES: COST RELATED TO THE SALE OF THE PRODUCT( EG. INVENTORY, RAW MATERIALS,
PACKAGING AND SHIPPING)
• PROFESSIONAL FEES: COST RELATED TO LEGAL AND ACCOUNTING MATTERS ( EG. SETTING UP THE
BUSINESS LEGAL STRUCTURE, PARTNERSHIP AGREEMENTS, PATENTS AND COPYRIGHTS AND
ATTORNEY AND ACCOUNTANT FEE)
• TECHNOLOGY COST: COST RELATED TO INFORMATION TECHNOLOGY ( EG. COMPUTER HARDWARE
AND SOFTWARE, CELLPHONES, SECURITY SYSTEMS)
• ADMINISTRATIVE COST: COST RELATED TO DAILY OPERATION OF THE BUSINESS ( EG. RENT,
POSTAGE, OFFICE SUPPLIES).
• SALES AND MARKETING COST: COST RELATED TO MARKETING AND ADVERTISING ( EG.
STATIONARY, NEWSPAPER OR TELEVISION ADVERTISEMENT)
• WAGES AND BENEFITS: COST RELATED TO PERSONNEL ( EG. SALARIES, PAYROLL TAXES, FRINGE
BENEFITS)
 SUMMARY/CONCLUSION

HIGHLIGHT THE CRITICAL POINTS

OF PROPOSAL.
 APPENDICES

INCLUDE SUPPORTING DOCUMENTS

AND OTHER MATERIALS THAT CAN
SUPPORT THE PROPOSAL