pharmaceutical territory business plan

How to Write a Pharmaceutical Sales Business Plan

by Deb Dupree

Published on 26 Sep 2017

Success in pharmaceutical sales is arguably easier with a well-developed business plan. A business plan helps establish the framework of what you want to accomplish in pharmaceutical sales and how. Creating a pharmaceutical sales business plan is no different from creating a plan for any other business, as the purpose is to map out actions for achieving financial success. By following standard conventions, you can create a pharmaceutical sales business plan that's specific to the products you sell.

Clarify Business Vision and Goals

Start by establishing a clear business vision and pharmaceutical sales goals for maximum business success. A business vision is a desirable future state you want to achieve in pharmaceutical sales, such as increasing drug pricing competitiveness, expanding sales territories, or offering higher quality products or services. Once you are clear on where you want to take your business, you can address meaningful goal-achieving strategies in the business plan.

Gather Pharmaceutical Sales Information

A business plan is as good as the work and information that goes into developing it. Pull together enough quality data to write a detailed description of how you plan to achieve business goals, including plans for developing, analyzing and improving product sales. For example, sales territory demographics, drug use by demographics, and physician or hospital data is important for figuring out pharmaceutical marketing strategies. Also, gather information necessary to write business plan basics, such as a company overview, product descriptions, current financial status and future growth projections.

Analyze Business Hurdles and Strong Points

The prep work for writing a plan also includes assessing pharmaceutical sales business strengths, weaknesses, opportunities and threats. This assessment provides a balanced business view, as well as the information necessary to manage barriers and to build on business assets. For example, a strength may be the ability to offer a highly popular drug or medication; a weakness may be that a sales territory is oversaturated with competition -- though on the other hand, there may be an opportunity to expand in another territory. A threat may be a looming drug supplier price increase.

Use a Template

With all pertinent information on hand, it’s time to write your pharmaceutical sales business plan. You don't need to start from scratch, as there are free business plan templates readily available online, and you can adjust them to suit a pharmaceutical sales business model. Using a template allows you to forego the worry about how a plan should look so you can focus on content. Your finished product should be as long and it needs to be to create a functional business blueprint, but 20 to 40 pages are not uncommon.

Regularly Review Progress

The last step is to regularly review and update your pharmaceutical sales business plan and sales progress. A regular review helps with assessing and measuring actual drug sales versus projections. For example, if sales of a certain drug are hindered by FDA concerns, you can revisit your marketing and sales strategies for that product and make timely adjustments. The goal is to build on business plan strategies that work and change the ones that don’t.

From Planning to Execution: A Comprehensive Guide to Pharma Sales Territory Management

Masaba Ahmad

Executive Summary : Pharmaceutical sales territory management involves strategically dividing the market into specific geographic or account-based regions to optimize sales efforts and revenue potential. This article explores four common ways to assign territories, key aspects of effective territory management, and actionable tips to enhance your pharmaceutical sales territory management strategy.

Territory management forms the backbone of pharmaceutical sales. It ensures that each sales rep covers their designated area efficiently, leaving no gaps or overlaps.

By tailoring their approach to each healthcare professional's unique needs and preferences, sales teams build strong relationships, provide valuable information, and deliver targeted sales pitches – all in pursuit of better patient outcomes and brand loyalty.

In this article, we’ll cover everything you need to know about pharma sales territory management. We’ll highlight what it is, how to execute it successfully, and provide some tips to do it effectively.

What is Pharma Sales Territory Management?

Territory management in pharma sales refers to the strategic process of dividing and organizing the market into specific geographic or demographic regions.

The aim is to optimize sales efforts and maximize revenue potential.

Pharmaceutical companies often employ territory management to ensure that their sales representatives effectively cover the target market, engage with healthcare professionals, and promote their products to potential customers.

Now, let’s look at the four common ways to assign territories:

1. Territory management by geography

This method involves dividing territories based on geographical areas such as zip codes, states, or countries.

Sales representatives of pharmaceutical companies are allocated to specific territories based on the geography size, and healthcare professionals (HCPs) are also grouped geographically.

This approach helps reduce travel time and expenses for sales reps and allows them to focus on serving HCPs within their designated area without overlap.

2. Territory management by accounts

In this approach, territories are assigned based on the specialties of healthcare professionals, such as pediatricians, cardiologists, orthopedics, and others.

Sales reps with specific knowledge of drugs or therapeutic areas are assigned territories based on the type of HCPs they need to engage with. This allows reps to build expertise in specific medical specialties and tailor their interactions accordingly, irrespective of geography.

3. Territory management by geography + accounts

This approach combines both geography and accounts to create territories that are more effective in targeting specific HCPs.

Sales reps may be assigned multiple zones, and certain HCPs with particular specialties might be excluded from their territory. This type of territory management can be complex to create but can offer more targeted and efficient sales efforts.

4. Territory management by company size

Under this option, territories are assigned based on the size of the company or the potential of the HCPs. New sales reps may be assigned smaller deals, while senior reps with more experience and capabilities may handle larger accounts.

However, territories divided in this manner are subject to change as the strengths and capabilities of sales reps evolve.

How to Execute Pharma Sales Territory Management in 5 Steps

Effective territory management is crucial for the success of pharmaceutical sales teams. It involves a strategic approach to divide sales territories, allocate resources, and engage with healthcare professionals (HCPs) to drive revenue growth and achieve sales targets.

Let's explore the key aspects that form the foundation of pharmaceutical sales territory management:

1. Geographic segmentation and territory design

Geographic segmentation is one of the primary methods used in pharmaceutical sales territory management.

Sales territories are divided based on geographical areas such as zip codes, states, or countries. This segmentation helps ensure that each territory has a well-defined boundary and no overlap or gaps in coverage.

Territory design is optimizing the allocation of sales representatives to different geographic regions. The goal is to balance the workload and ensure sales reps can efficiently reach and engage with HCPs within their designated territories.

How does this help?

Effective territory design reduces travel time and expenses while maximizing the sales team's productivity.

2. Healthcare professional coverage and engagement

Pharmaceutical sales reps need to engage with various types of healthcare professionals, including doctors, pharmacists, nurses, and other key decision-makers.

Territory management involves identifying and categorizing HCPs based on their specialties, preferences, and prescribing behaviors. Sales teams tailor their engagement strategies according to the unique needs of each HCP.

This targeted approach allows reps to:

• Build strong relationships.
• Provide valuable product information.
• Address specific medical needs.

This ultimately drives better outcomes for patients and increases brand loyalty.

3. Account targeting and customer profiling

In addition to geographic segmentation, pharmaceutical companies also use account-based territory management. Instead of solely relying on geography, territories are assigned based on specific accounts or healthcare institutions.

Account targeting involves identifying high-potential accounts that are likely to generate significant sales.

On the other hand, customer profiling helps sales reps understand each account's needs, preferences, and challenges – enabling them to deliver personalized and compelling sales pitches.

4. Setting realistic sales quotas and goals

Territory management plays a pivotal role in setting realistic sales quotas and goals for each sales representative.

By analyzing historical sales data, market trends, and individual performance, sales leaders can determine achievable targets for each territory.

Additionally, realistic sales quotas help:

• Motivate sales reps.
• Drive performance.
• Align individual goals with broader company objectives.
• Ensures that the workload is evenly distributed, preventing undue pressure on any one territory.

5. Compliance with regulations and industry guidelines

The pharmaceutical industry is heavily regulated, and sales activities must comply with various laws, including anti-kickback statutes and transparency requirements.

That is why you need to make sure that your sales reps are well-informed about compliance guidelines.

Moreover, territory managers should monitor sales activities to ensure adherence to these standards.

Implementing a robust territory management system that incorporates compliance checks helps build trust with healthcare professionals and fosters a positive reputation for the pharmaceutical company.

4 Proven Tips for Effective Pharma Sales Territory Management

Here are some best practices to enhance your territory management efforts:

1. Ensure Collaborative sales team communication and coordination

Effective communication and collaboration among sales team members are fundamental to successful territory management.

To do so, encourage regular meetings and open channels of communication to share insights, best practices, and challenges faced in respective territories. This allows sales reps to:

• Learn from each other.
• Leverage collective expertise.
• Develop innovative approaches to engage with healthcare professionals.

Additionally, coordination among team members ensures seamless coverage of accounts, reduces duplication of efforts, and fosters a unified sales approach across territories.

2. Use automation tools

Automation tools can help automate administrative tasks like call reporting and incentive calculations. This allows sales reps to focus more on building relationships with HCPs.

Moreover, data analytics tools can provide valuable insights into territory performance – enabling sales managers to make data-driven decisions and optimize sales strategies.

Invest in robust Customer Relationship Management (CRM) systems that offer territory mapping features, sales performance analytics, and account management capabilities.

3. Invest in continuous training and development opportunities

Regular training and development are crucial for empowering sales representatives with the knowledge and skills needed to excel in their territories. Consider offering ongoing training sessions that cover product updates, industry trends, selling techniques, and compliance regulations.

Additionally, sales representatives should also receive training on using CRM and other tools to manage their territories efficiently.

Investing in continuous development equips your sales team to navigate challenges, adapt to changing market dynamics, and deliver exceptional customer experiences.

4. Conduct periodic evaluation and adjustment of territory plans

Territory planning and management is a dynamic process that requires periodic evaluation and adjustment.

Here’s how you can do that:

• Monitor key performance indicators (KPIs) to assess territory performance, such as sales revenue, customer engagement metrics, and conversion rates.
• Regularly review and analyze the data to identify underperforming territories and areas of improvement.
• Use insights to make data-driven adjustments to territory plans, such as redistributing accounts, reallocating resources, or redefining territory boundaries.

By conducting regular evaluations and adjustments, you ensure that your territory management strategies remain agile and responsive to market changes, enabling your sales team to stay ahead of the competition.

Final Thoughts

Pharmaceutical sales territory management is a multifaceted process that requires careful consideration and planning.

You need to adopt strategic approaches such as geographic segmentation, account targeting, and setting realistic sales quotas. This can maximize your sales team's productivity and help you achieve your business objectives.

Moreover, continuous evaluation and adjustment will allow you to stay agile and responsive to market changes, ensuring sustained success in the respective territories.

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Sales territory planning: The five minute territory plan and template

What is a sales territory plan?

The number one issue for sales leaders today is – pipeline, pipeline, pipeline. How’s your pipeline looking? What’s your pipeline coverage gap look like? Well, we got you covered.

We have proven ways to quickly build self-sourced pipeline and progress pipeline faster too. It all starts with planning – territory planning. Sales territory planning is a proven way to empower sales teams to prioritize accounts and activities to generate more pipeline and close more deals – faster.

A sales territory plan is a strategic document that outlines how a sales team will approach and manage sales activities within a specific geographic area or market segment. The primary goal of a sales territory plan is to optimize the allocation of resources, increase sales effectiveness, and achieve revenue targets within the assigned territory. A territory plan serves as a roadmap for a salesperson and sales team, guiding their efforts and helping them stay focused on achieving success within their assigned territory.

Territory planning offers several benefits to organizations, sales teams and salespeople. Here are some of the advantages.

• Clear sales objectives
• I ncrease sales and revenue
• Increase sales efficiency
• Develop more self-sourced pipeline
• Optimize resource allocation
• Improved focus and activity prioritization
• Better customer relationships
• Deeper understanding of customer and market needs
• Improved customer retention and growth
• Enhanced team collaboration

The five minute sales territory plan

We believe there’s nothing better than old school, back to basics, sales territory analysis, planning and prospecting. Here’s a short talk outlining how to get your team embracing territory planning as a path to create self-sourced demand. Imagine what would happen to your business and pipeline if every seller documented their own territory plan and then video recorded a short and thoughtful five minute version of it?

We call this the “Five Minute Territory Plan.”

Reps love the 5 minute territory plan:

“I found recording my sales territory plans to be such an illuminating experience. It helped me identify gaps in my strategy, evaluate what I was saying and why I was saying it. The AI was real time and the feedback was spot on. I feel I’m better for it and looking forward to doing more”. – Ben

Turn territory planning into an i nteractive experience for your sales teams by making everyone part of the process and accountable for results. I believe our quota carrying, revenue generating sales executives need to own self-sourcing pipeline. Territory planning is the way to reinvigorate it. Here are the secrets to making “territory planning and prospecting” a revenue generating peer activity appreciated versus criticized.

• Have vision and leadership to make it part of your sales culture
• Make territory plans relevant, short, and accessible to share best practices
• Do sales territory planning quarterly or even monthly

Vision and leadership make it happen

Companies that embrace the idea of video recording territory planning with Sales Enablement Platform on a regular basis, with peer reviews, are seeing tremendous increases in self-sourced pipeline and improvements in new hire time to ramp. Think about it. Imagine if every new hire had access to stack-ranked video recordings of territory plans grouped by tenure. What would happen to your team’s time to first deal and time to ramp metrics? The power and value of crowdsourcing is incredible. We all know that some of us are great at planning and others aren’t so great. Making territory planning a team sport is a chance to get everyone to learn how to plan like those who do it best. It takes vision to turn crowdsourcing territory plans into culture. It takes work to align teams on expectations. It takes discipline to make it stick.

Make the plan relevant, short, and accessible

Here are the basics of a sales territory plan proven to create pipeline and generate revenue fast. Start by sharing a territory planning template that’s relevant and short. Click here to download our template. Turn the territory plan into a collaborative business review.

Have your team document the facts of the territory and goals.

Then, move into top prioritizing accounts to prospect. Prioritize top accounts and explain why they are chosen (relationships, industry fit, target profile). For each, in one sentence, be clear and focused on the outreach strategy.

If some of the accounts are ready, have your teams create an opportunity plan and make sure opportunity plans are thorough. It doesn’t take much to know if there is a plan in place.

• What’s the compelling event?
• What’s the strategy to engage with a champion and economic buyer?
• What’s the mutual success plan?

We’re not doing deep detailed reviews. You can also follow a MEDDICC/MEDDPICC deal review format too.

Close out the plan with strategies to build pipeline. Don’t forget that we’re living in a 3X or even 5X pipeline-ratio world. Putting “pen to paper” on these territory statistics makes it super clear what needs to get done, to earn a spot on the beach celebrating club.

That’s the flow of the five slide and “Five Minute Territory Plan” template. Download the template now .

The benefits AI and sales territory plans

Artificial Intelligence (AI) can significantly enhance the effectiveness of sales territory planning by providing advanced analytics, automation, insights and coaching. Here are several ways in which AI can assist in sales territory planning:

Data Analysis and Insights: AI can analyze vast amounts of data, including customer demographics, purchasing behavior, and market trends, to provide valuable insights into each territory’s potential.

Customer Segmentation: AI algorithms can perform advanced customer segmentation based on various factors, enabling sales teams to target specific customer groups with tailored approaches.

Automation of Routine Tasks: AI can automate routine and repetitive tasks, such as data entry, report generation, and administrative activities. This allows sales teams to focus more on strategic planning and customer engagement. SalesHood’s AI Call Recaps and AI Coach are great examples.

Content recommendations: AI-driven personalization can enhance sales effectiveness within each territory by tailoring campaigns to the specific preferences and needs of local customers.Recommendation engines can suggest personalized offers and content, increasing the relevance of marketing materials.

Coaching: AI-powered collaboration platforms facilitate communication and knowledge-sharing among sales team members working in different territories.

A great use of AI is to provide coaching feedback to salespeople in real-time on their sales territory plans. The power of AI with territory planning is that you will make your review process more effective and efficient. It’s a game-changer for sales leaders, sales managers and sellers. Here are the benefits of using AI to inspect, review and coach territory plans:

• Reps and team show up ready for team reviews
• 10X review volume and quality
• Coaching in the moment

Here’s a video explaining the benefits of using AI to coach sellers and provide feedback – especially relevant for account and territory reviews.

Overcome territory planning objections and barriers

For many, sales territory planning is not perceived as a revenue generating and pipeline building activity. It’s our job as managers and coaches to guide our teams to breakthrough these barriers. Here are some questions to pose during a team meeting, kickoff event or one-on-one.

• What limiting beliefs are holding us back?
• What do we have to do to achieve greatness?
• How do we need to grow personally and professionally?
• How should we think differently?
• What behaviors need to develop, change, and evolve?

Sales territory planning cadence

Given the sales territory plan template is short, forward thinking leaders are building monthly and quarterly territory planning cadence. The short plans get sellers to focus on strategy and execution versus too much time filling out slides that aren’t relevant. We want to see more sellers take the time to be thoughtful about their plan and business. What we love most about this process is getting everyone to limit their territory planning to five minutes. Less is more. Less slides and less words is hard to accomplish.. We’ve learned when territory planning video recordings are five minutes or less (and accessible), sellers will invest the time to watch up to fifteen peer territory plans. We have also witnessed that with AI sellers are taking time to get feedback multiple times on their plans before submitting for approval by their managers.

The process and benefits apply to account planning too. If you want to learn more about Account Planning, here’s another blog you can read . You can scale Territory Planning and Account Planning with our AI Coach .

We have proven ways to quickly build self-sourced pipeline and progress pipeline faster too. Sharing hyper-personalized sites to educate and elevate prospecting outreach is working wonders for many of our customers.

✅ 60% pipeline conversion ✅ Win-rates are up 2X ✅ Deal velocity up 15% ✅ Deal size up 400%

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How does SalesHood help with territory planning?

SalesHood is an AI-powered revenue execution platform designed to support various aspects of sales effectiveness, including training, coaching, and collaboration. SalesHood plays a role in facilitating certain aspects of the sales territory planning process including planning, prospecting and personalization. Here’s how SalesHood can contribute:

Training and onboarding: SalesHood provides a platform for creating and delivering training content. For sales teams involved in territory planning, this can be valuable for onboarding new team members or ensuring that existing team members are up-to-date on the latest strategies and approaches related to territory management.

Content creation and best practice sharing: SalesHood allows organizations to create and share content related to sales strategies, market insights, and best practices. This can be useful in the context of territory planning by providing a centralized repository for information that can be accessed by sales teams as they plan and execute strategies within their assigned territories.

Collaboration and communication: The collaboration features of SalesHood facilitate communication and knowledge-sharing among sales team members. This can be beneficial for coordinating activities within and across territories, allowing teams to share insights, success stories, and challenges.

Coaching and feedback: SalesHood supports coaching and feedback mechanisms, enabling managers and peers to provide guidance to sales representatives. This can be particularly useful in the context of territory planning, where feedback can help refine strategies and improve performance.

Hyper-personalized prospecting with Client Sites: Guide sellers what to do, what to share and what to say with hyper-personalized prospecting. There’s so much noise out there. Rise above the crowd with a differentiated and personalized approach to prospecting. We have proven ways to quickly build self-sourced pipeline and progress pipeline faster too. Sharing hyper-personalized sites to educate and elevate prospecting outreach is working wonders for many of our customers. Salesforce says that only 29% of sellers use videos to prospect. SalesLoft reports that using video to prospect can lead to a 26% higher response rate compared to simple email text.

SalesHood complements the sales territory planning process by providing a platform for ongoing learning, collaboration, and prospecting. Integrating SalesHood with other tools and processes tailored to territory planning can create a more comprehensive and effective approach to sales management and pipeline development.

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Create more pipeline with SalesHood.

Download our Sales Territory Planning Template today.

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How to create an effective sales territory plan in 6 steps

Some experts say that the secret to sales success is a combination of skill, perseverance, and a good sales conversation starter . And they’re right—those are all important attributes for salespeople. But it overlooks what is possibly the most important factor in sales success—which happens before a meeting is even booked: your sales territory plan. 

If you’re running a small business , you may wonder why you need a sales territory plan. After all, it sounds complicated—something for bigger, more sophisticated organizations.

But think of that plan as the important strategic groundwork that’s going to help you reach your sales goals. The good news is that yours doesn’t need to be complicated. And we’re here to help you create one, headache-free, for your small business or team.  

Let’s break it down. In this post we’ll cover: 

• What a sales territory plan is
• 4 reasons why you need one

How to create a sales territory plan in 6 steps

• Essential tools for creating the plan

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What is a sales territory plan?

Basically, it’s your strategy for how your team will target and approach prospects, leads, and existing customers to close more deals. Before you jump into your fancy sales territory mapping software , you need a battle plan:

An example of a sales territory plan from Adaptive Insights that shows things like which sales reps (and how many reps) you need, how many accounts you want to win per year, and more.

Traditionally—and as its name tells you—the sales territory plan was defined by geography. Salespeople would focus on prospects within a specific area only. 

Today’s level of connectivity has changed that. You can now optimize your sales territory plan and target your leads by industry, business size, deal potential, and role too. Which, as you might guess, is much more effective than using geography alone. 

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4 reasons why even small businesses need a sales territory plan

You’d never walk into a sales meeting with a prospect without having done a decent amount of prep work. Creating a sales territory plan should be no different. Here’s why. 

1. It helps you target specific industries, regions, opportunities, and customers

Instead of targeting customers geographically, you can now segment opportunities by industry, opportunity, role, business size, business type, and others. This allows you to focus on meeting specific customer needs and target prospects that are most likely to buy, rather than simply playing a numbers game by trying to cover the most ground. 

2. It aligns your sales team with your prospects

Every salesperson on your team will have a different set of strengths based on their experience—and effective teamwork is the key to making this work. For example, some reps may have lots of experience selling to a specific demographic, whereas others are experts in certain industries or types of products. Being able to align their efforts with a customer’s industry or specific needs means they’re going to close more deals than taking the spray-and-pray approach.

3. It empowers you to set realistic goals, track progress, and optimize your strategy

Having the latest Bluetooth headset and sales software is great and all, but setting goals are a must in sales. Having a way to track them helps you see what’s working, what isn’t, and why—and it’s essential to your success. With the ability to track your progress, you can replicate successes and easily make adjustments to areas that need work. 

4. It lets you spend more time selling

Having a plan in place and a path forward means you and your team can focus on actually selling to customers that are the most likely to buy. You know who your happy customers are, you understand their challenges, and you know how to help them reach their goals. And that means more deals closed. 

Having a plan in place can help reps focus on their role, save time, and close more deals.

Now that you know what a sales territory plan is, let’s dive into how to write one in five basic steps. 

1. Define your larger sales goals

Before you have a plan, you need a goal (or goals). And there are many different approaches you can take to determine sales goals. But we want to keep it simple, realistic, and easy to do without needing a 10,000-cell spreadsheet. Start with the big sales numbers and then work your way downwards. First, determine what your annual goal is, then break that into quarters, months, and even weeks. 

For example, if your annual sales goal is $500K, then your quarterly goals will be $125K, and your monthly targets will be $41.7K.

If you’re not sure what your annual goal should be, last year’s sales numbers plus ten percent is a good place to start. (Of course, if things are going really well and you want to be more ambitious, you can adjust this number—and vice versa.)

Keep in mind that these numbers are just preliminary. You can adjust them later when you’ve completed the other steps and accounted for outside factors like economic conditions, seasonality, existing pipeline, and even current customers.

2. Define your market 

What does your piece of the pie look like? Your market encompasses everyone you sell to. 

Make a list of all the different people or industries you target. For business-to-business sales, this could be business type and size, departmental function, or roles within the organization. For business-to-consumer sales, you can segment based on demographic, psychographic, behavioral, and geographic information. 

Ultimately, you’ll need to determine how to segment your customers based on the what’s relevant to your business or product. 

An example of how to segment B2C customers

Defining your market lets you paint a clear picture of who your customers are. It allows your sales team to play to their strengths and address specific needs, goals, and pain points, which will differ between these different segments. 

3. Assess prospect and account quality

Some customers will see tons of value in your product. The benefits are clear and it solves a big headache for them. They’re happy to buy a lot of what you’re selling, and often.

But, others may not have the same need. 

Review which customers have traditionally been easy to sell to and/or seen high levels of success with your product. Then prioritize those leads and similar accounts. 

4. Start mapping out the strengths and weaknesses of your reps

Some reps have a great understanding of the ins and outs of how enterprise organizations buy products and take on new vendors. Others will specialize in selling to people within a specific role, regardless of the size of the business. List all of the strengths and weaknesses of each sales rep so you have a better idea of the type of prospects they should target.

Keep in mind that it’s not about ranking them from best to worst—many sales reps who start out weak can finish strong with coaching and experience. It’s about aligning their skills and experience to where they’ll make the biggest impact and achieve the most success.  

5. Assign leads

Armed with the knowledge of where your reps shine, you can now start assigning accounts. Start with the most obvious, high-value pairings where the rep has a lot of experience selling to that industry or type of individual. For example, reps who are good at closing large deals with educational institutions would be assigned leads in the educational space. 

Next, assign leads to target roles. Reps who have experience working with or selling to IT managers would be assigned leads with similar titles. 

Apply the same process to company size, deal size, location, and any other way you segmented your market. 

How you organize this information is up to you. Some people use spreadsheets. Some use text documents. Others use illustrations and graphs. A mix of charts, maps, and tables will give you a pretty comprehensive and easy-to-absorb view of your territory plan:

6. Look for ways to improve your plan

Congrats—your sales territory plan is just about done. Your goals are more than just numbers on a page. And you can see a path to how you’re going to achieve them. But you may notice that it’s a bit lopsided. Perhaps some of your reps are carrying too much of the workload or the quotas don’t seem realistic. 

The truth is, you may go through several iterations of your plan. You’ll have to move leads around to different reps. For example, giving your stronger reps leads that will be harder to close, and newer reps lower value deals where there’s less at stake. Ultimately, the numbers should be achievable for every rep. So take a step back and look at your plan objectively to make sure it makes sense.  

Essential tools for building your sales territory plan

With your plan in hand and a clear path to success, you’re going to need a few tools to put things into action.  

Office software

Whether you’re a visual person who prefers to map out your territory plan using images and graphs or you’re the type that likes to dive into every row and column of a spreadsheet, you’re going to need office software to turn your plan into a document. Office software usually includes apps for word processing, spreadsheets, presentation decks, and email. The two most popular options available right now are probably Microsoft 365  and Google Workspace .

What’s the difference? Without diving into a feature-by-feature comparison , Google Workspace is often better for small- and medium-sized businesses who are looking for a simple, elegant solution. Microsoft 365 has more robust, enterprise-grade features that can be used for more complex businesses. 

An all-in-one communications tool designed for sales teams

This may seem like a no-brainer—if you’re selling, of course you need to have a phone, email address, maybe even business SMS and fax (if you’re selling in industries like insurance). 

But if your reps spend any time traveling to meetings and working on the go, a traditional office phone setup isn’t going to support them very well. You’ll also be missing out on a few key features that are made specifically for helping sales teams. 

Ideally, you should have a sales app that lets you make voice calls and video calls (especially useful if you do a lot of sales demos ), send instant messages to your team, and basically communicate through any channel you need. Here are a few features to look for: 

Cloud support : Having a phone system or communications app that works on the cloud is much better than just using a cell phone. Why? Because your reps can receive inbound calls and make calls from their laptops or their own personal phones (without using their personal numbers)—without needing additional hardware. Plus, that same app lets you have video calls and send instant messages to your team:

Call monitoring : Ramping up new sales reps can take time and a lot of coaching. What if you could monitor your team’s sales calls quietly and listen in to what they’re saying to prospects? This way, you can help get them up to speed and get them booking meetings, pitching better, and closing deals faster. 

Call recording : Every now and then, you’ll want to make an example of your agents (in the best way possible, of course). Call recording lets you capture their best calls and share them with the team, making it easier to replicate success. It’s also a good way to find opportunities for coaching. Sometimes, you’re also just required by law to keep records of calls with customers, so this feature might even be a must-have. 

A customer relationship management (CRM) platform 

Your team will be making calls, booking meetings, and taking notes all day long. A CRM makes it a whole lot easier to remember and track all the key details about their calls and prospects, so they can close more deals. 

To make things even easier, many CRMs integrate with communications tools to keep your calls and key customer details in one, well-organized place. 

Ready to start building a sales territory plan?

Making a sales territory plan may seem complicated. And in some cases, it is—whether you’re a large business with territories all over the world or a smaller business that’s just started branching out into new regions. 

The key is to not overthink things. Follow these steps, and you’ll be able to identify your goals, better understand your market, know your customers—and target them without breaking (too much of) a sweat.

Originally published Mar 01, 2020, updated Nov 17, 2021

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Pharmacy Business Plan Template

Pharmacy business plan.

If you want to start an independent pharmacy or expand your current one, you need a business plan.

Over the past 20+ years, we have helped over 5,000 entrepreneurs and business owners create business plans to start and grow their pharmacy businesses.

How To Write a Business Plan For A Pharmacy

Below are links to each section of a business plan for a pharmacy business providing a template for you to write your own.

• Executive Summary – The Executive Summary of your pharmacy business plan should provide an overview of your business concept, key objectives of your business and a snapshot of the market opportunity.
• Company Overview – The Company Overview section should provide an overview of your company, including history, mission statement, legal structure, retail locations, and any relevant information about your business.
• Industry Analysis – The Industry Analysis section should describe the pharmacy industry and market, including size, growth, trends, and major players.
• Customer Analysis – The Customer Analysis section should describe your target customer, including demographics, needs, and buying habits.
• Competitive Analysis – This section should describe the competitive landscape in your market, including major players, market share, and any unique selling points.
• Marketing Plan – The Marketing Plan section should describe your approach to marketing, including your marketing mix, strategies, and tactics.
• Operations Plan – The Operations Plan section should describe how your pharmacy will operate, including details on facilities, equipment, inventory, and security.
• Management Team – The Management Team section should describe the management team, including bios and experience.
• Financial Plan – The Financial Plan section should include a 5-year financial projection, including pro forma income statements, balance sheets, and cash flow statements.
• Appendix – The Appendix should include any supporting materials, such as market research, competitive analysis, customer surveys, etc.

Next Section: Executive Summary >

Pharmacy Business Plan FAQs

What is the easiest way to complete my pharmacy business plan.

Growthink's Pharmacy Ultimate Business Plan Template allows you to quickly and easily complete your business plan.

Where Can I Download a Pharmacy Business Plan PDF?

You can download our pharmacy business plan PDF template here . This is a business plan template you can use in PDF format.

What Is a Pharmacy Business Plan?

A business plan provides a snapshot of your pharmacy as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why Do You Need a Business Plan?

If you’re looking to start a pharmacy or grow your existing pharmacy you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your pharmacy in order to improve your chances of success. Your plan is a living document that should be updated annually as your business grows and changes.

What Are the Sources of Funding for a Pharmacy?

Pharmacy businesses are usually funded through small business loans, personal savings, credit card financing and/or angel investors.

Where Can I Find a Pharmacy Business Plan Example?

The following sample pharmacy business plan was designed for a sole proprietorship pharmacy called The Medicine Shoppe which provides online services as well as a retail location.

Executive Summary

The Medicine Shoppe is a side delivery company that plans to open its doors on October 1, 20XX. The company will be open Monday to Friday from 9am to 9pm, Saturday from 9am to 5pm, and Sunday from 10am to 4pm. The Medicine Shoppe will use QuickBooks for its accounting and bookkeeping needs and will accept payment by cash, check, and credit card. The company plans to offer a discount for customers who pay in cash.

The company plans to offer delivery services for its customers. The delivery fee will be $5 for orders under $50 and free for orders over $50. The delivery area will be a 5-mile radius from the store. The company plans to offer a loyalty program for its customers. Customers will earn 1 point for every $1 spent at the store and points can be redeemed for discounts on future purchases. The Medicine Shoppe also plans to sponsor community initiatives such as blood drives and flu shot clinics.

The Medicine Shoppe has been capitalized with $1 million from the founders and plans to generate $2 million in revenue within the first year of operation. The company plans to break even within the first year of operation and generate profits in year two of operation. The Medicine Shoppe plans to reinvest its profits back into the business to fuel growth. The company plans to use its profits to open new locations, expand its product and service offerings, and improve its marketing efforts.

Company Overview

Our mission statement is “ The Medicine Shoppe is dedicated to providing quality medical care and services to our patients and customers. ”

The Medicine Shoppe is a full-service pharmacy business that will be located in the heart of downtown Santa Barbara, California. The company will offer both online and retail services to its customers. The company plans to offer a wide range of products and services, including prescription medications, over-the-counter drugs, vitamins, supplements, medical equipment, and more. The company will also offer delivery services for its customers.

The Medicine Shoppe will be owned and operated by Aimee Stewart, a registered pharmacist with over 10 years of experience. Ms. Stewart has a bachelor's degree in pharmacy from the University of Southern California and is a member of the California Pharmacists Association.

The company plans to open its doors for business on October 1, 20XX.

Industry Analysis

The pharmacy industry is a highly regulated industry with strict laws and regulations governing the distribution of drugs and other pharmaceutical products. In order to operate a pharmacy, businesses must obtain a license from the state in which they plan to do business.

The pharmacy industry is a highly competitive industry. There are many large, national chains such as CVS, Walgreens, and Rite Aid that have a significant presence in most markets. In addition to the national chains, there are also many regional and local pharmacies. These businesses compete on price, selection, customer service, and convenience.

The pharmacy industry is growing at a moderate rate. According to the National Association of Chain Drug Stores, total sales for the US pharmacy industry are expected to reach $371 billion by 2020. This growth is being driven by an ageing population, new medications, and increased access to healthcare.

The Medicine Shoppe will compete in the pharmacy industry by offering a broad range of products and pharmacservices, competitive pricing, superior customer service, and convenient online and retail locations.

If The Medicine Shoppe does not establish a strong reputation, it could lose customers to its competitors. The company could also be adversely affected by changes in the economy or healthcare industry.

Customer Analysis

The target market for The Medicine Shoppe will be the residents of Santa Barbara County. Santa Barbara County is a large county with a population of over 700,000 people. The median age in the county is 38 years old, and the median household income is $70,000.

The county has a large number of retirees, as well as a significant number of young families. These groups will be the primary target market for The Medicine Shoppe. The company plans to appeal to these groups with its convenient location, a broad selection of products and services, and competitive pricing.

Our target demographics include:

• Families with young children
• Individuals with chronic health conditions
• People who are uninsured or underinsured
• People who have a high deductible health insurance plan
• People who take multiple medications

The psychographics of this market include:

• People who are health-conscious
• People who are price-conscious
• People who value convenience
• People who value customer service

Competitive Analysis

As mentioned earlier, the pharmacy industry is a highly competitive industry. The Medicine Shoppe will compete against national chains, and regional and other local pharmacies.

Some of the specific competitors that The Medicine Shoppe will face include CVS, Walgreens, Rite Aid, and Pharmaca. These businesses are all large, well-established companies with significant resources. They also have a large presence in the Santa Barbara market.

Our strengths include:

• The Medicine Shoppe will be owned and operated by a registered pharmacist with over 10 years of experience.
• The company plans to offer a wide range of products and services, including prescription medications, over-the-counter drugs, vitamins, supplements, medical equipment, and more.
• The company will also offer delivery services for its customers.
• The Medicine Shoppe will have a convenient location in Santa Barbara County.

Our weaknesses include:

• The Medicine Shoppe is a new business and does not yet have an established reputation.
• The company will be competing against large, well-established businesses.
• The Medicine Shoppe does not have the same level of resources as its competitors.

The Medicine Shoppe will compete against these businesses by offering a more personal level of customer service, a broad range of products and services, and convenient online and retail locations.

Marketing Plan

The Medicine Shoppe will use a mix of marketing channels to reach its target market. These channels include online advertising, print advertising, and public relations.

Online Advertising

The Medicine Shoppe will use Google AdWords to target people who search for keywords related to pharmacy, medications, supplements, and more. The company will also use retargeting to reach people who have visited its website in the past.

Print Advertising

The Medicine Shoppe will use print advertising to reach its target market. The company plans to place ads in local newspapers and magazines. The ads will feature coupons and discounts to encourage people to try The Medicine Shoppe.

Public Relations

The Medicine Shoppe will use public relations to generate positive buzz about the company. The company plans to write press releases and pitch stories to local media outlets. The company will also host events and sponsor community initiatives.

Sales and Promotions

The Medicine Shoppe will offer discounts and promotions to its customers. The company plans to offer a 10% discount to seniors and a 20% discount to families with young children. The company will also offer free delivery for orders over $50.

Customer Service

The Medicine Shoppe will focus on providing excellent customer service. The company plans to offer a satisfaction guarantee for all of its products and services. The company will also train its employees to be friendly and helpful. This will help The Medicine Shoppe to build a loyal customer base.

Operations Plan

The Medicine Shoppe will be located at 123 Main Street in Santa Barbara, California. The company plans to lease a 2,000-square-foot retail space. The Medicine Shoppe will have a pharmacy, a retail area, and a waiting area for customers.

The company plans to hire 5 employees. These employees will include a pharmacist, 2 pharmacy technicians, and 2 customer service representatives. The Medicine Shoppe will also use the services of an outside delivery company.

The company plans to open its doors on October 1, 20XX. The hours of operation will be Monday to Friday from 9am to 9pm, Saturday from 9am to 5pm, and Sunday from 10am to 4pm.

The Medicine Shoppe will use QuickBooks for its accounting and bookkeeping needs. The company plans to have a separate bank account for its business activities.

The Medicine Shoppe will accept payment by cash, check, and credit card. The company plans to offer a discount for customers who pay in cash.

Day-To-Day Operations

The Medicine Shoppe will be open Monday to Friday from 9am to 9pm, Saturday from 9am to 5pm, and Sunday from 10am to 4pm.

The company plans to offer delivery services for its customers. The delivery fee will be $5 for orders under $50 and free for orders over $50. The delivery area will be a 5-mile radius from The Medicine Shoppe.

The company plans to offer a loyalty program for its customers. Customers will earn 1 point for every $1 spent at The Medicine Shoppe. Points can be redeemed for discounts on future purchases.

The Medicine Shoppe will host events and workshops on a regular basis. These events will be open to the public and will focus on topics such as healthy living, fitness, and nutrition.

The Medicine Shoppe will sponsor community initiatives such as blood drives and flu shot clinics. The company plans to partner with local nonprofits to make a positive impact in the community.

Long-Term Goals

The Medicine Shoppe’s long-term goal is to become the leading provider of pharmacy services in Santa Barbara. The company plans to achieve this goal by expanding its product and service offerings, increasing its marketing efforts, and improving its customer service.

The Medicine Shoppe also plans to expand into other markets. The company plans to open new locations in Los Angeles and San Diego. The Medicine Shoppe will also consider franchising opportunities in the future.

The Medicine Shoppe plans to generate $2 million in revenue within the first year of operation. The company plans to achieve this goal by increasing its customer base and expanding its product and service offerings.

Management Team

Aimee Stewart, a licensed pharmacist with more than 10 years of experience, is the pharmacy owner and will manage and run the Medicine Shoppe. Ms. Stewart holds a bachelor's degree in pharmacy from the University of Southern California and is a member of the California Pharmacy Association.

Financial Plan

The Medicine Shoppe has been capitalized with $1 million from the founders. This funding will be used to lease a retail space, purchase inventory, and hire employees.

The Medicine Shoppe plans to generate $2 million in revenue within the first year of operation. The company plans to achieve this goal by increasing its target market and expanding its product and service offerings.

The Medicine Shoppe plans to break even within the first year of operation. The company expects to generate profits in year two of operation.

The Medicine Shoppe plans to reinvest its profits back into the business to fuel growth. The company plans to use its profits to open new locations, expand its product and service offerings, and improve its marketing efforts.

PHARMACY BUSINESS PLAN OUTLINE

• Pharmacy Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan
• 10. Appendix
• Pharmacy Business Plan Summary

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All Insights Case Study Maximized Drug Launch Sales Through Effective Territory Alignment For A Biopharmaceutical Company

Maximized Drug Launch Sales Through Effective Territory Alignment For A Biopharmaceutical Company

Territory alignmemt.

Read the illustration to know how Axtria took cognizance of the client’s budget and operational challenges and the approach followed in sales territory alignment.

A go-to-market plan is at the center of a drug launch. Effective territory management is core to achieving launch excellence. Territory alignment ensures equitable allocation of sales opportunities, focusing on high-potential targets and increasing customer centricity while optimizing sales force workload.

A global biopharma company was developing the go-to-market strategy for launching its new ophthalmology drug. Having been through the other aspects of product launch planning, the client needed expertise and support in creating 50+ well-balanced, optimized sales territories. They recognized it as critical to the commercial success of the new drug.

Designing High Potential Sales Territories

Axtria’s dedicated ‘Center of Excellence’ with a team of 50+ territory alignment specialists, domain experts, data scientists and analysts designed high-potential sales territories for the client using customer potential as the base for alignment.

The following illustration conveys how Axtria designed an effective sales territory alignment that addressed the client’s operational challenges while staying within budget.

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How To Execute Sales Territory Management Plan In Pharma Industry?

Published by salestrip on April 24, 2021 April 24, 2021

Market like the year you are in!” Gary Vaynerchuck

The pharmaceutical company is no different when it comes to convincing the HCPs for the drugs to prescribe to the patients. The sales reps are made to market the drugs in a way that’s preferred by the HCPs such as using e-detailing solutions rather than flyers, pamphlets, ad others. It’s fair enough.

But when the sales reps move into the field to communicate with HCPs and display new drugs to them, the problem starts- when HCPs are not segmented for sales reps to meet under various territories. The missing territory management creates many challenges before pharma companies. They are-

• The overservicing of an area means makes the salespeople bored, lazy, and anxious that lets the prospect move away.
• Under-servicing an area means sales reps spread thin, which, in turn, badly hits the reputation.
• The unequal opportunity to meet the goals and earn rewards drive the sales reps to the competitors.
• The territory assignment gives a sense of ownership to the sales reps, which is if missing, the sales reps can’t perform to the efficiency.
• Territory overlapping creates conflict among sales reps because they are unknowingly competing for the same physicians.

Now, you are pretty convinced when sales reps are loose to visit any HCP, it’s not good for the company’s health and sales reps too. What’s the solution? It’s a SALES TERRITORY MANAGEMENT.

Let’s Understand Sales Territory Management In A Nutshell

The pharma companies when hiring the sales reps are not allowed to meet any HCPs. Instead, the area is divided into different territories, which are assigned to sales reps. It’s made clear that sales reps have to cover which territory, including the list of HCPs to meet and close the deal. It ensures equitable workload divided among sales reps based on the capabilities and experience that match the HCPs type.  

How To Create a Territory Management Plan For Pharma Companies?

Define your core objective.

Making the sales reps understand the pharma company’s vision, strategy, and ultimate goals is all-important. The short-term objectives must be assigned to the sales reps such as an increase in sales by 10%, boost revenue by 20%, or close two more deals this month. Also, the field reps are included in the objective creation process when it comes to defining the objective for every HCP or territory because they are the ultimate person who’s going to follow the plan.

When the objectives are defined, keep certain things in mind like- create achievable objectives, be precise with the objective, keep it realistic, and it’s good to buy in from the reps. Follow these tips for making the sales objective feasible and encourage sales reps.

Craft sales strategy

The sales reps spend a large amount of time on traveling, and a little share of time is invested in phone calls, emails, and appointment booking. That’s why it’s imperative to allocate the time to each HCP.

Once, time breakdown is defined for every HCP, the next step is to schedule the visits for efficient route planning based on the proximity. Depending on the time taken in every HCP visit, the number of visits is defined so that sales reps don’t feel rushed and make their job done nicely. The sales strategy is tailored to every sales rep to increase productivity.

Delegate territory smartly

Identify the specific capabilities of each sales rep, and then match the qualifications to the territory whose target HCPs they can handle. Afterward, assign the territory to each sales rep to avoid territory overlap issues. For instance, you can assign HCP (Difficult to convince and sell) to the sales rep who is well-versed in building strong relationships and can take more visits in a day.

You can assign the territories in 4 ways-

Territory management b y geography

The most popular way to divide territories is based on the zip codes, states, and countries so that there will be no overlap. Depending on the geography size, the number of sales reps of pharma companies is allocated to each territory. The HCPs are also segregated geographically which helps in reducing the travel time and expenses.

Territory management b y accounts

The territories are assigned based on the HCP’s specialties like some of them are- pediatricians, cardiologists, orthopedics, and others. The sales reps with a good knowledge of specific drugs are assigned a territory irrespective of the geography. Perhaps, they are meeting the HCP a few miles away and taking a plane flight to reach another HCP.

Territory management by the combo of geography and accounts

To make the best out of the two types of territories- geography and accounts, this type of territory proven to be very effective, but complex to create. For instance, one sales rep is assigned the HCPs of seven zones followed by the exclusion of HCPs with specialties.

Territory management b y the company size

Under this option, the new reps can seal small deals, and senior reps with good experience can place a bet on big bets, they are assigned HCPs accordingly. The territories divided in this manner keep changing because the sales reps with different strengths and capabilities keep changing.

Performance tracking

There is no one-size-fits-all plan that works every time. The pharma company should be flexible with the territory management plan because different sales reps’ performance for various territories keeps changing. It means the metrics need to check and reassessed in the sense of what’s working in one territory and what not. It helps in fixing all the flaws in the plan so that maximum value is driven out of the territory management plan.

The things to consider for territory management  

• There is no thumb rule to follow. Every company sells different drugs along with distinct company’s structure, needs, and goals.
• Territory management is done based on the sales reps’ potential, travel time, and other things.
• Incentive compensation is also tied to the territory management plan.
• Create a clear picture of the HCPs to visit and the meet with which HCPs will be counted under the incentive compensation program.
• Craft the plan smartly so that over-servicing or under-servicing is avoided, else the potential of sales reps can’t exploit to its full capacity.
• Keep an eye on how much time sales reps are spending on travel to ensure they are not wasting time.
• Take care of all the aforementioned things to reduce the sales cost and increase the revenue.

The pharma industry is highly regulated where it’s difficult for the pharma companies to cover all the regulations in the territory management planning . Well, there is no rocket science in creating a territory management plan; instead, it’s all about introducing strategic thinking and industry knowledge in the plan. Create the best plan that makes your sales reps happy and improves productivity, which in turn, brings success (Improve revenue and extra edge in the competition) to the table. Still, muddled? Feel free to connect with our business consultants, they will readily help you.

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How to write a business plan for a pharmaceutical wholesaler?

Writing a business plan for a pharmaceutical wholesaler can be an intimidating task, especially for those just starting.

This in-depth guide is designed to help entrepreneurs like you understand how to create a comprehensive business plan so that you can approach the exercise with method and confidence.

We'll cover: why writing a pharmaceutical wholesaler business plan is so important - both when starting up, and when running and growing the business - what information you need to include in your plan, how it should be structured, and what tools you can use to get the job done efficiently.

Let's get started!

In this guide:

Why write a business plan for a pharmaceutical wholesaler?

• What information is needed to create a business plan for a pharmaceutical wholesaler?
• What goes in the financial forecast for a pharmaceutical wholesaler?
• What goes in the written part of a pharmaceutical wholesaler business plan?
• What tool can I use to write my pharmaceutical wholesaler business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a pharmaceutical wholesaler business plan in the first place.

To have a clear roadmap to grow the business

Small businesses rarely experience a constant and predictable environment. Economic cycles go up and down, while the business landscape is mutating constantly with new regulations, technologies, competitors, and consumer behaviours emerging when we least expect it.

In this dynamic context, it's essential to have a clear roadmap for your pharmaceutical wholesaler. Otherwise, you are navigating in the dark which is dangerous given that - as a business owner - your capital is at risk.

That's why crafting a well-thought-out business plan is crucial to ensure the long-term success and sustainability of your venture.

To create an effective business plan, you'll need to take a step-by-step approach. First, you'll have to assess your current position (if you're already in business), and then identify where you'd like your pharmaceutical wholesaler to be in the next three to five years.

Once you have a clear destination for your pharmaceutical wholesaler, you'll focus on three key areas:

• Resources: you'll determine the human, equipment, and capital resources needed to reach your goals successfully.
• Speed: you'll establish the optimal pace at which your business needs to grow if it is to meet its objectives within the desired timeframe.
• Risks: you'll identify and address potential risks you might encounter along the way.

By going through this process regularly, you'll be able to make informed decisions about resource allocation, paving the way for the long-term success of your business.

To get visibility on future cash flows

If your small pharmaceutical wholesaler runs out of cash: it's game over. That's why we often say "cash is king", and it's crucial to have a clear view of your pharmaceutical wholesaler's future cash flows.

So, how can you achieve this? It's simple - you need to have an up-to-date financial forecast.

The good news is that your pharmaceutical wholesaler business plan already includes a financial forecast (which we'll discuss further in this guide). Your task is to ensure it stays current.

To accomplish this, it's essential to regularly compare your actual financial performance with what was planned in your financial forecast. Based on your business's current trajectory, you can make adjustments to the forecast.

By diligently monitoring your pharmaceutical wholesaler's financial health, you'll be able to spot potential financial issues, like unexpected cash shortfalls, early on and take corrective actions. Moreover, this practice will enable you to recognize and capitalize on growth opportunities, such as excess cash flow enabling you to expand to new locations.

To secure financing

Crafting a comprehensive business plan for your pharmaceutical wholesaler, whether you're starting up or already established, is paramount when you're seeking financing from banks or investors.

Given how fragile small businesses are, financiers will want to ensure that you have a clear roadmap in place as well as command and control of your future cash flows before entertaining the idea of funding you.

For banks, the information in your business plan will be used to assess your borrowing capacity - which is defined as the maximum amount of debt your business can afford alongside your ability to repay the loan. This evaluation helps them decide whether to extend credit to your business and under what terms (interest rate, duration, repayment options, collateral, etc.).

Similarly, investors will thoroughly review your plan to determine if their investment can yield an attractive return. They'll be looking for evidence that your pharmaceutical wholesaler has the potential for healthy growth, profitability, and consistent cash flow generation over time.

Now that you understand the importance of creating a business plan for your pharmaceutical wholesaler, let's delve into the necessary information needed to craft an effective plan.

Information needed to create a business plan for a pharmaceutical wholesaler

Drafting a pharmaceutical wholesaler business plan requires research so that you can project sales, investments and cost accurately in your financial forecast, and convince the reader that there is a viable commercial opportunity to be seized.

Below, we'll focus on three critical pieces of information you should gather before starting to write your plan.

Carrying out market research for a pharmaceutical wholesaler

Carrying out market research before writing a business plan for a pharmaceutical wholesaler is essential to ensure that the financial projections are accurate and realistic.

Market research helps you gain insight into your target customer base, competitors, pricing strategies and other key factors which can have an impact on the commercial success of your business.

In particular, it is useful in forecasting revenue as it provides valuable data regarding potential customers’ spending habits and preferences.

Your market research might reveal that wholesalers may be shifting away from traditional sales channels to more digital ones, such as online or automated ordering systems. Additionally, research may demonstrate that wholesalers may be increasingly seeking out partnerships with third-party logistics providers for more cost-effective and efficient distribution services.

This information can then be used to create more accurate financial projections which will help investors make informed decisions about investing in your pharmaceutical wholesaler.

Developing the sales and marketing plan for a pharmaceutical wholesaler

As you embark on creating your pharmaceutical wholesaler business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a pharmaceutical wholesaler

As you embark on starting or expanding your pharmaceutical wholesaler, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is essential for ensuring your business's success.

Both the recruitment and investment plans must align with the timing and level of growth projected in your forecast, and they require appropriate funding.

A pharmaceutical wholesaler might incur staffing costs such as salaries, benefits, and training for employees. They might also incur equipment costs, such as purchasing and maintaining computers and other technology, and purchasing and maintaining delivery vehicles.

To create a realistic financial forecast, you also need to consider other operating expenses associated with the day-to-day running of your business, such as insurance and bookkeeping.

With all the necessary information at hand, you are ready to begin crafting your business plan and developing your financial forecast.

What goes into your pharmaceutical wholesaler's financial forecast?

The objective of the financial forecast of your pharmaceutical wholesaler's business plan is to show the growth, profitability, funding requirements, and cash generation potential of your business over the next 3 to 5 years.

The four key outputs of a financial forecast for a pharmaceutical wholesaler are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a pharmaceutical wholesaler shows how much revenue and profits your business is expected to generate in the future.

Ideally, your pharmaceutical wholesaler's P&L statement should show:

• Healthy growth - above inflation level
• Improving or stable profit margins
• Positive net profit

Expectations will vary based on the stage of your business. A startup will be expected to grow faster than an established pharmaceutical wholesaler. And similarly, an established company should showcase a higher level of profitability than a new venture.

The projected balance sheet of your pharmaceutical wholesaler

The balance sheet for a pharmaceutical wholesaler is a financial document that provides a snapshot of your business’s financial health at a given point in time.

It shows three main components: assets, liabilities and equity:

• Assets: are resources owned by the business, such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: are debts owed to creditors and other entities, such as accounts payable (money owed to suppliers) and loans.
• Equity: includes the sums invested by the shareholders or business owners and the cumulative profits and losses of the business to date (called retained earnings). It is a proxy for the value of the owner's stake in the business.

Examining the balance sheet is important for lenders, investors, or other stakeholders who are interested in assessing your pharmaceutical wholesaler's liquidity and solvency:

• Liquidity: assesses whether or not your business has sufficient cash and short-term assets to honour its liabilities due over the next 12 months. It is a short-term focus.
• Solvency: assesses whether or not your business has the capacity to repay its debt over the medium-term.

Looking at the balance sheet can also provide insights into your pharmaceutical wholesaler's investment and financing policies.

In particular, stakeholders can compare the value of equity to the value of the outstanding financial debt to assess how the business is funded and what level of financial risk has been taken by the owners (financial debt is riskier because it has to be repaid, while equity doesn't need to be repaid).

The cash flow forecast

A projected cash flow statement for a pharmaceutical wholesaler is used to show how much cash the business is generating or consuming.

The cash flow forecast is usually organized by nature to show three key metrics:

• The operating cash flow: do the core business activities generate or consume cash?
• The investing cash flow: how much is the business investing in long-term assets (this is usually compared to the level of fixed assets on the balance sheet to assess whether the business is regularly maintaining and renewing its equipment)?
• The financing cash flow: is the business raising new financing or repaying financiers (debt repayment, dividends)?

As we discussed earlier, cash is king and keeping an eye on future cash flows an imperative for running a successful business. Therefore, you can expect the reader of your pharmaceutical wholesaler business plan to pay close attention to your cash flow forecast.

Also, note that it is customary to provide both yearly and monthly cash flow forecasts in a business plan - so that the reader can analyze seasonal variation and ensure the pharmaceutical wholesaler is appropriately funded.

The initial financing plan

The sources and uses table or initial financing plan is a key component of your business plan when starting a pharmaceutical wholesaler.

It shows where the capital needed to set up the business will come from (sources) and how it will be spent (uses).

This table helps size the investment required to set up the pharmaceutical wholesaler, and understand how risks will be distributed between the business owners, and the financiers.

The sources and uses table also highlights what the starting cash position will be. This is key for startups as the business needs to have sufficient funding to sustain operations until the break-even point is reached.

Now that you have a clear understanding of what will go into the financial forecast of your pharmaceutical wholesaler business plan, let's have a look at the written part of the plan.

The written part of a pharmaceutical wholesaler business plan

The written part of a pharmaceutical wholesaler business plan plays a key role: it lays out the plan of action you intend to execute to seize the commercial opportunity you've identified on the market and provides the context needed for the reader to decide if they believe your plan to be achievable and your financial forecast to be realistic.

The written part of a pharmaceutical wholesaler business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your pharmaceutical wholesaler's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your pharmaceutical wholesaler's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

The second section in your pharmaceutical wholesaler's business plan should focus on the structure and ownership, location, and management team of the company.

The structure and ownership part provides an overview of the legal structure of the business, who the owners are and how much each has invested and owns. If you are seeking financing it is important that the reader gets a clear picture of which legal entity is receiving the funds, and who controls the business.

The location part should give an overview of the premises from which the company is operating, and why that location is of particular interest (catchment area, accessibility, amenities nearby, etc.).

When describing the location of your pharmaceutical wholesaler, you may want to emphasize its access to major transportation routes, its proximity to a major metropolitan area, and its potential for growth. The area could offer multiple options for shipping and receiving, such as airports, railroads, and highways. It could also be in close proximity to a large city, allowing for easy access to customers and suppliers. The potential for growth in the area could create opportunities for the wholesaler to expand its operations, increase its customer base, and capitalize on new markets. All of these factors could make the location an attractive choice for a third party financier.

Finally, you should introduce the management team. Explain each member's role, background, and experience.

It is also important to emphasize any past successes that the members of the management team have achieved, and how long they've been working together, as this will help potential lenders or investors understand why they should trust in their leadership.

3. The products and services section

The products and services section of your business plan should include a detailed description of what your company offers, who are the target customers, and what distribution channels are part of your go-to-market. 

For example, your pharmaceutical wholesaler might offer a wide range of products and services, such as delivering quality healthcare products, providing access to competitive pricing, and offering a customized inventory management system. This helps customers get the supplies they need quickly and efficiently with minimal disruption to their operations. Additionally, many pharmaceutical wholesalers offer a variety of value-added services, such as providing advice on regulatory issues, facilitating bulk ordering, and offering online ordering options. These services help customers get the most out of their investment in pharmaceuticals, while also ensuring that they are compliant with applicable regulations.

4. The market analysis

When you present your market analysis in your pharmaceutical wholesaler business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your pharmaceutical wholesaler, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your pharmaceutical wholesaler aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include hospitals and large medical facilities. These customers would purchase large quantities of pharmaceuticals often, making them the ideal target for a pharmaceutical wholesaler. Additionally, these customers would need to work with a reliable supplier to ensure that they have the medications they need when they need them.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your pharmaceutical wholesaler.

5. The strategy section

When you write the strategy section of your pharmaceutical wholesaler business plan, remember to cover key elements such as your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, elaborate on what makes your company stand out from competitors. This becomes especially important if you're a startup, aiming to carve a place for yourself amidst established players in the marketplace.

The pricing strategy subsection should demonstrate how you plan to maintain profitability while offering competitive prices to attract customers.

Outline your sales & marketing plan, detailing how you'll reach out to new customers and retain existing ones through loyalty programs or special offers.

For the milestones subsection, outline your company's achievements to date and your main objectives for the future, complete with specific dates to set clear expectations for progress.

Lastly, the risks and mitigants subsection should address the main risks that could affect your plan's execution. Explain the measures you've put in place to minimize these risks, assuring potential investors or lenders.

Your pharmaceutical wholesaler could face the risk of theft. This could occur both internally, if employees attempt to steal medications, as well as externally, if criminals attempt to break into the warehouse and steal medications. Your pharmaceutical wholesaler may also face the risk of financial losses due to the cost of purchasing medications and the possibility of not being able to sell them in a timely fashion. In addition, changes in regulation or the cost of medications could also lead to financial losses.

6. The operations section

In your business plan, it's also essential to provide a detailed overview of the operations of your pharmaceutical wholesaler.

Start by covering your team, highlighting key roles and your recruitment plan to support the expected growth. Outline the qualifications and experience required for each role and your intended recruitment methods, whether through job boards, referrals, or headhunters.

Next, clearly state your pharmaceutical wholesaler's operating hours, allowing the reader to assess staffing levels adequately. Additionally, mention any plans for varying opening times during peak seasons and how you'll handle customer queries outside normal operating hours.

Then, shift your focus to the key assets and intellectual property (IP) necessary for your business. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, make sure to include them in this section.

You may have key assets such as inventory and customer data that could be considered intellectual property (IP). These assets could be protected by copyright laws and other regulations. Additionally, the wholesaler might also have trade secrets such as supplier relationships, pricing information, and product formulations that could be protected as IP.

Lastly, include a list of suppliers you plan to work with, detailing their services and main commercial terms, such as price, payment terms, and contract duration. Investors are interested in understanding why you've chosen specific suppliers, which may be due to higher-quality products or established relationships from previous ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a pharmaceutical wholesaler business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my pharmaceutical wholesaler's business plan?

In this section, we will be reviewing the two main options for writing a pharmaceutical wholesaler business plan efficiently:

• Using specialized software,
• Outsourcing the drafting to the business plan writer.

Using an online business plan software for your pharmaceutical wholesaler's business plan

Using online business planning software is the most efficient and modern way to create a pharmaceutical wholesaler business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Hiring a business plan writer to write your pharmaceutical wholesaler's business plan

Outsourcing your pharmaceutical wholesaler business plan to a business plan writer can also be a viable option.

Business plan writers are experienced in writing business plans and adept at creating financial forecasts without errors. Furthermore, hiring a consultant can save you time and allow you to focus on the day-to-day operations of your business.

However, hiring business plan writers is expensive as you are paying for the software used by the consultant, plus their time, and their profit margin of course.

From experience, you need to budget at least £1.5k ($2.0k) excluding tax for a complete business plan, more if you need to make changes after the initial version (which happens frequently after the initial meetings with lenders or investors).

You also need to be careful when seeking investment. Investors want their money to be used to grow the business, not spent on consulting fees. Therefore, the amount you spend on business plan writing services (and other consulting services such as legal services) needs to be negligible relative to the amount raised.

The other drawback is that you usually don't own the business plan itself: you just get the output, while the actual document is saved in the consultant's business plan software - which makes it difficult to maintain the document up to date without hiring the consultant on a retainer.

For these reasons, outsourcing the pharmaceutical wholesaler business plan to a business plan writer should be considered carefully, weighing both the advantages and disadvantages of hiring outside help.

Ultimately, it may be the right decision for some businesses, while others may find it beneficial to write their business plan using online software.

Why not create your pharmaceutical wholesaler's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a pharmaceutical wholesaler business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my pharmaceutical wholesaler business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a pharmaceutical wholesaler business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• A business plan has 2 complementary parts: a financial forecast showcasing the expected growth, profits and cash flows of the business; and a written part which provides the context needed to judge if the forecast is realistic and relevant.
• Having an up-to-date business plan is the only way to keep visibility on your pharmaceutical wholesaler's future cash flows.
• Using business plan software is the modern way of writing and maintaining business plans.

We hope that this practical guide gave you insights on how to write the business plan for your pharmaceutical wholesaler. Do not hesitate to get in touch with our team if you still have questions.

Also on The Business Plan Shop

• In-depth business plan structure
• Key steps to write a business plan?
• Free business plan template

Know someone who owns or wants to start a pharmaceutical wholesaler? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Sales - 8 min READ

How to create a sales territory plan: A step-by-step guide

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Copper Staff

Contributors from members of the Copper team

An effective sales territory plan can make your team more productive, improve customer coverage, increase overall sales, and reduce costs.

On the other hand, unbalanced territory plans and constant changes in territory division can hurt productivity as well as working relationships between clients and account managers.

That’s why it’s so important to work on your territory management strategy, whether you’re just starting one, or updating an existing plan.

In this post, we'll go through how to create a sales territory plan step by step:

• Define your market, analyze, and segment existing customers.
• Conduct a SWOT analysis.
• Set goals and create targets.
• Develop strategies.
• Review and track your results.

What is a sales territory plan?

A sales territory plan is a workable plan for targeting the right customers and implementing goals for income and consistent sales growth over time.

Traditionally, sales territories were created by geographical location. However, these days it’s been extended to include different industries, customer types and other segments.

Follow these steps to create a sales territory plan:

The best way to start a sales territory plan is to first look at your customers, leads and prospects.

1. Define your market, analyze, and segment existing customers.

You should split up your customers into segments based on various characteristics such as: industry, location, purchase history and whatever else is relevant to the organization.

Ask yourself, “Who are the top customers, prospects and leads?” Categorize your customers into three groups.

• The first group should be your best customers , or the ones who require little effort.
• This is followed by the second group of customers: the ones who require a bit more work , but only those you are confident have potential revenue gain that justifies the extra work required by sales reps.
• The third group should be customers who require a lot of work .

With these groups formed, you can decide how to best use your resources.

To discover what key trends are in your geography or market, look over the sales data that’s already been collected. Analyze the data to find which territories show signs of growth and then assign them to the sales reps who would be most successful based on their strengths (more on that below).

Pro-tip: Learn about the best territory mapping software out there.

You can also use existing sales data from previous years to better understand buying patterns, but you'll have to do some additional research to learn why they are purchasing (or not), when they purchase, what drives the sale to go through and what the conversion rates are.

From this, you’ll learn how and when to reach out to your customers based on when they're likely ready to buy again, and how to really drive that sale home.

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2. Conduct a SWOT analysis.

Next, you should identify your sales team’s internal strengths and weaknesses and external opportunities and threats with what is known as a SWOT analysis.

A SWOT analysis is a process that identifies internal and external factors that can affect the organization’s performance. When you have a better understanding of your strengths, weaknesses, opportunities and threats, you can develop a stronger sales territory plan.

Everyone brings different talent and skills to the job, so it’s important to have a good understanding of what your team has to offer to help them excel and reach your goals. What strengths will you build on? What is your team good at? Where do they excel?

Consider them as a team, but also think about sales reps' individual strengths. After all, strengths aren’t just confined to team members; they reflect the organization as a whole too.

Knowing everybody’s strengths will help you decide which sales reps to assign to which territory.

Potential strengths might include:

• A diverse customer base
• An established distribution base
• An excellent service team

Which weaknesses do you need to respond to? Think about weaknesses amongst your team, but also in the sales process.

• A very large geographic area
• A lack of time to develop understanding of the products, markets and selling process
• Not understanding your customers' real needs

Opportunities

Are there any opportunities in your marketplace you can take advantage of? This data can also be discovered using CRM software.

• Untapped markets
• Under-served territories
• Growing demand for product or service

Take a look at the biggest threats in each territory and consider what threats in your selling environment you'll defend against.

Some threats you may discover include:

• Competitors fighting for the same market share
• Changes in technology
• New industry and regulatory standards

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3. set goals and create targets..

In order to make a successful sales territory plan, you must create clear parameters and realistic goals for the team as well as individual sales reps’ territories.

To do this, consolidate the trends you’ve discovered above to come up with S.M.A.R.T (Specific, Measurable, Achievable, Relevant and Time-based) goals and realistic targets.

Here are some questions you may ask:

How many new opportunities do you need to meet quota?

Having sales quotas are a great way to motivate sales reps, but if you find you're not meeting those quotas, you have a problem. There could be weaknesses in the sales pipeline, or you may need to seek new opportunities. In order to set goals and benchmarks for the team, consider using the top-down approach .

Using the top-down approach to sales quotas (where you set a goal for the period and then assign sales quotas to support this goal), you can go over the data from previous periods to get an idea of what your team was able to accomplish in the past and what a realistic goal for the future is. This can help you decide how many new opportunities you'll need to pursue in order to meet that goal.

Where do most of your leads come from? Which geographical regions should you concentrate on?

There are a number of ways to review customizable data using CRM software to discover where your leads are coming from. This can help you target areas of interest.

Which products or services are most profitable? Who is purchasing them?

Again, CRM software can automatically capture sales data and put it to work.

Which opportunities should we focus on?

With a CRM, you can quickly identify opportunities to help your sales team decide where to dedicate their time and resources. For example, Copper allows you to see past opportunities that are open, abandoned, lost or won in a Sales Performance report.

After learning what it is you want to achieve, you can give your team clear objectives for each territory.

4. Develop strategies to accomplish your goals.

With clear customer segments and goals in place, it’s time to create strategies to succeed.

Using the information collected so far, you can now work out an even distribution of specific regions or markets among individual reps.

The SWOT analysis mentioned above gives you a better idea of how to best assign your team members’ skills and talents to a territory.

The customer segments will help you figure out how often different accounts should be contacted and how to contact them.

Consider the following questions when creating your strategy:

• How will you go through current accounts?
• How can you leverage current successes?
• How will you generate new leads?
• Where do you need to improve?
• What does your team need in order to reach their goals and targets?

In addition, consider your resources:

• What resources do your sales reps need in order to manage their accounts?
• Which sales reps have the skills or connections you need?
• Are there any external resources you can use to help?

When creating your action plan, don’t forget to look at what your high-leverage actions are, what resources are needed, due dates and key milestones.

5. Review and track your results.

The final step for a sales territory plan is to take the time to review and track the results to optimize territory division. This is important for measuring progress to see how the plan is impacting sales.

You should use your plan as a guide to produce intended results and fine-tune it on a regular basis when needed.

Things to look for as you track your sales territory plan results:

• Have sales increased or decreased in a specific region or market?
• Are there any disparities between sales in different territories?
• What are the costs associated with each territory?
• Are any sales reps struggling to keep up with their leads?
• Are all sales reps meeting their quotas?
• Are any markets under-served and in need of more assigned sales reps?

Use a CRM to help create a killer sales territory plan.

Many organizations use CRM software to better gather data without depleting resources. CRMs allow sales reps to access insights into your pipelines, revenue forecasts , sales goals and progress and much more.

The best part: all of this data can be automatically compiled into reports used to create your sales territory plan, freeing up more time for your sales team to focus on building long-lasting relationships within their territories.

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Pharmacy Business Plan

Start your own pharmacy business plan

The Discount Pharmacy

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

People need to be able to buy prescriptions at reduced prices. We make that possible by carefully maintaining efficiencies in our operations. So we can target a specific segment of the market – those customers who pay for their prescription medications themselves. They are poor, they are sick, they deserve the same care as those who can afford healthcare and full price prescriptions. 

The Discount Pharmacy’s mission is to provide our customers with the best prices for their prescription medications. Our convenience and services will exceed the expectations of our customers.

The Discount Pharmacy’s target market consists of two different groups, local customers or walk-ins, and mail order customers.

Competition

Competition takes many different forms in the pharmacy industry. They are: chain pharmacies, local pharmacies, mail in pharmacies, canadian pharmacies. 

The Discount Pharmacy’s we have superior pricing. To do that we must maintain our position as the low cost provider by painstakingly ensuring that costs are kept low through operating efficiencies.

Expectations

Costs will be minimized by maintaining only one pharmacist and filling the void with pharmaceutical techs. We expect to reach profitability by our third year and will generate substantial sales by year three

Financial Highlights by Year

Financing needed.

We will need $115,000 to start, we will be able to pay the investment back at the end of year 4

Problem & Solution

Problem worth solving.

People need to be able to buy prescriptions at accessible prices. We make that possible by carefully maintaining efficiencies in our operations. So we can target a specific segment of the market – those customers who pay for their prescription medications themselves. They are poor, they are sick, they deserve the same care as those who can afford healthcare and full price prescriptions. 

Our Solution

The Discount Pharmacy’s main goal is to provide prescription medications for our customers at the lowest prices on the market. We will be able to sell prescriptions at reduced prices by carefully maintaining efficiencies in our operations and by targeting a specific segment of the market – those customers who pay for their prescription 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.

The Discount Pharmacy will operate from one store that will serve 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 medication continues to skyrocket, The Discount Pharmacy will appeal more and more to the customer’s sense of value and convenience.

Target Market

Market size & segments.

The Discount Pharmacy will seek to attract two different groups of customers and will thus have two strategies to attract them.

We anticipate that by far our largest group of customers will be those who order through the mail. These customers will be targeted through an advertising campaign in magazines and newsletters that have an older (>55) audience who regularly need medication and are aware in advance of their needs. For example, one of the main advertising vehicles will be the A.A.R.P monthly newsletter.

Walk-in customers will be targeted through advertisements in the local paper, "The Oregonian."  Ads will raise awareness for the The Discount Pharmacy and our low prices.

Current Alternatives

Competition takes many different forms in the pharmacy industry.

• Chain pharmacies.  These are state or national chains such as Rite-Aid.  The advantage to these chains are better prices through economies of scale, as well as personalized service.  The personalized service takes the form of the chain having a record of your medication purchases as well as any allergies that you have disclosed to them.
• Local pharmacies.   These are the pharmacies where you typically know the pharmacist and they know your medical history.  This option is high in personalized service and convenience, and high in price.
• Mail order and Internet pharmacies.  These are similar to The Discount Pharmacy.
• Canadian pharmacies.  These pharmacies are located in Canada where the cost of drugs is lower than in the U.S.  These pharmacies can be accessed through mail order, the Internet, or via travel.  Recently there has been the trend for trips arranged for senior citizens in Northern States to travel up to Canada for the day to pick up their medicines.

Our Advantages

The Discount Pharmacy’s competitive edge is superior pricing. To do that we must maintain our position as the low cost provider by painstakingly ensuring that costs are kept low through operating efficiencies.

We will be able to do that by eliminating some of the services traditionally offered by pharmacies. For example, we will employ only one pharmacist and use pharmaceutical technicians to fill the void. As long as a pharmacist is on site during the hours of operation, we can use the pharmaceutical techs for all other capacities where other pharmacies use pharmacists. Other efficiencies are created by having only a small store front and conducting most of our business through mail order.

Finally, The Discount Pharmacy is not designed to hold the patient’s hand during their purchase. We expect that the vast majority of our customers will already be informed of how to take the medication, and any side effects or drug interactions that should be avoided. We will simply provide each patient with a print out of all the relevant information for consumption of the medication.

Keys to Success

The keys to success are:

• Satisfy our customers so they will return again and again
• Maintain low overhead and operating costs
• Provide better prices than all our competitors

Marketing & Sales

Marketing plan.

The marketing strategy will be based on social media, mainly Facebook and Twitter, offering useful information and opinion while quietly appealing to the customer’s sense of value. The marketing campaign’s goal will to be increase awareness of The Discount Pharmacy with their target market.

The sales strategy will be based on generating long-term relationships with customers. To facilitate that, we will provide medications at superior prices, have medicines in stock for both quick shipment and store 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 The Discount Pharmacy their exclusive source for medications. For some, medications are an integral part of their lives, so establishing long-term relationships will ensure a large, loyal customer base

Milestones & Metrics

Milestones table, key metrics.

Our key metrics are: 

• The # of customers that walk in to the pharmacy 
• The # of customers that choose to mail in 
• The # of reviews saying that people could go to our pharmacy 
• Facebook page views, Twitter retweets  and website shares 
• Total customer traffic on the website 
• Total customer traffic in and out of the store 

Ownership & Structure

The Discount Pharmacy is an Oregon limited liability corporation. The majority stock holder is John Reeleaf.

Management Team

John Reeleaf has experience working with a major drug manufacturer, Eli Lilly, as a drug representative. He was able to see first hand the profitability associated with the prescription drug industry, as well as the inefficiencies with which most companies are plagued.

John graduated with an MBA from the University of Oregon’s innovative entrepreneurship program. While there he was awarded a $50,000 no interest loan through a business plan competition. That seed money will be parlayed, along with some other investments, into start up expenses for The Discount Pharmacy. John received an undergraduate degree in chemistry from the University of Oregon.

Personnel Table

Financial plan investor-ready personnel plan .">, key assumptions.

Key assumptions: 

Of course our main assumption is legality. Regulations affecting our business can change very fast. 

People appreciate:

• The mail in order option for their convenience 
• Prescription at affordable prices 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

The Discount Pharmacy will incur the following start-up equipment costs:

• Office equipment including chairs, file cabinets, and desks.
• Front counter, storage bins, cash register.
• Three computer terminals.
• Main computer server with a laser printer, and back-up system.
• Software: Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software detailing side effects and other information pertinent to the customer.
• Assorted bottles, boxes, envelopes, etc. for dispensing and shipment.
• Scales for shipping.
• Telecom system.
• Storefront build-out.
• Start-up inventory.
• Rent, utilities, insurance.

Please note that these items will be used for more than one year and will therefore be labeled long-term assets, depreciated using G.A.A.P. approved straight-line depreciation.

Startup expenses – $24,100 listed as net earnings in dec 2017 

Start-up Expenses

Legal $1,000

Rent $2,000

Utilities  $400

Telecom System $400

Insurance $300

Storefront Build-out $15,000

Expensed Equipment $4,000

Website development $1,000

TOTAL START-UP EXPENSES $24,100

Sources of Funds

Planned Investment

Seed Funding $50,000

John $51,000

Friends and Family $82,100 

Projected Profit & Loss

Projected balance sheet, projected cash flow statement.

Tax Season Savings

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Pharmaceutical Company Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Medical and Healthcare » Pharmacy

Are you about starting a pharmaceutical company? If YES, here is a complete sample pharmaceutical business plan template & feasibility report you can use for FREE .

If you are pharmacist and you are certain that you have a winning formula when it comes to producing effective generic drugs; drugs / medicine that has been tested and proven to meet the requirement for such products, then you should consider launching your own generic pharmaceutical manufacturing company.

It is a business that is still pretty much open for investors to come and compete for the available market in the country you intend launching the business.

A Sample Pharmaceutical Company Business Plan Template

1. industry overview.

The Generic pharmaceutical and medicine manufacturing companies primarily develop prescription and over-the-counter drug products that are used to prevent or treat illnesses in humans or animals.

Generic drugs are produced and distributed without patent protection, and industry operators are not significantly engaged in the research and development of new drugs.

It is important to mention that the generic pharmaceutical manufacturing industry does not include manufacturers of nutritional supplements, cosmetic beauty products or similar products.

All over the world, the pharmaceutical industry is highly regulated. This is so because the devastating effect of fake drugs or drug abuse can’t be quantified.

As a matter of fact, there are several universal laws and regulations that govern the patenting, testing, safety, efficacy and marketing of drugs.

For example, in the united states, new pharmaceutical products must be approved by the Food and Drug Administration (FDA) as being both safe and effective before they can be allowed to go into the market.

Statistics has it that global spending on prescription drugs grew to a whopping sum of $954 billion in 2011 and The United States accounts for more than a third of the global pharmaceutical market, with an estimate of $340 billion in annual sales

The Generic Pharmaceutical Manufacturing Industry is a thriving sector of the economy of countries like India, China, united kingdom , Germany and the United States of America.

Statistics has it that in the united states alone, the industry generates a whooping sum of well over $66 billion annually from more than 1,203 registered and licensed generic pharmaceutical manufacturing companies scattered all around the United States of America.

The industry is responsible for the employment of well over 67,699 people. Experts project the industry to grow at a 4.1 percent annual rate from 2011 to 2016. Mylan Inc., Sandoz Ltd. and Teva Pharmaceuticals Industries Ltd. have the lion share of the available market in the Generic Pharmaceutical manufacturing industry in the United States of America.

A close study of the Generic Pharmaceutical Manufacturing industry shows that the industry is expanding rapidly. This is due to the demand for the industry’s products by the aging population with more chronic illnesses.

So also, with the regulatory provisions of the Patient Protection and Affordable Care Act expand consumer access to prescription insurance and provide increased opportunities for product development.

Going forward, the industry revenue growth is expected to outpaced revenue growth for the Brand Name Pharmaceutical Manufacturing industry.

A large number of brand name drugs manufacturers lost patent protection for blockbuster drugs beginning in 2010; demand for generics subsequently grew, as consumers demanded affordable versions of these high-profile products. These trends are expected to continue in the next five years.

A recent report published by IBISWORLD shows that the Generic Pharmaceutical Manufacturing industry has a low level of concentration, with the top four companies accounting for 30.2 percent of industry revenue in 2016.

Having a large operation as a generic manufacturer does not offer the same advantages as it does for brand name producers.

The report further stated that generic drug manufacturers can be smaller because the cost of research and development is significantly lower than it is for brand name companies; however, operators can still benefit from economies of scale through savings on administrative and capital costs.

Moreover, a company’s presence in both generic and brand drug markets can buffer company revenue against volatility in price or demand for any one specific drug.

The bottom line is that; the Generic Pharmaceutical Manufacturing industry is still very much open for new entrant; the competition within the industry is not as stiff as similar industry.

If your product is good, it can gain fair share of the available market in any country or region you intend launching the business.

2. Executive Summary

Harry Tancredo® Pharmaceuticals, LLC is a licensed and standard generic pharmaceutical manufacturing company that will be located in an industrial area in Concord – New Hampshire.

We have been able to secure a long-term lease agreement for a facility in a strategic location with an option of a long-term renewal on an agreed terms and conditions that is favorable to us.

The facility has government approval for the kind of production business we want to run and the facility is easily accessible and we are deliberate about that because we want to facilitate easy movement of raw materials (chemicals and packaging containers) and finished products (drugs / medicines).

Harry Tancredo® Pharmaceuticals, LLC is in the generic pharmaceutical manufacturing industry to engage in developing and producing generic drugs, marketing and distributing generic drugs and gaining regulatory approval for generic drugs.

We will manufacture standard and effective pharmaceutical products such as mental health and lipid regulators, anti diabetics and respiratory, pain and antibacterial, nervous system disorders and antihypertensive, antiulcerants and thyroid, dermatological and hormonal contraceptives, and ADHD and anticoagulants.

We are also in business to make profits at the same to give our customers value for their money; we want to give people and businesses who patronize our pharmaceutical products the opportunity to be part of the success story of our brand.

We are aware that there are several big scale and small scale generic pharmaceutical manufacturing companies scattered all around the United States and Canada whose products can be found in every nooks and crannies of The United States and Canada, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that can easily accept our products and brand.

We ensured that our facility is easy to locate and we have mapped out plans to develop a far-reaching distribution network for wholesalers of pharmaceutical products all around Concord – New Hampshire and throughout the United States of America.

Much more than producing quality, effective and safe generic pharmaceutical products, our customer care is going to be second to none.

We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they purchase any of our product and also to become our loyal customers and ambassadors.

Harry Tancredo® Pharmaceuticals, LLC will ensure that all our customers (wholesale distributors) are given first class treatment whenever they visit our factory.

We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large the numbers of our customer base may grow to.

We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them. Harry Tancredo® Pharmaceuticals, LLC is family business that will be owned by Harry Tancredo and his immediate family members.

Harry Tancredo who is the Chief Executive Officer of the Company is Graduate of Pharmacology and he holds a Master’s Degree in Business Management (MBA).

He has well over 12 years of experience working in related industry as a senior production manager prior to starting Harry Tancredo® Pharmaceuticals, LLC. He will be working with a team of professionals to build the business and grow it to enviably height.

3. Our Products and Services

Harry Tancredo® Pharmaceuticals, LLC is going to run a standard and licensed generic pharmaceutical manufacturing company whose products will not only be sold in Hartford – Connecticut but also throughout the United States of America and Canada.

We are in the generic pharmaceutical manufacturing industry to make profits and also to give our customers value for their money.

We will ensure that we do all that is permitted by the law in the United States of America to accomplish our business goal and objective. These are some of the products that we will be offering;

• Developing and producing generic drugs
• Marketing and distributing generic drugs
• Gaining regulatory approval for generic drugs
• Mental health and lipid regulators
• Anti-diabetics and respiratory
• Pain and antibacterial
• Nervous system disorders and antihypertensive
• Anti-ulcerants and thyroid
• Dermatological and hormonal contraceptives
• ADHD and anticoagulants

4. Our Mission and Vision Statement

• Our vision is to establish a standard generic pharmaceutical manufacturing Company whose products will be not only be sold in Concord – New Hampshire, but also throughout the United States of America and Canada.
• Our mission is to establish a standard and world class generic pharmaceutical manufacturing Company / brand that in our own capacity will favorably compete with leaders in the industry.
• We want to build a business that will be listed amongst the top 20 generic pharmaceutical manufacturing brands in the United States of America and Canada.

Our Business Structure

Harry Tancredo® Pharmaceuticals, LLC is a business that is established with the aim of competing favorably with other leading generic pharmaceutical product brands in the industry.

This is why we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)

Production / Plant Manager

Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

• Machine Operators
• Accountants / Cashiers

Distribution Truck Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization.
• Responsible for overseeing the smooth running of the pharmaceutical production plant
• Part of the team that determines the quantity and quality of pharmaceutical products that are to be produced
• Maps out strategy that will lead to efficiency amongst workers in the plant
• Responsible for training, evaluation and assessment of plant workers
• Ensures that the steady flow of both raw materials to the plant and easy flow of finished products through wholesale distributors to the market
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Ensures that the plant meets the expected safety and health standard at all times.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily office and factory activities.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Responsible for the purchase of raw materials and packaging materials
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

Accountant / Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels / documents for the company
• Distribute mails in the organization
• Handles any other duties as assigned by the line manager

Production Workers / Machine Operators:

• Responsible for preparing, blending, compounding and packaging pharmaceutical products
• Handle labeling of pharmaceutical products
• Operate machines used in the manufacturing mental health and lipid regulators, ant diabetics and respiratory, pain and antibacterial, nervous system disorders and antihypertensive, antiulcerants and thyroid, dermatological and hormonal contraceptives, and ADHD and anticoagulants
• Assist in packaging and loading pharmaceutical products into distribution trucks
• Assists in loading and unloading pharmaceutical products
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assists the transport and logistics manager in planning their route according to a delivery schedule.
• Local-delivery drivers may be required to sell products or services to pharmaceutical stores and businesses on their route, obtain signatures from recipients and collect cash.
• Transports finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
• Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verifies delivery instructions
• Reports defects, accidents or violations

6. SWOT Analysis

We are quite aware that there are several generic pharmaceutical manufacturing companies both large and small in the United States of America and Canada which is why we are following the due process of establishing a business so as to compete favorable with them.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Harry Tancredo® Pharmaceuticals, LLC employed the services of an expert HR and Business Analyst with bias in start – up business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Harry Tancredo® Pharmaceuticals, LLC;

Part of what is going to count as positives for Harry Tancredo® Pharmaceuticals, LLC is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.

So also, our state of the art machines and equipment, the wide varieties of pharmaceutical products that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

A major weakness that may count against us is the fact that we are a new generic pharmaceutical manufacturing company in the United States and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like Mylan Inc., Sandoz Ltd. and Teva Pharmaceuticals Industries Ltd. et al are already determining the direction of the market both in the United States and in the global market.

• Opportunities:

The opportunities available to generic pharmaceutical manufacturing companies with a wide range of products are enormous. This is due to the fact that almost all Americans and people from all over the world take drugs / medicine for different reasons.

As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market for pharmaceutical products and also to create our own new market. We know that it is going to requires hard work, and we are determined to achieve it.

We are quite aware that just like any other business, one of the major threats that we are likely going to face are economic downturn and unfavorable government policies . It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new generic pharmaceutical manufacturing company in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

A close study of the trends in the Generic Pharmaceutical Manufacturing industry shows that the industry is expanding rapidly. This is due to the demand for the industry’s products by the aging population with more chronic illnesses.

So also, with the regulatory provisions of the Patient Protection and Affordable Care Act expand consumer access to prescription insurance and provide increased opportunities for product development. Going forward, the industry revenue growth is expected to outpaced revenue growth for the Brand Name Pharmaceutical Manufacturing industry.

Lastly, the generic pharmaceutical manufacturing industry is the adoption of eco – friendly approach towards the production and packaging of its products. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.

8. Our Target Market

When it comes to selling pharmaceutical products, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who resides in our target market locations.

In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in developing and producing generic drugs, marketing and distributing generic drugs and gaining regulatory approval for generic drugs. Hence our target markets are;

• Health Facilities
• Pharmaceutical Products Wholesalers
• Retail Pharmacy Stores
• Everybody in our target market location

Our competitive advantage

A close study of the generic pharmaceutical manufacturing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with other generic pharmaceutical manufacturing companies in New Hampshire and throughout the United States and Canada.

Harry Tancredo® Pharmaceuticals, LLC is launching a standard generic pharmaceutical product brand that will indeed become the preferred choice of residence of Concord – New Hampshire and every city where our generic pharmaceutical product will be retailed.

Part of what is going to count as competitive advantage for Harry Tancredo® Pharmaceuticals, LLC is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.

So also, our state of the art pharmaceutical production machines and equipment, the wide varieties of generic pharmaceutical products that we produce our large and far reaching national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups generic pharmaceutical manufacturing companies) in the generic pharmaceutical manufacturing industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Harry Tancredo® Pharmaceuticals, LLC is established with the aim of maximizing profits in the generic pharmaceutical manufacturing industry in both the United States of America and Canada and we are going to go all the way to ensure that we do all it takes to sell a wide range of generic pharmaceutical products to a wide range of customers.

Harry Tancredo® Pharmaceuticals, LLC will generate income by selling the following pharmaceutical products;

• Antiulcerants and thyroid

10. Sales Forecast

One thing is assured when it comes to generic pharmaceutical manufacturing company, if your products are well – packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Concord – New Hampshire and every city where our generic pharmaceutical products will be sold and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the generic pharmaceutical manufacturing industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Concord – New Hampshire.

Below is the sales projection for Harry Tancredo® Pharmaceuticals, LLC, it is based on the location of our business and other factors as it relates to small scale and medium scale generic pharmaceutical manufacturing company start – ups in the United States;

• First Fiscal Year-: $250,000
• Second Fiscal Year-: $550,000
• Third Fiscal Year-: $950,000

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor manufacturing same generic pharmaceutical products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Harry Tancredo® Pharmaceuticals, LLC and also the kind of generic pharmaceutical products we will produce, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in our target market locations.

We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time and also for our products to favorable compete with other leading generic pharmaceutical manufacturing brands in the United States of America and Canada.

We hired experts who have good understanding of the generic pharmaceutical manufacturing industry to help us develop

In other to continue to be in business and grow, we must continue to sell our generic pharmaceutical products to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals.

In summary, Harry Tancredo® Pharmaceuticals, LLC will adopt the following sales and marketing approach to sell our generic pharmaceutical products;

• Introduce our generic pharmaceutical products brand by sending introductory letters to pharmacy stores, hospitals, residence, pharmaceutical merchants, retailers and other stakeholders in Concord – New Hampshire and other cities both in the United States of America and Canada
• Open our generic pharmaceutical manufacturing company with a party so as to capture the attention of residence who are our first targets
• Engage in road show in targeted communities from time to time to sell our products
• Advertise our products in community based newspapers, local TV and radio stations
• List our business and products on yellow pages ads (local directories)
• Leverage on the internet to promote our generic pharmaceutical product brands
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

In spite of the fact that our generic pharmaceutical manufacturing plant is a standard one with a wide range of pharmaceutical products that in few years from now will favorably compete with other leading brands in the industry like Mylan Inc., Sandoz Ltd. and Teva Pharmaceuticals Industries Ltd.

We will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Harry Tancredo® Pharmaceuticals, LLC.

Harry Tancredo® Pharmaceuticals, LLC has a long-term plan of distributing our generic pharmaceutical products in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted first in Concord – New Hampshire before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Harry Tancredo® Pharmaceuticals, LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our generic pharmaceutical product brand
• Install our Bill Boards on strategic locations all around major cities in the United States of America and Canada
• Engage in road show from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
• Ensure that our products are well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.

12. Our Pricing Strategy

When it comes to pricing for products such as generic pharmaceutical products, there are two sides to the coin. We are aware of the pricing trend in the generic pharmaceutical manufacturing industry which is why we have decided to produce various sizes of pharmaceutical products as regulated by the industry.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various generic pharmaceutical product brands in the United States of America.

We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our generic pharmaceutical product brands.

• Payment Options

The payment policy adopted by Harry Tancredo® Pharmaceuticals, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Harry Tancredo® Pharmaceuticals, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for generic pharmaceutical product purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of our products.

13. Startup Expenditure (Budget)

Starting a standard generic pharmaceutical manufacturing company is indeed a capital – intensive business. This is so because the amount required in setting up a generic pharmaceutical production plant is not a piecemeal. The bulk of the start – up capital will be sent on leasing or acquiring a facility and also in purchasing mixing, blending, compounding and packaging equipment.

Aside from that, you are not expected to spend much except for purchase and servicing of distribution trucks, purchasing raw materials, paying of your employees and utility bills. These are the key areas where we will spend our start – up capital;

• The total fee for registering the Business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of Harry Tancredo® Pharmaceuticals, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• The cost for hiring Business Consultant – $2,500.
• The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
• The cost for construction of a standard generic pharmaceutical production plant – $100,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for start-up inventory (mixing, blending, compounding and packaging equipment, raw materials, and packaging materials et al) – $80,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase of distribution vans – $60,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
• The cost of launching a website – $600
• The cost for our opening party – $10,000
• Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our generic pharmaceutical manufacturing company in Concord – New Hampshire. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.

Generating Funds / Startup Capital for Harry Tancredo® Pharmaceuticals, LLC

Harry Tancredo® Pharmaceuticals, LLC is a family business that is owned and financed by Harry Tancredo and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of any business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Harry Tancredo® Pharmaceuticals, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our generic pharmaceutical products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Harry Tancredo® Pharmaceuticals, LLC will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and construction of standard generic pharmaceutical production plant: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members and friends: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of the Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Establishing business relationship with vendors – pharmacy stores, hospitals, pharmaceutical products wholesale suppliers / merchants: In Progress

Related Posts:

• Retail Pharmacy Business Plan [Sample Template]
• Pharmaceutical Distribution Business Plan [Sample Template]
• Drug Prescription Delivery Business Plan [Sample Template]

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Pharmacy Business Plan

Things to Consider Before Writing a Pharmacy Store Business Plan

Check your legal requirements.

A pharmacy business requires a fair amount of licenses and permits. It is good to have a checklist of all the required licenses and to see if you have to get any of them.

Research what permits your state requires as well as the ones mandatory for everyone. It helps you stay on the good side of the law.

Pick a good location

A pharmacy setup requires a fixed minimum area. Also, a pharmacy that is easily accessible is more likely to succeed than one which is unreachable during emergencies. Hence, picking a good location is important .

Also, you can pick between starting a physical store or going online. Both business structures would have their pros and cons. You should pick the one that is the best for you.

Have a proper storage facility

Different medicines and formulas have different storage requirements. You’ll keep most of them in cool and dry places though. Bad storage can cost a pharmacy business dearly, even if you do everything else right.

Hence, it is important to have a good and ideal storage facility before you get started.

Check if your staff has the proper technical knowledge

You need technical knowledge and attention to detail to fare well as a pharmacist and so does your staff. As dealing with medicines is quite a critical job and can have consequences if not done right, it is important to find staff who know what they are doing and are well-trained and up to the job.

After you figure out some of the technical requirements, it is essential to figure out the business side of running a pharmacy. Planning, in the beginning, can save you from a lot of trouble later on.

Chalking Out Your Business Plan

A business plan helps you stay prepared for challenges, make better decisions, and formulate better business strategies. A pharmacy business takes a fair amount of legal procedures and competitive strategies, a pharmacy business plan can help you with that.

Reading some sample business plans will give you a good idea of what you’re aiming for. Also, it will show you the different sections that different entrepreneurs include and the language they use to write about themselves and their business plans.

We have created this sample pharmacy business plan for you to get a good idea about how perfect a pharmacy business plan should look and what details you will need to include in your stunning business plan.

Pharmacy Business Plan Outline

This is the standard business plan outline which will cover all important sections that you should include in your business plan.

• Keys to Success
• Business Ownership
• Summary Chart
• Business Model Description
• Mail order customers
• Walk-in customers
• Target Market Analysis
• Target Market Segment Strategy
• Competitive Edge
• Marketing Strategy
• Sales Forecast
• Development Requirements
• Personnel Plan
• Important Assumptions
• Break-even Analysis
• Projected Profit and Loss
• Projected Cash Flow
• Balance Sheet

Let’s understand how you can write each section of the pharmacy business plan.

1. Executive Summary

The executive summary section forms the first page of your business plan. It summarises all that your business stands for.

The executive summary section consists of the following subsegments:

• Objectives : This segment consists of the reason you started your business in the first place. What is your idea behind it and what problem do you plan on solving with it?
• Mission : Your mission statement should reflect how your pharmacy business can help people, apart from providing them with medicines. It reflects how your idea can deal with a problem more optimally.
• Financial Summary : This section would consist of the funding requirements of your business, and how the said funds would be put to use. It serves the main purpose of the executive summary, which is to get your business funded.

As a pharmacy business, your executive summary would consist of the type and size of your pharmacy business, your team, your qualifications and licenses, and a summary of your financial plan.

2. Products and Services

This section consists of a description of all the products and services your pharmacy offers.

For example, apart from your general products, this section can also consist of services your pharmacy offers like home delivery of medicines, subscription packages, online orders, etc.

3. Market Analysis

Market analysis helps you understand what you are getting yourself into. It also helps you make sense of all the research you have done and how you can put it to use for your business.

It consists of the following subsegments:

• Market Segmentation : Through market segmentation, you separate your target audience from the rest of the market based on their age, gender, income, occupation, medical conditions, etc.
• Market Positioning : In this segment, you can add an analysis of where you stand in the current market. And what would be the best marketing strategy for you as per your position?
• Target Market Analysis : In this section, you’ll write down an analysis of your target market, and their tastes and preferences.

As a pharmacy business, you can list down the type of pharmacy you own, your target customer base, the kind of services they like, the location they’ll prefer, and how they buy their medical supplies.

4. Strategy And Implementation

After you carry out market analysis, the next step would be to create a marketing strategy based on the same. This section helps you promote your business to your target audience.

This section consists of the following subsegments:

• Competitive Edge : Include your competitive advantage in this section. Include how your product is better than your competitor’s and how you’ll use that to your advantage.
• Marketing Strategy : Your marketing strategy should speak to your target audience. Your campaign should show your customers how your business solves a pressing problem.
• Sales Strategy : A sales strategy should be formulated after surveying what works best for your specific industry.

As a pharmacy business, you can center your marketing around safe products, better service, and availability. According to various surveys, KAM, clinical sales force, and service rep model are three of the most successful strategies for pharmacies.

5. Web Plan

With everything going online, a website strategy is of utmost importance. With online pharmacies like mail, my prescriptions, and Amazon pharmacy coming up, having an online presence is crucial to being seen by your consumers.

Moreover, an eCommerce website can also serve as a good alternative if you don’t want to go through the hassle of owning a physical store.

Nonetheless, building your online presence can help you in getting noticed. It is also a good method of promoting your brand idea.

6. Financial Plan

This section would consist of everything about your company’s finances. From your financial history to your projected profits, your financial plan would cover it all.

A good financial plan helps your business survive and thrive.

This segment consists of the following subsegments:

• Financial Resources : This segment would consist of the investment you can put in your business, as well as other resources for meeting your funding requirements.
• Funding Requirements : This would consist of the funding requirements to set up your pharmacy and keep it going.
• Projected Cash Flow and Profits : This section would consist of your business’s expected cash flow and profits in the long term.

Download a sample pharmacy business plan

Need help writing your business plan from scratch? Here you go;  download our free pharmacy business plan pdf  to start.

It’s a modern business plan template specifically designed for your pharmacy business. Use the example business plan as a guide for writing your own.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Pharmacy Business Plan Summary

In conclusion, though a pharmacy business might take a lot of work, you can make running your business a lot easier and smoother with a business plan.

A business plan helps you stay organized and updated as per market trends and changing environment of the industry.

After getting started with Upmetrics , you can copy this sample pharmacy business plan template into your business plan and modify the required information and download your pharmacy business plan pdf or doc file.

It’s the fastest and easiest way to start writing your business plan.

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About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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15+ pharmacy business plan templates – pdf, doc.

When you sample plan on opening up a business, it’s very important that you know what it is that’s supposed to happen. You’ll need to figure out everything that needs to transpire for your business to reach the success that it’s supposed to. This is especially true if you plan on running your pharmacy. Similar to a marketing plan or a financial plan, a business plan for a medical store, drug shop, or new pharmacy branch can help you make a strategy for details like organizational responsibilities, risk management, education for chemist workers, and wholesale proposal. You may also check nonprofit business plans .

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Pharmacy Business Plan Template

Medical Store Pharmacy Education Business Plan

New Startup Pharmaceutical Business Plan

Wholesale & Retail Discount Pharmacy Business Plan

How to Create Your Pharmacy Business Plan

1. know what your mission and vision for your pharmacy should be, free online clinical e-pharmacy business plan.

Free Pharmacy Council Strategy Business Plan

Business Plan for Pharmacy Technician Executive Summary

Business Plan for Pharmacy Authority Risk Management

2. Share What Kind of Pharmacy You Plan on Opening

• Community Pharmacy
• Compounding Pharmacy
• Consulting Pharmacy
• Ambulatory Care Pharmacy.
• Regulatory Pharmacy
• Hospital Pharmacy
• Industrial Pharmacy
• Clinical Pharmacy

3. Point Out Who Your Target Audience Is Going to Be

4. share how much it’s going to take to start your pharmacy, independent pharmacy business financial plan guide.

Free Organizational Pharmacy Business Continuity Plan

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Community Pharmacy Business Plan Template

Free Chemist Pharmacy Business Plan Template

Free Pharmacy Business Plan Proposal Template

Pharmacy Business Marketing Plan Template

5. Explain Your Marketing Strategies

6. make an executive summary, more in plan templates, national pharmacist day flyer background, pets clinic flyer template, national pharmacist day flyer template, nursing flyer template, pharmacy and drug store flyer template, pharmacy services flyer template, pharmacy medical services flyer template, pharmacy and medical supply flyer template, basic healthcare flyer template, bbq summer party flyer template.

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