How to draft a business plan to start a pharmacy in Egypt

Start your pharmacy

Starting a pharmacy in Egypt can be a challenging business proposition amid today’s highly competitive retail pharmacy market. However, it can also be a rewarding venture only with a proper due diligence, planning and execution. 

In this topic, we will start with the main and most fundamental step to open a pharmacy which is developing an effective business plan.

A business plan is crucial not just to help you to guide the direction of your pharmacy from the start, but to secure funding from investors or financial institutions.

 

The most important elements of a business plan shall include: a mission statement, ownership structure, financial plan and projections, a competitive analysis and the pharmacy’s anticipated competitive advantage. The pharmacist’s business plan should clarify how the pharmacy will maintain in the market amid competitions and improve the overall health status of its patients beyond just filling prescriptions.

Below are some of the main business plan essentials:

·         Mission statement: a short statement about why the pharmacy exists, and identifying the goal of its operations, its primary customers or market, what kind of product or service it provides and its geographical region of operation.

 

·         Executive overview: a short document to sum up a longer report or proposal or a group of related reports, so that readers can easily become acquainted with a large body of material without having to read it all.

 

·         Ownership structure (sole proprietorship, partnership, etc.)

 

·         Financial plans and projections: Real estate either purchase, build, lease,  or tenant improvements, Financing details, Cash flow projections, Pharmacy systems, Automation, Initial inventory, Decor, Management/staffing.

                  It’s important to calculate your startup and operational costs from the beginning. This section of your business plan needs a special attention to details. Potential investors have to know about the startup funding. So, you have to provide information about operational costs, building requirements, if any, and initial inventory. Be careful not to lowball your estimates and not to overestimate your costs. Either extreme may raise concerns on the realistic of your pharmacy business and whether you understand what it takes to start a business. The operational costs must also include other expenses, such as salaries, taxes, leased space, and everyday supplies and equipment.

 

·         Competitive analysis/SWOT
This means you'll take note of your competitor's strengths, weaknesses, opportunities, and threats any time you assess an overall grade.

 

·         Demographic analysis: a technique that can be used to develop an understanding of the age, sex, and racial composition of a population and how it has changed over time through the basic.

 

       Marketing plan
                             Watch results from your market research and feasibility studies. These are key elements to draft a persuasive business plan to potential investors. They believe more in a business plan that contains reliable market research and feasibility study data. Your market research have to focus on more than just the target market – map your competitors’ locations, markets and services they provide. Overall, your business plan must include research that demonstrates a true need for your pharmacy.

 

Build a description that distinguishes your business from others, for example, you may plan to offer services that other pharmacies may not provide. You may also present Pharmacy offerings, such as diabetic management/counseling, home healthcare, compounding, nutraceuticals, DME, and others

 

Include in your feasibility study data: development costs, retail markets, Information pertaining to zoning, availability and competitive pricing of pharmaceutical products you provide, and any additional services you offer that enhance the potential success of your pharmacy.

 

Illustrate how you are going to compete against larger retails whose prices are based on their ability to purchase drugs and medical supplies in larger volume at lower costs.

 

 

·         Future plans/exit strategy (if applicable)

 

 

For more explanation on how to draft your business plan, you can consult your lawyer, financial advisors, and more members of your team to help flesh it out in detail. And let them have a final look after you’re done to make sure it feels realistic, cohesive and complete.