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Danny Huynh12th Grade

Sport and Medical Sciences AcademyHartford, CT17 years old

3

Business Profile

3rd Party Professional Pharmacy Delivery Service:– I selected this business because receiving prescription medications for

active seniors can often be difficult.

Type of Business:– Service

• Pharmacies- Provide them with hassle-free delivery, and gather new accounts

• Active Seniors- Provide them with a convenient means of receiving their prescriptions

Legal Structure:– Limited Liability Corporation– I will be fully responsible and will be able to control all aspects of my

business and have all the protections of a corporation.

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Product/Service Description

Unique Features:– Outsourced Delivery Service specializing in handling pharmaceuticals – Get rid of the inefficient delivery portion of their Pharmacy business – Professional Delivery Service attracts new customers

Qualifications:– Will be HIPAA (Health Insurance Portability and Accountability Act)

Certified by the end of November 2009 – Completed 3 UConn Medicine-Based Programs– Strong Commitment to Excellence (Top 3 in Graduating Class) – Licensed to Drive (Clean Record)

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Market Analysis

Description Amount

Population in Hartford 125,000

12 % Active Seniors 15,000

Average of 10 prescriptions/month 150,000/month

10 pharmacies in Hartford 15,000 prescriptions/pharmacy

10% of prescriptions need delivery 1,500

Estimate 250 prescriptions may already be delivered (conservative)

1,250 prescriptions/month un-served and needing delivery

Surveyed Pharmacies

– Only 1 out of 10 pharmacies delivered– Average pharmacy has less than 100 deliveries total– Some only deliver to previously existing customers and do not charge

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Consumer Profile

By Location:– The Hartford Area

By Population:– Active Seniors that attend

Senior Centers/Gatherings and are unable or unwilling to pick up the prescriptions themselves

By Personality/Behavior:– A pharmacy that wants to

have an added service to further satisfy their customers

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Competition

Competitive Advantage – Outsourced Delivery Service specializing in handling pharmaceuticals – Pharmacies get rid of inefficient delivery portion of their business – Professional Delivery Service attracts new customers

Competitor Price Quality Greatest

Strength

Greatest

Weakness

CVS Online Pharmacy Mailing Service

$ 16.95 Fair •Have Free Standard Delivery

•Through mail•Up to 2 weeks later•No same-day delivery

Walgreens Employee Delivery Service

Free Good •Maintain pre-existing customers

•Only for inactive seniors•Don’t promote•Costly to the company

Friends and Families Free Good •Way of receiving medication

•Inconvenient•No family around

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Marketing Mix

Price: – More affordable to the pharmacies than the alternative

Place: – Hartford, CT

Product:– Professional efficient pharmaceutical delivery service

Promotion:– Pamphlets and business cards at local pharmacies and senior

centers/gatherings

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Marketing Plan

Phase Method Description Cost

Awareness •Self-Promotion•Business Cards•Pamphlets•Website

•Placed at local pharmacies and senior centers/gatherings

•$8.00/ hr.•$10.00/500•$1.00/month•Free

Purchase •Personal meeting with Pharmacies

•FREE to the customer

•Convincing a Pharmacy of the savings, increase in customer accounts in a safe/secure manner

•$8.00/ hr.

Retention •Monthly Prescriptions•Professional•Hassle-free service

•Active seniors will need monthly refills•Excellent professional customer service

•Free

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Cost of Materials/Direct Labor

Definition of One Unit One Senior Center Delivery

Cost of Sales Per Unit

Direct Labor

(Labor Cost per Hour)

Time (in hours) to make 1 Unit

Direct Labor Cost Per Unit

$ 15.00 1.5 hrs. for travel, pickup, delivery to 4 centers =

0.375 or 22.5 min/center

$ 5.63

Total Direct Labor Per Unit $ 5.63

Material Description Cost/Total Quantity Cost Per Unit ($)

Recycled Printing Paper and Labels

$ 37.99/5000 Sheets $ 0.01

HP Black Printing Cartridge $ 127.99/3 Cartridges $ 0.01

Total Material Cost Per Unit $ 0.02

Variable Costs Per Unit (gas) $ 1.00

Cost of Sales Per Unit $ 6.65

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Economics of 1 Unit

Definition of One Unit One Senior Center Delivery

Selling Price per Unit $ 30.00

Direct Labor Per Unit $ 5.63

Materials Per Unit $ 0.02

Total COGS Per Unit $ 5.65

Variable Costs Per Unit (gas) $ 1.00

Total Cost of Sales $ 6.65

Gross Profit Per Unit $ 23.35

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Time Management Plan

Business Schedule for a Typical Week

Entrepreneurship 12 Hrs.

School Hours 50 Hrs.

Sleep 56 Hrs.

Free-Time Hours 50 Hrs.

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Average Monthly Fixed Costs

Type of Fixed Cost Monthly Cost Entrepreneurial Stipend $ 30.00

Rent/Utilities (internet, cell phone) $ 60.00

Advertising (web, brochures, business cards, self promotion)

$ 50.00

Insurance ($1M liability, car $130, LLC yearly fee) $ 217.50

Depreciation (used car, computer, printer) $ 54.83

Car Expenses/Maintenance $ 20.00

Total Monthly Fixed Costs $ 432.33

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Monthly Sales Projections

Month Units Sold

January 96

February 96

March 96

April 96

May 96

June 96

July 96

August 96

September 96

October 96

November 96

December 96

Sales Assumption

− Size of Market: 1,250 prescriptions

− Full Capacity: (Hartford, CT)– Part-time 96 deliveries– Full-time 240 deliveries

– Seasonality: NONE

Monthly Break-

Even Units15

Deliveries

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Projected Yearly Income Statement

Selling Price Per Unit $ 30.00

# of Units Sold 1,152

Total Sales $ 34,560.00

Total COGS $ 6,508.80

Other Variable Costs $ 1,152.00

Total Variable Costs $ 7,660.80

Gross Profit $ 26,899.20

USAIIRD $ 5,187.96

Other Costs/Unforeseen $ 1,000.00

Total Fixed Costs $ 6,187.96

Profit before Taxes $ 20,711.24

Less Estimated Taxes @25% $ 5,177.81

7% Donation to DCF $ 1,087.34

Net Profit $ 14,446.09

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Start-up Investment

Entrepreneurial hours needed for start-up

Wage I pay myself Total start-up

time investment

80 $ 8.00 $ 640.00

Item Where I will buy this? Cost of Item

Laptop w/ Printer School (SMSA) FREE

HIPAA Certification Goodwin College $ 495.00

Paperwork for LLC Secretary of State $ 320.00

Nissan Pathfinder Already Owned $ 0.00

Multi-Colored Bins Global Industrial $ 19.50

White Lab-Coat happychefuniforms.com $ 18.95

Cash Reserve $ 1,296.99

Estimated Total Start-up Investment $ 2,790.44

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Return on Investment/Return on Sales

Return on Sales Return on Investment

(ROS) 41%For every $1 dollar of sales,

my business earned :

$ 0.41

(ROI) 517%For every $1 dollar invested,

my business earned :

$ 5.17

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Financing Strategyfor Total Start-up Investment

Source Amount Debt Equity Gift

Personal Savings (Previous Job)

$ 1,600.00 X

Relatives/Friends $ 220.00 XInvestor N/A

Grant $ 975.00 X

Total: $2,795.00

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Social Responsibility Plan

• My business will donate 7% of my annual net profit to the Department of Children and Families.

• Consumers will be aware of this by a label on all medications that are delivered. It will also be stated on my brochures and website.

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Business and Educational Goals

Business

To become operational within a month of getting my HIPAA Certification

To hire two employees within the first 3 years

Educational

To graduate high school as Valedictorian and attend an Ivy League College

To receive my Doctorate of Pharmacy Degree from an Ivy League College within 6 years

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Providing Pharm-Assist to Pharmacies

Thank you for your consideration of:

Please don’t hesitate to visit my website at:

http://pharm-assist.com