business plan

Health and Total Care Pharmacy Living with Diabetes Business Plan Page 1 of 78

“Your Friend in health and diabetes.”


DISCLAIMER

Whilst this plan has been based on a hypothetical scenario of the purchase of O’Loughlins

Medical Pharmacy, only the location and shop size are true. All financial data is totally

fictional.


Contents

1 Introduction ................................................................................................... 6

2 Executive Summary ...................................................................................... 8

3 Aims ............................................................................................................ 11

3.1 Vision ................................................................................................... 11

3.2 Mission ................................................................................................. 11

3.3 Goals and Objectives ........................................................................... 12

3.3.1 Financial ........................................................................................ 12

3.3.2 Customer ....................................................................................... 13

3.3.3 Internal Business ........................................................................... 13

4 Situation Analysis ........................................................................................ 15

4.1 SWOT: Retail Pharmacy Industry Analysis .......................................... 15

4.2 SWOT: Living with Diabetes Program .................................................. 17

4.3 Competitor Analysis ............................................................................. 21

4.4 Planning Assumptions .......................................................................... 27

5 Keys Issues/Keys to success ...................................................................... 28

6 Marketing Strategy ...................................................................................... 29

6.1 Products and Services ......................................................................... 29

6.2 Price ..................................................................................................... 35

6.3 Place .................................................................................................... 36

6.4 Promotion ............................................................................................. 37

6.5 People .................................................................................................. 38

6.6 Physical Evidence ................................................................................ 38

6.7 Process ................................................................................................ 42

7 Operational Plan ......................................................................................... 43

7.1 Delivery of Living with Diabetes, Diabetes One and Get Healthy

Program ..................................................................................................... 43

7.2 Procedures ........................................................................................... 43

7.3 Advertising............................................................................................ 43

7.4 Refund Policy ....................................................................................... 44

7.5 Credit Policy ......................................................................................... 44

7.6 Inventory Policy .................................................................................... 44

7.7 Equipment and Software ...................................................................... 44


7.8 Suppliers .............................................................................................. 45

7.9 Ordering, Receiving, Storage and Pricing Stock .................................. 45

7.10 Ordering Stock ................................................................................... 45

7.11 Receiving Stock .................................................................................. 46

7.12 Storing Medicine ................................................................................. 46

7.13 Pricing of Stock .................................................................................. 46

7.14 Customer Service ............................................................................... 47

7.15 Security .............................................................................................. 47

7.16 Occupational Health and Safety ......................................................... 48

8 Financial Plan ............................................................................................. 49

8.1 Corporate Ownership ........................................................................... 49

8.2 Establishment Cost .............................................................................. 49

8.2.1 Value of the Business .................................................................... 49

8.2.2 Start up Expenses ......................................................................... 50

8.3 Financial Forecast before implementation of the Membership Programs

................................................................................................................... 51

8.3.1 Profit and Loss Statement .............................................................. 51

8.3.2 Balance Sheet ............................................................................... 53

8.4 Financial Forecast of Membership Program ......................................... 54

8.4.1 Sales Forecast ............................................................................... 54

8.4.2 Expense Forecast .......................................................................... 57

8.4.3 Income Projection of the Membership Program Only .................... 58

8.4.4 Profit and Loss Statement for the Membership Program, Diabetes

and Weight loss related product ............................................................. 59

8.5 Financial Forecast of the Whole Business ........................................... 59

8.5.1 Profit and Loss Statement .............................................................. 60

8.5.2 Sales Forecast ............................................................................... 62

8.5.3 Break Even Analysis ...................................................................... 63

9 Human Resources Plan .............................................................................. 64

9.1 People .................................................................................................. 64

9.2 Key Responsibilities and Tasks ............................................................ 67

9.3 Organisation Chart ............................................................................... 70

10 Action Plan ................................................................................................ 71

11 Evaluation ................................................................................................. 74


12 Legal Matters ............................................................................................ 75

13 References................................................................................................ 76

14 Appendices ............................................................................................... 77

15 Business Plan Team Members ………………………………………………75


1 Introduction

O’Loughlins Medical Pharmacy which is located in St Ives, in Sydney's lower North Shore,

has been bought by three partners (Daniel Rifkin, Fiona Bournazos and Joanne Chang).

Renamed Health and Total Care Pharmacy (HTCP), it will continue as a general community

pharmacy, serving its previous customer base and we expect this business to continue and

grow at a steady rate consistent with the industry average.

However, the implementation of an additional, extensive and innovative diabetes program

(named Living with Diabetes (LWD)) is the focus of this Business Plan. The diabetes program

will be initiated because diabetes is a complex disease with a rapidly increasing incidence in

Australia, which has significant morbidity and mortality.

The Pharmacy Diabetes Care Program, a project lead by Dr Ines Krass of the University of

Sydney, showed that services including patient education, support and monitoring to facilitate

self-management in those with established diabetes benefited from the clinical impact of a

pharmacist. Diabetes Medication Assistance services improved adherence to medication,

glycaemic, BP and lipid control, quality of life and overall satisfaction in intervention vs control

patients.

• 3.6% of the Australian population suffer from diabetes (International Diabetes Institute

2006) which is approximately 700 000 people.

• The number of adults with diabetes has more than doubled since 1981 (International

Diabetes Institute 2006).

• Diabetes is a chronic disease, which represents a major part of the burden of disease

on Australia (ABS Diabetes in Australia: A Snapshot 2006)

• The presentation of diabetes can be prevented or delayed by lifestyle interventions

and optimal management and therapy.

• Diabetes can contribute to illness, disability, poor quality of life and premature death,

especially if it is undetected or poorly controlled (AIHW 2006a).

• The number of deaths from diabetes as an underlying cause has been steadily

increasing over the last twenty years, from approximately 1 800 deaths in Australia in

1984 to approximately 3 600 deaths in 2004 … a further 6% of deaths (approximately

8 000 deaths) had diabetes as an associated cause in 2004, making a total of 8.9%

of deaths (approximately 11 700 deaths) which were related to diabetes (ABS

Diabetes in Australia: A Snapshot, 2004-05).

More detailed statistics regarding the incidence and costs of diabetes are included in

Appendix 1.


There is a resultant increasing need for diabetes advice, products and services which

pharmacies are in an ideal position to meet. This in turn allows for a financially rewarding

business based on diabetes care.

This Business Plan focuses on offering a comprehensive service to educate and assist

diabetic patients in all aspects of their health management. This will be achieved through the

provision of one on one consulting in private rooms, group education sessions on a range of

relevant topics and the availability of a complete range of products and services for diabetic

care. Initially this will be offered to the 100 diabetic patients of Health and Total Care

Pharmacy, however this two year plan outlines the strategies for growth to a business caring

for 550 patients by 2009. The additional general pharmacy business from these new diabetic

patients will add significantly to revenue and profitability.

We also aim to expand into larger premises within the St Ives centre within the next 5 years.


2 Executive Summary

Health and Total Care Pharmacy’s long term view is to provide an integrated diabetes

program that encompasses all aspects of therapy and management which will improve the

quality of life of our patients. This business model will enable us to run a successful, profitable

and sustainable community pharmacy. The key is to build a positive rapport with our diabetes

program members to create strong ongoing relationships, customer loyalty and promotion by

word of mouth.

In the recently signed Community Pharmacy Fourth Guild Agreement, the Minister for Health,

Tony Abbott, allocated funding specifically towards implementation of a Diabetes Pilot

Program. We are using this initiative and expanding upon it to provide a holistic approach to

diabetes management and education.

Financial Objectives

• 2007-2008 net profit of 9.66% of annual turnover after implementation of the

Membership programs.

• 2008-2009 net profit of 8.27% of annual turnover after implementation of the

Membership programs.

• Average Gross Margin of 33%

• Business growth of 30% in the first year and 36% in the second.

• Diabetes Membership/Weight loss program Growth of 100% in the first year.

Marketing Objectives

• Grow the Living with Diabetes program membership to 350 by the end of the

first year and 525 by the end of the second.

• Achieve a customer satisfaction rating of 9/10 by June 2009

• Achieve a customer retention of 95% for the Living with Diabetes program

A SWOT analysis demonstrated that the proposed business model exhibits significant

strengths due to the dearth of similar integrated full service competitors. The major strengths

are the use of a membership club concept which will enhance the patients’ participation in

their own health care, whilst providing peer support, which leads to customer goodwill and a

sense of community associated with the pharmacy. The location in St Ives, in Sydney’s

Northern suburbs offers us a relatively wealthy and educated clientele who are interested in

addressing their health issues and able to pay for heath services. The weaknesses are

largely around the innovative nature of the concept and the risks inherent in such a new

direction. The store’s physical size may become a weakness as the business grows. The


opportunity is immense. Diabetes is a disease with a relatively high incidence (estimated at

approximately 3.75% of the Australian population) and a high growth rate of 0.48% p.a. (with

one person diagnosed with diabetes every 7 minutes in Australia). The threats are those

common to pharmacy as a whole, such as the possibility of deregulation, as well as more

local ones such as the danger of a competitor imitating our strategies.

Competitors are identified as:

• Other local Diabetes Australia sub-agent pharmacies, which supply patients with

diabetic supplies such as needles and testing strips

• The Diabetes Education Centre at the Royal North Shore Hospital, which provides

some education and diabetic equipment

Our target market is diabetic patients and those who have associated risk factors and live in

Sydney’s North Shore and Northern Beaches.

The key issues have been identified as

• Provide excellent service to trump our present and future competitors

• Building good relationships and rapport with the diabetes program participants, which

leads to increased compliance with therapy, identification of concerns or issues,

customer loyalty, customer service, referral (word of mouth), business growth, better

health outcomes and creates the feel of a community

• Good relationships with other health care professionals, which can lead to referral

through doctors (GPs and Endocrinologists), Diabetes Australia and other

pharmacies, and increases awareness of the program

• Enhance the reputation of Health and Total Care Pharmacy as a diabetes specialist

service provider

• Attract, develop, educate and retain competent and talented employees

• Acquire new customers, specifically diabetes patients

• Improve internal protocols to ensure increased efficiency of the Living with Diabetes

program

• Becoming self-sufficient, as to not require dependence on the Government or Guild

funding

Marketing Strategies have been developed using the 7 P model. We will have a complete

range of high quality products for diabetes and associated co morbidities at reasonable

prices, in addition to an extensive auxiliary pharmacy service and high quality knowledge and

information regarding diabetes from all staff members. The Living with Diabetes membership


Program will be promoted through staggered direct mail outs, newspaper articles, diabetes

magazines advertisements and through endocrinologist and local GP referrals.


3 Aims

3.1 Vision

That all diabetes patients should have comprehensive access to integrated healthcare

services in order to achieve optimal long term management and control of their condition.

3.2 Mission

Health and Total Care Pharmacy will:

• dedicate our pharmacy services to the growing epidemic of diabetes in Australia

• work as a part of a Health Care Team to increase the awareness and improve the

management of diabetes in the wider community through our Living With Diabetes

Program

• provide high quality accessible services that are responsive to the needs of our

patients

• generate significant returns for shareholders


3.3 Goals and Objectives

3.3.1 Financial

GOAL To build a financially stable business

where there is strong ongoing growth to

ensure the business will survive, succeed

and prosper.

OBJECTIVES MEASURES

Achieve:

Have a high annual turn over (TO) 2007-2008 annual sales of $3,414,940

2008-2009 annual sales of $4,646,594

Ensure business is profitable 2007-2008 net profit of 9.66% of annual

turnover.

2008-2009 net profit of 8.27% of annual

turnover.

Average Gross Margin of 33%

Achieve high business growth • Business growth of 30% in the first

year.

• Business growth of 36% in the

second year.

• Living with Diabetes Membership and

Weight loss program Growth of 350

people at the end first year.

• Living with Diabetes Membership and

Weight loss program of 525 people at

the end of the second year.


3.3.2 Customer

GOAL To provide exceptional integrated health

services and a wide range of diabetic

products for patients in the Northern

Beaches and North Shore areas.

OBJECTIVES MEASURES

Achieve:

Customer Satisfaction Customer satisfaction rating of nine out

of ten by June 2009.

Membership Program Launch membership program on the 1st

August 2007.

Customer Retention • Customer retention for the Diabetes

Membership Program of 95%.

• Customer retention for the Weight

Loss Program of 70%.

3.3.3 Internal Business

GOAL

To ensure all processes are very

professional and efficient.

OBJECTIVES MEASURES

Achieve:

Responsive Supply Maximum waiting time for scripts of 5

minutes.

Appointment waiting time Appointments will never run more than 5

minutes late.

QCPP Accredited To maintain QCPP accreditation.

Diabetes Australia Sub-agency To maintain the association with

Diabetes Australia.


3.3.4 Learning and Growth

GOAL

To have stable well trained staff that are

committed, engaged and enjoy their work.

OBJECTIVES MEASURES

Achieve:

Employee Satisfaction Employee satisfaction of:

• Year one 80%.

• Year two 90%.

Employee Retention Employee retention of:

• Year one 45%.

• Year two 50%.


4 Situation Analysis

4.1 SWOT: Retail Pharmacy Industry Analysis

Strengths

• First point of contact for education and advice on health issues

• Last HCP encountered before the patient goes home with medicine

• Politically aware and successful lobby groups such as the Pharmacy Guild of

Australia, represent the Pharmacy industry

• Strong support from professional organisations such as PSA

• Currently regulated industry, meaning we are protected from supermarket takeovers

and external competitors to some extent

• Pharmacy is the second most trusted profession in consumer surveys

• Pharmacists are experts in all health issues and in their management

• Government is putting funding into pharmacy via the Guild Government Agreements

• The PBS covers the cost of medicines, through this government initiative

• Retail Pharmacy is an $8 billion industry (The Pharmacy Guild of Australia, 2006)

Weaknesses

• The majority of pharmacies are out-dated in terms of business efficiency, including

poor management skills

• Not all pharmacies are QCPP accredited and there is no unity or consistency in

providing general services

• Time constraints exist, which limit the thoroughness of patient counselling possible

• Business vs. professional battle. Some customers and pharmacists see the pharmacy

as a retail store, not as a HCP

• Discount pharmacies lower the image of pharmacy as a profession and initiate price

reductions, which may tilt the balance towards business rather than professional

priorities

• Pharmacists have fewer business and entrepreneurial skills than other retailers

because there is relatively little Management taught at university


Opportunities

• There is an ageing population

• There is a growing need for pharmacies at the forefront of healthcare

• Disease state management is needed and government funding is available

• Increasing incidence of diabetes, asthma, cancer, cardiovascular disease,

hypertension, obesity and other health priorities

• More health conscious and independent population, which are interested in

prophylactic health care

• The information available on the internet may not be valid and is at best impersonal

Threats

• Deregulation, which would lead to increased competition

• A change of government, which may not demonstrate the same level of support as

currently exists for Pharmacy

• The Internet, which facilitates mail order purchasing and which provides extremely

large amounts of free information to patients quickly and conveniently.


4.2 SWOT: Living with Diabetes Program

Strengths

• First and only full service diabetes pharmacy

• Education seminars, which will draw customers and provide income

• Builds on pharmacist as a health care professional

• Provide a club, which enhances the patients’ participation in their own health care,

whilst providing peer support, which leads to customer goodwill.

• Works in alliance with other health care professionals

• Optimal location, in an affluent metropolitan area

• Located in a shopping village, which attracts customers and has parking as outlined

below

• Adjacent to a medical centre

• Trained and knowledgeable pharmacists that are fully trained in diabetes

• Excellent customer service

• Private consultation, which leads to better patient outcomes, rapport with patients and

also provides a personalized service

• Wide variety of high quality diabetes products

• A significant amount of free, close parking in and around the shopping village, making

the pharmacy easily accessible and convenient

• The fourth pharmacy owned by this group of pharmacists, which leads to better

purchasing power, established accounting and marketing infrastructure

• Targeting all types of diabetes including Type 1, Type 2, pre-diabetes and prevention

of diabetes in patients with high risk factors

• Strong retail skills, experience and customer service of pharmacy assistants


Weaknesses

• Physical space, the pharmacy is relatively small at 200m2

• Unforeseen logistic problems because it has not been done before ( from the

government end and balancing busy and quiet periods for consultations and

education sessions etc)

• Low customer awareness

• No existing branding as a diabetes pharmacy

• The difficulties inherited in working around the timetable of other health care

professionals

• Short-term chaos with renovation, consulting rooms and new stock

• New supplier relationships need to be formed for more specialized equipment

• Currently employed pharmacy assistants not adequately educated in diabetes

specifically

• Balance between general business and diabetes program

• Limited financial resources

• Defining roles of the 3 shareholders and managing who will be the Pharmacist In

Charge when and considering other pharmacy commitments

Opportunities

1. A large number of diabetic patients in the community. 3.75% of the Australian

population reported that they had diabetes, which is approximately 780 000 people

(Diabetes Australia)

2. Diabetes is increasing at 0.48 % pa in Australia. 100 000 people are developing

diabetes each year in Australia, which in turn doubles their chance of dying within the

next 5 years (Healey, 2007)

3. Patient demand for better treatment and earlier diagnosis of diabetes

4. Patient demand for better management of diabetes

5. Growing economy

6. Government funding and pilot program in the Community Pharmacy Fourth

Agreement


Opportunities matrix

Impact on HTCP

High Relatively Low

Probability of

occurrence

High Incidence of diabetes

Increasing rate of prevalence

Patient demand for HC Services

Economy growth

Gov Funding 4th

Agreement

Low

Figure 1. Opportunities matrix

Threats

1. Change of government, because the Liberal Government has been very supportive of

Pharmacy, as seen by the initiatives and funding allocated in the Community

Pharmacy Fourth Agreement. If the Labor Government came into power, we are not

aware of their level of support for Pharmacy

2. Community Pharmacy Fifth Agreement, which has an unknown level of support for

diabetic programs

3. High possibility of imitation and competition as there is Guild and Government

support of Diabetes Pilot programs, which may lead to an increasing trend in diabetes

specific pharmacies

4. Diabetes Australia pharmacy sub-agencies, which supply patients with diabetic

supplies such as needles and testing strips may attract diabetes customers who

choose to purchase additional diabetes supplies and other pharmacy needs from

those pharmacies

5. Diabetes education centre at the Royal North Shore Hospital, which provides some

education and diabetic equipment

6. Diabetes clinics in other hospitals such as at the Royal Prince Alfred Hospital and St.

Vincent’s Hospital

7. Interest rate and inflation, which will lead to high and increasing cost of insurance

premiums and loan repayment

8. High insurance for employees

9. Deregulation of Pharmacy by the Government

10. Competition competing on low price, such as discount pharmacies selling diabetes

equipment at lower prices


11. Finding competently trained staff as the program grows, so too will the number of

staff required

12. Possibility of blood borne diseases as we are dealing with blood when monitoring

BSL

Threats Matrix

Impact on HTCP

High Relatively Low

Probability of

occurrence

High Competitive imitation

Attracting high quality staff

Gov Guild 5th

Agreement

Diabetes Australia

pharmacies

Diabetes Education

Centre at RNSH

and other hospitals

Discount

pharmacies

Low Change of government

Inflation

Insurance

Deregulation

Blood borne diseases

Figure 2. Threats Matrix


4.3 Competitor Analysis

Figure 3. Bull’s Eye of Competitors

The above diagram is a summary of our competition. The Bull’s Eye concept allows us to rank

our competition from most important which is in the centre circle of the Bull’s Eye, and

gradually decreases in competitiveness as we move towards the outer circles. We rated each

of our competitors on factors which influence consumers’ choice such as the location and

whether the pharmacies are Diabetes Australia Accredited Pharmacies.

Diabetes Australia Pharmacies on the

Northern Beaches and North Shore

Non-Diabetes Australia Pharmacies

on the Northern Beaches and North

Shore

Diabetes Australia Pharmacies in St Ives

Royal North Shore Hospital

Clinic

Non-Diabetes Australia Pharmacy’s in St Ives

Diabetes Australia NSW Branch


Below are outlines of each of our competitors in decreasing order of direct competitiveness.

Refer to Appendix 2 for a map of the St Ives area with local pharmacies highlighted.

Diabetes Australia Pharmacies in St Ives

Cater’s Pharmacy

Located in the St Ives Hassel Park Shopping Plaza, it is 5km further up Mona Vale

Road from the St Ives Shopping Village. It is a Diabetes Australia accredited

pharmacy and has regular Diabetic patients who purchase subsidized diabetic

products. Cater’s Pharmacy is a medium sized Pharmacy.

St Ives Pharmacy

Located on Mona Vale Road outside the St Ives Shopping Village. It is a Diabetes

Australia accredited pharmacy and has regular Diabetic patients who purchase

subsidized diabetic products. It has recently changed ownership, and has been taken

over by a young new pharmacist. St Ives Pharmacy is a small sized pharmacy.

Diabetes Education Centre, Royal North Shore Hospital

A diabetes Clinic that is located in the Royal North Shore Hospital at St Leonards which is

approximately 15 km from St Ives. It offers a wide range of health services and products.

They have incorporated certain health care professionals into their diabetes Clinic to conduct

specific health seminars as well as offering a wide range of subsidized diabetes products

since they are Diabetes Australia accredited. However the clinic is very much dependant on

hospital funding and has numerous other hospital operational drawbacks such as long waiting

lists, overcrowded clinics and efficiency problems due to limited funding. In addition it treats

Diabetic hospital in-patients and is not readily available to diabetic patients in the wider

community.

Whilst this centre is considered a competitor since it sells diabetes products, it is also a

potential referrer of customers to our pharmacy and thus will be the target of promotional

activity.


Non-Diabetes Australia Pharmacies in St Ives

Blooms the Chemist

Located in the St Ives Shopping Village, it is a medium sized pharmacy that offers

typical pharmacy services. Currently competing on low prices, it belongs to the

Blooms banner group that releases monthly catalogues in the local area.

McDonald’s Price Rite Pharmacy

Recently became a Price Rite Pharmacy, it is located near the St Ives Shopping

village on Mona-Vale Road strip shops. Small sized pharmacy that has started to

compete on low prices.

Diabetes Australia Pharmacies on the Northern Beaches and North Shore

There are 83 Diabetes Australia Pharmacies on the North Shore and Northern Beaches of

Sydney. They differ in terms of the pharmacy size, ownership structure and health services

that they provide. They all however are Diabetes Australia Accredited Pharmacies and offer

subsidized products to diabetes patients in this area.

Diabetes Australia NSW Branch

Non-profit, non-government charity dedicated to helping people with diabetes, lobbying

government, raising funding for research and increasing community awareness of diabetes.

Located in the inner Sydney suburb of Glebe, it is a large organization that provides

numerous services and products to its members in New South Wales. It was founded in 1937

and is the third oldest diabetes Organization in the world. The Diabetes Australia NSW branch

offers patients a wide range of subsidized products. Additionally they give their members the

option to order their products online. They also offer numerous publications and education

sessions for their members.

Whilst this association is considered a competitor since it sells diabetes products, it is also a

potential referrer of customers to our pharmacy and thus will be the target of promotional

activity.


Non-Diabetes Australia Pharmacies on the Northern Beaches and North Shore

These Pharmacies cannot offer subsidized diabetic products to diabetes patients. They have

no particular focus on diabetes and thus are not considered a major source of competition to

Health and Total Care Pharmacy.

Competitor Strength Grid

Below is a competition strength grid, which compares HTCP against the major competitors on

a range of determinant criteria. Each of these is described below.

Assets & Competencies HTCP SDEC DA

Non -

DA

DA-

NSW

Product Range

Customer Service

Professional Service

Pre-Diabetes

Location Convenience

Community Feel

All Aspects diabetes care

Non-Reliance on Public

Funding

Consultation Privacy

Short Waiting Time

3 Point Colour Scale HTCP Health and Total Care Pharmacy

less then average SDEC

St.Leonard's Diabetes Education

Centre

average DA

Diabetes Australia

Pharmacies

above average Non-DA Non-Diabetes Australia Pharmacies

DA-

NSW Diabetes Australia New South Wales

Figure 4. Competitor Strength Grid


Product Range

This includes the types of products offered by the Pharmacy and the product range.

Currently Diabetes Australia Pharmacies offer subsidised diabetic products. The

Diabetes Education Centre at the Royal North Shore Hospital is our only competitor

to offer diabetic products that go beyond standard subsidised products.

Customer Service

This focuses on the service that employees provide to patients. We believe that our

competitors offer average customer service and as we increase the number of staff

and staff expertise, customer service will increase in our pharmacy as we focus on

friendliness, acknowledgment and empathy towards our patients.

Professional Service

The level of advice and education that is available to the patient on specific diabetic

health related issues. We will have state of the art knowledge and expertise to offer

our patients as well as promoting increased awareness and using cutting edge

diabetes research to improve our Living with Diabetes Program.

Pre-Diabetes

We will be the first Pharmacy to target pre-diabetes thus aiming for prevention as

well as treatment.

Location Convenience

This takes into consideration customer parking, disabled parking, access via public

transport and access within the local community.

Community Feel

This is defined as the sense of community that is brought into the pharmacy

environment. Through our weekly health seminars, and private consultations we

believe this will increase the sense of community in our pharmacy.


All Aspects of Diabetes Care

Targeting all areas of Diabetes Management, including treatment, exercise, diet and

education. Our point of differentiation is that we are targeting all areas of diabetes

care through our pharmacy. Our competitors offer some services, however our

pharmacy aims at offering all services that give diabetic patients greater control. Not

only will we be offering new pharmacy services we will be incorporating the expertise

of specific Health Care Professionals into the Living with Diabetes Program.

Dieticians, Podiatrists, Exercise Trainers, Doctors, and many other Health Care

Professionals will be involved with the program.

Non-Reliance on Public Funding

Whether Pharmacy services are reliant on government or hospital funding. This is the

case for the Diabetes Education Centre at the Royal North Shore Hospital. Given the

Government’s budget constraints this is perceived as a negative.

Consultation Privacy

This takes into consideration the nature of the consultation in the Pharmacy and

whether it’s a one on one consultation in a private room or whether the consultation

occurs in the general pharmacy area. We have incorporated a private consultation

room in the pharmacy specifically for the Living with Diabetes Program. We believe

this will increase the quality of the services that we are providing to our patients.

Short Waiting Time

This includes both the waiting time in the Pharmacy, and the waiting time to join

specific pharmacy run health programs. Unlike Diabetes Education Centre, a great

strength for us is that our patient waiting time will be minimal.


4.4 Planning Assumptions

• There will be 100 LWD Members by December 2007 and this will

progressively increase to 525 in 2009

• LWD Members will pay their accounts monthly

• The price of the program will increase by 3% due to inflation

• 80% of LWD Members will join the Gold Membership program

• 20% of LWD Members will join the Silver Membership program


5 Key Issues/Keys to success

• Provide excellent service to trump our present and future competitors

• Building good relationships and rapport with the diabetes program participants, which

leads to increased compliance with therapy, identification of concerns or issues,

customer loyalty, customer service, referral (word of mouth), business growth, better

health outcomes and creates the feel of a community

• Good relationships with other health care professionals, which can lead to referral

through doctors (GPs and Endocrinologists), Diabetes Australia and other

pharmacies, and increases awareness of the program

• Enhance the reputation of Health and Total Care Pharmacy as a diabetes specialist

service provider

• Attract, develop, educate and retain competent and talented employees

• Acquire new customers, specifically diabetes patients

• Improve internal protocols to ensure increased efficiency of the Living with Diabetes

program

• Becoming self-sufficient, as to not require dependence on the Government or Guild

funding


6 Marketing Strategy

6.1 Products and Services

We will offer the following products and services.

Range

A. Services

a. Diabetes pilot program (Guild Fourth Agreement)

i. 5 private consultations per 6 months

b. Living with Diabetes Program

i. Gold

ii. Silver

iii. Get Healthy

c. Home-delivered Food

B. Physical products (refer to Figure 5 below)

a. Diabetes

b. Weight loss

c. Exercise-related

d. Other items associated with co-morbidities


Diabetes Program Membership

Living With Diabetes Gold Club

Membership is $75 per month and includes:

• Monthly one on one consultation with a pharmacist regarding all aspects of

the patient’s health as well as diet and weight loss if appropriate (15 minute

appointment)

• Weekly consultation with Weight Loss Consultant pharmacy assistant

• Diabetes Recipe book

• Diabetes Health Diary

• Weekly educational seminars on diabetes related issues presented by topic

experts

• Access to a fitness program provided by Fitness First tailored to the physical

needs of people with diabetes e.g. Tai Chi, Pilates and dance.

• Optional: At an additional charge, members can order home delivered

healthy, low GI meals through us that will meet their dietary requirements.

Living With Diabetes Silver Club

Membership is $46

This has all the features included in the Gold program excluding access to the fitness

program. It includes:

• Monthly one on one consultation with a pharmacist regarding all aspects of

their health as well as diet and weight loss if appropriate (15 minute appointment)

• Weekly consultation with Weight Loss Consultant pharmacy assistant

• Diabetes Recipe book

• Diabetes Health Diary


experts






Diabetes One

• $320 over a 6 month period for 5 private consultations with the pharmacist (funded by

the Government).

• Requires GP referral to meet the Government payment criteria (Community

Pharmacy Fourth Agreement: Diabetes Pilot Program, refer to Appendix 3).

Get Healthy Program

Membership is $75

This program is designed for people who have a BMI of greater than 30 and are at risk of

diabetes and include:

• 1st session: a private consultation with the pharmacist to screen for diabetes.

• Weekly consultation with a trained shop assistant to monitor their weight loss

progress.

• Weight Loss Recipe book

• Health Diary


experts






The services we will provide in the LWD program include

• Consultations with doctors and specialists in the adjacent medical centre

• Education sessions

• Exercise programs outsourced through Fitness First

• An option for a meal plan through Lite n Easy

• In-pharmacy service, which involves monthly consultation with the pharmacist to

measure weight, BMI, waist circumference, waist:hip ratio, blood pressure and blood

sugar levels in order to monitor the patient’s progress with their diabetes program

and control

• Counselling every patient on the use of all equipment and medication before and

after sale for example, glucometers, BP monitors, weight loss products

• Counselling regarding other issues associated with referral for example, when to see

a doctor, specialist or other HCP and the importance of regular monitoring (including

self and lab pathology data, signs and symptoms of uncontrolled diabetes and

related disease states)

• Ask every patient who is sold foot care products containing salicylic acid whether

they are diabetic or not.

We will provide the highest quality products, which have warranties and are from reliable

wholesalers. Some examples of these products, brands and pricing mark ups are listed in the

table below.


Area Product Brand % Mark up

Diabetes BSL Record book DA and own brand 100

Glucometers Roche Accu-Chek, Ascensia,

Bayer, Medisense

50

Low GI food/bars Go Natural 100

Jelly beans GoldX 100

S4 oral hypoglycaemics Diabex, Diaformin, Chem mart,

Formet, GenRx, Glucohexal,

Glucovance, Amaryl, Daonil,

Diamicron, Dimirel, Glimel,

Glyade, Melizide, Minidiab,

Nidem, Avandia and Actos

NHS

Insulin Novorapid, Mixtard, Lantus,

Actrapid, Humalog, Humulin,

Hypurin, Levemir, Monotard,

Novomix, Protaphane and

Ultratard

NHS

Testing supplies

(eg needles, strips)

Roche Accu-chek, Ultra fine, BD

Micro-fine, Novofine, Ascensia,

Bayer, Betacheck, Clinistix,

Glucoflex-R, Abbott, Medisense,

Terumo, Braun Omnitest ez,

Unistik2, Owen Mumford

DA subsidy

Lancets Softclix, Multiclix, Soft Touch 50

Insulin pens Sanofi Aventis 0

Diagnostics Ketostix 50


Weight loss OTC Product Optifast, Tony Ferguson,

Exolise, Bioglan and

Blackmores Product, Herron,

MediSlim

100

S3 Products Xenical 25

S4 Products Reductil, Duromine, NHS

Recipe book A range 200

DVD eg cooking

program

A range 200

Scales A range 50

Exercise DVD eg yoga, Pilates,

step

A range 200

Fitness ball Fitness First 100

Weights or weight

resistant equipment

Thera-band and a range 100

Other risk factors BP monitor Omron, Roche, Braun 50

Aspirin Cartia, Cardiprin, AsproClear,

Asasantin SR, Astrix, Bayer,

DBL Aspirin

100

Foot care Homyped shoes and a range 50

Smoking cessation Nicabate, Nicorette, Quit X 50

Eye care eg glasses,

vitamins

Blackmores, Bioglan, Nature’s

Own

50

Hyperlipidaemia Ausgem, Chem mart, Colestid,

Gemhexal, Jezil, Lescol, Lipazil,

Lipex, Lipidil, Lipitor, Lipostat,

Lopid, Metamucil, Nicotinic acid,

Pravachol, Questran Lite,

Simvahexal, Zimstat, Zocor

NHS

Antihypertensives Accupril, Accuretic, Acenorm,

Adalat, Addos XR, Adefin,

Aldactone, Aldomet, Alphapress,

Alphapril, Amizide, Amprace,

Anpec, Anpec SR, Apresoline,

Asig, Atacand, Atehexal, Auspril,

Avapro, Barbloc, Betabloc,

Capoten, Captohexal, Captopril,

NHS


Cardizem CD, Catapres,

Corbeton, Cordilox, Coversyl,

Dapa-tabs, Deralin, Diltatrend,

Dilzem CD, Dithiazide, Felodur,

Fibsol, Frusehexal, Frusid,

Gopten, Chem mart, GenRx,

Hydopa, Hydrene, Hygroton,

Hytrin, Inderal, Insig, Isoptin,

Kaluril, Karvezide, Lasix,

Lisodur, Loniten, Lopressor,

Metrol, Micardis, Minax,

Minipress, Moduretic, Monoplus,

Monopril, Natrilix, Norvasc,

Noten, Plendil, Pressin,

Presolol, Prinivil, Ramace,

Renitec, Spiractin, Tenormin,

Tensig, Teventen, Topace,

Trandate, Tritace, Uremide,

Urex, Vasocardol, Veracaps SR,

Visken, Zanidip, Zestril

Figure 5. Products

6.2 Price

The percentage mark up is included in Figure 5 above.

• Generally, we will not be discounting products because we want to create the image

of a high quality health service provider. This will not be detrimental, as we are

targeting a generally affluent patient market. Discounts and the resulting low margins

would not enable us to offer the high quality service that we perceive to be our

competitive advantage.

• However, when we receive good deals when bulk buying (especially electrical

equipment and glucometers etc) we will mark down the price from the RRP to pass

the savings to our customers or LWD Members, however we will maintain the mark

up as listed in Figure 5 above.

• Pension, concession and safety net cards will be covered for products on the PBS list

and will have NHS pricing such as S4 oral hypoglycaemics and insulin preparations.


• Diabetes Australia (DA) products will be priced according to DA subsidy (according to

concession status). These two areas are government and DA price regulated

respectively.

• Members of LWD will be entitled to VIP promotions on the night of education

sessions only.

• LWD Members will be offered a credit facility paid monthly.

• Overall, our pricing objective is for prices to be moderate. We will pay particular

attention to customer Known Value Items (KVIs).

6.3 Place

Location

When choosing a location for our business we faced a challenge which was to weigh up the

prevalence of diabetes in a certain area, and whether these potential patients would be able

to afford the health services that we plan to offer. Taking these two factors into consideration,

we decided that the upper North Shore suburb of St Ives is a perfect location because:

• The incidence of diabetes in Sydney's North Shore is 2-4% and in the Northern

Beaches is 4-6% (Appendix 4). These figures are respectively equal to and higher

than the national diabetes prevalence of 3.75% (Diabetes Australia NSW).

• Average taxable income per annum per person in the North Shore and Northern

Suburbs areas is $54,986 compared to the average combined household income for

Australia of $55,224 (Appendix 5).

Accessibility

For patients who are driving to the Pharmacy there is adequate parking provided in the

Shopping Village. There is sufficient amount of disabled parking spaces provided throughout

the Shopping Village Car Parks and flat access ramps at all main entries for wheel chair

access. The location of HTC Pharmacy is convenient within the shopping village and is

adjacent to the St Ives Medical Centre where Living with Diabetes Health Seminars will be

held. It is also in close proximity to cafés, supermarkets and toilet facilities as well as lifts and

escalators to other areas of the Village (Refer to Appendix 6 for the Village layout).

The Pharmacy is accessible by public transport. For patients coming from the Northern

Beaches to St Ives Shopping Village buses are very frequent, and for patients travelling from

the Lower North Shore, or Upper North Shore there are frequent train services available and

buses from the local train station, Gordon train station to the St Ives Shopping Village very

regularly.


6.4 Promotion

Advertising/Sales Promotion

Given that the target market is diabetic patients living within the North Shore and Northern

Beaches of Sydney, the promotion of the pharmacy's Living with Diabetes Program will not

include non targeted media such as television or radio. Since our target audience represents

only approximately 4% of the population, this is not considered to be cost effective. Nor will

catalogues be produced since they would position the pharmacy on price, which is

inconsistent with our positioning strategy. They also represent a non targeted method of

promotion.

Therefore, the focus of promotion will be mainly on direct marketing channels such as:

• Direct mail to General Practitioners (GPs) in the target areas

• Direct mail to Endocrinologists in the target areas

• Direct mail to patients who agree to an opt in database

• Interactive website for HTCP and LWD

• E-Newsletter to patients who agree to an join our database

The majority of the advertising will be in diabetes specific newsletters and magazines such

as:

• Issues- the Quarterly journal of Diabetes Australia-NSW

• Conquest-Diabetes Australia's National Magazine

• Invigorate-Twice yearly publication aimed to prevent Type 2 diabetes

• You Said What?!-Quarterly magazine for teens

PR with a small amount of associated advertising will be conducted in local community

newspapers (Refer to Appendix 7 for current advertising rate sheets):

• The Manly Daily

• The North Shore Times


And sales promotions will include:

• Posters in the Pharmacy and local GP surgeries

• Pharmacist directly asking diabetes patients in the Pharmacy

• Flyers included with diabetes scripts

• Co promotions with other Health Care Professionals involved in the program

promoting LWD

Personal Selling

Personal selling to GP's and endocrinologists in the North Shore and Northern Beaches of

Sydney is very important to the growth of the program. We will start by mailing GP's then

following up with visits explaining the Living with Diabetes Program. This is expected to lead

to increased referrals from doctors in the local area. Follow up phone calls will be made after

each visit.

6.5 People

Refer to Human Resources Plan (Section 9)

6.6 Physical Evidence

The physical evidence and facilities of Health and Total Care Pharmacy play a vital role in

influencing the atmosphere, image and personality of the pharmacy. Therefore, the physical

environment must appeal to the customers and promote the image of professionalism. In

appraising the physical environment, such features as layout, lighting, colour, interior design,

furnishing, noise level, pictures and general cleanliness all need to be taken account.

• We will follow Standard 5:1, 2, 3, 4, 5, 6, 7, 8, 9 and10 presented in the QCPP 2nd

Edition as outlined in Appendix 8.

• Refer to Appendix 9 for an indication of the type of appearance we plan for the

pharmacy.


Layout

• The pharmacy is 200 m2.

• The layout of the pharmacy will comply with Standard 5: 2, 3 from the QCPP 2nd

Edition as outlined in Appendix 8.

• The layout is designed to optimize traffic flow. The dispensary is the main point of

attraction in the store and is placed in the back whilst the cashier and exit is in the

front. This will cause the customer to move more through the store and consequently

more exposure to our retail products and prevent “dead spots.”

• The average distance between the shelves is 1.2m, allowing customers to feel

comfortable to move around the pharmacy.

• Three small rooms will be used for private consultation with the pharmacists or

dietary counselling.

• Refer to Figure 6 on page 35 for the layout of the store.


Figure 6. HTCP Layout


Colour and Lighting

• We want to create a cheerful, friendly, professional environment for our customers.

White would be our main colour as it is the colour associated with health care.

• We also use the colour orange; as it would soften the sterile feel of white and create a

fresher, vibrant, friendly environment. It is also the same colour we use for our logo,

which will fit with the brand image.

• Bright lighting will be used to illuminate and create an open, modern, vibrant, pleasant

looking environment. The lighting of the pharmacy will follow Standard 5:7 (Appendix

8), which will require us to have the lighting level above 400 lux.

Furnishings

• We will be using white shelving and storage systems to give the pharmacy a greater

capacity to store items, promote logical stocking and allow greater room for

customers to move around the pharmacy. The height of the shelves at the front of the

shop will be approximately 1.5-1.7 m.

• The waiting section will include 6 new comfortable of orange, vinyl chairs for our

customers’ use.

• Each counselling room will include a table, three chairs and a shelf containing books

and magazines related to diabetes. The room will provide privacy and promote an

aura of professionalism.

Noise Level

We will play contemporary easy listening music softly in the background, which will enhance a

more casual, friendly atmosphere in the store. Music has the power to entertain and improve

the mood of the customers and the staff.

Goods

• Stock will be categorised according to their use, making it easier for the customer to

select items. The main departments are:

1. Dispensary: Which includes pharmacy only medicine, pharmacist only medicine,

prescription.

2. Diabetes Products: Glucose strips, blood glucose monitors etc (refer to the

Products in Section 6.1). These will be located near the counselling rooms.


3. Weight Loss: Protein shakes and bars weight loss recipe books and exercise

DVDs. These will also be located near the counselling rooms

4. Over-the-counter/Retail products: this includes vitamins, first aid, baby

products, and feminine hygiene and skin care.

5. Scheduled Pharmacists and Pharmacy Only Medicine will be placed near the

pharmacists to ensure the quality cared of medication is achieved.

Interior and Exterior Signage

• Department signs are placed on the shelves or the walls to create convenience for

the customers.

• Images portraying people smiling, enjoying life will be placed against the shelves and

the walls in the dispensary (refer to Appendix 10). This will create an image of the

pharmacy as a place where health solutions are achieved and as a result, people are

able to be healthy and happy.

General Cleanliness

We will follow Standard 5:1 from QCPP 2nd Edition (Appendix 8) to ensure that the pharmacy

maintains a high level of cleanliness. This involves making sure:

• The floor is clean.

• No boxes in aisles.

• Glass windows are wiped down and cleaned on a weekly basis.

• Shelves are shiny.

• Benches and counters are kept clean.

• Prescription assembly area is kept free of stock, paper and invoices.

6.7 Process

Refer to Operational Plan (Section 7)


7 Operational Plan

HTCP aims to maintain the accreditation with QCPP. We aim to meet the 18 standards

provided by the Pharmacy Guild of Australia. HTCP would have to ensure that all original

accreditation processes of O’Loughlins Medical Pharmacy remained in place.

7.1 Delivery of Living with Diabetes, Diabetes One and Get Healthy Program

• We will be required to follow standard 3: 1,2,3,4 from the QCPP 2nd Edition

(Appendix 11).

• We will maintain our association with Diabetes Australia as a subagent.

• This will require us to provide trained/qualified personnel to deliver and present the

educational sessions in the Living with Diabetes, the Diabetes One and Get Healthy

programs.

• With the patients’ consent, a database will store information about their diabetic

condition, BMI etc. The information obtained will be kept confidential as required by the

Pharmaceutical Society of Australia (PSA) and Pharmacy Guild of Australia.

7.2 Procedures

We will follow standard 2: 1, 2, 4, 5, 7a, 7b, 8, 9, 10 from QCPP 2nd Edition (Appendix 12) in

dealing with the supply of medicines, medical devices and poisons.

• Dispensing Medication: We will follow the guidelines given by the

Pharmacy Defence Limited (PDL)

• Over the Counter Medicine: We will follow the guidelines given by the

PDL.

7.3 Advertising

In terms of promoting the programs we will comply with the TGA advertising code and price

policy and standard 4: 1, 2,3,4,5 from QCPP 2nd

Edition.


7.4 Refund Policy

• Customers can have their membership fully refunded within the first 7 days of

joining.

• Customers must provide receipts to have their items refunded within a one month

period from purchase. The items must be in good condition and not opened.

• Faulty items will only be refunded if the customer returns the item with a receipt

within one month of purchase.

• All prescriptions are non-refundable.

7.5 Credit Policy

We will be using Commonwealths’ bank financial services. We accept credit and debit cards

and cash. We accept all Credit Cards except for Diners where there is a high surcharge and

is not commonly used. It is assumed that MasterCard and Visa will surcharge us 1.5% of

customer’s purchase and American Express will surcharge us 3%.

7.6 Inventory Policy

• We want to stock only products that have a five stock turn

• We realize that 20% of our products will provide 80% of our revenue and as a result

we use Simple Retail to provide us with data regarding our “hot items”.

• Most orders will be placed at the end of the month. Special and routine orders will be

ordered daily or weekly.

7.7 Equipment and Software

• We will purchase a QCPP compliant vaccine refrigerator- certified by the Cold Chain

Testing Centre.

• The following software programs will be used:

a) Amfac

b) Simple Retail


7.8 Suppliers

• Our main suppliers for prescriptions, OTC and complementary medicines will be:

Sigma, API, Symbion and Diabetes Australia.

• There will also be direct purchasing from manufactures such as AusPharm for our

prescriptions and generic brands.

• We will have an account with the manufacturing companies e.g. Omron and Roche

for most of our diabetes products.

• Diabetes Australia will subsidise certain diabetic products such as glucose meters.

7.9 Ordering, Receiving, Storage and Pricing Stock

We will employ Standard 9: 1, 2,3,4,5 (Appendix 13) and Standard 8: 1, 2, 3, 4, 5, and 6 from

the QCPP 2nd Edition (Appendix 14) for ordering, receiving, storing and pricing stock.

7.10 Ordering Stock

• Simple Retail will be used to provide POS data so that we can make an informed

decision in purchasing stock.

• The manufactures and the wholesalers will deliver our products. We will purchase our

products according to POS. Simple Retail will inform us if there is shortage of items. Most

of our items will be ordered on Monday. Joanne and Fiona will be in charge of purchasing

and dealing with Simple Retail.

• Bulk Buying: this will be the fourth pharmacy in the buying group and we will be able

to buy most of our products in bulk. We have been loyal to some of the suppliers and are

able to achieve discounts in purchasing items. As a result, we can become more efficient

in our purchase policy through reduced ordering and multiple deliveries.

• Routine Re-orders: standard items are re-ordered when a manual count or Simple

Retail indicates that the stock has fallen to the point where re-order is necessary.

• Special Orders: We will call our suppliers and order the products to be delivered the

next day if possible. We will have a small book for staff to make special orders for

customers.

• Emergency Orders/Stock outs: In case of an emergency when we are unable to

receive the stock from our suppliers, items will be purchased from pharmacies in St Ives

that have a reciprocal agreement with us: Blooms the Chemist and McFadden Chemist.


7.11 Receiving Stock

Products will be delivered to our store when there is least traffic flow in the pharmacy, which

is usually Tuesday and Wednesday morning and evenings. The stock will be immediately

placed in the storeroom in the back of the store.

7.12 Storing Medicine

• Scheduled and Pharmacy Only Medicine must be immediately be placed in the

dispensary and be out of reach of the public. If some medicines are temperature

sensitive, they must be delivered in an esky and immediately placed in a QCCP vaccine

refrigerator.

• Vaccine Refrigerator would be maintained between 2-8oC.

• We will use appropriate equipment to ensure the temperature in the

professional, trading and storage areas does not exceed 25 0C.

• Out of stock, faulty and recall medicine will be placed in a special bin. We will use the

company Recall, a specialist company to secure destruction of sensitive material.

7.13 Pricing of Stock

We will have a retail manager who is required to check that displayed and advertised stock

prices are consistent with the pricing data in Simple Retail.


7.14 Customer Service

• We will follow Standard 11: 1, 2, 3, 4, 5, 6, 7, and 8 from QCPP 2nd Edition

(Appendix 15) in serving customers.

• Customers’ information will be kept confidential at all times.

• Uniforms and badges must be worn during work hours to allow customers to

recognise staff (refer to Appendix 16 for drawings)

• Staff members should follow these procedures in dealing with customers:

1. recognise and acknowledge

2. identify their needs

3. match assistance to the needs

4. resolve the situation

• Staff members are required every fortnight to attend staff training to improve their

skills.

• Home deliveries are made for prescriptions on a daily basis.

• One of the duties of the retail manage is to coordinate the membership programs

(LWD, Diabetes One and Get Healthy) and all subcontracting activities.

7.15 Security

• We will follow Standard 17: 1,2,3,4,5 and 6, which will require us to follow the

procedures P17: A, B, C, D, E, F, G, H, I, J, K, L, M, N, O,P,Q,R (Appendix 17) and

templates T7: A,B,C,D (Appendix 18), T15B (Appendix 19) and T17: A,B,C,D,E

(Appendix 20) from the QCPP 2nd Edition to prevent loss of items, fraudulent

transactions and processes for emergency situation e.g. armed robbery.

• If a person is suspected of or has stolen items from the pharmacy, staff can politely

ask the person to inspect their bags. If they refuse to cooperate, staff should inform the

pharmacists, police and shopping centre security about the theft.

• We will conduct a brief, visual inspection to ensure goods are brand new and are

received in good condition from our suppliers.

• We will ensure that the quantities of goods delivered match the invoices. Invoices are

kept and recorded.

• We will have prominent signage warning potential thieves about our anti-theft

systems e.g. monitored alarm system etc.


7.16 Occupational Health and Safety

• We will follow SAF 1,2,3,4 from the Team Standards Manual in the QCPP 1st Edition

(Appendix 21).

• Any safety concerns from the staff should be reported to the pharmacists.

• We will conduct an audit of pharmacy safety every three months to identify and

reduce hazards in the pharmacy environment.

• We will follow the recommended procedures provided by the government to minimize

injury during manual handling.

• Smoking is prohibited in the pharmacy.

• If a customer displays rude or violent behaviours in the pharmacy, we will politely ask

them to leave and follow SAF4 provided in the QCCP 1st Edition (Appendix 21) Team

Standard Manual.


8 Financial Plan

8.1 Corporate Ownership

• Health and Total Care Pharmacy is a privately held corporation. The three founders:

Daniel Rifkin, Fiona and Joanne Chang will have equal share of the ownership of the

pharmacy.

• Each of the founders owns a well established pharmacy and would like to invest in a

pharmacy focusing more on health.

8.2 Establishment Cost

8.2.1 Value of the Business

Price= Adjusted Net Annual Profit 100

ROI%

Adjusted Net Annual Profit= 250,000 ROI=19

Thus, the value of O'Loughlins Pharmacy= 1,315,789

Table 1. Business Valuation

• The pharmacy experienced some financial difficulties due to poor business and

financial management in the previous year.

• This placed us in a better position in the negotiation the price of the business.

Stock at Valuation 350,000

Fixtures and Fitting 30,000

Equipment 20,000

Good Will 915,790

Total Cost of Purchase 1,315,789

Table 2. The price of purchasing the pharmacy

We have negotiated with the owner and agreed to purchase the pharmacy for $1,315,000.


8.2.2 Start up Expenses

• Each partner has contributed $410 000 for the establishment of the business. We will

borrow $450 000 from the Commonwealth Bank, for an eight- year period, with 8%

p.a. compounded interest. The loan shall be paid every month.

• Additional expenses in starting the pharmacy will be spent in improving 50m2 of

pharmacy fitting, bond, purchasing capital equipment, consultancy and

advertisements. The total cost of the additional expenses is $327797. (More detail of

the start-up cost are provided in Appendix 22)

• We have a surplus of approximately $36414, which will be placed in the bank to gain

interest and used to improve our cash flow. This was calculated by Total Source of

Capital minus Total Start up Expenses.

Sources of Capital

Owners' and other investments $ 1,230,000

Bank loans 450,000

Total Source of Funds $ 1,680,000

Start-up Expenses

Buildings/real estate $ 1,315,789

Leasehold improvements 75,000

Capital equipment 155,000

Location/administration expenses 91,312

Advertising/promotional expenses 6,485

Total Start-up Expenses $ 1,643,586

Table 3. Start-up expenses


8.3 Financial Forecast before implementation of the Membership Programs

The analysis made in this section will look at the general business activity before Membership

Programs are implemented.

8.3.1 Profit and Loss Statement

8.3.1.1 Business Growth and Inflation

• Sales are expected to grow 5% based on the previous owner’s profit and loss

statement.

• Inflation is expected to be 3%.

8.3.1.2 Gross Margin

• The previous owner had gross margin of 29-30%

• We expect to have a higher gross margin of :

o 2% in the first year

o 33% in the second year

• Due to selling products that have a higher mark-up, greater purchasing power,

reduction of theft and tighter control of inventory.

8.3.1.3 Expenses

Most of our business expenditure will be hiring labour and rent. Rent is charged at

approximately $1000 per m2 on an annual basis. Labour will account for 12% of our total

revenue in hiring people.

8.3.1.4 Net Profit

• With better business management, net profit is expected to improve in the next two

years increasing from 3.11% in the 2006 financial year to 5.17% in the first year of

takeover.

• The net profit is also expected to grow slightly from 5.17% to 6.97% in the second

year of takeover.

2007 % to 2008 % to 2005 % to 2006

Annual TO Annual TO Annual TO

Sales 2,757,008 0 2,894,858 0 2,500,687 2,625,722

Purchases Budget 1,874,765 68 1,939,555 67 1,750,481 70.00% 1,864,263 71

Gross Profit 882,243 32 955,303 33 825,227 33.00% 761,459 29

Total Revenue 882,244 32 955,303 33 825,227 33.00% 761,459 29


Table 4. The Profit and Loss Statement of the business before implementation of the

Membership Program.

Hire of Labour 330,841 12 347,383 12 300,082 12.00% 288,829 11

Advertising 35,827 1.3 43,423 1.5 37,510 1.50% 26,257 1

Telephone 11,937 0.43 12,295 0.42 11,253 0.45% 11,591 0.44

Cleaning/Laundry 3,184 0.12 3,280 0.11 3,001 0.12% 3,091 0.12

Consultancy 2,800 0.1 2,884 0.1 2,641 0.11% 2,720 0.1

Freight 981 0.04 1,010 0.03 924 0.04% 952 0.04

Printing/Stationary 15,278 0.55 15,736 0.54 14,400 0.58% 14,832 0.56

Repairs and

Maintenance 2,959 0.11 3,048 0.11 2,792 0.11% 2,876 0.11

Staff Training 1,920 0.07 1,978 0.07 1,800 0.07% 1,854 0.07

Subscriptions 3,192 0.12 3,288 0.11 3,000 0.12% 3,090 0.12

Telephone 13,896 0.5 14,313 0.49 13,098 0.52% 13,491 0.51

Wrapping 2,928 0.11 3,016 0.1 2,757 0.11% 2,840 0.11

Postage 927 0.03 955 0.03 875 0.04% 901 0.03

Uniforms 2,624 0.1 2,703 0.09 2,474 0.10% 2,548 0.1

Motor Vehicle

Expenses 1,020 0.04 1,051 0.04 960 0.04% 989 0.04

Registration 1,279 0.05 1,317 0.05 1,206 0.05% 1,242 0.05

Sundry 3,562 0.13 3,669 0.13 3,358 0.13% 3,459 0.13

Staff amenities 942 0.03 970 0.03 894 0.04% 921 0.04

Security 2,617 0.09 2,696 0.09 2,468 0.10% 2,542 0.1

Superannuation 29,776 1.08 31,264 1.08 27,007 1.08% 25,995 0.99

Controllable

Expenses 468,479 16.99 496,279 17.14 432,500 17.30% 411,020 15.65

Rent 201,571 7.31 207,612 7.17 190,000 7.60% 195,700 7.45

Bank Charges 13,265 0.48 13,663 0.47 12,504 0.50% 12,879 0.49

Insurance 10,824 0.39 11,148 0.39 10,200 0.41% 10,506 0.4

Total Fixed Expenses 225,648 8.18 232,423 8.03 211,653 8.46% 219,085 8.34

Total Operating

Expenses 694,127 25.18 728,702 25.17 644,153 25.76% 630,105 24

Net Operating Profit 188,117 6.82 226,617 7.83 181,073 7.24% 131,354 5

Interests 45,600 1.65 51,000 1.76 50,400 2.02% 49,800 1.9

Total Expenses 739,727 26.83 779,702 26.93 262,053 23.74% 630,105 24

Net Profit 142,517 5.17 175,617 6.07 130,673 5.23% 81,554 3.11


8.3.2 Balance Sheet

BALANCE SHEET (2/07/07)

Current Assets

Cash 35,414

Accounts Receivable 4,000

Stock on Hand as of 2/07/07 500,000

Prepaid Insurance 15,150

TOTAL CURRENT ASSETS 554,564

PROPERTY AND EQUIPMENT

Security 25,000

Improved Fixtures 75,000

Fixtures of the Current Business(4 years ago): 30,000

Current Equipment 20,000

IT 5,000

Signage 1,000

Less Accumulated Dep. 8,000

Net Fixed Assets 148,000

Other Assets:

Goodwill 915,790

TOTAL ASSETS 1,618,354

Current Liabilities

Account Payable on New Stock 150,000

Short Term Loans 0

Other Short Term Liabilities 0

Accrued Salaries 3,157

GST Payable 2,000

TOTAL CURRENT LIABILITIES 155,157

Long Term Liabilities

Loan 450,000

TOTAL LIABILITES 605,157

NET WORTH

Owners' Total Equity 1,013,197

TOTAL LIABILITIES & NET WORTH 1,618,354

Table 7. Balance Sheet


8.4 Financial Forecast of Membership Program

This section will provide a financial forecast of the LWD Membership Program only.

8.4.1 Sales Forecast

8.4.1.1 LWD membership

• We aim to achieve a high growth in membership for LWD program over a two- year

period.

• Every 6 months we will increase the number of people to become members of the

program.

• Price of the program is expected to increase by 3% due to inflation.

• Lite n Easy incorporated into monthly cost (refer to Appendix 23 for quotes).

2007 2008 2009

2nd

Half 1st half 2

nd Half 1

st half

Members 100 200 350 525

% increase

100 75 50

Table 8. The total number of people that will join LWD and the growth of the membership over

a two-year period.

We assume 80% of diabetic patient will join LWD Gold.

2007 2008 2009

2nd

Half 1st half 2

nd Half 1

st half

Members 80 160 280 420

Price per person (p/m) $75 p.m. $77 p.m. $77 p.m. $79 p.m.

Table 9. The total number of people that will join LWD Gold and the price of the membership

over a two- year period.


The remaining 20% will choose to be a member of LWD Silver.

2007 2008 2009

2nd

Half 1st half 2

nd Half 1

st half

Members 20 40 70 105

Price per person (p/m) $46 p.m. $47 p.m. $47 p.m. $48 p.m.

Table 10. The total number of people that will join LWD Silver and the price of the

membership over a two- year period.

8.4.1.2 Get Healthy Membership

• Compared to LWD, we expect growth for the Get Healthy program to be slower as

our pharmacy is mainly targeting diabetics.


• Lite n Easy incorporated into monthly cost (refer to Appendix 23 for quotes).

2007 2008 2009

2nd

Half 1st half 2

nd Half 1

st half

Members 50 70 100 140

Price per person (p.m.) $75 p.m. $77 p.m. $77 p.m. $79 p.m.

Table 11. The total number of people that will join Get Healthy and the price of the Program

8.4.1.3 Diabetes One

• It is a diabetes pilot program funded by the Government.

• Initial Funding of $500 per patient (max 10 patients) by the government plus

• Stage 1: Government funds $320 over a 6 month period for 5 private consultations

with the pharmacists (a maximum of 10 patients) plus

• Stage 2: Government funds $320 over a 6 months period for 5 private consultations

with the pharmacists (a maximum of 14 patients).

• Refer to Appendix 3 for more information on the funding and the number of patients

eligible on the Diabetes Pilot Program)


Membership Program Half-Yearly Sales Forecast

JUL 2007- JAN 2008

MEMBERSHIP REVENUE No of people Price per month No of Months Revenue

LWD Gold 80 75 6 36,000

LWD Silver 20 46 6 5,520

Get Healthy 50 75 6 22,500

Gov funding (Diabetes One) 10 54 6 3,240

Initial Gov Funding 10 500 1 5,000

TOTAL 72,260

JAN 2008-JUL 2008

MEMBERSHIP REVENUE

No of people Price per month No of Months Revenue

LWD Gold 160 77 6 73,920

LWD Silver 40 47 6 11,280

Get Healthy 70 77 6 32,340


TOTAL 122,076

JUL 2008-JAN 2009


LWD Gold 280 77 6 129,360

LWD Silver 70 47 6 19,740

Get Healthy 100 77 6 46,200


TOTAL 199,836

JAN 2009-JUL 2009


LWD Gold 420 79 6 199,080

LWD Silver 105 48 6 30,240

Get Healthy 140 79 6 66,360


TOTAL 300,216

Table 12. Membership Program Half-Yearly Sales Forecast


8.4.1.4 Products

We expect the implementation of the Membership Programs will generate more revenues to

our store especially products relating to diabetes and weight loss.

8.4.1.4.1 Diabetic Related Product

Refer to Appendix 24 for a very detailed analysis of the half yearly sales forecast and the

assumptions made.

8.4.1.4.2 Weight Loss Related Products

Refer to Appendix 25 for a very detailed analysis of the half yearly sales forecast and the

assumptions made.

8.4.2 Expense Forecast

8.4.2.1 Membership

The following assumptions have been made:


• The price of Fitness First Cooperate membership is $34 per month (bulk buy

membership). Will negotiate decreases in line with increased membership numbers.

• Pharmacist will provide 15 minutes consultation on a monthly basis for LWD

Members

• Pharmacist will provide 40 minute private consultation in the Diabetes Ones program

and this is funded by the Government.

• Shop assistants will provide weight loss consultation for 15 minutes per week.

• Total cost of publishing the weight loss/diabetes diary and purchasing the diabetes

recipe book is $4.

• Average cost of hiring room is $60 per hour. We will aim to have 25-50 people in a

class. Initially 5 classes will be held. Three classes are for diabetics and 2 classes are

for weight loss.

• The average cost of hiring health care professionals is $33 per hour. This is due

agreements that have been made whereby the majority of health care professional

involved in the program will provide for free as our program is generating business for

their private practices.


2007 2008 2009

2nd

Half 1st half 2

nd Half 1

st half

Fitness First

Membership (per month)

34 32 32 30

Pharmacists (p/h) 34 35 35 36

Presenters (p/h) 33 35 35 36

Promotion (p/m) 2600 2600 3600 4000

Rent(p/h) 60 61 61 62

Shop Assistant (p/h) 16 17 17 18

Books 4 4 4 4

Membership Manager

(p/h)

21 22 22 23

Table 13. Expenses required running the Program.

Refer to Appendix 26 for a more thorough calculation of the expenditure

8.4.2.2 Diabetes Products

Refer to Appendix 24 for a thorough detail on the expenditure of these products.

8.4.2.3 Weight Loss Products

Refer to Appendix 25 for a very detailed analysis of the expenditure of purchasing these

products.

8.4.3 Income Projection of the Membership Program Only

• In the first year of implementing the Membership program, the business will

experience a loss of $11001.88. However, implementing the Membership program

will be worthwhile because of the increase in revenues in diabetes and weight loss

product, which compensate with the loss from the membership program and turn it

into profit.

• By the second year we will be making a profit due to greater efficiency in running the

program and better negotiation with Fitness First.

• We will require approximately 350 people in LWD, 100 people in Get Healthy and 10

people in Diabetes One to break even in the Membership Program.


2007 2008 2008 2009

2nd Half 1st Half 2nd Half 1st Half

MEMBERSHIP REVENUE

LWD Gold 36000 73920 129360 199080

LWD Silver 5520 11280 19740 30240

Get Healthy 22500 32340 46200 66360

Gov funding (Diabetes One) 3240 4536 4536 4536

Initial Gov Funding 5000 0 0 0

TOTAL 72260 122076 199836 300216

Membership Expenditure

Fitness First Membership 28730 47840 79040 109200

Promotion 16900 16900 23400 26000

Hire of Room 7800 12688 22204 29016

Books 3900 7020 11700 2992.5

Pharmacists 7072 13650 22031.1 30888

Shop Assistants 5200 7735 11050 16380

Retail Manager 5460 8580 11440 14950

Superannuation(not including presenters) 1595.88 2697 4007 5599.62

Presenters 4290 7280 12740 16848

TOTAL 80947.88 124390 197612.1 251874.1

Net Profit -8687.88 -2314 2223.9 48341.88

Table 14. Income Projection of the Membership Program only

8.4.4 Profit and Loss Statement for the Membership Program, Diabetes and Weight loss

related product

Refer to Appendix 27 for a very detailed analysis of the profit and loss statement.

8.5 Financial Forecast of the Whole Business

This section will provide financial forecast analysis of the whole business activity.


8.5.1 Profit and Loss Statement

8.5.1.1 Business Growth and Inflation

8.5.1.1.1 1st Year

• The implementation of LWD and Get Fit will allow our business to grow at an

incremental rate of 30% p.a. in the first year compared to the results that are

projected to have been achieved without the new Diabetes Programs (5% p.a.).

• The rapid business growth is due to the revenues from the membership program and

then the increase in revenues from the weight loss and Diabetes products, and the

additional general business generated from these new patients.


8.5.1.1.2 2nd Year

• The growth of the Membership program will have a significant influence on the

growth of the whole business with business experiencing a growth of 36%.


8.5.1.2 Expenses

First Year

• Expenses are expected to rise by 38% compared to the previous owner’s

expenditure. The rapid increase in expenditure is due to hiring more labor to provide

health services and renting rooms from the Medical Centre for educational seminars.

• However, in terms of expenditure of the annual business turn over, there is no

significant increase compared to the previous owner because the high growth of the

sales will compensate with the rising cost and expenditure.

8.5.1.3 Net Profit

Net profit is expected to increase from 3.11% to 9.66% from the first year of implementing the

program. The higher net profit is due to providing products that have a higher mark up, the

profit made from the membership program, and greater efficiency in running the pharmacy.


2007% TO 2008 % TO

Annual TO Annual TO

Sales 3,414,940 4,646,594

Purchases Budget 2,213,748 64.83 3,154,336 67.88

Gross Profit 1,201,192 35.17 1,492,258 32.12

Total Revenue 1,201,192 35.17 1,492,258 32.12

Hire of Labour 394,401 11.55 557,591 12

Advertising 69,627 2.04 83,639 1.8

Telephone 11,937 0.35 12,295 0.26

Cleaning/Laundry 3,184 0.09 3,280 0.07

Consultancy 2,800 0.08 2,884 0.06

Freight 981 0.03 1,010 0.02

Printing/Stationary 16,078 0.47 16,536 0.36

Repairs and Maintenance 2,959 0.09 3,048 0.07

Staff Training 2,920 0.09 2,978 0.06

Subscriptions 3,192 0.09 3,288 0.07

Utilities 14,896 0.44 15,313 0.33

Wrapping 2,928 0.09 3,016 0.06

Postage 927 0.03 955 0.02

Uniforms 2,624 0.08 2,703 0.06

Motor Vehicle Expenses 1,020 0.03 1,051 0.02

Registration 2,679 0.08 2,317 0.05

Sundry 3,562 0.1 3,669 0.08

Staff amenities 942 0.03 970 0.02

Security 2,617 0.08 2,696 0.06

Superannuation 35,496 1.04 50,183 1.08

Controllable Expenses 575,770 16.86 769,422 16.56

Rent 222,059 6.5 258,832 5.57

Bank Charges 17,075 0.5 17,587 0.38

Insurance 10,824 0.32 11,148 0.24

Total Fixed Expenses 249,958 7.32 287,567 6.19


Total Operating Expenses 825,728 24.18 1,056,990 22.75

Net Operating Profit 375,464 10.99 435,268 9.37

Interests 45,600 1.34 51,000 1.1

Total Expenses 871,328 25.52 1,107,990 23.85

Net Profit 329,864 9.66 384,268 8.27

Table 15. Profit and Loss Statement of the Whole Business

8.5.2 Sales Forecast

The implementation of the Membership programs will increase sales of diabetes related

product by:

• 11.5% in the first year of takeover

• 32% in the second year.

It will also increase the sales of weight loss products by:

• 5% in the first year of takeover

• 10.3% in the second year.

2006 2007 2008

Revenue

Diabetes Related

Product 284731 317475 953433.6

Weight Loss Product 139163 146121 298250.1

Table 16 Revenue from diabetes related product and weight loss product over three years.


2007

% to

Revenue 2008

% to

Revenue

Total Membership Sales 194336 6 500052 11

Total Diabetes Product Sales 317475 9 953433.6 21

Total Weight Loss Product Sales 146121 4 298250.1 6

General Business Sales 2757008 81 2894858 62

Total Business Revenue 3414940 100 4646594 100

Table 17. Annual Sales Forecast

8.5.3 Break Even Analysis

For our monthly break-even analysis, we have chosen $25 to represent our average revenue

per unit. The break-even analysis is merely a gauge by which we can measure our monthly

revenue streams to predict long-term profitability.

Break Even= Total Expense / Gross Margin

2007 2008

Total Expenses 872328 1107990

Gross Margin 0.35 0.3234

One Year of Sales 2492366 3426067

to Break Even

Monthly Sales 207697 285506

to Break Even

Break Even Units 8308 11420

(average revenue per

unit =$25)

Table 18. Break even analysis


9 Human Resources Plan

Our Pharmacy will be incorporating Quality Care Pharmacy Program Standards from QCPP

1st Edition March 2000 and QCPP 2nd Edition May 2006 Version 1.0 into our Management

and Personnel Team Standards. We will be using both versions of QCPP in regards to

Management and Personnel as our present successful businesses have used human

resource strategies from the first edition and we are currently updating our strategies and

incorporating the updated second edition of QCPP.

9.1 People

Personnel in Health and Total Care Pharmacy include:

• Partners

• Pharmacy Manager

• Pharmacists

• Diabetes Program Manager

• Pharmacy Assistants

• Specialised Health Care Professionals (HCPs):

• Podiatrist

• Optometrist

• Nurse

• Dietician

• Diabetes Educators

• Doctors

• Endocrinologist

• Physiotherapist

• Exercise Trainer

• Weight loss consultants

Attract

Having competent staff is critical to the operations of our business. We will have a broad

range of personnel in the Pharmacy and we will be using different strategies to attract staff

dependent on their qualifications and education.


Pharmacists/Diabetes Manager/Pharmacy Manager

For these positions we will be placing employment advertisements in Sydney metropolitan

newspapers as well as local papers, we will also be using staff from our other pharmacies and

word of mouth from colleagues in the industry. We will also be placing employment

advertisement online at specific employment website such as careers.com.

Pharmacy Assistants/ Weight Loss Consultants

Weight Loss Consultants who are experienced Pharmacy Assistants will specialise and work

predominantly in the Get Healthy diet operations of our Living with Diabetes Program. They

will be fully trained in these relevant areas. To advertise for these positions will place

advertisements in the local newspapers and source individuals from our other partner

pharmacies.

Other Health Care Professionals

We will be using Health Care Professionals from the adjacent Medical Centre and directly

targeting certain professionals to join the program. Additionally we will be also advertising in

local papers.

We will also be following Quality Care Pharmacy Program (QCPP) 1st Edition Recruitment

and Selection Business Management Standards to attract staff (Appendix 28). These Seven

steps include:

• Write Position Description

• Set Selection Criteria

• Source Candidates

• Interview Appropriate Applicants

• Reference Check

• Select and Notify Applicants

We believe that by offering a salary that is ten percent above the award wage, include two

weeks holiday pay per year and subsidising further education opportunities for our staff our

business is very attractive to potential employees. There are numerous other factors that will

attract staff and they are covered below in Retain and Development sections of our Human

Resource Plan.


Retain

Staff retention is very important to our business. To do this we aim at keeping staff from the

beginning, to achieve this we will follow QCPP 2nd Edition Staff Induction and Staff Training

standards T13A, T15A, T15B, P13A,P15A (Appendices 29-33 respectively).

In order to keep staff past the first few months and further along into their careers we plan on

offering staff continual training. Our pharmacy will be following QCPP 1st Edition Staff

Training steps (Appendix 34):

• Determine what team members should be doing on the job

• Determine whether they currently have the necessary skills or knowledge to do

what’s required

• Decide the target audience

• Set your training objective

• Decide whether any materials and/or equipment is required

• Deliver the training

• Assess understanding

• Summarise key points

• Evaluating training

We believe that it is important to offer staff continual training and further education to enhance

their professional careers and we believe this a vital factor to improve staff retention. We will

also be following QCPP 2nd Edition Ongoing Staff Training Standards 15A (Appendix 35).

We will be conducting an upfront diabetes training weekend for all Pharmacists and

Pharmacy Assistants to ensure that all staff members have adequate knowledge upon

opening of Health and Total Care Pharmacy.

As a business we will be focusing on a healthy work environment that will include fortnightly

meetings, quarterly dinners and an environment that supports employee feedback. Staff

turnover will be expected, as it is an unavoidable outcome of business, however we believe

by taking this team approach to our business, staff turnover can be minimised.


Development

Further development of our staff is critical to business success. We will once again be

following QCPP 1st Edition Staff Training steps and QCPP 2nd Edition Ongoing Staff Training

Standards (Appendix 34,35). This will be integrated into our bimonthly training schedule

(Appendix 36). It is important to give staff recognition and feedback to encourage repeat

positive performances; our pharmacy will be following QCPP 1st Edition Providing

Recognition and Feedback Standards (Appendix 37).

We also feel that it is important to conduct staff performance appraisals in order to allow for

optimal staff development. We will follow QCPP 2nd Edition Standard P14C with respect to

staff performance reviews (Appendix 38).

9.2 Key Responsibilities and Tasks

The following Key Responsibilities and Tasks have been built upon suggested responsibilities

in QCPP 1st and 2nd Edition and our past experiences in Community Pharmacy.

Pharmacy Manager

• Daily opening and closure of the Pharmacy

• Preparation of monthly trading figures and a monthly report of pharmacy operations

• The organisation, delegation and supervision of all staff

• Conduct performance appraisals of all staff

• Report to the Partners any and every error or discrepancy that occur in relation to the

pharmacy

• Ensure that all advertising and promotion in the pharmacy is conducted according to

pharmacy policies

• Any other duties or directions as required by the Partners


Diabetes Program Manager

• Strategic Planning

• Full business administration with regards to the Living With Diabetes Program and

Get Healthy Program

• To ensure all Health Care Professionals, Weight Loss Consultants and Pharmacists

conform with the legislative requirements governing pharmacy operations

• The organisation, delegation and supervision of all staff in the Living With Diabetes

Program and Get Healthy Program

• Organisation of weekly diabetes health seminars

• Ordering of diabetic products

Pharmacist

• Dispense prescriptions in accordance to Pharmacy Board regulations

• Counselling of patients on the use of prescriptions as necessary

• Counselling in private consultation rooms to Living With Diabetes patients

• Computer housekeeping and back ups to be performed on a daily, weekly and

monthly basis

• Be available to other staff members to assist in dealing with customers

• To ensure that professional knowledge in relation to drugs, usage, dosage and side

effects remains up to date


Dispensary Assistant

• Maintain dispensary stock levels

• Assist pharmacist to process patient information

• Maintain dispensary information system

• Perform operational duties in a pharmacy dispensary under the supervision of a

pharmacist

• Communicate with customers, the Pharmacist and other Health Care Professionals



Weight Loss Consultants

• Counsel patients in the Living With Diabetes Program and Get Healthy Program

• Perform regular follow up progress consultations with these patients

• Communicate with customers, the Diabetes Manager, the Pharmacist, and other

Health Care Professionals

• Process sales and transactions

• Handle non-dispensary diabetes stock

• Provide general pharmacy services and products to customers

• Any other duties or directions as required by the Diabetes Manager

General Pharmacy Assistant

• Merchandise Pharmacy products and services

• Assist with prescriptions

• Provide general pharmacy services and products to customers

• Provide basic product knowledge to customers in regard to over the counter products

• Process sales and transactions

• Handle non-dispensary over the counter stock

• Any other duties or directions as required by the Pharmacy Manager

Health Care Professionals

• To work closely with the Diabetes Manager

• To be organised and prepared for weekly diabetes health seminars

• To be available to patients in the Living With Diabetes Program and Get Healthy

Program in regards to follow up private consultations, emails and queries

• Maintain dress standards and other policies in accordance with the Pharmacy’s

policies and procedures


9.3 Organisation Chart

Figure 7. Organisation Chart of employees

THREE PARTNERS

PHARMACY MANAGER

PHARMACISTS DIABETES PROGRAM

MANAGER

DISPENSARY ASSISTANTS

PHARMACY ASSISTANTS

HEALTH CARE PROFESSIONALS

WEIGHT LOSS CONSOLTANTS

(PHARMACY ASSISTANTS)


10 Action Plan

We will assume ownership of Health and Total Care Pharmacy on 1 July 2007.

Business Operation Due Date Responsibility

Physical Evidence

Contact pharmacy shop

fitters, obtain three quotes for

pharmacy refit

Mid July

Daniel

Buy CD’s, set up surround

stereo to play easy listening

music

Mid July Daniel

Review cleaner’s contract

and set specifications for

cleaning requirements

July Daniel

Promotion

Write letters for direct mail to

send to Doctors,

Endocrinologists in the local

area

Late July Fiona

Send direct mail to patients August Fiona

Set up interactive website June Fiona

Write articles for diabetes

newsletters and magazines

Issues, Conquest and

Invigorate

August

Fiona

Place adverts in local

newspapers the North Shore

Times and Manly Daily

September Fiona

Design posters and flyers September Fiona

Create and send through first

Living With Diabetes E-

newsletter to patients in the

program

September Fiona

Operational

Finalise negotiations with

Fitness First

Early June Joanne

Finalise negotiations with Lite

N Easy

Early June Joanne


Database setup for

membership program

Mid June Joanne

Organise printing of diary Mid June Joanne

Source range of health recipe

books for the Get Healthy

Program

Mid June Joanne

Source health related DVD’s Mid June Joanne

Contact suppliers of fitness

and sports equipment

Mid June Joanne

Negotiate improved terms of

diabetic products

Mid July Joanne

Contact new suppliers the

pharmacy has not dealt with

previously

Late July Joanne

Set up reordering systems for

new suppliers

Late July Joanne

Pricing

Review pricing for every item Late June Daniel

Perform and co-ordinate

stock take

June Daniel

Set up customer account

system

July Daniel

Human Relations

Assess competency of

current employees

Mid June Fiona

Order new uniform design

and badges

Mid June Fiona

Staff manual needs to be re-

written with updated QCPP

2nd Edition standards

Early June Fiona

Advertise for and appoint a

Diabetes Program Manager

Early June Fiona

Advertise for and appoint a

Pharmacy Manager

Early June

Fiona

Advertise for and appoint

Pharmacy Assistant and

Weight Loss Consultant

positions

Early June Fiona

Set up staff training July Pharmacy Manager


programs, both the customer

related training and the

Diabetes related training

Confirm seminar schedule

with Health Care

Professionals

July Diabetes Manager

Organise first staff fortnightly

meeting

Late July Pharmacy Manager

Provide staff feedback August Pharmacy Manager

Services

Set up membership club Early June Daniel

Organise membership card

used for monthly account,

fitness first and Lite N Easy

Early June Daniel

Set up membership swipe

system to accommodate

member cards

Mid June Daniel

Set up needle exchange

program

August Pharmacy Manager

Products

Place order for more

Diabetes Australia Stock


Investigate all available

products for smoking

cessation, eye care, and

diabetic foot care


Perform and co-ordinate

routine daily orders of

pharmacy stock

July Pharmacy Manager

Figure 8. Action Plan table


11 Evaluation

We will undergo regular review amongst our customers, staff and peers by conducting Market

Research Surveys in-store, after education sessions and after patients complete the LWD

program. We will also allow staff to ask questions at the staff meeting and ask for feedback

from the Pharmacy Manager.

See Appendix 38 for QCPP Standards of conducting a performance review

We will evaluate our financial status after 12 months of opening HTCP and if we have made a

significant loss then we will cease the LWD program and remain as a community pharmacy.


12 Legal Matters

We will hire Malcolm Brown, a lawyer who specialises in Pharmacy who will deal with some of

the legal matters of the business including:

• Business Registration

• Trademark Registration

• Pharmacy purchasing issues

• HIC Approval

• Pharmacy Board issues

We will use the Pharmacy Guild of Australia lawyers for:

• Unfair dismissal

• Occupational Health and Safety

• Other Human Resources Issues

Refer to Appendix 39 for QCPP Standards with regards to compliance with Legal and

Professional obligations.


13 References

1) International Diabetes Institute 2006 ‘Tracking the Accelerating Epidemic: Its Causes

and Outcomes’, The Australian Diabetes, Obesity and Lifestyle Study (AusDiab)

2006, Melbourne.

2) Australian Bureau of Statistics: Diabetes in Australia Snapshot 2006

(http://www.abs.gov.au)

3) Australian Bureau of Statistics: Diabetes in Australia Snapshot 2004/2005

(http://www.abs.gov.au).

4) Institute of Health and Welfare, 2006a, Australia’s Health 2006, AIHW cat No. AUS

76, AIHW, Canberra (http://www.aihw.gov.au/diabetes/index.cfm)

5) Diabetes Australia, National Average Rate of Diabetes,

(http://www.diabetesaustralia.com.au)

6) Healey, J., Diabetes, 2007, Chapter 1: Diabetes in Australia

7) The Pharmacy Guild of Australia, October 2006, Performance Benchmarking of

Australian Regulation, Section 1.2

8) Diabetes Australia New South Wales Branch, Incidence of Diabetes in the North

Shore and Northern Beaches of Sydney, (http://www.diabetesnsw.com.au/).

9) Australian Bureau of Statistics: Income Rates for the North Shore and Northern

beaches of Sydney and the Average Australian Household Income.

(http://www.abs.gov.au).

10) Krass, I., Pharmacy Diabetes Care Program, 2006, The University of Sydney

11) The Pharmacy Guild of Australia, Quality Care Pharmacy Program Standards 4 & 17


14 Appendices

Note: Appendices have been provided in hardcopy form only and are

available by request to David Pearson at the National Secretariat 02 6270

1888.


The Health and Total Care Pharmacy Business Plan Team

Team Captain: Daniel Rifkin

Daniel Rifkin is a third year student in the Faculty of Pharmacy at the University of Sydney.

Daniel has been privileged enough to complete the Business Undergraduate Mentoring

Program (BUMP), a pilot program in Pharmacy Management that was introduced at Sydney

University mid 2006. He is currently the Treasurer for the upcoming NAPSA Congress. He

also sits on the committee for the Sydney University Pharmacy Student Association (SUPA)

as First Year Mentor. Daniel has been working in retail pharmacy since 2005 and he believes

this has cemented his career choice that he made three short years ago. Daniel is a firm

believer that their must be a balance between University Studies and extra-curricular

activities, in the summer months he is a volunteer lifeguard at Freshwater beach on the

Northern Beaches of Sydney and currently Daniel is training to represent Australia at the 11th

Pan American Maccabean Games in Buenos Aires later this year.

Fiona Bournazos

Fiona Bournazos is a fourth year student completing her Bachelor of Pharmacy at the

University of Sydney. She has had experience in Community Pharmacy since 2001 and has

undertaken voluntary Hospital Pharmacy Work Experience in 2007 both in Sydney and in

Canberra and believes that you should work hard for what you believe in. Fiona is the

Sponsorship Officer for the NAPSA Sydney Congress 2008 Organising Committee and is also

the Secretary of the Sydney University Greek Society.

Joanne Chang

Joanne Chang is a third year student at the University of Sydney. She is involved in the

NAPSA Congress publications and has been working in Community Pharmacy for two years.

Joanne has also been involved in the Pharmacy Management BUMP program for the past

year.

Mentor: Professor Lesley White

Lesley is the Professor of Pharmacy Management at the University of Sydney. This is a new

position, established in 2007 to focus on both teaching and research in the vitally important

area of Pharmacy Management. Lesley has qualifications in Pharmacy, Commerce,

Education and her PhD was in the field of Professional Services Marketing. She has

experience as a Product Manager, Marketing Manager and consultant in a range of

industries, including OTC Pharmaceuticals. Lesley has taught undergraduates as well as

MBA students, specialising in the area of Services Marketing.

Documents

business plan