Eazylink Pharmacy Business plan and how to grow
What really is the pharmaceutical business all about? The pharmaceutical industry is known for developing, producing, and marketing medicine (drugs). Retail pharmacy business is known to be involved in the sale (retailing) of generic or brand medications; some big pharmaceutical stores even engage in the sale of medical devices. The retail pharmacy industry is indeed a growing and a profitable industry and it is open to any aspiring investor (entrepreneur) to come in and establish his or her retail pharmacy outlet.
2. Executive Summary
EAZYLINK PHARMACY AND RESOURCES LTD is incorporated with CAC with registration No 1193450 in Abuja Nigeria. It is a growing retail business whose head office is situated at suite 8, Road 6911 Galadima Gwarinpa Estate with three branches located in federal capital territory. In other to meet up with our expansion and customer needs and services, we aspire to establish a new brand modern pharmacy outlet and medical diagnostic centre in federal capital territory thereby creating jobs within Abuja and its environs.
EAZYLINK PHARMACY AND RESOURCES LTD will be involved in the retailing of prescription drugs and over-the-counter drugs. We will also be involved in the sale of beauty products, cosmetic, postcards (greeting cards), convenience foods and other related products.
We intend to establish and include Medical laboratory and diagnostic services in the existing pharmaceutical business.
Pharm. Anselem Ugwu, is the chief executive officer of EazyLink Pharmacy and Resources Ltd and he is a graduate of the Faculty of Pharmaceutical sciences and from the department of Pharmacy. He also holds a diploma in Lab Science Technology, (Lab. Tech). He has a proven practical working experience for over 10 years. His life's dream is to be an employer of labour by raising a world class and a successful Medical laboratory and diagnostic service that will be profitable while delivering excellent and affordable health services to client. His passion has been, proffering solutions where possible to human and especially health related needs. This has given him some of the life time awards that he has received today both as a pharmacist and as a public health advocate. His passion and the fact that there is a huge gap in the healthcare service industry in Abuja led him to entrepreneurship.
We are in retail pharmacy business to retail a wide range of pharmaceuticals for our customers, at the moderate prices they can get anywhere in Abuja and beyond. Our employees are well trained and qualified to handle the wide range of customers that we are positioned to serve.
EAZYLINK PHARMACY AND RESOURCES LTD operates 24 hours, 7 days a week pharmaceutical store. We shall also have customers like; walk – in customers. Our work force is going to be well trained to operate within the framework of our company’s corporate culture and also to meet the needs of all our customers.
EAZYLINK PHARMACY AND RESOURCES LTD will ensure that all our customers are given first class treatment whenever they visit our shop. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base grows. We will ensure that we get our customers involved in the selection of brands that will be on our racks and also when make some business decisions.
The main area of expansion is to purchase pharmaceutical products and also to include Medical Laboratory and diagnostics services in the business. The amount of money required for expansion is One Hundred and Twenty Million (N120, 000,000) due to the increase in demand for our products and services.
3. Our Products and Services
EAZYLINK PHARMACY AND RESOURCES LTD will retail a wide range of prescription drugs from different manufacturing brands to customers. We want to expand and to provide the most convenient products and diagnostic services to our clients within area councils of the federal capital territory Abuja, its environs and beyond. We also engage in the sale of quality beauty products, cosmetic, postcards (greeting cards), baby products, convenience foods and other related products (small scale medical equipment / instruments et al).
4. Our Mission and Vision Statement
Our mission is to establish a first class and largest retail pharmacy store that will make available a wide range of generic and branded prescription drugs from top pharmaceutical manufacturing brands at affordable prices to the residence of Abuja and beyond and also desire to offer a comprehensive clinical test for potential clients.
OUR BUSINESS STRUCTURE
Eazylink Pharmacy and Resources LTD is business that is built on a solid foundation. From the outset, we have decided to recruit only qualified people to man various job positions in our organization. We are quite aware of the rules and regulations governing the pharmaceutical and Laboratory industry which is why we decided to recruit experienced and qualified employees as foundational staff of the organization.
We hope to leverage on their expertise to build our business. When hiring, we will look out for applicants that are not just qualified and experienced, but honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement (incentives) will be made available to all our management staff and it will be based on their performance for a period of three years or more. These are the positions that will be available at EAZYLINK PHARMACY AND RESOURCES LTD;
CEO (pharmacy owner, superintendent pharmacist and supervising pharmacist)
· Pharmacist (Manager)
· Sales agents (4)
· Cashier (Counter Agent).
· Cleaners
Roles and Responsibilities
Chief Executive Officer – CEO
Sales Agents
· Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
· Models demographic information and analyze the volumes of transactional data generated by customer purchases
· Sources for clients for the company
· Responsible for promoting the company’s image
· Responsible for creating marketing and sales strategies, etc.
· Represents the organization in some strategic business meetings
· Handles any other duty as assigned by the floor manager (Pharmacist)
Cashier (Counter Agent):
· Receives payments on behalf of the organization
· Issues receipt to customers
· Prepare financial report at the end of every working week
· Handles financial transaction on behalf of the company
· Interfaces with our bankers
· Responsible for payment of tax, levies and utility bills
· Handles any other duty as assigned by the floor manager (Pharmacist)
Cleaners:
· Responsible for cleaning the pharmacy facility at all times
· Ensures that toiletries and supplies don’t run out of stock
· Cleans both the interior and exterior of the pharmacy facility
· Handle any other duty as assigned by the floor manager (Pharmacist)
6. SWOT Analysis
EAZYLINK PHARMACY AND RESOURCES LTD is not looking forward to operate a regular retail pharmacy store, because we want to become the biggest retail community pharmacy in Abuja. We want our pharmacy to be the number one choice of all residence of Abuja.
We know that if we are going to achieve the goals that we have set for our business, then we must ensure that we build our business on a solid foundation. We must ensure that we follow due process in setting up our retail pharmacy store.
Despite the fact that our CEO (owner) has a robust experience in retail pharmacy business, we still went ahead to hire the services of business consultants that are specialized in setting up new businesses to help our organization conduct detailed SWOT analysis and to also provide professional support in helping us structure our business. This is the summary of the SWOT analysis that was conducted for EAZYLINK PHARMACY AND RESOURCES LTD;
Strength:
Our location is one of our strength. The Business model we will be operating on (physical store and online store) will be opened for 24 hours daily and 7 days in a week, there would be multiple payment options; wide range of prescription drugs, home delivery services and our excellent customer service culture will definitely count as a strong strength for us. Also insuring our business with suitable insurance company against all odds
Weakness:
Our perceived weakness is the fact that we are just started growing out and we may not have the required finance to sustain the kind of publicity that we intend giving the business.
Opportunities:
The opportunities that are available to retail pharmacy business is unlimited and we are going to position our business to make the best out of the opportunities that will be available to us in Abuja,
Threat:
Just like any other retail business, one of the major threats that we are likely going to face is economic downturn and unfavorable government policies (healthcare reform). It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new retail pharmacy outlet in same location where ours is located (Abuja.).
7. MARKET ANALYSIS
Market Trends
The market trend in retail pharmacy industry is directly influenced by a country’s healthcare reform policies. The fact that the pharmaceutical industry is highly regulated means that any entrepreneur who wants to run a retail pharmacy store must be ready to play by the book.
Loads of other factors influences the market trend in the industry and it is normal to see bigger retail pharmacy stores (especially those with chains of outlets) weathering the storm whenever there are major shaking in the industry. In essence, the easiest way to build a solid and highly profitable retail pharmacy business is to engage in opening various outlets in key cities around the Nigeria.
No doubt the industry will continue to grow and become more profitable because the aging baby-boomer generations in Nigeria are expected to drive increasing demand for prescription drugs.
Retail Pharmacies are now making use of technology to effectively manage their business by plugging financial leakages which happens to be one of the biggest challenges that retail businesses faces. The use of technology, i.e. CRM software et al is very effective in helping retail businesses manage their clientele base.
8. Our Target Market
EAZYLINK PHARMACY AND RESOURCES LTD is in business to service a wide range of customers in Abuja, Nigeria. We will ensure that we target self – pay customers (who do not have drug plans), mail order customers, and walk in customers.
The fact that we are open our doors to a wide range of customers does not in any way stop us from demanding and screening prescriptions as required by the law. Our staffs are trained to effectively service our customers and still play by the rules governing the industry. Our customers can be categorized into the following;
· Households
· Corporate Executives
· Business People
· Elderly people
· Expectant Mothers
· Sports Men and Women
· Students
Our competitive advantage
The retail pharmacy industry is known to be highly competitive in Nigeria and in most parts of the world. The industry is growing and there are alternative ways through which clients / patients can get their medications / prescriptions / drugs.
It is a fact that small retail pharmacy stores will always struggle with larger pharmacy chains when it comes to pricing power and brand recognition, which is why smaller retail pharmacy store always go out of their ways to deliver excellent customer service. It is through top notch customer service that they can secure a fair share of the available market.
Smaller retail pharmacies ensure that each order carries a printout. The printout accompany the medications providing directions on how patient are expected to take the medications, other drugs that should be avoided concurrently, and other useful information.
EAZYLINK PHARMACY AND RESOURCES LTD is into the market well prepared to favorably compete in the industry. Our pharmacy is well positioned and visible, we have enough parking space with good security. Our management staff are well groomed in retail pharmacy and all our employees are trained to provide customized customer service to all our clients.
Extract Information About Eazylink Medical Laboratory and Diagnostic Services
EXECUTIVE SUMMARY
Eazylink Pharmacy and Diagnostics Ltd., is a start-up company committed to providing the most convenient, friendliest blood testing and diagnostic services to our clients within Amac area council of the federal capital territory Abuja and its environs. Eazylink Pharmacy and Diagnostics Ltd. is registered with the Nigerian corporate affairs commission. The directors are Ugwu Anselem Chinweike (with the majority of the shares in the company), Ugwu Anthony , Anselem Ugwu, is the chief executive officer of Eazy Link Pharmacy and Diagnostics Ltd. and he is a graduate of the Faculty of Pharmaceutical sciences and from the department of Pharmacy. He also holds a diploma in Lab Science Technology, (Lab. Tech). He has a proven wealth of experience in the over five years of practical working experience.
His passion has been, proffering solutions where possible to human and especially health related needs. This has given him some of the life time awards that he has received today both as a pharmacist and as a public health advocate.
His life's dream is to be an employer of labour by raising a world class and a successful Medical laboratory and diagnostic service firm that will be profitable while delivering excellent and affordable health services to client.
His passion and the fact that there is a huge gap in the healthcare service industry in Abuja led him to entrepreneurship.
Our Mission Statement:
To provide quality services in the healthcare and diagnostic industry by providing path breaking technologies and maintaining the utmost objectivity, integrity and the highest scientific standards of quality and accuracy.
Our Vision:
To build a world class and a successful medical laboratory and diagnostic service firm that will be profitable while delivering excellent and affordable health services to client.
Our Objectives:
· To secure 60% of walk in patients resident within Abuja and its environs seeking medical laboratory and diagnostic solutions.
· To secure 40% of clients from doctors in privates clinics and pharmacies.
· To reach a net profit of N100, 151,000 within the next three years.
Eazylink Pharmacy and Diagnostics Ltd. has identified three market segment to serve; first segment is the large number of walk in patients residents in Abuja and its environs that will be attracted by our quality medical laboratory and diagnostic services and our reduced cost. This customer segment is expected to grow thus increasing our revenue base. The second group of clients is expected from doctors practicing in private clinics and Hospitals within Abuja and its environs. The third group of clients will be expected from pharmacist and nurses in the several pharmaceutical shops located within Abuja and its environs.
Eazylink Pharmacy and Diagnostics Ltd. offers a comprehensive clinical test for potential client. Some of our services will include Haematology test, Chemistry test, Microbiology test, X-ray, ECG and Ultrasound services.
EAZY LINK PHARMACY AND DIAGNOSTICS LTD PROPOSED ORGANIZATIONAL STRUCTURE
Eazylink Pharmacy and Diagnostics Ltd. still offers only blood testing services but with huge potential to expand and grow into a fully-fledged diagnostic center hence, accessing the Bank of Industry loan will help us to fund the purchase of equipment required to run an automated medical laboratory process and also operate as a full-fledged laboratory and diagnostic center offering all blood testing services as well as Ultrasound, ECG and X-ray services.
2. MARKET ANALYSIS
Eazylink Pharmacy and Diagnostics Ltd., is located in Gwarinpa Abuja which is 40km from the airport and about 10km from the city center. Abuja has a population of over four million people as at the national census of 2006 buts its population has continued to increase with the influx of more people into Abuja.
Abuja residents are mostly civil servants, business men and women and farmers with a growing population that appreciates the need for an efficient medical laboratory and diagnostic service.
Beside Eazylink Pharmacy and Diagnostics Ltd., there are few registered laboratories and diagnostic centers in Abuja and they are SinLab and Echo Scan Abuja. However, none of these competitors offers full laboratory and diagnostic services in the same facility to clients. While SinLab offers only laboratory services without x-ray, Ultrasound and ECG services, Echo Scan offers only diagnostic services without the option of blood testing services. The clients still have to travel from one location to another to get full laboratory and diagnostic solution. Eazylink Pharmacy and Diagnostics Ltd. therefore; hope to be a one stop shop for laboratory and diagnostic solutions in the FCT Abuja.
Our services include providing medical laboratory and diagnostic solutions to clients within and outside Abuja. Some of the services we ill offer will include running of Haematology test, Hormonal Assays, Chemistry test, Serology test, Microbiology test, and Ultrasound, ECG, and X-ray services.
Our market potential is huge and it includes:
Private Clinics and Maternity centers in Abuja
Private Schools in Abuja
Churches and other religious centers
Corporate organizations
Medical Laboratories within Abuja.
Walk in patients from Abuja and its environs.
Eazylink Pharmacy and Diagnostics Ltd. has identified three market segment to serve;
First segment is the large number of walk in patients who are resident within the Abuja Metropolis and its environs that will be attracted by our quality medical laboratory and diagnostic services and our reduced cost. This customer segment is expected to grow thus increasing our revenue base.
The second group of clients is expected from doctors practicing in private clinics and Hospitals within the FCT and adjoining regions.
The third group of clients will be expected from pharmacist and nurses in the several pharmaceutical shops located within the FCT.
The detail of market segmentation is as illustrated below in fig 1.
Easylink Pharmacy and Diagnostics Ltd. will provide medical and diagnostic services to three distinct market segment.
1. Walk in Patients: this segment is made up of patients living within Abuja and its environs who seeks an efficient and reliable diagnostic solutions and who are currently dissatisfied with the current services rendered in all the centres offering laboratory and diagnostic services within our vicinity.
With the increase in Abuja population, alarming pressure is on established government health facilities within the FCT hence compelling patients to seek alternative and reliable medical diagnostic services which we hope to provide.
2. Referral from Private Clinics: theme are about 375 registered private clinics within Abuja and its adjoining districts most of who will usually send their clients out of town for most diagnostic and laboratory test which is not convenient and also waste a lot of man hours. A lot of these private clinics and their doctors will be quite happy to have a well-furnished medical laboratory and diagnostic centre very close to them.
3. Referrals from Pharmacist: this segment will capture the numerous clients visiting pharmacist and nurses within Abuja and its environs.
Some of the operational risk we face as a laboratory which is capable of stopping us from achieving our set goals include:
Incidental fire outbreak.
Refusal of Operational Licenses.
In security.
We will mitigate this risk by:
Installing firefighting equipment in the laboratory and liaising with firefighting agencies and insurance companies to protect our property and equipment.
We have secured an operational license from the human and health services secretariat of the federal capital territory administration (FCTA) and also holds a current practicing license as a medical laboratory scientist with the Medical laboratory council of Nigeria.
Working with relevant Security/Vigilante group’s day and nights to secure our laboratory.
3. COMPANY DESCRIPTION
Easylink Pharmacy and Diagnostics Ltd. are run by qualified, licensed and registered medical laboratory scientist, Pharmacist, laboratory technicians and assistants. This identity has carved a niche for us and has encouraged families, hospitals and clinics to access our facility for their laboratory and diagnostic solutions.
Our services include providing medical laboratory and diagnostic solutions to clients within and outside Abuja. Some of the services we will offer will include running of Haematology test, Hormonal Assays, Chemistry test, Serology test, Microbiology test, and Ultrasound, ECG, and X-ray services.
As a laboratory, we have a well-developed after care program, while we call and monitor our patient’s health until they fully recover by encouraging them to take their prescription seriously and not to abuse drugs.
We have also been able to secure the commitment of doctors to work on part-time bases and on commission in the laboratory. This innovation indeed is what has helped to attract most of our numerous clients as they seize the opportunity to interact with our in-house doctors for accurate medical diagnosis.
We are unique, in that we are also able to liaise with churches for their marriage counseling test, and other clinics and hospitals for free sample pickups and delivery.
At Eazylink Pharmacy and Diagnostics Ltd., we pride ourselves in our ability to deliver quick, accurate and efficient laboratory services, offer free sample pick-ups and result delivery services to Clinics, offer preventive health solutions, offer referral services, offer quality and yet affordable laboratory and diagnostics solutions and develop and manage a successful after care client follow up program.
4. MARKETING AND SALES ACTIVITES
Eazylink Pharmacy and Diagnostics limited will pursue an intense and well-coordinated marketing program that will center on identifying patient’s needs, developing new services and satisfying customers.
We have developed a marketing strategy that will attract clients to our facilities for their pharmaceuticals, laboratory and diagnostic services. Our marketing strategy will also center on bringing repeat customers.
We hope to attract clients to our center through our:
Incredible price offers
Efficient service delivery
Customer friendly marketing
And well defined marketing logistics.
Some of the channels we will employ to market Easy Link Pharmacy and Diagnostics Ltd. will be through;
Flyers and Handbills
Word of Mouth
Health Campaigns
Free health Checks promotions
Banners placed in strategic locations in Abuja
Bill boards in three location in Abuja and
Church Magazine and Bulletins.
5. OPERATIONS
Eazylink Pharmacy and Diagnostics limited is located in Suite 8, Road 6911, Galadima, opposite Model City gate, Gwarinpa FCT Abuja. We are in a very busy center, the largest estate in West Africa. Easy Link Pharmacy and Diagnostics Ltd. are furnished with modern laboratory and diagnostic equipment for accurate medical laboratory and diagnostics analysis.
Some of our key equipment and reagent suppliers include B. A. Ariben Limited, Divine laboratory and Supplies Ltd, and Hafak Surgical Ltd all located within the federal capital territory Abuja.
Eazylink Pharmacy and Diagnostics Ltd. will offer to our numerous clients a one stop laboratory and diagnostic solutions and some of our services include:
· Clinical Pathology test: this will include all laboratory chemical analysis of bodily fluids such as blood and urine.
· Biochemistry test: this will include testing of proteins, random blood sugar, fasting blood sugar, HBA1C, lipids, nucleic acids and othimbio-moleculars.
· Haematology test: this will include testing of blood cells, Haemoglobin, wbc, pcv etc.
· Microbiology test: this will include the analyses of microorganisms including bacteria, viruses, fungi and parasites.
· PCR Screening: this will include the PCR screening of infectious diseases such as HIV, Hepatitis B, Hepatitis C and VDRL.
· Ultrasound: this will include obstetric sonography, visualizing subcutaneous body structures including tendons, muscles, joints, vessels and internal organs.
· Electrocardiogram (ECG) services to diagnose possible heart conditions.
· X-ray: this will include Radiographs, Computer tomography, Fluoroscopy and Radiothimapy.
· Pharmaceuticals: This will include the sales of all dispensary drugs and professional pharm care.
Eazylink Pharmacy and Diagnostics Ltd. already runs as a registered Pharmacy and Medical laboratory services and will spring into full automated medical laboratory and diagnostic operations within the first month of receiving the loan facility as we have already negotiated with our suppliers and secured their commitment to deliver the equipment when our orders are ready.
Eazylink Pharmacy and Diagnostics Ltd., will hit its break-even point within its first three month of receiving the loan as we hope to raise our current patronage from an average of Three hundred and eighty four clients per month to five hundred clients per month within the first six months. However, we will still be in the realm of profitability with our monthly average client’s patronage of three hundred and eighty four clients per month.
6. MANAGEMENT AND OWNERSHIP
Eazylink Pharmacy and Diagnostics Ltd. is registered with the Nigerian corporate affairs commission with six directors who are also the shareholders of the company. The directors are Ugwu Anslem Chinweike (with the majority of the shares in the company), Ugwu Anthony Chinwe.
Ugwu Anselemis a graduate of the Faculty of Pharmaceutical sciences and from the department of Pharmacy. He also holds a diploma in Lab Science Technology, (Lab. Tech) He has a proven wealth of experience in the over five years of practical working experience.
As a Pharmacist, Ugwu Anselem has worked with several hospitals and Pharmaceutical firms within Abuja with over five (5) years cognate experience managing pharmaceutical and diagnostic firms. He has also worked in a single purpose but standalone laboratory as the laboratory Manager shortly before investing in Easy Link Pharmacy and Diagnostics Ltd. He has also acquired entrepreneurial training from the Small and Medium Enterprises Development Agency of Nigeria where he took the courses Personal Productivity course and Setting Goals for Success course in 2018. This trainings and practical experience he acquired gave him the hands-on business skills to run and manage Eazylink Pharmacy and Diagnostics Ltd. ltd.
7. FUND REQUIRED AND THEIR USES
Eazylink Pharmacy and Diagnostics Ltd in three years of business has a client base of over 4000 and currently running and operating as a single purpose medical laboratory/Pharmacy but with a huge market potential to run and operate as a full-fledged laboratory and diagnostic center providing all laboratory and diagnostic solutions to our numerous clients.
Eazylink Pharmacy and Diagnostics Ltd. already has invested about four million, five hundred and fifty thousand naira (N10,000,000.00) in the purchase of some laboratory equipment, reagents and disposables, rent and furniture as itemized below.
I. Microscope
II. Spectrophotometer
III. Metlar weighing balance
IV. Haematocrit centrifuge
V. Thimmostatic incubator
VI. Autoclave
VII. Centrifuge
VIII. Electrophoresis Machine
IX. Express cool LG freezer
X. Automatic pipette
XI. Examination Bed
XII. HP office Laptop
XIII. Samsung 24” colour television
XIV. Furniture
XV. HP DeskJet 1515 series printer
XVI. 3.0Kva thimmocool generator
XVII. Consumables and Reagents
XVIII. Rent
Therefore, specifically the fund required to expand our business is Sixty million naira only. (N60, 000,000.00). This will be sourced as loan from the Bank of Industry Nigeria.
However, the fund required will be used to expand the laboratory to be able to offer a wide range of diagnostic services. The fund will be used to fund the purchase of the itemized machines below.
I. Sonoscape 4D Colour Doppler Ultrasound Machine N9,500,000.00
II. 12 Channel Electrocardiogram machine. (ECG) N2,500,000.00
III. Fully Automated Electrolyte Analyser N2,500,000.00
IV. Fully Automated Hematology Analyser (5 Pat Diff) N7,500,000.00
V. Fully Automated Chemistry Analyser N8,500,000.00
VI. Chemilumniscence Imuno Assay Analiser N13,500,000.00
VII. Real –Time PCR Machine N16,000,000.00
Summary of what the fund will be used for is listed in the table below:
EQUIPMENT
QUANTITY
RATE
AMOUNT
Sonoscape 4D Colour Doppler Ultrasound Machine
1
9,500,000.00
9,500,000.00
12 Channel Electrocardiogram machine. (ECG)
1
N2,500,000.00
N2,500,000.00
Fully Automated Electrolyte Analyser
1
N2,500,000.00
N2,500,000.00
Fully Automated Hematology Analyser (5 Pat Diff)
1
N7,500,000.00
N7,500,000.00
Fully Automated Chemistry Analyser
1
N8,500,000.00
N8,500,000.00
Chemilumniscence Imuno Assay Analiser
1
N13,500,000.00
N13,500,000.00
Real Time - PCR Machine
1
N16,000,000.00
N16,000,000.00
Binocular Microscope
2
1,500,000
1,500,000.00
Roller Mixer (Blood Roller Mixer)
1
750,000
750,000.00
Heating Incubator 55l
1
1,200,000
1,200,000.00
Nuve FN 055 Oven
1
1,300,000.00
1,300,000.00
Hematocrite Centrifuge, NF048
1
1,500,000,000
1,500,000.00
Capp Pipette 100-1000UL
1
235,354.00
235,000.00
Wire Loop
1
350,000.00
350,000.00
Cleaver Electrophoresis
Unite
1
905,000.00
905,000.00
Nuve Hematocrit Reader
1
80,000.00
80,000.00
TOTAL COST OF EQUIPMENT
66,485,000.00
66,485,000.00
8. FINANCIAL DATA/PROJECTION
Please refer to the attached excel sheet for the three years financial forecast for Eazylink Pharmacy and Diagnostics Ltd., computed quarterly(Q1,Q2,Q3.....Q12).
Q5
Q6
Q7
Q8
Q9
Q10
Q11
Q12
3YRS Cashflow
Forecast Profit & Loss
Past 12m Profit & Loss
Please read instructions /guide below before completing the spreadsheet
4,350,000
4,560,000
4,599,000
4,680,000
4,860,000
5,250,000
5,445,000
5,461,500
54,499,500
54,499,500
2,325,000
2,340,000
2,346,000
2,355,000
2,436,000
2,520,000
2,565,000
2,592,000
26,566,500
26,566,500
2,010,000
2,070,000
2,091,000
2,136,000
2,220,000
2,400,000
2,445,000
2,505,000
24,387,000
24,387,000
0
0
0
0
0
0
0
0
-
-
8,685,000
8,970,000
9,036,000
9,171,000
9,516,000
10,170,000
10,455,000
10,558,500
105,453,000
78,886,500
-
TURNOVER*
0
0
0
0
0
0
0
0
550,000
8,685,000
8,970,000
9,036,000
9,171,000
9,516,000
10,170,000
10,455,000
10,558,500
111,003,000
DIRECT COSTS / PAYMENTS
260,000
300,000
300,000
300,000
350,000
350,000
350,000
350,000
3,520,000
3,520,000
Cost of consumables(Reagents, Chemicals)
0
0
0
0
0
0
0
0
-
-
Storage costs
120,000
150,000
150,000
150,000
200,000
200,000
200,000
200,000
1,820,000
1,820,000
Cost of Disposables
0
0
0
0
0
0
0
0
-
-
Assembly / harvest costs
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
230,000
230,000
Distribution / delivery / transport / packaging costs
0
0
0
0
0
0
0
0
240,000
240,000
Sales & marketing costs including advertising
210,000
210,000
210,000
210,000
210,000
210,000
210,000
210,000
2,280,000
2,280,000
Gross staff wages
21,000
21,000
21,000
21,000
21,000
21,000
21,000
21,000
228,000
228,000
Payroll expenses (taxes for staff,etc)
8,318,000
-
INDIRECT COSTS / PAYMENTS
5,000
5,000
5,000
5,000
5,000
5,000
5,000
5,000
60,000
60,000
Repairs & maintenance
0
0
0
0
0
0
0
0
-
-
Accounting and legal
155,000
155,000
155,000
155,000
155,000
155,000
155,000
155,000
1,860,000
1,860,000
Rent, rates and utilities
7,500
7,500
7,500
7,500
7,500
7,500
7,500
7,500
78,000
78,000
Telephone & IT communication
210,000
210,000
210,000
210,000
210,000
210,000
210,000
210,000
2,370,000
2,370,000
Owners wages
20,000
20,000
20,000
20,000
20,000
20,000
20,000
20,000
210,000
210,000
Other costs
0
0
0
0
0
0
0
0
70,000
70,000
Accreditation cost
0
0
0
0
0
0
0
0
-
-
Insurance
4,648,000
-
CAPITAL COSTS
0
0
0
0
0
0
0
0
4,650,000
Machinery
0
0
0
0
0
0
0
0
160,000
Office equipment
0
0
0
0
0
0
0
-
Other Capital expenditure including land and buildings
0
0
0
0
0
0
0
0
-
Vehicle purchase
4,810,000
OTHER COSTS
311,376
311,376
311,376
311,376
311,376
311,376
311,376
311,376
3,736,512
Loan principal repayment + interest
0
0
0
0
0
0
0
0
-
Capital purchases [specify]
0
0
0
0
0
0
0
0
-
-
Agreement / lease cost / bank charges
0
0
0
2,131,466
0
0
0
2,131,466
6,394,398
6,394,398
Taxes (business)
19,360,398
-
TOTAL COSTS before adjustments
1,339,876
1,409,876
1,409,876
3,541,342
1,509,876
1,509,876
1,509,876
3,641,342
-
Stock adjustment**
22,406,530
29,751,654
37,311,778
44,937,902
50,567,560
58,573,684
67,233,808
76,178,932
-
-
Prepay / Accruals***
29,751,654
37,311,778
44,937,902
50,567,560
58,573,684
67,233,808
76,178,932
83,096,090
481,000
Depreciation of Capital item over ten years
19,841,398
-
TOTAL COSTS after adjustments and depreciation
1,028,500
1,098,500
1,098,500
3,229,966
1,198,500
1,198,500
1,198,500
3,329,966
19,360,398
59,045,102
-
RETAINED PROFIT
EASY LINK PHARMACY AND DIAGNOSTICS LTD. BUSINESS MODEL CANVAS
KEY PARTNERS
· Suppliers
· Doctors
· Pharmacist
· Our staffs.
· MLSCN
· FCTA
· BOI
KEY ACTIVITIES
· Collection of client’s data
· Collection of client’s sample
· Working on client’s sample
· Giving of results
· Marketing
VALUE PROPOSITION
· Faster result turnaround time
· Well developed after care program.
· In-house doctors
· Friendly price offers
· Free sample pickups and delivery.
· Preventive health solutions.
CUSTOMER RELATIONSHIP.
· Automated
Via calls, bulk sms.
· Personal
CUSTOMER SEGMENT
· Walk in patients
· Doctors Referrals
· Referrals from pharmacist and nurses.
· Schools
· Churches
· Organisations
· Private clinics and maternities
KEY RESOURCES
· Consumables
· Equipment
· Power
· Finance
· Staff
CHANNELS
· Phone calls
· Emails
· Short message service (sms).
· Word of mouth
· Referrals
COST STRUCTURE
FIXED COST
· Equipment
· Rent
· Salaries
VARIABLE COST
· Consumables e.g Reagents and chemicals
· Disposables
· Utilities e.g light bills, phone call bills etc
· Maintenance.
REVENUE STREAMS
· Laboratory test
· Ultrasound
· ECG
· Xray.
9. EXPANSION: It is worth to know that the pharmaceutical business has run for more than seven years with a proven financial performance track record including three years financial audit report. The medical laboratory business projection has a reliable feasibility studies for the purpose of diversification.
10. JUSTIFICATION: The pharmacy and laboratory industry is a reliable, lucrative, projectable and profitable business thus, the need for expansion and diversification.
The total amount required for the expansion is One Hundred and Twenty Six Million Four Hundred and Eight Five Thousand Naira only (N126, 485,000) as shown below:
(A) LABORATORY AND DIAGNOSTIC EQUIPMENT
Fund required to start diagnostic center is Sixty Six million Four Hundred and Eight Five Thousand naira only. (N66, 485,000.00) while Sixty Million Naira only (N60, 000,000.00) is required to expand the pharmaceutical business.
The fund will be used to purchase of the itemized machines below:
I. Sonoscape 4D Colour Doppler Ultrasound Machine N9, 500,000.00
II. 12 Channel Electrocardiogram machine. (ECG) N2, 500,000.00
III. Fully Automated Electrolyte Analyser N2, 500,000.00
IV. Fully Automated HaematologyAnalyser (5 Pat Diff ) N7, 500,000.00
V. Fully Automated Chemistry Analyser N8, 500,000.00
VI. ChemilumniscenceImuno Assay Analiser N13, 500,000.00
VII. Real – Time PCR Machine N16, 000,000.00
(B) PHARMACEUTICAL PRODUCTS AND EQUIPMENT
I. Medicine N15,000,000
II. Cosmetics N10,000,000
III. Provision N10,000,000
IV. All kinds vaccines N13,500,000
V. Consumables N6,000,000
VI. Furniture, Generator and Inverter N5, 000,000.
VII. Miscellaneous N500,000.00
9. SALES AND MARKETING STRATEGY
Sources of Income
Our source of income will be majorly in the retailing of prescription drugs, over-the-counter drugsand supply of hospitals and other pharmacies. EAZYLINK PHARMACY AND RESOURCES LTD will also generate income from the sale of beauty products, cosmetic, postcards (greeting cards), convenience foods and other related products and laboratory services.
10. Sales Forecast
It is important to state that our sales forecast is based on the data gathered from existing business of ours, also during our feasibility studies, market survey and also some of the assumptions readily available on the field.. Below are the sales projections that we were able to come up with for the first three years of operations;
THREE YEARS SALES PROJECTION FOR PHARMACY
YEARLY SALES
MONTHLY SALES
DAILY SALES
1ST
109,920,000
9,100,000
314,000
2ND
255,600,000
21,300,000
710,000
3RD
481,200,000
40,150,000
1,338,000
PROFIT PROJECTION
YEAR
PROFIT MINUS EXPENDITURE
GROSS PROFIT
1ST YEAR
32,760,000 - 9,828,000
22,932,000
2nd YEAR
153,360,000 - 46,008,000
53,676,000
3rd YEAR
144,540,000 -43,362,000
202,356,000
PLOUGHING (RESTOCKINGS) PROFIT PROJECTION
YEAR
30% OF GROSS PROFIT
RESTOCKING
1ST YEAR
22,932,000
6,879,600
2ND YEAR
53,676,000
16,102,800
3RDYEAR
202,356,000
30353,400
INVESTMENT RETURN PROJECTION
YEAR
GROSS PROFIT MINUS PLOUGHING PROFIT
DAILY NET PROFIT
1st YEAR
22,932,000 - 6,879,600
16,052,400
2nd YEAR
53,677,600 - 16,102,800
37,573,200
3rd YEAR
50,589,000 - 15,176,700
35,412,300
PROFIT SHARING FORMULAR PROJECTION
YEAR
NET PROFIT/2
YEARLY /12
MONTHLY NET PROFIT
1st YEAR
16,052,400
8,026,200
670,000
2nd YEAR
37,569,200
18,784,600
1,564,000
3rd YEAR
70,824,600
35,412,300
2,950,000
TOTAL NET PROFIT FOR THREE YEARS
8,026,200
18,784,600
35,412,300
62,223,100
Therefore, (profit) 62,223,100 +(initial capital) 60,000,000 =122,223,100
ASSUMPTION: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and natural disasters within the period stated above. Please note that the above projection might be lower and at the same time it might be higher.
Marketing Strategy and Sales Strategy
The marketing and sales strategy of EAZYLINK PHARMACY AND RESOURCES LTD will be based on generating long-term personalized relationships with customers. In order to achieve that, we will ensure that we offer medications at lower prices, compared to what is obtainable in Abuja. We will also ensure that we have a wide range of drug supplies in stock for both quick shipment and store front pick up.
All our employees will be well trained and equipped to provide excellent and knowledgeable customer service. We know that if we are consistent with offering high quality drugs and excellent customer service we will increase the number of our customers by more than 25% for the first year and then more than 30 percent subsequently.
Before choosing a location for our pharmacy store, we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Abuja, Nigeria. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.
We hired experts who have good understanding of the retail industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Abuja, Nigeria. In summary, EAZYLINK PHARMACY AND RESOURCES LTD will adopt the following sales and marketing approach to win customers over;
Introduce our business by sending introductory letters to residence, business owners and organizations
· Leverage on the internet to promote our business
· Direct marketing
· Word of mouth marketing (referrals)
· Enter into business partnership with hospitals, health care provider and health insurance companies.
· Attend pharmaceutical related exhibitions / expos.
11. Publicity and Advertising Strategy
Regardless of the fact that our retail pharmacy store is well located in Abuja, Nigeria, we will still go ahead to intensify publicity for the business. We are going to explore all available conventional and non – conventional means to promote our retail business.
EAZYLINK PHARMACY AND RESOURCES LTD has a long term plan of opening outlets in various locations all around Nigeria which is why we will deliberately build our brand to be well accepted in Abuja before venturing out. As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand to the general public. Here are the platforms we intend leveraging on to promote and advertise EAZYLINK PHARMACY AND RESOURCES LTD
· Sponsor relevant community programs (Checking of BP for free)
· Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
· Engage in road show from time to time
· Distribute our fliers and handbills in target areas
· Position our Flexi Banners at strategic positions in the location where our retail store is located.
12. Our Pricing Strategy
EAZYLINK PHARMACY AND RESOURCES LTD will work towards ensuring that all our products (prescription drugs and over-the-counter drugs and beauty products, cosmetic, postcards (greeting cards), convenience foods and other related products) are offered at highly competitive prices compare to what is obtainable in Abuja.
The fact that we are offering our products at cheaper prices does not in any way means that we will sell sub – standard goods. Selling our products at a lower price than what is obtainable in our competitors store means that we will only reduce our profit margin.
Payment Options
At EAZYLINK PHARMACY AND RESOURCES LTD, our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;
· Payment by cash
· Payment via Point of Sale (POS) Machine
· Payment via online bank transfer (online payment portal)
· Payment via Mobile money
In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.
Generating Funding / Startup Capital
EAZYLINK PHARMACY AND RESOURCES LTD is a private business that is solely owned and financed by Ugwu Anselem C. The amount for expansion will be source through loan.
Generate part of the start – up capital from personal savings
Expansion: Source for loans from Bank
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it may not be too long before the business closes shop.
One of our major goals of starting EAZYLINK PHARMACY AND RESOURCES LTD is to build a business that will survive cash flow with the need for injecting finance from external sources. We know that one of the ways of gaining approval and winning customers over is to sell our product a little bit cheaper than what is obtainable in the market and we are well prepared to survive on both higher and lower profit margin.
EAZYLINK PHARMACY AND RESOURCES LTD will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our Investors and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
· Business Name Availability Check: Completed
· Business Registration: Completed
· Opening of Corporate Bank Accounts: Completed
· Securing Point of Sales (POS) Machines: Completed
· Opening Mobile Money Accounts: Completed
· Opening Online Payment Platforms: Completed
· Application and Obtaining Tax Payer’s ID: In Progress
· Application for business license and permit: Completed
· Leasing of facility and remodeling the shop: In Progress
· Conducting Feasibility Studies: Completed
· Generating capital: Completed
· Applications for Loan from the bank: In Progress
· writing of business plan: Completed
· Drafting of Employee’s Handbook: Completed
· Drafting of Contract Documents and other relevant Legal Documents: In Progress
· Design of The Company’s Logo: Completed
· Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
· Recruitment of employees: In Progress
· Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
· Creating Official Website for the Company: In Progress
· Creating Awareness for the business both online and around the community: In Progress
· Health and Safety and Fire Safety Arrangement (License): Secured
· Opening party / launching party planning: In Progress
· Compilation of our list of products that will be available in our pharmacy store: Completed
· Establishing business relationship with vendors (wholesale pharmaceutical companies): In Progress
SALES PROJECTION (THREE YEARS)
FIRST YEAR
MONTH
1ST
2ND
3RD
4TH
5TH
6TH
7TH
8TH
9TH
10TH
11TH
12th
(000)
100
2OO
200
240
240
300
360
360
400
400
400
500
MTS(M)
3.0
6.0
6.0
7.2
7.2
9.0
11.0
11.0
12.5
12.5
12.0
15.0
MTS=MONTHLY TOTAL SALE
M=MILLION
000= IN THOUSANDS
SECOND YEAR
MONTH
1ST
2ND
3RD
4TH
5TH
6TH
7TH
8TH
9TH
10TH
11TH
12th
(000)
500
560
620
620
700
700
700
760
760
800
900
900
MTS(M)
15.0
16.8
18.3
18.6
21.0
21.0
21.0
22.8
22.8
24.0
27.0
27.0
MTS=MONTHLY TOTAL SALE
M=MILLION
000= IN THOUSANDS
THIRD YEAR
MONTH
1ST
2ND
3RD
4TH
5TH
6TH
7TH
8TH
9TH
10TH
11TH
12th
(000)
900
1,000
1,000
580
1,200
1,200
1,400
1,500
1,500
1,600
1,700
1,900
MTS(M)
27
30.0
30.0
34.8
36.0
36.0
42.0
45.0
45.0
48.0
51.0
57.0
MTS=MONTHLY TOTAL SALE
M=MILLION
000= IN THOUSANDS
SALES
YEARLY SALES
MONTHLY SALES
DAILY SALES
1ST
109,200,000
9,100,000
314,000
2ND
255,600,000
12,300,000
710,000
3RD
481,800,000
40,150,000
1,338,000
PROFIT PROJECTION (THREE YEARS) @ 30%
S/N
YEARLY SALES
30 % OF SALES IS OUR PROFIT
1ST
109,200,000
32,760,000
2ND
255,600,000
76,680,000
3RD
481,800,000
144,540,000
EXPENDITURE PROJECTION (30% OF PROFIT)
S/N
PROFIT
EXPENDITURE
1ST
32,760,000
9,828,000
2ND
76,680,000
23,004,000
3RD
144,540,000
43,362,000
PROFIT PROJECTION
YEAR
PROFIT MINUS EXPENDITURE
GROSS PROFIT
1ST YEAR
32,760,000 - 9,828,000
22,932,000
2nd YEAR
76, 680,000 - 23,004,000
53,676,000
3rd YEAR
144,540, 000 -43,362,000
101,178,000
PLOUGHING (RESTOCKINGS) PROFIT PROJECTION
YEAR
30% OF GROSS PROFIT
RESTOCKING
1ST YEAR
22,932,000
6,879,600
2ND YEAR
53,676,000
16,102,800
3RD YEAR
101,178,000
30,353,400
INVESTMENT RETURN PROJECTION
YEAR
GROSS PROFIT MINUS PLOUGHING PROFIT
DAILY NET PROFIT
1st YEAR
22,932,000 - 6,879,000
16,052,400
2nd YEAR
53,676,000 - 16,102,800
37,573,200
3rd YEAR
101,178,000 - 30,353,400
70,824,600
PROFIT SHARING FORMULAR PROJECTION
YEAR
NET PROFIT/2
YEARLY /12
MONTHLY NET PROFIT
1st YEAR
16,052,400
8,026,200
670,000
2nd YEAR
37,569,200
18,784,600
1,564,000
3rd YEAR
70,824,600
35,412,300
2,950,000
EAZYLINK PHARMACY AND DIAGNOSTICS LTD. BUSINESS MODEL CANVAS
KEY PARTNERS
● Suppliers
● Doctors
● Pharmacist
● Our staffs.
● MLSCN
● FCTA
● BOI
KEY ACTIVITIES
● Collection of client’s data
● Collection of client’s sample
● Working on client’s sample
● Giving of results
● Marketing
VALUE PROPOSITION
● Faster result turnaround time
● Well developed after care program.
● In-house doctors
● Friendly price offers
● Free sample pickups and delivery.
● Preventive health solutions.
CUSTOMER RELATIONSHIP.
● Automated
Via calls, bulk sms.
● Personal
CUSTOMER SEGMENT
● Walk in patients
● Doctors Referrals
● Referrals from pharmacist and nurses.
● Schools
● Churches
● Organisations
● Private clinics and maternities
KEY RESOURCES
● Consumables
● Equipment
● Power
● Finance
● Staff
CHANNELS
● Phone calls
● Emails
● Short message service (sms).
● Word of mouth
● Referrals
COST STRUCTURE
FIXED COST
● Equipment
● Rent
● Salaries
VARIABLE COST
● Consumables e.g Reagents and chemicals
● Disposables
● Utilities e.g light bills, phone call bills etc
● Maintenance.
REVENUE STREAMS
● Laboratory test
● Ultrasound
● ECG
● X-ray.
SUPPORTING DOCUMENTS FOR LABORATORY
1. CAC Document
2. Proforma Invoice
3. Entrepreneurship Certificates
4. Professional Certificates
5. Rent Document
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