Pharmacy owners and aspiring pharmacy owners require a business plan to purchase or expand their businesses or simply to get started. There are a number of important elements pharmacists need to understand to successfully develop and maintain their business plan.
By Mike Jaczko
A business plan is…
- The “storyboard” for your pharmacy practice. Financial statements remain the “language of business,” but the business plan provides the roadmap.
- A tool for setting goals, monitoring goals, and meeting goals.
- A test for economic viability and a key metric for lenders.
A GOOD business plan…
- Sets priorities, provides focus & demonstrates commitment.
- Stimulates action, buy-in, support.
- Sets realistic expectations.
- Identifies future potential issues.
- Ensures proper resourcing, processes & structure.
- Incorporates a marketing plan.
- Provides a benchmark for measuring performance (proformas).
- Gives comfort to lenders, investors & sponsors.
- Communicates goals, objectives & expectations.
To make it work, you should consider your business plan a living document. The process of creating it is just as important as the outcome. Done properly, it will continue to service as your “business compass” throughout the lifetime of your operation. Don’t forget to revisit it regularly and update the plan based on your changing needs.
Mike Jaczko is a partner and portfolio manager with K. J. Harrison & Partners Inc.