Main Street Community Pharmacy

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Main Street Community Pharmacy is an independent community pharmacy in Alabama. We fill prescriptions, deliver for free, synchronize refills so a patient picks up everything once a month, give immunizations and consult with patients about their medicines. A small front store sells over-the-counter medicine, health products and gifts. Patients know their pharmacist by name.

Independent pharmacies have closed at a high rate in recent years, and many neighborhoods and small towns have lost their pharmacy. Patients who are older, have several medicines or lack transportation depend on a pharmacy that knows them, delivers and calls when a medicine is not working. Large chains are often crowded and impersonal, and mail order cannot answer a question face to face.

Here is what our numbers show. We expect about 22,000 prescription fills in Year 1 (about 73 a day), which with front-store sales and immunizations brings in sales of $1,876,200, growing to $4,260,642 by Year 5. A pharmacy's gross margin is thin, about 21% to 23% of sales, because most of each sale is the cost of the drug. We expect a loss of about $76,600 in Year 1 and a profit from Year 2 ($57,300), growing to about $197,900 by Year 5. Drug reimbursement can be unpredictable, so we plan carefully for cash.

We need $570,000 in total. Of that, $382,000 is startup costs (the opening drug inventory, fixtures, the pharmacy system, a build-out, licenses and setup) and the rest is cash to cover the first months while payers pay. I am putting in $140,000 of my own money, and I am asking for a $430,000 SBA loan.

I am Dr. Tamika Brooks, a licensed pharmacist with 12 years of experience, including five years managing an independent pharmacy. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Main Street Community Pharmacy is a small, independently owned pharmacy in Alabama, planned as a limited liability company. We will lease about 2,400 square feet in a small shopping center near doctors' offices, with a drive-up window and parking.

Our mission. To be the pharmacy that knows its patients, with accurate prescriptions, honest advice and free delivery.

What we believe. A pharmacist is a health professional, not just a counter. We take time to explain medicines, catch interactions, call prescribers about problems and make sure patients can afford and take what they need. We do not rush, and we do not pressure anyone.

What we offer:
- Prescription services. Filling, transfer and refill, with text reminders and a simple online refill request.
- Free local delivery. Same-day delivery within about 10 miles.
- Medication synchronization. All of a patient's refills on one day each month, packaged by day or time if wanted.
- Immunizations and clinical services. Flu, shingles and other vaccines as state law allows, plus blood pressure checks and medicine reviews.
- A front store. Over-the-counter medicine, first aid, vitamins, durable supplies and gifts.

Who we serve. Patients within about 10 miles, especially older adults, people with several medicines and people without transportation.

What we do not do. We do not compound sterile medicines, and we do not dispense without a valid prescription. We do not give medical diagnoses.

How we are run. I am the owner and pharmacist-in-charge. Pharmacy technicians and a delivery driver and clerk join us from the start. A part-time staff pharmacist joins in Year 2 and a store manager in Year 3. A small advisory group of a physician, an accountant and an experienced pharmacy owner tells us what is working.

Where things stand today. We have a lease option, a letter from a wholesaler, interest from three physician offices and 90 patients who have said they will transfer their prescriptions. Before we begin, our attorney will review the lease, and we will confirm what the state board of pharmacy, the DEA and each payer network require.

Problem & Opportunity

Many communities have lost their independent pharmacy. Reimbursement for generic and brand drugs is set by pharmacy benefit managers, and payments can fall below what the pharmacy paid for the drug. Fees charged to pharmacies after the sale have made planning hard. Many independent pharmacies have closed, leaving long drives for patients, especially older adults and people in small towns.

Patients who are older or have many medicines benefit from a pharmacist who knows them. Missed refills and drug interactions lead to hospital visits. Delivery matters to people who cannot drive.

For a new pharmacy, the barriers are high. The opening drug inventory is costly, and payers reimburse weeks after dispensing. Network contracts, licensing and registrations take months. A new pharmacy must build prescriber relationships, because prescriptions come from doctors and patients choose where to fill them.

We want to be clear about what we know and do not know. We know that patients value a pharmacist who knows them, and that reimbursement is a real risk. We will use the most recent numbers from the state, the census and payers for our area in our final plan and will not overstate them. We do not know how reimbursement rates will change, so our plan uses a thin gross margin and includes clinical services and delivery to add value.

Products & Services

Main Street will fill prescriptions accurately, deliver for free, synchronize refills and take time with each patient.

How it works, step by step:
1. Transfer and intake. A new patient transfers prescriptions by phone or online. We call the old pharmacy and the doctor if needed, and record allergies and insurance.
2. Verification. A pharmacist reviews every prescription for interactions, doses and allergies and calls the prescriber about problems.
3. Filling. Technicians fill under the pharmacist's supervision using barcode scanning, and a pharmacist checks every prescription before release.
4. Pickup or delivery. Patients pick up at the counter or drive-up window, or receive free delivery the same day.
5. Medication synchronization. Refills are aligned to one pickup a month, with reminders by text.
6. Clinical services. Pharmacists give immunizations as the state allows, review medicines with patients and report concerns to doctors.
7. Billing. We bill the patient's plan in real time and collect the copay at pickup or delivery.
8. Quality. We track error rates, wait times, refill adherence, delivery on time and patient satisfaction.

Why this approach is strong. Convenience, accuracy and relationships keep patients with a small pharmacy, and delivery and synchronization are services that chains often do poorly.

Market Analysis

Who we serve: patients within about 10 miles who need a convenient, personal pharmacy.

Our primary group is adults age 50 and older and people who take several medicines. Our secondary group is nearby clinics, nursing and assisted living facilities that need a pharmacy partner. We will use the most recent numbers from the census and the state for our area in our final plan.

How we sized our plan. We plan about 22,000 prescription fills in Year 1 (about 73 a day), 9,000 front-store sales and 900 immunizations and clinical services, growing to 45,000 fills (about 150 a day) by Year 5. The average fill brings in about $78 including dispensing fees, with the drug costing us about $61.50, which leaves about $16.50 per fill.

Demand data. Ninety patients have said they will transfer their prescriptions, and three physician offices have said they will refer patients.

We do not promise every drug is in stock. We can order most medicines within a day, and we tell patients when something will take longer.

Competitive Landscape

Other choices for patients, and what makes us different.

- National chains. They are large and convenient. We compete on knowing patients by name, free delivery and short waits.
- Grocery and big-box pharmacies. They compete on price and convenience. We offer service and clinical time.
- Mail-order pharmacies. They are convenient for maintenance drugs and cannot answer a question face to face or fill an urgent need. We offer same-day delivery.
- Other independent pharmacies. We compete on location, relationships and services, and learn from them.
- Hospital and clinic pharmacies. They serve their own patients. We serve patients anywhere.

What makes us different.
- A pharmacist-owner who knows patients.
- Free same-day delivery and medication synchronization.
- Immunizations and clinical services where state law allows.
- Honest advice about cost, including generic options.

What we do not claim. We are new. Larger pharmacies have more buying power. We plan to earn trust one patient at a time.

Marketing & Sales Strategy

How we will reach patients and prescribers.

Prescribers. We will meet physicians, nurse practitioners and office managers near us, explain how we handle prior authorizations and calls and offer to deliver to their patients. We do not pay prescribers or offer anything that could look like payment for referrals, which federal law forbids for federal program patients.

Patients. We will offer to transfer prescriptions for free, send a mailing to nearby homes, set up booths at churches and senior centers and keep a Google business listing and a simple website with refill requests.

Facilities. We will talk with assisted living communities and group homes about packaging and delivery.

Retention. We keep patients with delivery, synchronization, text reminders and reviews, and by solving problems the same day.

Pricing. We accept most major insurance plans, and we offer low-cost generic lists and discount programs for patients without insurance.

Operations Plan

How the business will run.

Setup (the 4 to 6 months before opening). We will form the LLC, sign the lease, build out the pharmacy area, install fixtures and the pharmacy system, obtain the state pharmacy permit, the DEA registration and our network contracts, set up an account with a primary wholesaler, buy insurance, hire and train staff and stock inventory. We will not dispense until the permit is in hand.

Inventory. The opening inventory is about $150,000 of prescription and over-the-counter products. We carry about 30 days of drugs on hand, and the plan counts inventory and payer payment delays in our cash needs.

Staffing. In Year 1: I serve as owner and pharmacist-in-charge. Two pharmacy technicians and a delivery driver and front-store clerk join us. A part-time staff pharmacist joins in Year 2 and a store manager in Year 3. Technicians are certified or in training as state law requires.

Safety and accuracy. Prescriptions are barcode checked, and a pharmacist reviews each one. Controlled substances are kept in a locked safe with a log. Patient records are protected under privacy laws.

Payments. Most prescriptions are paid by insurers and benefit managers about 15 to 20 days after the claim, and copays are paid at pickup. We keep about 5% of annual sales as receivables.

Insurance. We carry professional and general liability, property, workers' compensation and crime coverage. Insurance is about $12,000 a year in Year 1.

Management & Organization

The people who will run Main Street.

Dr. Tamika Brooks, owner and pharmacist-in-charge. A licensed pharmacist with 12 years of experience, including five years managing an independent pharmacy. She leads dispensing, hiring, payer contracts, prescriber relationships and finance. (Replace this paragraph with your own background.)

Staff pharmacist (part-time, from Year 2). Covers hours and supports clinical services.

Pharmacy technicians. Fill prescriptions, work with insurers and keep inventory.

Delivery driver and front-store clerk. Delivers medicines and runs the front store.

Store manager (from Year 3). Runs the front store, ordering and staff scheduling.

Outside advisors. An attorney, an accountant, an insurance broker and a free mentor from SCORE or the Small Business Development Center.

Staff pay in this plan is a full year per person: pharmacist owner $115,000, part-time staff pharmacist $62,000, pharmacy technician $38,000, delivery driver and clerk $30,000 and store manager $48,000. Replace them with the pay you can offer where you live.

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (4 to 6 months ahead): get at least 75 patients to pledge to transfer prescriptions, get letters of interest from at least 3 prescribers, get wholesaler terms and lender quotes, confirm the state permit and DEA process, form the LLC, get an EIN and open a business bank account. Do not order drug inventory until the lender's commitment is in hand.
- Year 1: about 22,000 prescription fills; $1,876,200 in sales and a loss of about $76,600.
- Year 2: about 32,000 fills and a part-time staff pharmacist; $2,803,832 in sales and a profit of about $57,300.
- Year 3: about 38,000 fills and a store manager; $3,426,106 in sales and a profit of about $103,300.
- Year 4: about 42,000 fills; $3,884,604 in sales and a profit of about $162,300.
- Year 5: about 45,000 fills; $4,260,642 in sales and a profit of about $197,900.
Growth depends on winning and keeping customers, so treat the later years as goals, not promises.

What we check every week: prescriptions per day, gross margin per fill, reimbursement below cost, inventory days, delivery on time, error rate and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $570,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $382,000, listed item by item in the Startup Costs section: $150,000 for opening drug and over-the-counter inventory; $64,000 for pharmacy fixtures: counters, shelving, a vault, a refrigerator and a pill counter; $28,000 for pharmacy management system, computers, printers and a labeling system; $18,000 for delivery vehicle, used and inspected; $72,000 for build-out: pharmacy counter area, consultation room and flooring; $11,000 for lease security deposit and first month of rent; $6,500 for state pharmacy permit, DEA registration, business license and network enrollment fees; $12,000 for pharmacy attorney and accountant: entity, contracts, policies and setup; $9,500 for sign, website and opening marketing; $11,000 for staff training, background checks and the first insurance payments.
- The cash the business uses before it breaks even, about $79,716: because inventory is paid for before the first prescription is billed and payers pay weeks later.
- A cash cushion of about $92,400: three months of Year 1 operating costs.
- Together that comes to about $554,116, rounded up to the nearest $500: $554,500.
We are raising $15,500 more than that, $570,000 in all, to cover the loan payments and the extra cash the early years take. With this funding, the lowest year-end cash balance is about $41,300, at the end of Year 1.

Where the money comes from:
- My own money: $140,000.
- SBA 7(a) loan for inventory, build-out and working capital: $430,000.

Kind of funding we are looking for. An SBA 7(a) loan through a bank that lends to pharmacies, plus our own equity. Lenders look at the owner's experience, the lease, the prescriber letters and the wholesaler's terms, and often want the owner to put in at least 20% to 25% of the total.

How we will pay it back. We expect a loss of about $76,600 in Year 1 and a profit of about $57,300 in Year 2, then a profit of about $103,300 in Year 3, a profit of about $162,300 in Year 4 and a profit of about $197,900 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan. The loan is planned at sba 7(a) loan for inventory, build-out and working capital at 12.75% over 10 years, about $6,357 a month. That is about $6,357 a month in all, and it is already included in our cash flow. We chose these as cautious planning rates; ask the lender for the real rates, which may be lower or higher.

What we are offering the lender: a personal guarantee, a lien on inventory, fixtures and business assets and the signed lease.

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: buy an existing small pharmacy, which already has patients, a permit and payer contracts, instead of opening a new store.
- Phase 2: once you have a steady volume, add delivery, synchronization and clinical services and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume and pharmacist license.
- A personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- The lease or lease option and a floor plan.
- Your wholesaler agreement or letter, and the inventory plan.
- Your state pharmacy permit and DEA application status.
- Insurance quotes or proof of insurance.
- Letters from prescribers and your list of pledged patients.
- Your payer network applications.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Prescription Fills: about $78.00 in Year 1, rising to $84.43; about $61.50 in direct costs, rising to $66.57; about 22,000 in Year 1, growing to 45,000.
- Front-Store and Over-the-Counter Sales (per sale): about $14.00 in Year 1, rising to $15.76; about $9.80 in direct costs, rising to $11.03; about 9,000 in Year 1, growing to 19,500.
- Immunizations and Clinical Services: about $38.00 in Year 1, rising to $42.77; about $12.00 in direct costs, rising to $13.51; about 900 in Year 1, growing to 3,600.
- Prescription fills about $78 each in Year 1 including dispensing fees, with about $61.50 in drug cost, rising about 2% a year (gross margin about 21%); front-store sales about $14 with about $9.80 in cost; immunizations and clinical services about $38 with about $12 in supplies. Reimbursement rates can change, and we plan conservatively.
- Pay (a full year, per person): pharmacist-in-charge (owner) $115,000; staff pharmacist (part-time) $62,000; pharmacy technician $38,000; delivery driver and front-store clerk $30,000; store manager $48,000.
- Other yearly costs in Year 1: pharmacy lease $54,000, pharmacy software, network and compliance services $18,000, professional liability, property and general insurance $12,000, utilities $7,200, marketing, delivery fuel and outreach $10,000, accounting, legal and payroll services $8,400, licenses, continuing education and dues $4,000, supplies and miscellaneous $5,000, payroll taxes and benefits $30,000. These grow between 3% and 12% a year.
- Startup costs and equipment ($382,000 in Year 1, then $6,000, $6,000, $8,000, $8,000) are spread evenly over five years in the plan's books.
- Customers and payers pay about 18 days after service. Income tax at 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs