• History, Location Analysis, and

Buy-Out Structure

• Strengthening Current Sales

• Generating Growth

• Financial Analysis

Heights Care Pharmacy

Business Plan Outline

Location Analysis: Geography

Location Analysis: Geography

Defined Rx Market = $16,000,000

HCP Currently does 2.6 Million in sales representing

only 15% of the potential market

Education, Stability, and Affluence

Over 50% of the population in 72207

have at least a Bachelor Degree

Heights Care Pharmacy NCPA Digest Average

38% 11%

Non-Third Party Prescription Sales

Insurance

Security

o Commercial General Liability

o Professional Liability

o Property

Business Owner’s Policy

Junior Partnership and

Management Structure

Summary of Loan Request• Amount of Loan Request

• $411,000

• Terms of Request

• Amortizing 10-year loan with set interest rate at

current market value.

• Loan will be used to purchase remaining 50% of

pharmacy

• Loan Repayment

• Monthly installments of $4,359.29

• Payments will be drawn from business cash flow

• Market Value

• $422,181.78

Strengthening Current Sales:Front-End Renovation and

Medication Adherence Service

Physical Description of the Business

2700 Square Feet$13 per Square Foot in a Straight Lease

Physical Description of the Business

The Entrance

(First view by Patient)

One of Five

Saturated Aisles

Physical Description

of the Business:

The Remodel

High Turnover Items

Over-The-Counter

Relief and Care Centers

Medication Adherence

Services

Generating Growth:TailorFitRx and Community Marketing

Mrs. Smith

73% Have a Genetic Variation

• Pharmacogenomics

Residency

• Genetic Testing Lab

Pharmacists Interpreting:

• genetic data

• drug interactions

• diet interactions

• physician consult

120 Other Drugs!

CELEXA

TailorFitRx Results

Current Marketing Budget

$14,0000.5% of Total Sales

New Marketing Budget

$32,0001.1% of Total Sales

Target Market

• Direct Mailers and Flyers

• Bag Stuffers

• Newspaper Ads

• Magazine Articles

• Charitable Contributions

• Coupons for Front-End Merchandise

MRS. HAILEY HEIGHTS

Marketing Through Technology

“Wine Night in the Heights”

Continuing Education and Doctor Detailing

$13,000In Hospital Bills

HCP Current Financials

2012 2013 2014 2015

Total Sales $ $2,685,517 $2,776,871 $3,146,936 $3,573,649

COGS $ $2,168,536 $2,193,728 $2,454,610 $2,787,445

COGS % 81% 79% 78% 78%

Gross Profit $ $515,187 $583,143 $692,326 $786,203

Gross Profit % 19% 21% 22% 22%

Expenses $ $397,191 $437,793 $495,996 $534,470

Expenses % 15% 16% 16% 15%

Net Income $ $117,996 $145,350 $196,329 $251,733

Net Income % 4% 5% 6% 7%

38% Non-Third Party

Prescription Sales

6% Below NCPA Avg.

Ratio Analysis

The Good HCP *NCPA

Return on Investment 23.5 19.9

Current Ratio 5.5 4.1

Accounts Payable 5.4 days 14 days

Improvement Targets HCP *NCPA

Annual Prescription

Inventory Turnover10.3 12.4

Sales per Sq. Ft. $975 $1168

Cost of Goods Sold 81% 76%

*Based on the 2011 NCPA Digest

Heights Care Recommendations

Decrease Cost of Goods Sold

by 1% Annually in Years 1-3

Increase Total Sales

by 10% Annually

Heights Care Recommendations

Decrease Cost of Goods Sold

by 1% Annually in Years 1-3

• Establishing Primary Wholesaler

• Maximize Purchasing Discount

• Improving Payment Structure to Wholesaler

Net Profits from Beginning to Year 3

Increase Total Sales

by 10% Annually

HCP Income Statement

2012 2013 2014 2015

Total Sales $ $2,685,517 $2,776,871 $3,146,936 $3,573,649

COGS $ $2,168,536 $2,193,728 $2,454,610 $2,787,445

COGS % 81% 79% 78% 78%

Gross Profit $ $515,187 $583,143 $692,326 $786,203

Gross Profit % 19% 21% 22% 22%

Expenses $ $397,191 $437,793 $495,996 $534,470

Expenses % 15% 16% 16% 15%

Net Income $ $117,996 $145,350 $196,329 $251,733

Net Income % 4% 5% 6% 7%

HCP Income Statement

2012 2013 2014 2015

Total Sales $ $2,685,517 $2,776,871 $3,146,936 $3,573,649

COGS $ $2,168,536 $2,193,728 $2,454,610 $2,787,445

COGS % 81% 79% 78% 78%

Gross Profit $ $515,187 $583,143 $692,326 $786,203

Gross Profit % 19% 21% 22% 22%

Expenses $ $397,191 $437,793 $495,996 $534,470

Expenses % 15% 16% 16% 15%

Net Income $ $117,996 $145,350 $196,329 $251,733

Net Income % 4% 5% 6% 7%

HCP Income Statement

2012 2013 2014 2015

Total Sales $ $2,685,517 $2,776,871 $3,146,936 $3,573,649

COGS $ $2,168,536 $2,193,728 $2,454,610 $2,787,445

COGS % 81% 79% 78% 78%

Gross Profit $ $515,187 $583,143 $692,326 $786,203

Gross Profit % 19% 21% 22% 22%

Expenses $ $397,191 $437,793 $495,996 $534,470

Expenses % 15% 16% 16% 15%

Net Income $ $117,996 $145,350 $196,329 $251,733

Net Income % 4% 5% 6% 7%

HCP Income Statement

2012 2013 2014 2015

Total Sales $ $2,685,517 $2,776,871 $3,146,936 $3,573,649

COGS $ $2,168,536 $2,193,728 $2,454,610 $2,787,445

COGS % 81% 79% 78% 78%

Gross Profit $ $515,187 $583,143 $692,326 $786,203

Gross Profit % 19% 21% 22% 22%

Expenses $ $397,191 $437,793 $495,996 $534,470

Expenses % 15% 16% 16% 15%

Net Income $ $117,996 $145,350 $196,329 $251,733

Net Income % 4% 5% 6% 7%

HCP Income Statement

2012 2013 2014 2015

Total Sales $ $2,685,517 $2,776,871 $3,146,936 $3,573,649

COGS $ $2,168,536 $2,193,728 $2,454,610 $2,787,445

COGS % 81% 79% 78% 78%

Gross Profit $ $515,187 $583,143 $692,326 $786,203

Gross Profit % 19% 21% 22% 22%

Expenses $ $397,191 $437,793 $495,996 $534,470

Expenses % 15% 16% 16% 15%

Net Income $ $117,996 $145,350 $196,329 $251,733

Net Income % 4% 5% 6% 7%

HCP Income Statement

2012 2013 2014 2015

Total Sales $ $2,685,517 $2,776,871 $3,146,936 $3,573,649

COGS $ $2,168,536 $2,193,728 $2,454,610 $2,787,445

COGS % 81% 79% 78% 78%

Gross Profit $ $515,187 $583,143 $692,326 $786,203

Gross Profit % 19% 21% 22% 22%

Expenses $ $397,191 $437,793 $495,996 $534,470

Expenses % 15% 16% 16% 15%

Net Income $ $117,996 $145,350 $196,329 $251,733

Net Income % 4% 5% 6% 7%

HCP Balance Sheet: Assets

Assets 2012 2013 2014 2015

Current Assets

Cash $ 43,911 $ 102,053 $ 138,969 $ 217,040

Accounts Receivable $ 211,465 $ 289,424 $ 332,654 $ 375,884

Inventory $ 232,799 $ 308,672 $ 333,368 $ 336,306

Total Current Assets $ 488,176 $ 700,150 $ 804,992 $ 929,231

Fixed Assets

Total Fixed Assets $ 22,497 $ 19,997 $ 17,997 $ 38,304

Total Assets $ 510,673 $ 720,147 $ 822,989 $ 967,535

$ 929,231

HCP Balance Sheet: Liabilities

Liabilities 2012 2013 2014 2015

Current Liabilities

Total Current Liabilities $ 48,014 $ 64,392 $ 73,921 $ 87,085

Long Term Liabilities

Total Liabilities $ 88,491 $ 64,392 $ 73,921 $ 87,085

Net Worth

Total Capital $ 422,181 $ 655,755 $ 749,068 $ 880,450

Total Liabilities + Capital $ 510,673 $ 720,147 $ 822,989 $ 967,535

Thank you.