drug wholesale business plan

Pharmaceutical Business Plan Template

Written by Dave Lavinsky

Pharmaceutical Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their pharmaceutical companies.

If you’re unfamiliar with creating a pharmaceutical business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a pharmaceutical business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Pharmaceutical Business Plan?

A business plan provides a snapshot of your pharmaceutical business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Pharmaceutical Company

If you’re looking to start a pharmaceutical business or grow your existing company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your pharmaceutical company to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Pharmaceutical Businesses

With regards to funding, the main sources of funding for a pharmaceutical business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for pharmaceutical businesses.

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How to write a business plan for a pharmaceutical company.

If you want to start a pharmaceutical company or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your pharmaceutical business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of pharmaceutical business you are running and the status. For example, are you a startup, do you have a company that you would like to grow, or are you operating pharmaceutical companies in multiple markets?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the pharmaceutical industry.
• Discuss the type of pharmaceutical business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of pharmaceutical company you are operating.

For example, you might specialize in one of the following types of pharmaceutical businesses:

• Generic Pharmaceutical Manufacturing : this type of pharmaceutical business develops prescription or over-the-counter drugs products that do not have patent protection.
• Vitamin & Supplement Manufacturing: this type of pharmaceutical company primarily develops products that contain ingredients intended to supplement the diet.
• Brand Name Pharmaceutical Manufacturing: this type of pharmaceutical business engages in significant research and development of patent-protected prescription and over-the-counter medications.

In addition to explaining the type of pharmaceutical business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of patents awarded, the extent of your product portfolio, reaching X number of distributors under contract, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the pharmaceutical industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the pharmaceutical industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section:

• How big is the pharmaceutical industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your pharmaceutical company? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: healthcare providers, chain pharmacies, independent retailers, and consumers.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of pharmaceutical business you operate. Clearly, individuals would respond to different marketing promotions than hospitals, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other pharmaceutical businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes imported alternatives, herbal remedies, or customers’ nutritional self-care. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of products do they manufacture?
• What are their research and development capabilities?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide product development?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a pharmaceutical company, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of pharmaceutical business that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you manufacture patent-protected prescription medications, or a range of vitamins?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your pharmaceutical business. Document where your company is situated and mention how the site will impact your success. For example, is your pharmaceutical company located in an industrial district, near a major medical and/or scientific hub, or near input markets? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your pharmaceutical marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Advertise in trade publications
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your pharmaceutical company, including meeting with potential customers, creating and distributing product information, developing and manufacturing products, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to produce your Xth product, or when you hope to reach $X in revenue. It could also be when you expect to expand your pharmaceutical business to a new city.  

Management Team

To demonstrate your pharmaceutical company’s potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing pharmaceutical businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a pharmaceutical business or successfully running a R&D company.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions including your sales projections. For example, will you manufacture a line of general sales products, or will you specialize in manufacturing controlled drugs? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your pharmaceutical company, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a pharmaceutical company:

• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your facility blueprint or a list of products you manufacture.  

Writing a business plan for your pharmaceutical business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the pharmaceutical company industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful pharmaceutical company.

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how Growthink’s business plan writers can create your business plan for you.

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Table of contents, tapping into drug wholesale business opportunities.

• 15 June, 2024

Understanding Drug Wholesale Business

To tap into the opportunities within the drug wholesale business, it is important to have a comprehensive understanding of the pharmaceutical wholesale market and the key players involved in drug distribution.

Overview of Pharmaceutical Wholesale Market

The global pharmaceutical wholesale and distribution market is a vital component of the healthcare industry. In 2022, the market size was valued at USD XX million and is projected to reach USD XX million by 2028, with a CAGR of XX% during the forecast period ( Business Growth Reports ). This growth is driven by factors such as increasing demand for pharmaceutical products, technological advancements in distribution, and the rising prevalence of chronic diseases.

Wholesalers play a crucial role in the pharmaceutical supply chain. They purchase drugs from manufacturers, store them, and then sell and distribute them to various entities, including chain pharmacies, independent pharmacies, hospitals, clinics, nursing homes, and mail-order pharmacies. In the United States, wholesalers distribute approximately 92% of prescription drugs, making them a critical link between manufacturers and end-users ( Commonwealth Fund ).

Key Players in Drug Distribution

The landscape of drug distribution is dominated by several key players who are engaged in fierce competition for market share. These players employ various strategies such as innovation, technology, product development, and pricing to stay ahead. Some of the major players in the pharmaceutical wholesale and distribution market are:

AmerisourceBergen: AmerisourceBergen is one of the leading wholesale drug distributors in the United States. They offer a wide range of services, including distribution, inventory management, and consulting, to healthcare providers.

Cardinal Health: Cardinal Health is another prominent player in the drug distribution industry. They provide pharmaceutical products, supply chain services, and business solutions to pharmacies, hospitals, and other healthcare providers.

McKesson Corporation: McKesson Corporation is one of the largest pharmaceutical distributors globally. They offer an extensive range of products and services, including distribution, technology solutions, and consulting, to various healthcare organizations.

These three companies, AmerisourceBergen, Cardinal Health, and McKesson Corporation, collectively account for over 90% of wholesale drug distribution in the United States ( Commonwealth Fund ). However, it’s important to note that there are other regional and local wholesalers that also play a significant role in drug distribution.

Understanding the key players in the drug distribution industry is essential when exploring opportunities in the drug wholesale business. By staying informed about market trends and the strategies employed by these players, aspiring wholesalers can position themselves for success in this competitive industry.

To learn more about how to start a drug wholesale business, including information on licensing requirements and regulations, you can refer to our article on drug wholesale business plan and drug wholesale business license .

Opportunities in Drug Wholesale Business

The drug wholesale business presents various opportunities for entrepreneurs looking to enter the pharmaceutical distribution market. Understanding the market trends and growth factors, as well as embracing innovations and technologies in distribution, can help businesses thrive in this industry.

Market Trends and Growth Factors

The global pharmaceutical wholesale and distribution market is experiencing significant growth. According to Business Growth Reports , the market size was valued at USD XX million in 2022 and is projected to expand at a CAGR of XX% during the forecast period, reaching USD XX million by 2028.

To capitalize on this growth, entrepreneurs should consider the following market trends and growth factors:

Competition and Innovation : Major players in the pharmaceutical wholesale and distribution market are engaged in fierce competition for market share through innovation, technology, product development, and pricing strategies ( Business Growth Reports ). Staying updated with the latest industry advancements and adopting innovative strategies can help businesses gain a competitive edge.

Diversification : Wholesalers have diversified their business lines over the past two decades to generate additional sources of revenue and provide value-added services to their customers. They have entered the specialty drug market, with specialty drugs accounting for more than 30 percent of their revenue due to the high prices of many specialty drugs ( Commonwealth Fund ). Exploring new avenues and expanding product offerings can enhance profitability and market reach.

Addressing Drug Shortages : Wholesalers play a critical role in preventing and addressing drug shortages. They utilize management systems that predict shortages, track existing shortages, and recommend drug alternatives until the shortage is resolved. During the COVID-19 pandemic, wholesalers strategically responded to increased demand by partially filling orders in lower-demand areas to meet the surge in demand in other areas. By efficiently managing supply chain disruptions, wholesalers can build trust and reliability among their customers.

Innovations and Technologies in Distribution

Innovation and technology have transformed the pharmaceutical wholesale business, providing new opportunities for growth and efficiency. Entrepreneurs entering the drug wholesale business should consider the following innovations and technologies:

Digitalization : Embracing digital platforms and electronic systems for order processing, inventory management, and customer relationship management can streamline operations and enhance communication with customers.

Automation : Implementing automated systems for tasks such as order fulfillment, inventory replenishment, and data analysis can save time and reduce human errors, improving overall efficiency.

Supply Chain Optimization : Leveraging advanced analytics and artificial intelligence (AI) can optimize supply chain operations, enhance forecasting accuracy, and improve inventory management. AI can also help identify patterns and trends, enabling wholesalers to make informed decisions for better business outcomes.

By staying abreast of market trends, leveraging innovations, and adopting the latest technologies, entrepreneurs can seize the opportunities within the drug wholesale business and establish a successful venture. To learn more about how to start a drug wholesale business, check out our article on drug wholesale business plan.

Regulatory Considerations for Drug Wholesalers

When delving into the world of drug wholesale business, it is crucial to be aware of the regulatory considerations that govern this industry. Being compliant with the necessary regulations and licensing requirements is essential to operate legally and ensure the safety and integrity of the pharmaceutical supply chain. In this section, we will explore the licensing requirements in the U.S. and the compliance needed with Good Manufacturing Practices (GMP) in Canada.

Licensing Requirements in the U.S.

The wholesale pharmaceutical distribution industry in the U.S. is subject to stringent regulations imposed by federal and state governments. These regulations aim to combat dangers associated with counterfeit drugs, distribution of outdated or expired drugs, and fraudulent activities by wholesale distributors.

The licensing requirements for wholesale drug distributors in the U.S. are administered by the Drug Enforcement Administration (DEA) and the Food & Drug Administration (FDA). Additionally, licenses are issued by the Boards of Pharmacy in each state. It is important to note that licensing requirements can vary from state to state. Common requirements include:

• Background checks for key personnel involved in the wholesale drug distribution business.
• Submission of facility floor plans to ensure compliance with appropriate storage and handling practices.
• Proof of insurance coverage to protect against potential liabilities.
• Disclosure of operating officers and individuals responsible for managing the operations.
• Surety bonds to provide financial security.

The approval times for obtaining a wholesale drug distributor license can range from weeks to months depending on the state. For example, in Alaska, the license issuance process typically takes two to three weeks, while in California, the process is more complex and may require approval from both the FDA and DEA.

It is crucial to comply with these licensing requirements and maintain an active license. Operating a wholesale drug distribution business without a license or with an expired license can lead to severe fines and criminal prosecution, particularly if controlled substances are involved.

For a comprehensive drug wholesale business plan, consult our article on drug wholesale business plan.

Compliance with Good Manufacturing Practices in Canada

In Canada, wholesale drug distributors are required to adhere to Good Manufacturing Practices (GMP). GMP is a set of guidelines and standards aimed at ensuring that pharmaceutical products are consistently produced and controlled to meet quality standards.

To comply with GMP, drug wholesalers in Canada must implement quality management systems, including appropriate documentation, procedures, and controls. These systems cover various aspects of the distribution process, such as storage conditions, transportation, handling, and record-keeping.

By following GMP guidelines, wholesale drug distributors contribute to the safety and quality of pharmaceutical products in the Canadian market. Compliance with GMP helps to minimize the risk of product contamination, counterfeiting, and other potential hazards.

To navigate the regulatory landscape in Canada, it is advisable to consult with regulatory authorities and resources, such as Health Canada, to ensure full compliance with GMP requirements.

Understanding and adhering to the licensing requirements in the U.S. and compliance with GMP in Canada are crucial aspects of running a successful and legal drug wholesale business. By maintaining a comprehensive understanding of the regulations and working closely with regulatory bodies, drug wholesalers can ensure the integrity of the pharmaceutical supply chain and contribute to the safe distribution of medications.

Financial Aspects of Drug Wholesale Business

When exploring the opportunities in the drug wholesale business, it is essential to consider the financial aspects of the industry. Understanding the profitability and implementing cost optimization strategies can contribute to the success of a drug wholesale business.

Profitability in the Pharmaceutical Industry

The pharmaceutical industry has demonstrated significant potential for profitability. According to the U.S. Government Accountability Office, from 2006 to 2015, 67% of drug companies experienced an increase in their annual profit margins, with some companies achieving margins as high as 20% in certain years ( GAO ). This highlights the financial opportunities available in the drug industry.

A study published by the National Center for Biotechnology Information (NCBI) reveals that pharmaceutical companies exhibit higher profitability compared to nonpharmaceutical companies. The median net income margin for pharmaceutical companies was 13.8%, while it was 7.7% for nonpharmaceutical companies, from 2000 to 2018 ( NCBI ). Moreover, pharmaceutical companies had significantly higher annual profit margins for gross profit, EBITDA (earnings before interest, taxes, depreciation, and amortization), and net income compared to S&P 500 companies during the same period ( NCBI ).

The median gross profit margin for pharmaceutical companies was 76.5%, while it was 37.4% for S&P 500 companies. The median EBITDA margin for pharmaceutical companies was 29.4%, compared to 19% for S&P 500 companies. The median net income margin for pharmaceutical companies was 13.8%, while it was 7.7% for S&P 500 companies ( NCBI ).

Cost Optimization Strategies

To optimize profitability in the drug wholesale business, implementing cost optimization strategies is crucial. Here are some strategies to consider:

Inventory Management : Efficient inventory management plays a key role in minimizing costs. By closely monitoring inventory levels and implementing just-in-time practices, drug wholesalers can reduce carrying costs and prevent wastage.

Supply Chain Optimization : Streamlining the supply chain can help reduce transportation costs, improve delivery time, and enhance overall operational efficiency. Leveraging technology and data analytics can aid in optimizing the supply chain.

Negotiating Supplier Contracts : Engaging in strategic negotiations with suppliers can lead to better pricing and terms. Establishing long-term relationships with reliable suppliers can also provide cost advantages.

Operational Efficiency : Continuously evaluating and improving operational processes can lead to cost savings. Identifying areas for automation, implementing lean principles, and training employees for efficiency can contribute to reducing expenses.

Financial Analysis : Conducting regular financial analysis can uncover opportunities for cost reduction and identify areas of overspending. Analyzing expenses, identifying cost-saving measures, and adjusting pricing strategies accordingly can help maximize profitability.

By focusing on profitability and implementing cost optimization strategies, drug wholesalers can position themselves for success in the competitive pharmaceutical industry. It is important to stay updated on industry trends, regulations, and market dynamics to make informed financial decisions. For a comprehensive guide on starting a drug wholesale business, refer to our article on drug wholesale business plan.

Supply Chain Challenges and Solutions

In the drug wholesale business, supply chain management plays a critical role in ensuring the efficient and timely distribution of pharmaceutical products. However, the industry often faces various challenges that can disrupt the supply chain. This section explores the impact of supply chain disruptions and the role of artificial intelligence (AI) in enhancing supply chain operations.

Impact of Supply Chain Disruptions

Supply chain disruptions have emerged as a significant challenge in the pharmaceutical industry, with approximately 41% of disruptions occurring in June 2022. These disruptions can be caused by various factors such as natural disasters, transportation issues, regulatory changes, and global health crises like the recent COVID-19 pandemic.

The global outbreak of COVID-19 has particularly highlighted the vulnerability of pharmaceutical supply chains. It has caused disruptions in various operations, including ongoing clinical trials, within the pharmaceutical industry. To address these challenges, many pharmaceutical companies are turning to newer technologies like AI and virtual platforms to restart or recreate clinical trials with minimal face-to-face interactions.

To mitigate the impact of supply chain disruptions, drug wholesale businesses need to adopt innovative models and technologies. By leveraging AI, companies can enhance their supply chain resilience and develop proactive strategies to minimize disruptions. AI algorithms can analyze vast amounts of data, identify patterns, and provide valuable insights for optimizing inventory management, demand forecasting, and logistics planning.

Role of AI in Enhancing Supply Chain Operations

AI has the potential to transform the pharmaceutical industry’s supply chain operations by consolidating research efforts and creating effective solutions for diverse supply chain challenges. It offers exciting prospects for enhancing decision-making tools for supply chain management in the future.

One area where AI can make a significant impact is in optimizing the design and formulation of nanoparticles for drug delivery. AI algorithms can predict the physicochemical properties, stability, and efficacy of nanoparticles, enabling the development of targeted therapeutic approaches at the nanoscale. This revolutionizes healthcare by enabling precise and effective drug delivery systems ( NCBI ).

AI can also improve supply chain visibility and traceability by using advanced analytics to monitor and track the movement of pharmaceutical products. This helps in identifying potential bottlenecks, reducing inventory waste, and ensuring product integrity throughout the supply chain.

Furthermore, AI-powered predictive analytics can enhance demand forecasting accuracy, enabling drug wholesale businesses to optimize inventory levels, reduce stockouts, and minimize overstock situations. By leveraging real-time data and machine learning algorithms, companies can make data-driven decisions and respond quickly to changing market demands.

In conclusion, supply chain disruptions pose considerable challenges to the drug wholesale business. However, by embracing AI technologies, companies can enhance their supply chain operations, improve resilience, and mitigate the impact of disruptions. AI’s ability to optimize inventory management, streamline logistics, and enable targeted drug delivery systems makes it a valuable tool for the future of the pharmaceutical industry’s supply chain management.

Global Perspectives on Pharmaceutical Wholesaling

When examining the world of pharmaceutical wholesaling , it’s important to understand the global perspectives and trends shaping this industry. In this section, we will explore two significant aspects: consolidation in pharmaceutical distribution and the challenges and reforms faced by low- and middle-income countries (LMICs).

Consolidation in Pharmaceutical Distribution

In recent years, the pharmaceutical distribution landscape has witnessed a trend towards consolidation. Countries like China have undergone significant reforms, imposing regulatory requirements for wholesalers and distributors. These requirements have led to the emergence of a few large firms with national reach. Consolidation in the distribution sector has the potential to enhance efficiency, streamline operations, and improve supply chain management.

The consolidation of pharmaceutical distribution brings several benefits. It allows for better coordination between manufacturers, distributors, and retailers, leading to improved inventory management and reduced costs. With larger wholesalers, there is a stronger negotiating power to secure competitive pricing and ensure a more reliable supply chain.

Challenges and Reforms in Low- and Middle-Income Countries

Low- and middle-income countries (LMICs), especially in sub-Saharan Africa, face unique challenges related to pharmaceutical wholesaling and distribution. Fragmentation within the market negatively impacts patients, payers, and regulators in terms of availability, affordability, and quality of pharmaceuticals ( Center for Global Development ).

To address these challenges, some LMICs have implemented innovative reforms. For example, Tanzania introduced the Jazia Prime Vendor system to combat market fragmentation. This system selectively contracts wholesalers, resulting in increased availability of medicines and better performance monitoring through pre-negotiated prices and quality control checks. Such reforms aim to improve the efficiency and effectiveness of pharmaceutical distribution in LMICs, ensuring that essential medicines reach those in need ( Center for Global Development ).

These efforts to reform pharmaceutical wholesaling in LMICs are driven by the goal of enhancing the availability, affordability, and quality of medicines. By adopting strategies that promote consolidation, regulation, and effective distribution, these countries strive to overcome the challenges associated with fragmented markets and ultimately improve healthcare outcomes.

As the pharmaceutical wholesale industry continues to evolve, it is crucial to monitor these global perspectives and reforms. By understanding the consolidation trends and challenges faced by LMICs, stakeholders can identify opportunities for collaboration, innovation, and improvements in the distribution of pharmaceuticals.

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What Is a Pharmaceutical Wholesaler?

Pharmaceutical wholesalers purchase medications from manufacturers. Here's what you need to know about the process.

Table of Contents

The pharmaceutical industry is massive, generating nearly $1.48 trillion in revenue annually, according to Statista , but not everyone knows how their medications get from the manufacturer to their local pharmacy. In many instances, this method involves pharmaceutical wholesalers. Read on to learn more about how pharmaceutical wholesalers work.

What is a pharmaceutical wholesaler?

Pharmaceutical wholesalers, also called wholesale drug distributors, purchase medications directly from manufacturers and then sell the medications to pharmacies. 

The U.S. Food and Drug Administration urges all consumers to validate the licenses of pharmaceutical wholesalers. Each state has a specific agency responsible for licensing pharmaceutical wholesalers. This is extremely important for consumer protection. Without a license, a pharmaceutical wholesaler may be linked to serious offenses, including counterfeit prescriptions and unapproved medication distribution. Any websites with taglines like “not a prescription pharmacy” are likely operating without a license.

There are two main business models that categorize pharmaceutical wholesalers. Full-line wholesalers purchase a company’s complete product line. In contracts between manufacturers and distributors, certain medications may be excluded. On average, pharmacies make up 75 percent of distributors’ profits. The other type of pharmaceutical wholesaler is a specialized distributor that purchases specialty drugs to sell to clinics and hospitals.

How do pharmaceutical wholesalers make money?

Pharmaceutical wholesalers make money by following a concise business model: They buy medications at low prices in bulk and sell them to customers and pharmacies at an increased market price. Consumers typically pay the most through the supply chain , since pharmacies also need to make a profit from medications. 

However, some consumers discover that purchasing directly from a distributor instead of from a pharmacy can cut their overall medication costs. Wholesalers still make a profit from direct sales, but they sell the products to patients instead of to pharmacies. Because specialty drugs make up about 30 percent of wholesale revenue, this business model has experienced significant growth over the past two years.

What are the benefits of working with pharmaceutical wholesalers?

While some might argue that wholesale providers aren’t needed anymore , working with pharmaceutical wholesalers offers several benefits to clients and customers.

Lower costs

For health care providers, retailers and customers, health care costs can add up quickly. Clients — including retailers, hospitals and home health care companies — can partner with pharmaceutical wholesalers to purchase medications and supplies in bulk at a lower price. Some wholesalers even offer discounts to customers who purchase from them frequently or in high quantities.

For pharmacies and other retailers, these savings can be passed on directly to the consumer. For health care providers, lower costs reduce overhead without sacrificing the quality of the patient experience.

Competitive inventory

Pharmaceutical wholesalers carry a wide range of medications, medical supplies, and vitamins and supplements. By purchasing a breadth of products and keeping inventory varied, customers are more likely to find what they’re looking for — leading to higher satisfaction and an increased likelihood of repeat business. [Read more about how to stand out from the competition .]

Convenience

Working with pharmaceutical wholesalers provides clients with a streamlined purchasing experience, including access to all the supplies and associated information they may need. Some wholesalers will even deliver supplies upon request. Customers or retailers that shop with wholesalers enjoy a one-stop shopping experience for all of their health care needs.

What are the largest pharmaceutical distributors in the United States?

These are some of the largest pharmaceutical distributors:

• CR Pharmaceutical: This flagship subsidiary of the China Resources Group develops, manufactures and distributes an extensive range of pharmaceutical products.
• Cardinal Health: This distributor and global manufacturer of medical and laboratory products is based in Dublin, Ohio.
• Alfresa Holdings: This wholesaler and distributor, based primarily out of Tokyo, aims to “support the pharmaceutical supply chains that are part of Japan’s social infrastructure, and strives to meet the full range of medical needs,” according to its website.
• Anda Inc.: This company distributes over 15,000 pharmaceutical products for nearly 400 manufacturers across a multitude of therapeutic categories.
• AmerisourceBergen: Founded by Lucien Napoleon Brunswig in 1871, this company distributed numerous vaccines and other medicines across the U.S. for most of the 20th century. AmerisourceBergen acquired Alliance Healthcare in 2021, hoping to expand its global reach.
• Medipal Holdings: Another pharmaceutical wholesaler based out of Tokyo, Medipal also distributes animal care products and food processing raw materials.

Looking for more ways to improve your medical practice’s workflow? See our top picks for medical software .

Sean Peek contributed to this article. 

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Wholesale Pharmacy Business Model Explained in Detail

Table of contents, how would you set up a wholesale pharmacy business.

June 22, 2023

When it comes to the pharmacy business, there are various business models which you can choose to start your business. The first and the most convenient one is D2C (Direct to Customer), wherein a pharmacist/chemist sells the medicines and OTC (Over the Counter) products directly to customers.

The second and greatest business in the healthcare industry is the wholesale pharmacy business. In this segment, the wholesaler plays the role of mediator between a pharma company/store and its customers. To give you a quick and simple example, A Wholesaler sells the medicine to different community pharmacies and hospital pharmacies, which later on can be sold directly to customers by the community and hospital pharmacies.

The major difference between the retailer and wholesaler is that the wholesaler deals in bulk quantities, whereas the retailer manages small quantities.

This was the brief information regarding the wholesale pharmacy business; however, the next question for many entrepreneurs or existing owners would be the setup.

To set up a wholesale pharmacy business, you need to undergo and follow some regulatory steps.

• An individual who has a degree/diploma in the pharma sector and shares a relevant experience of atleast a year can opt for the license of the wholesale pharmacy business.
• You will need to have a GST number to register your business.
• You have to get a legal license from the authority of CDSCO.
• You will also need to fill out some details, such as.
• The application form should be filled in the explained format.
• You will need to attach a cover letter.
• You will need to have a receipt of the deposited fee.
• You will need to have a plan of action.
• You will need to have a site plan and the certificate of a business premise.
• Details of owner and proof of ownership.
• You must have a partnership deed, incorporation certificate, etc
• Proof of a registered pharmacist who will be dealing with the work.

You will have to follow and maintain the regulatory guidelines per the standards as CDSCO keeps an eye on every wholesale pharmacy business.

You will also have to ensure that the premise should be closed, secure and safe with proper air conditioning, shelves, refrigerators, etc.

When setting up any business, you will need to have great connections for collaborations and tie-ups. Profitability comes when you do the right collaborations and maintain good relations. And when it comes to collaboration, you can connect with hospitals and clinics, wherein you can provide them with scheduled and non-scheduled drugs.

Now there, don’t get confused; the major difference between scheduled and non-scheduled drugs is that the scheduled drugs are under price control, whereas non-scheduled drugs are not under price control. When it comes to non-scheduled drugs, NPPA (National Pharmaceutical Pricing Authority) doesn't manage the prices of those drugs; however, they can monitor and take corrective measures to fix the prices of such products.

Furthermore, you can also choose to sell bulk medicines and products to different store owners. You can connect and collaborate with them for their stock fulfillment.

Now, Is this business model profitable? Yes, it is profitable. A roundabout of 6-10% margin is generated on branded medicines, and for generic medicines, it goes about 8-15%, so yes, the wholesale pharmacy business has a good profit margin for the stockist.

Once your business has picked its pace, you can go for an online solution. You can go for an Online Pharmacy App Development that allows you to manage your inventory, clients, and stores through one single app. We are leading a pharma app development company that provides pharmacy delivery solutions as per different business models. If you want to start your online D2B/ B2B store, then you are going in the right direction, and we can help you lead the way. You can contact us for your requirements, and we will get back to you with an effective solution.

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Pharmacy Business Plan

Identify and study the market needs for pharmaceuticals.

• 1 Hospitals and clinics
• 2 Individual consumers
• 3 Long-term care facilities
• 4 Healthcare organizations
• 5 Pharmaceutical wholesalers
• 1 Strong competition
• 2 Changing regulations
• 3 Limited access to medication
• 4 Lack of awareness
• 5 Logistics challenges

Research on the regulatory requirements for setting up a pharmacy business

• 1 Complex licensing process
• 2 Cost of obtaining permits
• 3 Stringent security measures
• 4 Regular inspections and audits
• 5 Maintaining accurate recordkeeping

Prepare a business model and revenue plan

• 1 Prescription medications
• 2 Over-the-counter medications
• 3 Healthcare products and supplements
• 4 Consultations and services
• 5 Compounding medications

Create a detailed marketing and sales strategy

• 1 Digital marketing (website, social media)
• 2 Print advertisements
• 3 Radio and television ads
• 4 Direct mail campaigns
• 5 Partnerships with healthcare providers
• 1 Brochures
• 4 Business cards
• 5 Digital advertisements

Draft a detailed organizational structure

• 1 Pharmacist
• 2 Pharmacy technician
• 3 Front-end staff
• 4 Inventory manager
• 5 Marketing manager
• 1 Communication gaps
• 2 Staff turnover
• 3 Employee conflicts
• 4 Performance management
• 5 Training and development

Approval: Organizational Structure

• Draft a detailed organizational structure Will be submitted

Develop a business operation plan

• 1 Ordering and receiving medication
• 2 Storing and organizing inventory
• 3 Monitoring and restocking inventory
• 4 Managing expiration dates
• 5 Implementing quality control measures
• 1 Inventory shortages
• 2 Medication errors
• 3 Supply chain disruptions
• 4 Unforeseen emergencies
• 5 Staff scheduling conflicts

Research and decide on an ideal location

• 1 High rental costs
• 2 Limited availability of commercial spaces
• 3 Zoning restrictions
• 4 Competition from existing pharmacies
• 5 Accessibility issues for customers

Estimate initial setup and ongoing operating costs

• 1 Negotiating bulk purchase discounts
• 2 Energy-efficient lighting and appliances
• 3 Automation of manual processes
• 4 Staff cross-training for multi-functional roles
• 5 Optimizing inventory management

Identify potential sources for investment

• 1 Business plan
• 2 Financial projections
• 3 Market analysis
• 4 Legal and regulatory compliance documentation
• 5 Track record of the management team
• 1 Limited access to capital
• 2 Competitive investment landscape
• 3 Uncertainty in the healthcare market
• 4 Regulatory changes impacting investment decisions
• 5 Market saturation in the pharmacy industry

Approval: Investment Sources

• Identify potential sources for investment Will be submitted

Create a detailed risk management plan

• 1 Limited resources for risk mitigation
• 2 Complex regulatory requirements
• 3 Resistance to change from staff or stakeholders
• 4 Inadequate risk monitoring and reporting systems
• 5 Emerging risks in the healthcare industry

Draft a proposal for partnership with pharmaceutical suppliers

• 1 Price fluctuations in the pharmaceutical market
• 2 Dependence on a single supplier
• 3 Quality control issues
• 4 Supply chain disruptions
• 5 Maintaining competitive pricing for customers

Approval: Pharmaceutical Suppliers Proposal

• Draft a proposal for partnership with pharmaceutical suppliers Will be submitted

Develop a training plan for employees

• 1 Limited resources for training programs
• 2 High staff turnover impacting training effectiveness
• 3 Keeping up with changing regulations and industry standards
• 4 Practical application of training concepts
• 5 Staff resistance to training initiatives

Create a customer service and retention strategy

• 1 In-person interactions
• 4 Website chat support
• 5 Social media platforms
• 1 Long wait times
• 2 Communication barriers with non-native language speakers
• 3 Patient confidentiality concerns
• 4 Managing customer complaints and queries
• 5 Ensuring accurate medication information

Plan for the pharmacy layout

• 1 Accessibility for customers with disabilities
• 2 Space constraints
• 3 Ergonomic design for staff
• 4 Compliance with building codes
• 5 Effective utilization of retail space

Develop a digital strategy including e-prescriptions, home delivery, etc

• 1 E-prescriptions
• 2 Online ordering
• 3 Home delivery
• 4 Mobile app for medication reminders
• 5 Virtual consultations
• 1 Technological infrastructure requirements
• 2 Integration with existing systems
• 3 Training staff on digital platforms
• 4 Protecting customer information from cyber threats
• 5 Managing customer expectations and feedback

Outline a plan for future growth and expansion

• 1 Competitive landscape in new markets
• 2 Acquiring adequate funding for expansion
• 3 Managing increased operational complexities
• 4 Adapting to changing industry regulations
• 5 Maintaining consistent quality across multiple locations

Create a final draft of pharmacy business plan

• 1 Executive summary
• 2 Company overview
• 4 Marketing and sales strategies
• 5 Organizational structure
• 6 Operational plan
• 7 Financial projections
• 8 Risk management plan
• 9 Partnership and supplier strategies
• 10 Training and development plans
• 11 Customer service and retention strategies
• 12 Digital strategy
• 13 Growth and expansion plan

Email Subject: Final Draft of Pharmacy Business Plan

Approval: Pharmacy Business Plan

• Create a final draft of pharmacy business plan Will be submitted

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Pharmacy Business Plan

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The Discount Pharmacy

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">, opportunity.

People need to be able to buy prescriptions at reduced prices. We make that possible by carefully maintaining efficiencies in our operations. So we can target a specific segment of the market – those customers who pay for their prescription medications themselves. They are poor, they are sick, they deserve the same care as those who can afford healthcare and full price prescriptions. 

The Discount Pharmacy’s mission is to provide our customers with the best prices for their prescription medications. Our convenience and services will exceed the expectations of our customers.

The Discount Pharmacy’s target market consists of two different groups, local customers or walk-ins, and mail order customers.

Competition

Competition takes many different forms in the pharmacy industry. They are: chain pharmacies, local pharmacies, mail in pharmacies, canadian pharmacies. 

The Discount Pharmacy’s we have superior pricing. To do that we must maintain our position as the low cost provider by painstakingly ensuring that costs are kept low through operating efficiencies.

Expectations

Costs will be minimized by maintaining only one pharmacist and filling the void with pharmaceutical techs. We expect to reach profitability by our third year and will generate substantial sales by year three

Financial Highlights by Year

Financing needed.

We will need $115,000 to start, we will be able to pay the investment back at the end of year 4

Problem & Solution

Problem worth solving.

People need to be able to buy prescriptions at accessible prices. We make that possible by carefully maintaining efficiencies in our operations. So we can target a specific segment of the market – those customers who pay for their prescription medications themselves. They are poor, they are sick, they deserve the same care as those who can afford healthcare and full price prescriptions. 

Our Solution

The Discount Pharmacy’s main goal is to provide prescription medications for our customers at the lowest prices on the market. We will be able to sell prescriptions at reduced prices by carefully maintaining efficiencies in our operations and by targeting a specific segment of the market – those customers who pay for their prescription medications themselves. By focusing on this segment it gives us additional efficiencies – we avoid disruptions in cash flow often associated with insurance payments and we can eliminate unnecessary services for the type of knowledgeable, repeat customer taking maintenance-type medication.

The Discount Pharmacy will operate from one store that will serve both mail order customers and those who visit in person. We will thrive by employing friendly and knowledgeable personnel, which, along with our great prices, will drive the repeat business that we will rely upon. We only expect that as the price of medication continues to skyrocket, The Discount Pharmacy will appeal more and more to the customer’s sense of value and convenience.

Target Market

Market size & segments.

The Discount Pharmacy will seek to attract two different groups of customers and will thus have two strategies to attract them.

We anticipate that by far our largest group of customers will be those who order through the mail. These customers will be targeted through an advertising campaign in magazines and newsletters that have an older (>55) audience who regularly need medication and are aware in advance of their needs. For example, one of the main advertising vehicles will be the A.A.R.P monthly newsletter.

Walk-in customers will be targeted through advertisements in the local paper, "The Oregonian."  Ads will raise awareness for the The Discount Pharmacy and our low prices.

Current Alternatives

Competition takes many different forms in the pharmacy industry.

• Chain pharmacies.  These are state or national chains such as Rite-Aid.  The advantage to these chains are better prices through economies of scale, as well as personalized service.  The personalized service takes the form of the chain having a record of your medication purchases as well as any allergies that you have disclosed to them.
• Local pharmacies.   These are the pharmacies where you typically know the pharmacist and they know your medical history.  This option is high in personalized service and convenience, and high in price.
• Mail order and Internet pharmacies.  These are similar to The Discount Pharmacy.
• Canadian pharmacies.  These pharmacies are located in Canada where the cost of drugs is lower than in the U.S.  These pharmacies can be accessed through mail order, the Internet, or via travel.  Recently there has been the trend for trips arranged for senior citizens in Northern States to travel up to Canada for the day to pick up their medicines.

Our Advantages

The Discount Pharmacy’s competitive edge is superior pricing. To do that we must maintain our position as the low cost provider by painstakingly ensuring that costs are kept low through operating efficiencies.

We will be able to do that by eliminating some of the services traditionally offered by pharmacies. For example, we will employ only one pharmacist and use pharmaceutical technicians to fill the void. As long as a pharmacist is on site during the hours of operation, we can use the pharmaceutical techs for all other capacities where other pharmacies use pharmacists. Other efficiencies are created by having only a small store front and conducting most of our business through mail order.

Finally, The Discount Pharmacy is not designed to hold the patient’s hand during their purchase. We expect that the vast majority of our customers will already be informed of how to take the medication, and any side effects or drug interactions that should be avoided. We will simply provide each patient with a print out of all the relevant information for consumption of the medication.

Keys to Success

The keys to success are:

• Satisfy our customers so they will return again and again
• Maintain low overhead and operating costs
• Provide better prices than all our competitors

Marketing & Sales

Marketing plan.

The marketing strategy will be based on social media, mainly Facebook and Twitter, offering useful information and opinion while quietly appealing to the customer’s sense of value. The marketing campaign’s goal will to be increase awareness of The Discount Pharmacy with their target market.

The sales strategy will be based on generating long-term relationships with customers. To facilitate that, we will provide medications at superior prices, have medicines in stock for both quick shipment and store front pick up, and provide superior customer service. All sales agents will be trained to provide friendly, knowledgeable customer service. By keeping to these simple, yet effective, business practices, we expect that our customers will make The Discount Pharmacy their exclusive source for medications. For some, medications are an integral part of their lives, so establishing long-term relationships will ensure a large, loyal customer base

Milestones & Metrics

Milestones table.

Key Metrics

Our key metrics are: 

• The # of customers that walk in to the pharmacy 
• The # of customers that choose to mail in 
• The # of reviews saying that people could go to our pharmacy 
• Facebook page views, Twitter retweets  and website shares 
• Total customer traffic on the website 
• Total customer traffic in and out of the store 

Ownership & Structure

Management Team

John Reeleaf has experience working with a major drug manufacturer, Eli Lilly, as a drug representative. He was able to see first hand the profitability associated with the prescription drug industry, as well as the inefficiencies with which most companies are plagued.

John graduated with an MBA from the University of Oregon’s innovative entrepreneurship program. While there he was awarded a $50,000 no interest loan through a business plan competition. That seed money will be parlayed, along with some other investments, into start up expenses for The Discount Pharmacy. John received an undergraduate degree in chemistry from the University of Oregon.

Personnel Table

Financial Plan investor-ready personnel plan .">

Key assumptions.

Key assumptions: 

Of course our main assumption is legality. Regulations affecting our business can change very fast. 

People appreciate:

• The mail in order option for their convenience 
• Prescription at affordable prices 

Revenue by Month

Expenses by month, net profit (or loss) by year, use of funds.

The Discount Pharmacy will incur the following start-up equipment costs:

• Office equipment including chairs, file cabinets, and desks.
• Front counter, storage bins, cash register.
• Three computer terminals.
• Main computer server with a laser printer, and back-up system.
• Software: Microsoft Office, QuickBooks Pro, drug interaction software, Physician Desk Reference software detailing side effects and other information pertinent to the customer.
• Assorted bottles, boxes, envelopes, etc. for dispensing and shipment.
• Scales for shipping.
• Telecom system.
• Storefront build-out.
• Start-up inventory.
• Rent, utilities, insurance.

Please note that these items will be used for more than one year and will therefore be labeled long-term assets, depreciated using G.A.A.P. approved straight-line depreciation.

Startup expenses – $24,100 listed as net earnings in dec 2017 

Start-up Expenses

Legal $1,000

Rent $2,000

Utilities  $400

Telecom System $400

Insurance $300

Storefront Build-out $15,000

Expensed Equipment $4,000

Website development $1,000

TOTAL START-UP EXPENSES $24,100

Sources of Funds

Planned Investment

Seed Funding $50,000

John $51,000

Friends and Family $82,100 

Projected Profit & Loss

Projected Balance Sheet

Projected Cash Flow Statement

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15+ pharmacy business plan templates – pdf, doc.

When you sample plan on opening up a business, it’s very important that you know what it is that’s supposed to happen. You’ll need to figure out everything that needs to transpire for your business to reach the success that it’s supposed to. This is especially true if you plan on running your pharmacy. Similar to a marketing plan or a financial plan, a business plan for a medical store, drug shop, or new pharmacy branch can help you make a strategy for details like organizational responsibilities, risk management, education for chemist workers, and wholesale proposal. You may also check nonprofit business plans .

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How to Create Your Pharmacy Business Plan

1. know what your mission and vision for your pharmacy should be, free online clinical e-pharmacy business plan.

Free Pharmacy Council Strategy Business Plan

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Business Plan for Pharmacy Authority Risk Management

2. Share What Kind of Pharmacy You Plan on Opening

• Community Pharmacy
• Compounding Pharmacy
• Consulting Pharmacy
• Ambulatory Care Pharmacy.
• Regulatory Pharmacy
• Hospital Pharmacy
• Industrial Pharmacy
• Clinical Pharmacy

3. Point Out Who Your Target Audience Is Going to Be

4. share how much it’s going to take to start your pharmacy, independent pharmacy business financial plan guide.

Free Organizational Pharmacy Business Continuity Plan

Free Pharmacy Resource Business Plan

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Free Chemist Pharmacy Business Plan Template

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Pharmacy Business Marketing Plan Template

5. Explain Your Marketing Strategies

6. make an executive summary, more in plan templates.

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• Aug 21, 2024

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Pharmaceutical Company Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Medical and Healthcare » Pharmacy

Are you about starting a pharmaceutical company? If YES, here is a complete sample pharmaceutical business plan template & feasibility report you can use for FREE .

If you are pharmacist and you are certain that you have a winning formula when it comes to producing effective generic drugs; drugs / medicine that has been tested and proven to meet the requirement for such products, then you should consider launching your own generic pharmaceutical manufacturing company.

It is a business that is still pretty much open for investors to come and compete for the available market in the country you intend launching the business.

A Sample Pharmaceutical Company Business Plan Template

1. industry overview.

The Generic pharmaceutical and medicine manufacturing companies primarily develop prescription and over-the-counter drug products that are used to prevent or treat illnesses in humans or animals.

Generic drugs are produced and distributed without patent protection, and industry operators are not significantly engaged in the research and development of new drugs.

It is important to mention that the generic pharmaceutical manufacturing industry does not include manufacturers of nutritional supplements, cosmetic beauty products or similar products.

All over the world, the pharmaceutical industry is highly regulated. This is so because the devastating effect of fake drugs or drug abuse can’t be quantified.

As a matter of fact, there are several universal laws and regulations that govern the patenting, testing, safety, efficacy and marketing of drugs.

For example, in the united states, new pharmaceutical products must be approved by the Food and Drug Administration (FDA) as being both safe and effective before they can be allowed to go into the market.

Statistics has it that global spending on prescription drugs grew to a whopping sum of $954 billion in 2011 and The United States accounts for more than a third of the global pharmaceutical market, with an estimate of $340 billion in annual sales

The Generic Pharmaceutical Manufacturing Industry is a thriving sector of the economy of countries like India, China, united kingdom , Germany and the United States of America.

Statistics has it that in the united states alone, the industry generates a whooping sum of well over $66 billion annually from more than 1,203 registered and licensed generic pharmaceutical manufacturing companies scattered all around the United States of America.

The industry is responsible for the employment of well over 67,699 people. Experts project the industry to grow at a 4.1 percent annual rate from 2011 to 2016. Mylan Inc., Sandoz Ltd. and Teva Pharmaceuticals Industries Ltd. have the lion share of the available market in the Generic Pharmaceutical manufacturing industry in the United States of America.

A close study of the Generic Pharmaceutical Manufacturing industry shows that the industry is expanding rapidly. This is due to the demand for the industry’s products by the aging population with more chronic illnesses.

So also, with the regulatory provisions of the Patient Protection and Affordable Care Act expand consumer access to prescription insurance and provide increased opportunities for product development.

Going forward, the industry revenue growth is expected to outpaced revenue growth for the Brand Name Pharmaceutical Manufacturing industry.

A large number of brand name drugs manufacturers lost patent protection for blockbuster drugs beginning in 2010; demand for generics subsequently grew, as consumers demanded affordable versions of these high-profile products. These trends are expected to continue in the next five years.

A recent report published by IBISWORLD shows that the Generic Pharmaceutical Manufacturing industry has a low level of concentration, with the top four companies accounting for 30.2 percent of industry revenue in 2016.

Having a large operation as a generic manufacturer does not offer the same advantages as it does for brand name producers.

The report further stated that generic drug manufacturers can be smaller because the cost of research and development is significantly lower than it is for brand name companies; however, operators can still benefit from economies of scale through savings on administrative and capital costs.

Moreover, a company’s presence in both generic and brand drug markets can buffer company revenue against volatility in price or demand for any one specific drug.

The bottom line is that; the Generic Pharmaceutical Manufacturing industry is still very much open for new entrant; the competition within the industry is not as stiff as similar industry.

If your product is good, it can gain fair share of the available market in any country or region you intend launching the business.

2. Executive Summary

Harry Tancredo® Pharmaceuticals, LLC is a licensed and standard generic pharmaceutical manufacturing company that will be located in an industrial area in Concord – New Hampshire.

We have been able to secure a long-term lease agreement for a facility in a strategic location with an option of a long-term renewal on an agreed terms and conditions that is favorable to us.

The facility has government approval for the kind of production business we want to run and the facility is easily accessible and we are deliberate about that because we want to facilitate easy movement of raw materials (chemicals and packaging containers) and finished products (drugs / medicines).

Harry Tancredo® Pharmaceuticals, LLC is in the generic pharmaceutical manufacturing industry to engage in developing and producing generic drugs, marketing and distributing generic drugs and gaining regulatory approval for generic drugs.

We will manufacture standard and effective pharmaceutical products such as mental health and lipid regulators, anti diabetics and respiratory, pain and antibacterial, nervous system disorders and antihypertensive, antiulcerants and thyroid, dermatological and hormonal contraceptives, and ADHD and anticoagulants.

We are also in business to make profits at the same to give our customers value for their money; we want to give people and businesses who patronize our pharmaceutical products the opportunity to be part of the success story of our brand.

We are aware that there are several big scale and small scale generic pharmaceutical manufacturing companies scattered all around the United States and Canada whose products can be found in every nooks and crannies of The United States and Canada, which is why we spent time and resources to conduct our feasibility studies and market survey so as to enable us locate the business in an area that can easily accept our products and brand.

We ensured that our facility is easy to locate and we have mapped out plans to develop a far-reaching distribution network for wholesalers of pharmaceutical products all around Concord – New Hampshire and throughout the United States of America.

Much more than producing quality, effective and safe generic pharmaceutical products, our customer care is going to be second to none.

We know that our customers are the reason why we are in business which is why we will go the extra mile to get them satisfied when they purchase any of our product and also to become our loyal customers and ambassadors.

Harry Tancredo® Pharmaceuticals, LLC will ensure that all our customers (wholesale distributors) are given first class treatment whenever they visit our factory.

We have a CRM software that will enable us manage a one on one relationship with our customers (wholesale distributors) no matter how large the numbers of our customer base may grow to.

We will ensure that we get our customers involved when making some business decisions that will directly or indirectly affect them. Harry Tancredo® Pharmaceuticals, LLC is family business that will be owned by Harry Tancredo and his immediate family members.

Harry Tancredo who is the Chief Executive Officer of the Company is Graduate of Pharmacology and he holds a Master’s Degree in Business Management (MBA).

He has well over 12 years of experience working in related industry as a senior production manager prior to starting Harry Tancredo® Pharmaceuticals, LLC. He will be working with a team of professionals to build the business and grow it to enviably height.

3. Our Products and Services

Harry Tancredo® Pharmaceuticals, LLC is going to run a standard and licensed generic pharmaceutical manufacturing company whose products will not only be sold in Hartford – Connecticut but also throughout the United States of America and Canada.

We are in the generic pharmaceutical manufacturing industry to make profits and also to give our customers value for their money.

We will ensure that we do all that is permitted by the law in the United States of America to accomplish our business goal and objective. These are some of the products that we will be offering;

• Developing and producing generic drugs
• Marketing and distributing generic drugs
• Gaining regulatory approval for generic drugs
• Mental health and lipid regulators
• Anti-diabetics and respiratory
• Pain and antibacterial
• Nervous system disorders and antihypertensive
• Anti-ulcerants and thyroid
• Dermatological and hormonal contraceptives
• ADHD and anticoagulants

4. Our Mission and Vision Statement

• Our vision is to establish a standard generic pharmaceutical manufacturing Company whose products will be not only be sold in Concord – New Hampshire, but also throughout the United States of America and Canada.
• Our mission is to establish a standard and world class generic pharmaceutical manufacturing Company / brand that in our own capacity will favorably compete with leaders in the industry.
• We want to build a business that will be listed amongst the top 20 generic pharmaceutical manufacturing brands in the United States of America and Canada.

Our Business Structure

Harry Tancredo® Pharmaceuticals, LLC is a business that is established with the aim of competing favorably with other leading generic pharmaceutical product brands in the industry.

This is why we will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we only hire people that are qualified, honest, hardworking, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of five years or more depending how fast we meet our set target. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)

Production / Plant Manager

Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

• Machine Operators
• Accountants / Cashiers

Distribution Truck Drivers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner):

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization.
• Responsible for overseeing the smooth running of the pharmaceutical production plant
• Part of the team that determines the quantity and quality of pharmaceutical products that are to be produced
• Maps out strategy that will lead to efficiency amongst workers in the plant
• Responsible for training, evaluation and assessment of plant workers
• Ensures that the steady flow of both raw materials to the plant and easy flow of finished products through wholesale distributors to the market
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Ensures that the plant meets the expected safety and health standard at all times.
• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Oversees the smooth running of the daily office and factory activities.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Responsible for the purchase of raw materials and packaging materials
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• 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
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company

Accountant / Cashier

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Welcomes guests and clients by greeting them in person or on the telephone; answering or directing inquiries.
• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with clients on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the manager in an effective and timely manner
• Consistently stays abreast of any new information on the company’s products, promotional campaigns etc. to ensure accurate and helpful information is supplied to clients
• Receives parcels / documents for the company
• Distribute mails in the organization
• Handles any other duties as assigned by the line manager

Production Workers / Machine Operators:

• Responsible for preparing, blending, compounding and packaging pharmaceutical products
• Handle labeling of pharmaceutical products
• Operate machines used in the manufacturing mental health and lipid regulators, ant diabetics and respiratory, pain and antibacterial, nervous system disorders and antihypertensive, antiulcerants and thyroid, dermatological and hormonal contraceptives, and ADHD and anticoagulants
• Assist in packaging and loading pharmaceutical products into distribution trucks
• Assists in loading and unloading pharmaceutical products
• Maintains a logbook of their driving activities to ensure compliance with federal regulations governing the rest and work periods for operators.
• Keeps a record of vehicle inspections and make sure the truck is equipped with safety equipment
• Assists the transport and logistics manager in planning their route according to a delivery schedule.
• Local-delivery drivers may be required to sell products or services to pharmaceutical stores and businesses on their route, obtain signatures from recipients and collect cash.
• Transports finished goods and raw materials over land to and from manufacturing plants or retail and distribution centers
• Inspect vehicles for mechanical items and safety issues and perform preventative maintenance
• Complies with truck driving rules and regulations (size, weight, route designations, parking, break periods etc.) as well as with company policies and procedures
• Collects and verifies delivery instructions
• Reports defects, accidents or violations

6. SWOT Analysis

We are quite aware that there are several generic pharmaceutical manufacturing companies both large and small in the United States of America and Canada which is why we are following the due process of establishing a business so as to compete favorable with them.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Harry Tancredo® Pharmaceuticals, LLC employed the services of an expert HR and Business Analyst with bias in start – up business to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Harry Tancredo® Pharmaceuticals, LLC;

Part of what is going to count as positives for Harry Tancredo® Pharmaceuticals, LLC is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.

So also, our state of the art machines and equipment, the wide varieties of pharmaceutical products that we produce, our large national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

A major weakness that may count against us is the fact that we are a new generic pharmaceutical manufacturing company in the United States and we don’t have the financial capacity to engage in the kind of publicity that we intend giving the business especially when big names like Mylan Inc., Sandoz Ltd. and Teva Pharmaceuticals Industries Ltd. et al are already determining the direction of the market both in the United States and in the global market.

• Opportunities:

The opportunities available to generic pharmaceutical manufacturing companies with a wide range of products are enormous. This is due to the fact that almost all Americans and people from all over the world take drugs / medicine for different reasons.

As a result of that, we were able to conduct a thorough market survey and feasibility studies so as to position our business to take advantage of the existing market for pharmaceutical products and also to create our own new market. We know that it is going to requires hard work, and we are determined to achieve it.

We are quite aware that just like any other business, one of the major threats that we are likely going to face are economic downturn and unfavorable government policies . It is a fact that economic downturn affects purchasing power. Another threat that may likely confront us is the arrival of a new generic pharmaceutical manufacturing company in same location where ours is located.

7. MARKET ANALYSIS

• Market Trends

A close study of the trends in the Generic Pharmaceutical Manufacturing industry shows that the industry is expanding rapidly. This is due to the demand for the industry’s products by the aging population with more chronic illnesses.

So also, with the regulatory provisions of the Patient Protection and Affordable Care Act expand consumer access to prescription insurance and provide increased opportunities for product development. Going forward, the industry revenue growth is expected to outpaced revenue growth for the Brand Name Pharmaceutical Manufacturing industry.

Lastly, the generic pharmaceutical manufacturing industry is the adoption of eco – friendly approach towards the production and packaging of its products. As a matter of fact, the industry’s adoption of eco-friendly practices will likely persuade environmentally conscious consumers to buy its products, while increasing operators’ efficiency.

8. Our Target Market

When it comes to selling pharmaceutical products, there is indeed a wide range of available customers. In essence, our target market can’t be restricted to just a group of people, but all those who resides in our target market locations.

In view of that, we have conducted our market research and we have ideas of what our target market would be expecting from us. We are in business to engage in developing and producing generic drugs, marketing and distributing generic drugs and gaining regulatory approval for generic drugs. Hence our target markets are;

• Health Facilities
• Pharmaceutical Products Wholesalers
• Retail Pharmacy Stores
• Everybody in our target market location

Our competitive advantage

A close study of the generic pharmaceutical manufacturing industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with other generic pharmaceutical manufacturing companies in New Hampshire and throughout the United States and Canada.

Harry Tancredo® Pharmaceuticals, LLC is launching a standard generic pharmaceutical product brand that will indeed become the preferred choice of residence of Concord – New Hampshire and every city where our generic pharmaceutical product will be retailed.

Part of what is going to count as competitive advantage for Harry Tancredo® Pharmaceuticals, LLC is the vast experience of our management team, we have people on board who are highly experienced and understands how to grow business from the scratch to becoming a national phenomenon.

So also, our state of the art pharmaceutical production machines and equipment, the wide varieties of generic pharmaceutical products that we produce our large and far reaching national distribution network and of course our excellent customer service culture will definitely count as a strong strength for the business.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups generic pharmaceutical manufacturing companies) in the generic pharmaceutical manufacturing industry, meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Harry Tancredo® Pharmaceuticals, LLC is established with the aim of maximizing profits in the generic pharmaceutical manufacturing industry in both the United States of America and Canada and we are going to go all the way to ensure that we do all it takes to sell a wide range of generic pharmaceutical products to a wide range of customers.

Harry Tancredo® Pharmaceuticals, LLC will generate income by selling the following pharmaceutical products;

• Antiulcerants and thyroid

10. Sales Forecast

One thing is assured when it comes to generic pharmaceutical manufacturing company, if your products are well – packaged and branded and if your production plant is centrally positioned and easily accessible, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Concord – New Hampshire and every city where our generic pharmaceutical products will be sold and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the generic pharmaceutical manufacturing industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to similar startups in Concord – New Hampshire.

Below is the sales projection for Harry Tancredo® Pharmaceuticals, LLC, it is based on the location of our business and other factors as it relates to small scale and medium scale generic pharmaceutical manufacturing company start – ups in the United States;

• First Fiscal Year-: $250,000
• Second Fiscal Year-: $550,000
• Third Fiscal Year-: $950,000

N.B : 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 there won’t be any major competitor manufacturing same generic pharmaceutical products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Harry Tancredo® Pharmaceuticals, LLC and also the kind of generic pharmaceutical products we will produce, we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market in our target market locations.

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 and also for our products to favorable compete with other leading generic pharmaceutical manufacturing brands in the United States of America and Canada.

We hired experts who have good understanding of the generic pharmaceutical manufacturing industry to help us develop

In other to continue to be in business and grow, we must continue to sell our generic pharmaceutical products to the available market which is why we will go all out to empower or sales and marketing team to deliver our corporate sales goals.

In summary, Harry Tancredo® Pharmaceuticals, LLC will adopt the following sales and marketing approach to sell our generic pharmaceutical products;

• Introduce our generic pharmaceutical products brand by sending introductory letters to pharmacy stores, hospitals, residence, pharmaceutical merchants, retailers and other stakeholders in Concord – New Hampshire and other cities both in the United States of America and Canada
• Open our generic pharmaceutical manufacturing company with a party so as to capture the attention of residence who are our first targets
• Engage in road show in targeted communities from time to time to sell our products
• Advertise our products in community based newspapers, local TV and radio stations
• List our business and products on yellow pages ads (local directories)
• Leverage on the internet to promote our generic pharmaceutical product brands
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

In spite of the fact that our generic pharmaceutical manufacturing plant is a standard one with a wide range of pharmaceutical products that in few years from now will favorably compete with other leading brands in the industry like Mylan Inc., Sandoz Ltd. and Teva Pharmaceuticals Industries Ltd.

We will still go ahead to intensify publicity for all our products and brand. We are going to explore all available means to promote Harry Tancredo® Pharmaceuticals, LLC.

Harry Tancredo® Pharmaceuticals, LLC has a long-term plan of distributing our generic pharmaceutical products in various locations all around the United States of America and Canada which is why we will deliberately build our brand to be well accepted first in Concord – New Hampshire before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for selling our products but to also effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Harry Tancredo® Pharmaceuticals, LLC;

• Place adverts on both print (community based newspapers and magazines) and electronic media platforms
• Sponsor relevant community programs
• Leverage on the internet and social media platforms like; Instagram, Facebook, twitter, et al to promote our generic pharmaceutical product brand
• Install our Bill Boards on strategic locations all around major cities in the United States of America and Canada
• Engage in road show from time to time in targeted communities
• Distribute our fliers and handbills in target areas
• Position our Flexi Banners at strategic positions in the location where we intend getting customers to start patronizing our products.
• Ensure that our products are well branded and that all our staff members wear our customized clothes, and all our official cars and distribution vans are customized and well branded.

12. Our Pricing Strategy

When it comes to pricing for products such as generic pharmaceutical products, there are two sides to the coin. We are aware of the pricing trend in the generic pharmaceutical manufacturing industry which is why we have decided to produce various sizes of pharmaceutical products as regulated by the industry.

In view of that, our prices will conform to what is obtainable in the industry but will ensure that within the first 6 to 12 months our products are sold a little bit below the average prices of various generic pharmaceutical product brands in the United States of America.

We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our generic pharmaceutical product brands.

• Payment Options

The payment policy adopted by Harry Tancredo® Pharmaceuticals, LLC is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Harry Tancredo® Pharmaceuticals, LLC will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards / Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for generic pharmaceutical product purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for the purchase of our products.

13. Startup Expenditure (Budget)

Starting a standard generic pharmaceutical manufacturing company is indeed a capital – intensive business. This is so because the amount required in setting up a generic pharmaceutical production plant is not a piecemeal. The bulk of the start – up capital will be sent on leasing or acquiring a facility and also in purchasing mixing, blending, compounding and packaging equipment.

Aside from that, you are not expected to spend much except for purchase and servicing of distribution trucks, purchasing raw materials, paying of your employees and utility bills. These are the key areas where we will spend our start – up capital;

• The total fee for registering the Business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
• Marketing promotion expenses for the grand opening of Harry Tancredo® Pharmaceuticals, LLC in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
• The cost for hiring Business Consultant – $2,500.
• The cost for insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
• The cost for construction of a standard generic pharmaceutical production plant – $100,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $100,000
• The cost for start-up inventory (mixing, blending, compounding and packaging equipment, raw materials, and packaging materials et al) – $80,000
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase of distribution vans – $60,000
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, Fax Machines, tables and chairs et al) – $4,000.
• The cost of launching a website – $600
• The cost for our opening party – $10,000
• Miscellaneous – $10,000

We would need an estimate of $500,000 to successfully set up our generic pharmaceutical manufacturing company in Concord – New Hampshire. Please note that this amount includes the salaries of all the staff for the first 3 month of operation.

Generating Funds / Startup Capital for Harry Tancredo® Pharmaceuticals, LLC

Harry Tancredo® Pharmaceuticals, LLC is a family business that is owned and financed by Harry Tancredo and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings and sell of stocks
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $200,000 (Personal savings $150,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $300,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of any 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 won’t be too long before the business close shop.

One of our major goals of starting Harry Tancredo® Pharmaceuticals, LLC is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our generic pharmaceutical products a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Harry Tancredo® Pharmaceuticals, LLC 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 retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement 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. 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
• Purchase of Insurance for the Business: Completed
• Leasing of facility and construction of standard generic pharmaceutical production plant: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members and friends: 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
• Establishing business relationship with vendors – pharmacy stores, hospitals, pharmaceutical products wholesale suppliers / merchants: In Progress

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• Retail Pharmacy Business Plan [Sample Template]
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Zabaykalsky Krai, Russia

The capital city of Zabaikalsky krai: Chita .

Zabaykalsky Krai - Overview

Zabaykalsky Krai is a federal subject of Russia located to the east and southeast of Lake Baikal, part of the Far Eastern Federal District. Chita is the capital city of the region.

The population of Zabaykalsky Krai is about 1,043,500 (2022), the area - 431,892 sq. km.

Zabaikalsky krai flag

Zabaikalsky krai coat of arms.

Zabaikalsky krai map, Russia

Zabaikalsky krai latest news and posts from our blog:.

4 April, 2021 / The snow-covered Chara Sands in Eastern Siberia .

5 February, 2019 / Chita - the view from above .

13 January, 2016 / Chara Sands - one of the smallest deserts in the world .

12 November, 2015 / Kuandinsky Bridge - one of the scariest road bridges in the world .

26 May, 2015 / Vanilla evenings of Transbaikalia .

More posts..

History of Zabaykalsky Krai

The first people inhabiting Transbaikalia, known both from archaeological finds and written sources (mainly Chinese), were the nomadic people of the Hunnu (209 BC - 93 AD), who created a large state in the Central Asian steppes. In the 6th-9th centuries, Turkic Uighurs lived in this region.

In 1206, Temujin was proclaimed the great khan of the Mongolian state and adopted a new name - Genghis Khan. The territory of the region became an integral part of the Mongol Empire. In the 14th century, the Mongolian Empire collapsed into separate states. Until the 17th century, the territory of the present Zabaykalsky krai was part of the Mongolian state of Northern Yuan.

From the middle of the 17th century, Transbaikalia became part of the Russian state. The first explorers crossed Dauria (the lands beyond Lake Baikal) along the rivers. The Buryats and Tungus, after a long resistance, recognized the new power and paid tribute to Russia. Several fortified towns were founded. Among the first colonists there were a lot of exiled old believers.

Since 1704, Nerchinsky, Shilkinsky, Gazimursky, and other silver smelters appeared. In the 18th century, the population of the region grew rapidly due to the influx of settlers and criminals, who worked in mines. Great role in the development of the region was played by the exiled members of the Decembrist uprising (brothers Bestuzhev, M.S.Lunin, N.M.Muravyov, C.G.Volkonsky, A.I.Yakubovich and others). From 1782, the region was a part of Nerchinskaya (Zabaykalskaya) Oblast of Irkutsk Governorate.

More Historical Facts…

Since the 19th century, mining was the main industry of the region. In 1851, Zabaykalskaya Oblast was formed with the capital in Chita as part of Irkutsk Governorate. In the same year, with the goal of strengthening the border, the Trans-Baikal Cossack Army was created, numbering more than 3,500 people. At the end of the 19th century, the construction of the Trans-Siberian Railway forced the economic development of the region.

At the end of the 1920s - in the early 1930s, during collectivization, Cossack settlements were destroyed, the Buryat cattle-breeders were forced to have a settled way of life. In March 1934, Chita Oblast was formed, it became a part of Vostochno-Sibirsky Krai. On September 26, 1937, Vostochno-Sibirsky Krai was divided into Irkutsk and Chita oblasts. Within Chita Oblast there was Aginsky Buryat-Mongol national district formed.

During the Second World War, tens of thousands of local residents were drafted into the Soviet army. In connection with the threat of an attack by the Kwantung Army of Japan, the Transbaikal front was established here. In 1945, after the defeat of Nazi Germany, the Soviet Union began military operations against Japan.

Until 1949, about 77 thousand Japanese prisoners of war were engaged in work to restore the region. The local economy was completely restored by the 1950s. In 1969, there was an armed conflict on the Soviet-China border close to the frontier point of Nizhne-Mikhailovka on the Damansky Island.

In the 1990s, there was a sharp decline in industrial and agricultural production. On March 1, 2008, in the territory of Chita Oblast and the Aginsky Buryat Autonomous Okrug, a new federal subject of Russia was created - Zabaykalsky Krai.

Beautiful nature of Zabaykalsky Krai

Lake in Zabaykalsky Krai

Author: Jenia Novoselov

Small river in the Zabaykalsky region

Author: Sergey Bulanov

Hilly landscape in the Zabaykalsky region

Author: Sveshnikov Alexander

Zabaykalsky Krai - Features

Zabaykalsky Krai is located in Eastern Siberia. The greatest length from north to south is about 1,000 km, from west to east - 850 km. The highest point on the territory of the region is the peak of BAM (3,073 meters). The relief is represented by both plains and mountains, but mountains are predominant in the region.

The south and south-eastern borders of Zabaykalsky Krai are the state border of the Russian Federation with Mongolia and the People’s Republic of China. The largest rivers are the Argun, Shilka, Onon, Ingoda, Khilok, Chikoy. The national composition according to the 2010 census: Russians (89.9%), Buryats (6.8%).

The climate is sharply continental. Winters are long and severe, the average temperature in January ranges from minus 20 degrees Celsius in the south to minus 37 degrees Celsius in the north. Summers are short and warm (sometimes hot), the average temperature in July - about plus 20 and 13 degrees Celsius respectively.

This region of Russia has large reserves of coals, iron ores, silver, copper, tungsten, tin, antimony, lithium, tantalum, niobium, zircon, germanium, and uranium. Forests occupy about 60% of the region. The main problem of the forest area is the annual destruction of thousands of hectares of forest by natural fires.

Mining remains the main industry of the region. Ferrous metallurgy is developed as well as machine-building, timber industry, light and food industries. Agriculture is specialized in cattle- and sheep-breeding. In the north of the region reindeer-breeding and fur trade are developed. The crops grown are wheat, barley and oats.

Tourism in Zabaykalsky Krai

The border position of Zabaykalsky Krai promotes the rapid development of cross-border tourism. It has become the main “tourist gateway” for tourists coming from the Asia-Pacific region. The territory of the Zabaykalsky region has a wide variety of natural landscapes, unique monuments of nature.

Sports tourism with elements of extreme has always been attractive for tourists: rafting (the Burkal, Menza, Onon rivers), rock climbing, horseback riding, and bicycle travel. For these purposes more than 100 sports and tourist routes have been developed.

Ethno-tourism is associated with the culture of small peoples, such as the Evenks. Tours on reindeer are held. Chita, Nerchinsk, Sretensk, Petrovsk-Zabaikalsky, and Shilka have the status of historical settlements. On the territory of Zabaykalsky Krai ancient settlements of the Huns were discovered. The events attracting guests include the Trans-Baikal International Film Festival, the tourist festival on Kodar.

The main sights of Zabaykalsky Krai:

• Alkhanay National Park in Duldurginsky district - the only place in Russia where a harmonious system of cult Buddhist and natural monuments has been created;
• Krasniy Chikoy, the center of Krasnochikoysky district, is one of the oldest and most beautiful villages in the region;
• Mineral springs. The nearest mineral spring to Chita is Molokovka, a good place for taking pictures in nature;
• Mount Pallasa, located near Chita, is a monument of nature of regional importance;
• Zabaykalsky Alps - Kodar. In the north of the region there is an amazing country of contrasts and surprises - Charskaya depression with the surrounding mountain ranges. It is known for such monuments of nature as Kodar ridge with the highest point of Transbaikalia, Chara Sands - a miniature desert 10 km long;
• Lake Arey - a hydrological monument of nature, one of the favorite places for recreation. The lake is located in a picturesque forest area near the highway Chita-Khilok;
• Haatei Caves - two caves connected by a narrow passage. The first cave is called Ice, in winter, when water flows into the cave and freezes, you can see very beautiful patterns there. The second cave is considered a summer cave and is called Dry;
• Butinskaya Estate in Nerchinsk - the main attraction of this historical town;
• Old-Chita Mikhailo-Arkhangelsk Church (also known as Church of the Decembrists) is the oldest building in Chita where a museum dedicated to the Decembrists is located;
• Museum of the Decembrists in the town of Petrovsk-Zabaikalsky;
• Konduisky settlement - one of the monuments of Genghis Khan’s epoch.

Zabaikalsky krai of Russia photos

Pictures of zabaykalsky krai.

Nature of Zabaykalsky Krai

Author: Roman Tarnovsky

Winter in Zabaykalsky Krai

Author: Svetlana Shapiro

Country road in the Zabaykalsky region

Author: Fedotov Alex

Zabaykalsky Krai scenery

Creek in Zabaykalsky Krai

Country life in Zabaykalsky Krai

Village in Zabaykalsky Krai

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