NaturEd Pharmacy Business Plan

A COMMUNITY PHARMACY AT THE HEART OF

GULU CITY
NaturEd Pharmacy Director: Okello Paul

“Quality Health Care Begins With You”

Business Mentor: Thomas Ochaya

Academic Mentor: Okidi Oscar

Finance Mentor:
TABLE OF CONTENTS

1. EXECUTIVE SUMMARY
a. Mission Statement……………………………………………………………..………....... 1
b. Business Overview, Location and Demographics……………………………….. 1

2. PHARMACY DESCRIPTION
a. Innovative Professional Service………………………………………………....…….. 1
b. Community Outreach Initiative………………………………………………....……... 3

3. MANAGEMENT AND PERSONNEL SUMMARY……………………………………………..….. 3

4. OPERATIONS MANAGEMENT
a. Details of Premises…………………………………………………………………..………… 5
b. Informations Technology……………………………………………............................ 5
c. SWOT ANALYSIS………………………………………………………………...………………. 5
d. Management Information System…………………………………………………….... 6
e. Risk Management Outline……………………………………………………………......... 7

5. MARKETING AND SALES STRATEGIES

a. Marketing Strategies………………………………………………………………………... 7
b. Online Presence…………………………………………………………………….............. 8

6. FINANCIAL FORECASTS……………………………………………………………………..…………….. 8
 1. EXECUTIVE SUMMARY

a. Mission Statement

At NaturEd pharmacy we believe that quality health care begins with you. We believe that the
most important people involved in patient healthcare are the patients themselves. This is why
we invite the patients to take care of their own health. We have three core values: Education,
Healthy Lifestyle Choices and Natural Health (HEN). We believe that by educating patients
about their conditions in a fun and accepting environment, as well as equipping them with
proven and successful strategies to look after their health, we can improve health outcomes
and foster happier and stronger communities. We don’t just hand over medicines packed
in a bag – we make sure the patient knows every detail about their medication, the
nutritional depletions it may cause, and how to effectively use complementary and
herbal products to aid in the treatment of their conditions.

b. Business Overview, Location and Demographics

NaturEd Pharmacy is located within heart of Gulu City about 350KM from Kampala, Uganda’s
capital. We are an independent Pharmacy in a center the northern shopping precinct, aiming
to eliminate the large health disparities faced by the local Luo and other diverse ethnicities in
the community. NaturEd is the pharmacy that northern Uganda needs and deserves.

2. PHARMACY DESCRIPTION
a. Innovative Professional Service

It is the 21st century. The world is becoming increasingly fast paced. Technology is progressing
at a higher rate than ever seen and health care is constantly changing to keep up with the
world. With these advancements, the expectation is that the health of the nation would be
improving; this is unfortunately not the case. In fact, the incidence of preventable
diseases/conditions is higher than ever and continually growing, partly because of poor
lifestyle choices. Only 1 in 5 Ugandans claim to follow a healthy lifestyle. Our pharmacy is
located in Gulu City, which has a population of approximately 325,000 people (2015 population
extrapolation, UNBS). It is the home to 18.7% of Uganda’s Acholi population, ranking in top
ten (10) in Uganda’s 134 districts. Adults are 1.7 times more likely to be obese in Gulu City than
in other parts of Uganda and children are 5 times more likely to be obese. Unfortunately, 1 in 5
Acholi children and 1 in 5 Acholi adults are obese, which is higher than the national average.
Clearly, there is a worsening disparity that needs to be addressed and we are placed
appropriately to cater for this community’s needs. These disparities in health can be mirrored
with the indigenous population in Australia. Kiwis know that there is a problem and there just
does not seem to be the time or the means to follow a healthy lifestyle. The indigenous Acholi
make up most of the Gulu City’s population, generally have low health literacy and are
deprived. A common misconception is that Ugandan’s from low socioeconomic areas cannot
afford quality healthcare and as a result, they only want to invest in other products, like herbal
medications. In our experience, we have found that the underprivileged greatly value delivery
of quality healthcare and if they believe that it will benefit them or their family then they are
willing to pay for these services or products.

We give our full attention to our customers to deliver quality healthcare and also sell products
at more affordable prices compared to other pharmacies which increases our profits in the
quantity sold rather than the profit margin. Furthermore, we encourage the dispensing of
generic medications over branded, as they offer our pharmacy better profitability without
compromising quality. At NaturEd, we have decided to target the root cause of health
problems by teaching Locals how to be in charge of their own well-being and to make smarter
choices. By improving lifestyle factors, we can prevent long term conditions and slow down
the progression of established diseases.
We believe that the regular use of natural and herbal products, such as those provided by
Ugandan accredited herbalists, can also contribute to a healthier lifestyle by preventing the
onset and worsening of illnesses or providing general comfort. Examples include ginseng
extracts supplementation in patients who take erectile dysfunction. This has been proven to
improve penal muscle strength and hormonal balance, thus preventing permanent erectile
dysfunction. Co-supplementation of selenium and glutathione increases survival rates after
cardiac events. Vitamin C not only has conventional immune support benefits but
interestingly has also been proven to increase endothelial function, especially in smokers,
which increases the structural integrity of arteries, reducing cardiovascular disease risk. St
John’s Wort has also been documented to improve symptoms of depression but is often taken
without the consultation of a Pharmacist, who is aware of the potential for serious interactions
with other medications. However, new science suggests there is evidence that the solid lipid
formulation of curcumin can have a similar effect to 20mg of fluoxetine and may be a
preferred supplement. By promoting the safe use of these natural products, we are ensuring
patients get the best health outcomes. We also ensure that herbal products are only sold to
the appropriate patients.

Pharmacies are the first point of contact for many people, not only to pick up prescriptions
but also in the hope to conveniently find a health solution without a doctor's visit. The role of
the community pharmacy is to improve the community’s health by counselling patients on
effective medicines use. However, in today’s world, this has become deprioritized, either
because the patients are too busy to understand their health needs or the pharmacist focuses
more on managerial tasks or being too profit driven as opposed to servicing the community.
NaturEd provides an innovative service which goes back to basics - but with a twist! We
introduce the “NaturEd EduCare Clinic” which allows us to build trusting relationships with
the members of our community. We spend more time with individual patients to make an
active difference in their lives. Our pharmacists are accredited as medical herbalists and
nutritionists, which in conjunction with extensive knowledge in effective medication use and
management, improves our patients’ well-being.

It has been proven that patients only retain 10% of counselling points that pharmacists give,
and this would decrease further with lower health literacy. The use of visual aids has been
found to increase retention of information. We have a programme and application to help us
serve this purpose: the “EduCare” programme and the “NatureEd” application. “EduCare” is
used by the pharmacist incorporating visual aids to provide information about diseases, how
drugs work and complementary herbal products. For example, ACE inhibitors and
Angiotensin II receptor blockers alongside thiazides cause zinc deficiency, making
supplementation essential. This could be beneficial in hypertensive patients as zinc only stays
in the body for three to four days and is vital to endothelial and arterial wall integrity. The
programme and application are available in different languages, and helps us provide our local
and traveler clientele with natural health
 advice. The application is also
simple and easy to follow,
especially for those who have low
literacy.

Consultations also involve a

discussion about the patient's
lifestyle such as drinking,
smoking, diet and weight loss.
During these consultations we
measure and record this
information so that both the
pharmacist and

patient can access and track progress. We also measure the patient’s BMI, cholesterol, blood
pressure, glucose levels and INR levels (if appropriate), which we record consistently and
explain to the patient. If the patient wants a more individualised approach in terms of diet,
our pharmacists can devise a tailored care plan and we charge 50,000/= for this.

“NaturEd” is an application that the patients can download on their phones or tablets to
access their individualised information and record their self-management outside of the
pharmacy setting. It includes a list of their medications (prescription, over the counter,
natural and herbal), the indication of those medications and the dosing regimens. There are
regular and automated reminders tailored to the patients’ medications schedules, repeats, and
held medications. When they have run out of repeats for a regular medication, they are
reminded to visit their general practitioner for a new prescription and a check-up. This
coincides with their next meeting with us, where we discuss the health goals that they have set
and congratulate them on achieving goals or help them tackle the obstacles they have faced.
We, at NaturEd, know that adherence is a key factor in improving health outcomes and by
linking the “NaturEd” application with our in-store LOTS database, we can monitor our
community’s progress with their health and stage interventions when appropriate. We also
have a pod containing “EduCare”, where the customers can independently get more
information about their drugs, diseases and natural health products. “EduCare” addresses
health literacy issues by using simple language and having an easy and visual interface with
multiple language options, which is ideal for our demographic. The programme is also used
during counselling to convey our messages. The use of this programme in store and the
application download and operation is free of charge, increasing and maintaining our client
base. Our innovative service builds trust and trust is what keeps our business going.

Our patients also have the option of blister packing their natural medicines with their regular
medications for easy compliance. We understand that due to deprivation, some families do
not get every item on the prescription or choose the ones they think are effective, such as pain
relief, but not the essential medications that they may not physically feel the benefits of, such
as statins. We spend time with these patients and offer account services where they can pay
off their medications later or reinforce and educate them on the medications that are vital
against those they can take when required. We promote the use of generics, as this saves
money both for the patients and the pharmacy.

Our delivery service, “Nature on Wheels”, involves pharmacists visiting patients who cannot
come to the pharmacy, to offer them advice on taking their medications, lifestyle and health -
all from the comfort of the patient’s own home.

Along with this, our pharmacists are accredited to provide the emergency contraception pill,
male erectile dysfunction treatment and trimethoprim for cystitis in women.

b. Community Outreach Initiative

At NaturEd Pharmacy, we know that effective health care is everyone's responsibility.

Therefore we believe integration between health professionals and the community is vital in
turning around health disparities. We have monthly focus topics and hold education nights,
where we invite local doctors, nurses and optometrists. They are given an opportunity to
present to the community as well. This not only improves our network and relationship with
the community to increase our clientele but also with other health professionals. They are
given the opportunity to converse with patients and answer questions out of the formal,
clinical setting and may increase their own client bases.

We also have the option of visiting local Radio stationss for these nights if it is a more
comfortable setting for the Acholi community, or they can approach our community nights at
their own will.

3. MANAGEMENT AND PERSONNEL SUMMARY

Okello Paul: Pharmacy In-Charge and Operations Manager

Okello oversees the daily activities in the Pharmacy, using his skills in management and
leadership to better the services that we can provide to the community. He uses his initiative
to constantly come up with incentives for the staff and customers, so that the best health
outcomes can be achieved for those that matter the most; the patients. Okello understands
the importance of valuing all stakeholders and ensures that effective communication is always
maintained. Okello believes in the safe, appropriate quality use of medicines and leads his
team effectively to deliver the best healthcare to Gulu City’s residents. He always strives to
provide patients with tested and proven lifestyle advice.
Okello is constantly evaluating and implementing new strategies into the running of the
Pharmacy. With a keen eye for detail and experience in effective organisation and
implementation, he ensures that the business is running effectively and efficiently. You find
him on the floor of the shop, catering to patient needs by offering advice on over the counter
medications and natural products. He is also an accredited Pharmacy Technician and manages
the “EduCare Clinic”.

Marketing Manager
Creating a presence and getting our name known is vital to ensure an effective means of
providing high quality healthcare and the progression of our business. The marketeer
understands the importance of effective marketing and is always striving for innovative ways
to develop the public image of NaturEd. He/she is also able to contribute to the daily running
of NaturEd pharmacy, as he/she is a fully qualified pharmacy Tech/Pharmacy assistant and is
the staff in charge of “Nature on Wheels”, taking our Pharmacy to the community. He/she also
works in the shop as a part-time staff when required.

Adong Joan: Financial Advisor

For most, finances and number crunching can be an intimidating part of owning and
managing a business, but this is not the case for Joan! Rather, this curbs her thrill-seeking
personality. She takes on every financial challenge that comes her way. Her extensive
knowledge of accounting practices allows for NaturEd to run smoothly, easing the pressure on
daily accounting expenses. She ensures that provision of best healthcare is balanced with the
financial growth of the business. As a qualified person with an extensive knowledge in long
term conditions management and a charismatic personality, Joan is the Staff presenter for our
community focus seminars. She understands the importance of building solid relationships
with the community and organises and presents at the education sessions, so that the
community receives the highest standard of health care. He also works in the Pharmacy as a
part-time Staff.

NaturEd Employees

Happy and efficient employees mean a happy and efficient business. This is our motto and we
understand the importance of conveying it to every customer for our business to flourish.
NaturEd believes that having a well-rounded team of employees allows our business to thrive.

We have at least one pharmacist on site during all opening hours and three pharmacy
Technicians from 8am to 10pm on weekdays. They are available to offer holistic counselling
and effective education on lifestyle, medication management and corresponding
supplementation. Of the three pharmacy Technicians on site, Two are able to focus on
dispensing and the other focuses on counselling and serving the needs of the customers on the
floor. We have one full-time and one part-time pharmacy Assistant staff members, who assist
the Pharmacy Technicians with building relationships and making OTC and natural health
recommendations. We also have one pharmacy technician working from 9am to 5pm on
weekdays to assist Okello in the dispensary.

All staff are fully trained within their departments. Our full-time retail staff members have
completed a Certificate in Pharmacy. A portion of our budget has been set aside for further
training as NaturEd believes education is the key to ensuring the best health outcomes for our
community.

4. OPERATIONS MANAGEMENT

Trading Hours: Mon to Fri 8am-10pm, Sat and Sun 9am-4pm.

These hours are longer during the week and weekends,
compared to other local pharmacies. To cater for the traveller
population, we are open restricted hours during public
holidays. This helps increase our clientele and minimise
competition as we strive to be easily accessible for our
customers’ convenience.

a. Details of Premises: Our pharmacy operates for a total

of 82 hours a week. It is located in a busy part of town five
minutes away from travellers’ destinations, city centre and
residential areas, so easy access assured. It is also situated
within five minutes of other healthcare facilities such as
Regional referral Hospital, Mission Hospitals, Standard Private
Hospitals, GPs and lab testing centres. The pharmacy can be
accessed within a maximum of 20 minutes from any part of the
city. The pharmacy incorporates a consultation room (EduCare
 Clinic) including equipment necessary to assess the client’s
overall health.

Such equipment includes a blood pressure monitor, BMI

weight machines, cholesterol, blood glucose and INR testers.
For parents’
convenience, a play area is incorporated into the EduCare clinic with toys and books to occupy
their children. This allows the parents to keep an eye on them without compromising their
consultations. This clinic aims to provide a relaxed environment with couches where the
pharmacist and clients can communicate comfortably and openly. The pharmacy also has a
layout which can be easily navigated and is wheelchair friendly. We have integrated natural
supplements within our standard OTC section, which is a layout that is unique to NaturEd.
For example, our vitamin C products are available with our cold and flu products and lysine in
our cold sore section. We also have season appropriate low-rise shelving, with corresponding
natural health products. These are stored in a specific section of our Pharmacy, which
improves customer navigation and understanding of suitable natural treatments. For example,
during Rainy season, our seasonal shelf contains vitamin C products, horseradish and garlic,
echinacea and immune support next to our cough and cold section. Specific promotions can
also be utilised to increase sales and provide affordable healthcare. Natural products are also
grouped according to their indication to help staff and patients to easily find the solution they
are looking for. For example, we display our sleep support products together to enhance
selection.

b. Informations Technology: The pharmacy operates on the LOTS dispensing and

retail system. We have two computers in the dispensary, one in retail and one for office use.
We have one iPad in the consultation room to access the EduCare programme for education
and the NaturEd application to record the patient's consultations and test results. This can be
accessed by both the patient and the pharmacist. The NaturEd application is integrated into
the LOTS system for easy monitoring and cross-checking for the pharmacist. We also have an
iPad pod in our vitamins section which contains the EduCare programme with information
about various medical conditions and their corresponding beneficial natural and herbal health
products for the clients’ independent access.
 c. SWOT ANALYSIS

A comprehensive SWOT analysis was initially undertaken to determine the overall

advantages and disadvantages of our business model, showing how it is affected by both
internal and external variables. The SWOT analysis was used to determine effective strategies
to improve our model. Key Performance Indicators (KPI) were established to continually
monitor the progress of the business.

Harmful to achieving the

Helpful to achieving the objective objective

Internal Strengths Weakness

(attributes of Fou
the Human: r experienced pharmacist Management: Potential of conflict
organisation) proprietors. Staff reduction to save costs and disagreement
but adequate training available. Staff: Potential for conflict and
Location: High accessibility dispute in embracing new ideas or
Equipment: All the equipment necessary work hours.
is held to aid health investigations. Customers: May not want to take
Culture, reputation: Collaboration with part in the new initiatives. Could
patients. All Staff are fluent in Luo and view more time at the pharmacy as
a waste of time. The travellers are
can easily communicate with the local not
population a steady clientele and usually leave
Finances: Good cash flow and financial the city after a few days.
assets.

Innovative idea: Individualised with

regular follow-ups to establish a steady
clientele.
Communication: The application and
programme Include multiple language
options and interactive interface.
service
Network: Friendly , undivided
attention follow ups and repeat
reminders from the application.
Competition: We are open longer hours.
Convenience: Nature on wheels for
delivery of medicines and counselling
 External Opportunities Threats
(attributes of
the Reducing Competition: Service and social Location: Affordability could affect
environment) outreach ideas are new and individualised quality health-care. People may not
Customers: Deprived area so making a want to attend the education nights.
positive difference in health outcomes. Large Acholi population, some of
Community: Residents are community whom may have low literacy.
orientated with strong familial bonds Other pharmacies: Increasing
Education: Improve health-care and competition
increase clientele with education nights Staff: May not want to give up their
Network: Education nights outside of out of work time to take part in the
pharmacy thus interaction with the social outreach programme.
residents and health professionals

d. Management Information System

The LOTS system is used in the management of staff. It provides a useful clocking in and out
component through which hours, thus pay can be tracked easily. The sales output of each staff
member and the number of customers served each day can also be analysed. This enables us
to determine if our goals are being met and our service is effectively reaching our clients. More
specifically, there are sales that can be viewed for each department of the pharmacy, so a
direct increase in natural health sales indicates a positive performance. Customer feedback
surveys are utilised to assess and manage the quality of the service and staff that we provide.
The LOTS system indicates the most widely purchased items, those that haven't been sold in a
long time and out of stock products to aid in stock control. In low performing areas, there are
discussions with appropriate staff and implementation of strategies such as more training to
increase sales. Any staff members that contribute to the social outreach programme are paid
for their valuable time.

e. Risk management outline

Each of the proprietors holds an equal stake in the business. The ideas and any new initiatives
have been discussed collaboratively with each of the proprietors to minimise dispute and are
only implemented when all the proprietors agree. This information is shared selectively with
the staff on a need to know basis to make sure everyone agrees and can work unitedly to
deliver the best service. The work hours are not forced upon the staff but are settled through
discussion between the pharmacy In-charge and the staff. Although the pharmacy is in a low
socioeconomic area, NaturEd believes that as long as best and quality healthcare is provided
with dignity, the customers are drawn to our service and our EduCare clinic is free of charge.
We also have the interactive applications available in multiple languages to minimise
communication and low health literacy being a barrier and make conversing more
comfortable. The customers’ convenience is also our priority and they are more than welcome
to come back at a suitable time to take part in our service. Health literacy and motivation to
improve health outcomes are improved during our education nights. Some of these are hosted
at the local Radio stations, making healthcare more accessible and increasing our bond with
the community and making them feel more comfortable.

Key Performance Indicators are used to assess the performance of our business.

Staff: Regular staff meetings for feedback, trainings, complementing and acknowledging areas
of success, sales made, customer feedback surveys.

Customer satisfaction: Improvement in health, customer feedback surveys, increase in

people using the app and consultations. The extended families of clients will come to use our
services.

Financial Performance: gross profit, sales, number of prescriptions, net profit, expenses,
number of customers

Quality of service: Every customer gets attended to within a minute of entering, we call up
customers if their repeats are about to expire, regular follow ups with patients to assess
adherence and improvement in conditions, delivery of prescriptions and other items to
customers that cannot make it to the pharmacy themselves, knowing most customers by
name, unrushed consultations, increase in number of prescription sales of essential
medications.

Natural Health: sales, good rapport between customers and the trained staff,
Social outreach: The community members at these nights will be spotted in the pharmacy
and volunteer to take part in the service. Our relationship with the healthcare providers will
also be increased.

5. MARKETING AND SALES STRATEGIES

a. Marketing strategies

Various marketing strategies are employed to get recognition from our community. There is a
wide range of population targets such as travellers, the elderly and patients from low
socioeconomic areas. The challenge is reaching out to the different populations as we must
apply different strategies to get to them.

Regular Newspaper advertising in the “New Vision” provides information about our services,
products and upcoming events. 10% discount vouchers are included for natural health
products related to the health topic of the month. We also advertise our health topic of the
month using posters, which we display in the shop, the local radio stations and on
community notice boards. This form of advertising allows us to reach a wide range of clients.

A company car/motor cycle is available for convenient delivery services. This means is also
used as transportation to education sessions. The car/bike is personalised with our logo and
company name enhancing our visibility in the community.

b. Online Presence

Free Wi-Fi is used to attract most patients but mainly the ttravelers. The process to connect
involves a questionnaire requesting name, email, mobile number and indication of traveller
or local. These contact details are used as an advertising medium where emails or texts about
promotions, information about products, upcoming education nights and traveller guides
and tips can be sent. The former is more useful for maintaining and increasing our clientele
with information about upcoming events.

We also increase our online presence through the NaturEd website where updated
information about products, opening hours, our friendly team, EduCare clinic, NaturEd app,
other services provided, monthly education theme and education sessions is available. Our
contact details are available, and an automated email form is also available for quick
communication. Customer service questionnaires are also available where participants go
into a draw and are eligible to win natural health products - individualised to them following
a consult. These questionnaires aid us in improving our services and allow us to gauge the
attention we are getting.

6. FINANCIAL FORECASTS
Cost of the pharmacy

EBITDA $243,149

*5 $1,215,745

The pharmacy will be initially require $1,215,745 for the start from proprietor.

2021 2022 2023 2024

INCOME

TOTAL SALES $2,709,936 $3,024,010 $3,149,864 $3,247,033

COGS $1,791,894 $1,773,877 $1,756,041 $1,738,384

GROSS MARGIN $918,042 $1,250,134 $1,393,824 $1,508,649

Other Income eg. GOVT $49,243.50 $54,327 $59,935 $66,122

GROSS MARGIN PLUS OTHER

INCOME $967,285 $1,304,460.34 $1,453,759 $1,574,770

TOTAL REVENUE (Sales plus $2,759,180 $3,078,337.11 $3,209,799 $3,313,154

other

8
income)

EXPENSES

Salaries and Wages $359,614 $402,750 $404,100 $406,600

Rent Paid $146,128 $147,589 $149,065 $150,555

Outgoings - Rental & Rates $6,715 $6,782 $6,850 $6,918

Accounting $11,739 $5,500 $5,500 $5,500

Advertising *If a member of a

banner $46,206 $51,408 $53,548 $55,200
group this would be higher as
group

Bank Charges $7,591 $9,072 $9,450 $9,741

Computer Expenses $13,128 $23,120 $15,749 $16,235

Depreciation $33,392 $32,691 $32,004 $31,332

Electricity, Water, Heating $14,476 $16,811 $15,749 $16,235

Insurance $9,204 $9,072 $9,450 $9,741

Interest Paid $74,789 $72,389 $70,065 $67,816

Leasing Expenses $3,253 $3,286 $3,150 $3,247

Motor Vehicle Expenses $3,875 $5,024 $5,150 $5,247

Postage, Freight, Printing $9,664 $6,600 $6,500 $7,200

Repairs, Maintenance, Service $4,374 $4,418 $4,618 $4,768

Subs and Registrations $15,594 $1,480 $1,630 $1,830

Superannuation $32,307 $36,182 $36,304 $36,406

Telephone $6,015 $6,048 $6,300 $6,494

Training $2,375 $2,660 $2,660 $2,660

Abnormal Expenses $7,115 $3,024 $3,150 $3,247

Payroll Tax $6,004 $6,724 $6,747 $6,724

Workers compensation $3,024 $3,387 $3,387 $3,408

Other Expenses $15,736 $17,539 $18,269 $18,833

9
Total Expenses $832,318 $873,556 $869,393 $875,938

$134,96 $430,90 $584,36 $698,83

Gross income 8 5 5 2

$122,80 $166,54
Tax (28.5%) - 8 4 $199,167

Net income $134,968 $308,097 $417,821 $499,665

Revenue analysis

Prescription $1,698,799 $1,797,438 $1,842,374 $1,888,433

Other Sales $1,011,137 $1,177,329 $1,253,165 $1,298,666

Other Income $49,243 $49,243 $54,326 $59,933

*Retail sales have been calculated as a 50% increase in the natural health section which
makes up 30% o total retail in the first year, 25% in the second year and 15% in the final
year

*An increase in prescription sales due to increased opening hours. Medical practices
have late nights in Gulu City, therefore we are going to take advantage of extended
hours. An increase in prescription growt averaged at 2.5% thereafter.

*Salaries and wages cover the roster of four pharmacists working an average of 30 hours
per week, one full-time pharmacy technician, 2 full time pharmacy assistants, one part
time retail assistants and coverage of locum costs *Negotiation of the leasing contract
led to an extended term with annual CPI adjustments of 1%. *Rates has similarly been
adjusted to local long term rate adjustments of 1%
*Accounting costs adjusted to $5500 using the zoom package from Wiseadvice
accounting firm. *The advertising budget has been kept proportional to sales at
1.7% *Bank transaction fees have been taken 0.3% of total sales

*Computer expenses in 2017 year have taken into account $8000 in upgrading computer
systems. See project for further details

*Depreciation has been taken from the 2014-2015 average. Depreciation should not
increase in 2015 unless as there were no further buying of assets

*Electricity and water have taken into account the increase in opening hours from
62 to 74 hours *Insurance has been calculated from the average of the 2016 year of
0.3% *Interest has been calculated on the pay down average of 2014-2016

*Postage freight and printing has been taken as an average pharmacy cost of
6600 *Motor vehicle expenses have been kept at +/- 3000 taking into
account the company car

*Subs and registrations have been calculated using Australian pharmacy guidelines of
$320 annually, fo four pharmacists.

*Superannuation, training, payroll tax and workers compensation has been taken as the
2016 proportio wages.

*Telephone expenses have been taking at the 2016 rate as a proportion of sales.

*Abnormal expenses have been taken as the 2015 proportion. 2016 was taken as an outlier.
Other expenses have been calculated from the 2016 proportion.
*A tax rate of 28.5% has been used.
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