GoodRx Pharmacy

BUSINESS PLAN

2020 - 21

John Doe
10200 Bolsa Ave, Westminster, CA, 92683

(650) 359-3153

[email protected]

https://upmetrics.co
Table of Contents

Executive Summary 3
Objectives 3
Mission 3
Keys to Success 3
Financial Summary 4
Net Profit 4
Company Summary 5
Business Ownership 5
Start-up Summary 5
Summary Chart 7
Products & Services 8
Business Model Description 8
Market Analysis 9
Market Segmentation 9
Mail order customers 9
Walk-in customers 9
Target Market Analysis 9
Target Market Segment Strategy 10
Strategy and Implementation 11
Competitive Edge 11
Marketing Strategy 11
Sales Strategy 11
Sales Forecast 12
Milestones 12
Web Plan 14
Development Requirements 14
Management 15
Personnel Plan 15
Financial Plan 16
Important Assumptions 16
Break-even Analysis 16
Projected Profit and Loss 16
Projected Cash Flow 17
Balance Sheet 18

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Executive Summary

GoodRx 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 inMore
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cash flow often associated with insurance payments and we can eliminate

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Objectives

The objectives for the first three years include:

1. Exceed customer expectations with superior pricing

2. Increase the number of customers by more than 30% per year
3. Develop a business that survives off its own cash flow
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Mission

GoodRx 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.

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Keys to Success

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 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
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Financial Summary

Net Profit

Sales Gross Margin Net Profit

1.25M

1.00M

750.00k

500.00k

250.00k

-250.00k
Year1 Year2 Year3

Financial Year Sales Gross Margin Net Profit

Year1 200000 100000 -100000

Year2 600000 400000 200000

Year3 1000000 500000 400000

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Company Summary

The GoodRx Pharmacy is located in Portland and offers prescription

medications at discount prices to our customers by mail order or at the
storefront.

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Business Ownership

The GoodRx Pharmacy is an Oregon limited liability corporation. The majority

of the stockholder is John Redleaf.

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Start-up Summary
The GoodRx 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 boxes for shipment.
Scales for shipping.

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.

Start-up Expenses Amount

Legal $1,000

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 Start-up Expenses Amount
Website development $1,000
Total Start-up Expenses $2,000
Start-up Assets Needed
Cash Balance on Starting Date $140,500
Other Current Assets $0
Total Current Assets $140,500
Long-term Assets $8,500
Total Assets $149,000
Total Requirements $151,000
Funding
Investment
Seed Funding $50,000
John $51,000
Friends and Family $50,000
Total Investment $151,000
Current Liabilities
Accounts Payable $0
Current Borrowing $0
Other Current Liabilities $0
Current Liabilities $0
Long-term Liabilities $0
Total Liabilities $0
Loss at Start-up ($2,000)
Total Capital $149,000
Total Capital and Liabilities $149,000

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Summary Chart

Amount

150.00k

125.00k

100.00k

75.00k

50.00k

25.00k

0
Expenses Assets Investment Loans

Summary Amount

Expenses 2000

Assets 100000

Investment 120000

Loans 5000

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Products & Services

The GoodRx Pharmacy offers a wide range of prescription drugs to patients

based in Oregon or nationally. Both generics and name brands are offered.

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Business Model Description

In order for a customer to purchase medications mail order, they must first
contact The GoodRx Pharmacy over the phone. The customer then needs to
either mail in the prescription, fax it, or email it. Once it is received and payment
arrangements are complete, the meds will be sent out to the customer via
U.S.P.S. or U.P.S. Local customers may stop by the storefront to pick up the
medications. Read More 

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Market Analysis

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

The GoodRx Pharmacy will employ two different strategies to reach these two
diverse market segments.
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Market Segmentation
The GoodRx Pharmacy's customers can be broken down into two different groups, mail order
customers and walk-in customers:

This group of customers orders their medication through the mail in an effort
to save money. Generally, the mail order customers are older in age, typically
over 50. In general, elderly customers consume more medication relative to
younger people. The mail order customer will typically purchase maintenance
medications - prescriptions for an ongoing ailment that requires regular

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Mail order customers
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treatment. This group of customers will also be more likely to purchase
months of medication at once.
several
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This group of customers are also looking for the lowest prices for their
medication. However, they tend to purchase medications monthly at their local
pharmacy, often at a higher price. There is not a common demographic for this
group of people, other than living in the Portland metropolitan area. Some of
these customers will pay for the medications out of pocket and some will
submit a claim to their insurance company for reimbursement at a later date.
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Walk-in customers
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Target Market Analysis

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 Potential
Growth Year1 Year2 Year3 Year4 Year5 CAGR
Customers
Walk-in
customers 8% 345,887 373,558 403,443 435,718 470,575 8.00%
Mail order 77,462,43
customers 9% 54,876,345 59,815,216 65,198,585 71,066,458 9 9.00%
77,933,01
Total 8.99% 55,222,232 60,188,774 65,602,028 71,502,176 4 8.99%

Target Market Segment Strategy

The GoodRx 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)
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audience who regularly need medication and are aware in advance of their

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Strategy and Implementation

The GoodRx Pharmacy will use their website to develop visibility and disseminate information.

Competitive Edge

GoodRx 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 Readand
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use pharmaceutical technicians to fill the void. As long as a pharmacist is on-

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Marketing Strategy

The marketing strategy will be based on targeted advertisements, appealing to

the customer's sense of value. The marketing campaign's goal will to be

upmetrics.co increase awareness of The GoodRx Pharmacy with their target market.

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Sales Strategy

The sales strategy will be based on generating long-term relationships with

customers. To facilitate that, we will provide medications at superior prices,
have meds in stock for both quick shipment and storefront pick up, and
provide superior customer service. All sales agents will be trained to provide
friendly, knowledgable customer service. By keeping to these simple, yet
effective, business practices, we expect that our customers will makeRead
The More
GoodRx Pharmacy their exclusive source for medications. For some,

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 During the first two months, we will focus on setting up the storefront and
generating both local and national visibility. Sales activity will begin in month
three. Sales during months three through five there will mainly consist of local
business through the storefront. In month six we expect to see a jump in sales
from mail order. Sales will grow steadily from month six on.
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Sales Forecast
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Walk-in customers Mail order customers

20.00k

15.00k

10.00k

5.00k

0
Year1 Year2 Year3

Financial Year Walk-in customers Mail order customers

Year1 1550 10000

Year2 1800 12000

Year3 2050 14000

Milestones
The Discount Drug Dealer will have several milestones early on:

Office/business set up.

Establishment of the first strategic relationship.
Profitability.

Milestone Start Date End Date Budget Manager Department

Office/business set
up 1/1/2001 5/1/2001 John Executive

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 Milestone Start Date End Date Budget Manager Department
Establishment of the
first strategic Business
relationship 1/1/2001 7/1/2001 John Development
Profitability 1/1/2001 11/1/2002 Everyone Finance
Totals $0

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Web Plan

The website will be used for the dissemination of information as well as a

mechanism for email communication. Initially, there will be no ordering through
our website since we do not expect that method to be widely used and trusted
by our target customers.

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Development Requirements
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Management

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

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entrepreneurship program. While there he was awarded a $50,000 no interest

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Personnel Plan
The Discount Drug Dealer will employ the following people:

Sales agents/phone representatives: two at month three, an additional person at month sixth.
Pharmaceutical technicians: two at month two, a third at month six.
Pharmacists: month two.
Order fulfillment agents: two for month five, a third for month eight.
Counter person/phone representative: one at month three.

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Personnel Plan Year1 Year2 Year3
CEO (John) $48,000 $52,000 $60,000
Pharmacist $55,000 $60,000 $60,000
Pharmacist technician $27,500 $30,000 $30,000
Pharmacist technician $27,500 $30,000 $30,000
Pharmacist technician $17,500 $30,000 $30,000
Sales agent $19,200 $23,040 $23,040
Sales agent $19,200 $23,040 $23,040
Sales agent $11,520 $23,040 $23,040
Counter person/phone rep. $14,400 $17,280 $17,280
Counter person/phone rep. $14,400 $17,280 $17,280
Order fulfillment $14,400 $17,280 $17,280
Total People 11 11 11
Total Payroll $268,620 $322,960 $330,960

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Financial Plan

The following sections will outline important financial information.

Important Assumptions
The following table details important financial assumptions.

General Assumptions Year1 Year2 Year3

Plan Month 1 2 3
Current Interest Rate 10.00% 10.00% 10.00%
Long-term Interest Rate 10.00% 10.00% 10.00%
Tax Rate 30.00% 30.00% 30.00%
Other 0.00% 0.00% 0.00%
Calculated Totals
Payroll Expense $268,620 $322,960 $330,960
New Accounts Payable $524,386 $872,053 $939,847

Break-even Analysis

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The Break-even Analysis indicates that $72,494 will be needed in monthly revenue to reach the break-
even point.

Break-even Analysis
Monthly Units Break-even 725
Monthly Revenue Break-even $72,494
Assumptions:
Average Per-Unit Revenue $100.00
Average Per-Unit Variable Cost $53.00
Estimated Monthly Fixed Cost $34,072

Projected Profit and Loss

The following table will indicate the projected profit and loss

Year1 Year2 Year3

Sales $376,280 $967,265 $1,071,877

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 Year1 Year2 Year3
Direct Costs of Goods $198,615 $499,243 $551,358
Other Production Expenses $0 $0 $0
------------ ------------ ------------
Cost of Goods Sold $198,615 $499,243 $551,358
Gross Margin $177,665 $468,022 $520,519
Gross Margin % 47.22% 48.39% 48.56%
Expenses:
Payroll $268,620 $322,960 $330,960
Sales and Marketing and Other
Expenses $8,400 $8,400 $8,400
Depreciation $1,704 $1,704 $1,704
Leased Equipment $0 $0 $0
Utilities $4,800 $4,800 $4,800
Insurance $3,600 $3,600 $3,600
Rent $24,000 $24,000 $24,000
Payroll Taxes $40,293 $48,444 $49,644
Other $0 $0 $0
------------ ------------ ------------
Total Operating Expenses $351,417 $413,908 $423,108
Profit Before Interest and Taxes ($173,752) $54,114 $97,411
Interest Expense $0 $0 $0
Taxes Incurred $0 $16,234 $29,223
Net Profit ($173,752) $37,880 $68,188
Net Profit/Sales -46.18% 3.92% 6.36%
Include Negative Taxes FALSE TRUE TRUE

Projected Cash Flow

The following chart and table will indicate the projected cash flow.

Year1 Year2 Year3

Cash Received
Cash from Operations:
Cash Sales $376,280 $967,265 $1,071,877

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 Year1 Year2 Year3
Cash from Receivables $0 $0 $0
Subtotal Cash from Operations $376,280 $967,265 $1,071,877
Additional Cash Received
Non-Operating (Other) Income $0 $0 $0
Sales Tax, VAT, HST/GST Received $0 $0 $0
New Current Borrowing $0 $0 $0
New Other Liabilities (interest-free) $0 $0 $0
New Long-term Liabilities $0 $0 $0
Sales of Other Current Assets $0 $0 $0
Sales of Long-term Assets $0 $0 $0
New Investment Received $0 $0 $0
Subtotal Cash Received $376,280 $967,265 $1,071,877
Expenditures
Expenditures from Operations:
Cash Spending $23,941 $55,628 $62,138
Payment of Accounts Payable $492,074 $829,288 $931,060
Subtotal Spent on Operations $516,015 $884,916 $993,199
Additional Cash Spent
Non Operating (Other) Expense $0 $0 $0
Sales Tax, VAT, HST/GST Paid Out $0 $0 $0
Principal Repayment of Current Borrowing $0 $0 $0
Other Liabilities Principal Repayment $0 $0 $0
Long-term Liabilities Principal Repayment $0 $0 $0
Purchase Other Current Assets $0 $0 $0
Purchase Long-term Assets $0 $0 $0
Dividends $0 $0 $0
Subtotal Cash Spent $516,015 $884,916 $993,199
Net Cash Flow ($139,735) $82,349 $78,678
Cash Balance $765 $83,114 $161,792

Balance Sheet
The following table will indicate the projected balance sheet.

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 Year1 Year2 Year3
Assets
Current Assets 2001 2002 2003
Cash $765 $83,114 $161,792
Other Current Assets $0 $0 $0
Total Current Assets $765 $83,114 $161,792
Long-term Assets
Long-term Assets $8,500 $8,500 $8,500
Accumulated Depreciation $1,704 $3,408 $5,112
Total Long-term Assets $6,796 $5,092 $3,388
Total Assets $7,561 $88,206 $165,180
Liabilities and Capital
Accounts Payable $32,313 $75,078 $83,865
Current Borrowing $0 $0 $0
Other Current Liabilities $0 $0 $0
Subtotal Current Liabilities $32,313 $75,078 $83,865
Long-term Liabilities $0 $0 $0
Total Liabilities $32,313 $75,078 $83,865
Paid-in Capital $151,000 $151,000 $151,000
Retained Earnings ($2,000) ($175,752) ($137,872)
Earnings ($173,752) $37,880 $68,188
Total Capital ($24,752) $13,128 $81,316
Total Liabilities and Capital $7,561 $88,206 $165,180
Net Worth ($24,752) $13,128 $81,316

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