GoodRx Pharmacy

BUSINESS PLAN

2019

John Doe
10200 Bolsa Ave, Westminster, CA, 92683

(650) 359-3153

text@[Link]

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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 13

Development Requirements 13

Management 14

Personnel Plan 14

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Financial Plan 15

Important Assumptions 15

Break-even Analysis 15

Projected Profit and Loss 15

Projected Cash Flow 16

Balance Sheet 17

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 Executive Summary

Examples
GoodRx Pharmacy's main goal is to provide prescription medications for our
 GoodRx 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
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additional efficiencies - we avoid disruptions in cash flow often associated with

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Objectives

Examples
The objectives for the first three years include:
 GoodRx
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

Examples
GoodRx Pharmacy's mission is to provide our customers with the best prices for
 GoodRx their prescription medications. Our convenience and services will exceed the
expectations of our customers.

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Keys to Success

Examples
The keys to success are:
 GoodRx
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

1M

1M

750k

500k

250k

-250k
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

Examples
The GoodRx Pharmacy is located in Portland, OR and offers prescription
 GoodRx medications at discount prices to our customers by mail order or at the store front.

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Business Ownership

Examples
The GoodRx Pharmacy is an Oregon limited liability corporation. The majority
 GoodRx stock holder is John Reeleaf.

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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.

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 Amount
Start-up
Requirements
Start-up Expenses
Legal $1,000
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

150k

125k

100k

75k

50k

25k

0
Expenses Assets Investment Loans

Summary Amount

Expenses 2000

Assets 100000

Investment 120000

Loans 5000

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 Products & Services

Examples
The GoodRx Pharmacy offers a wide range of prescription drugs to patients
 GoodRx based in Oregon or nationally. Both generics and name brands are offered.

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Business Model Description

Examples
In order for a customer to purchase medications mail order, they must first contact
 GoodRx 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
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medications.

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 Market Analysis

Examples
The GoodRx Pharmacy's target market consists of two different groups, local
 GoodRx 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:

Examples
This group of customers orders their medication through the mail in an effort to
 GoodRx 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

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- prescriptions for an ongoing ailment that requires regular treatment. This group
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of customers will also be more likely to purchase several months of medication at

Mail order customers

Examples
This group of customers are also looking for the lowest prices for their medication.
 GoodRx 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
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to their insurance company for reimbursement at a later date.

Walk-in customers

Target Market Analysis

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
customers 9% 54,876,345 59,815,216 65,198,585 71,066,458 77,462,439 9.00%
Total 8.99% 55,222,232 60,188,774 65,602,028 71,502,176 77,933,014 8.99%

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 Target Market Segment Strategy

Examples
The GoodRx Pharmacy will seek to attract two different groups of customers and
 GoodRx 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 More 
Read who
regularly need medication and are aware in advance of their needs. For example,
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2019 Business Plan | GoodRx Pharmacy 10 / 18

 Strategy and Implementation

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

Competitive Edge

Examples
The GoodRx Pharmacy's competitive edge is superior pricing. To do that we must
 GoodRx 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

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by pharmacies. For example, we will employ only one pharmacist and use

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Marketing Strategy

Examples
The marketing strategy will be based on targeted advertisements, appealing to
 GoodRx the customer's sense of value. The marketing campaign's goal will to be increase

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awareness of The GoodRx Pharmacy with their target market.

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Sales Strategy

Examples
The sales strategy will be based on generating long-term relationships with
 GoodRx 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,
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we expect that our customers will make The GoodRx Pharmacy their exclusive

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Examples
During the first two months, we will focus on setting up the storefront and
 GoodRx 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

2019 Business Plan | GoodRx Pharmacy 11 / 18

 order. Sales will grow steadily from month six on. Read More 

Sales Forecast

Walk-in customers Mail order customers

20k

15k

10k

5k

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
Establishment of the first Business
strategic 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

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

Examples
John Reeleaf has experience working with a major drug manufacturer, Eli Lilly, as
 GoodRx 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 innovativeRead More 
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

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Break-even Analysis
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

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 Year1 Year2 Year3
Sales $376,280 $967,265 $1,071,877
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.

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 Year1 Year2 Year3
Cash Received
Cash from Operations:
Cash Sales $376,280 $967,265 $1,071,877
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

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 The following table will indicate the projected balance sheet.

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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