Business Plan Pitch
Pharma Supplies LLC is a medical courier company that will be involved in transporting medical tools to patients and healthcare practitioners, samples to medical workrooms, and transport donor organs and receiver patients to health facilities. The main objective of the business is to become one of the prominent medical courier companies in Australia and ensure that every delivery handled contends favorably with the best in the market. Our mission is to meet customer needs and ensure customer satisfaction.
Business Opportunity
Customer Need and Target Market
The Medical Courier business venture will be involved in the transport and supply of medical equipment to medical practitioners and patients, samples and specimens to medical laboratories, and the delivery of organs. In 2019, the worldwide medical supply delivery service market size was estimated at USD 54.8 billion, and the market is projected to expand at a compound annual growth rate of 6.5% by 2027 (Grand View Research, 2020). The high demand and growing need for fast transportation and delivery of medical supplies are among the chief factors contributing to the market’s growth. The primary focus is on improving the healthcare system with a target of reducing the cost of supplies. In relation to Covid-19, the business assumes that once the virus is wiped out or considerably under control, it will take a while for people’s pre-Covid behaviors to go back to normal (Deloitte, 2020). Also, the pandemic has and will affect the ability of suppliers to distribute goods.
Relevant Megatrend(s) and Social Impacts
While Experts believe inpatient, home-based, and retail care settings will see significant increases in demand for care, patients are asking that care be given at home. Additionally, tools that connect consumers to healthcare Professionals have emerged (Industry Arc, 2021). Community-based health care services and retail clinics are emerging to link patients to their healthcare providers where physician practices will be digitalized. Health practitioners will continue assuming new Medicare technologies to deliver their services and streamline access to overpriced experts and services (Health IT Outcomes, 2021). The emergency services section of healthcare is projected to show the highest advancement during the estimated period. Nearly 150,000 deaths and over 3 million injuries occur, according to the American Association for the Surgery of Trauma (Grand View Research, 2020). The frequency of trauma-related cases resulting from road accident injuries and infectious diseases is expected to increase the need for emergency services.
Opportunity Testing Plan
The business opportunity testing plan will be designed to ensure that it corresponds with the marketing strategy. The most important thing would be to pick a testing region. Although the business will operate with branches worldwide, the testing will be done in Australia. This course will provide more evidence where the foundation for ultimate predictions will be made. The business proposal will be presented to at least 40 potential customers to determine whether they identify with most of the target market. Further, the medical courier business will create a website to give more information about the company to the target market. The website will have a simple landing page and use social media to drive traffic t the website. The aim is to evaluate the number of people interested in the services, and this way, we will have an idea of how the business might perform.
Sales and Marketing Strategy
Fundamentals
The business’s success will require well-thought tactful ways of attracting deal clients to patronize our services. Our marketing and sales team will be empowered to adopt the best and most suitable marketing and promotion strategies (StaffScapes, 2020). We make extensive use of social media channels specifically Twitter, LinkedIn, and Facebook, to drive traffic to our website. Further, running advertisements on blogs and interest forums will go hand in hand with our social media strategy. We aim to keep the prices of our medical courier services below the regular market rate by maintaining a low overhead cost and collecting advanced payments from our customers (Bektemur et al., 2018). While the main objective of this business is to maximize profits in the world medical courier industry, Pharma Supplies will also offer these services to a wide range of customers to increase sales. The success factor of the business will be valued based on gaining customer support and winning customers over.
Social Media and Free Publicity
Our company understands that social media is essential to the success of every business, and at the core of social media marketing is content marketing. The plan is to develop excellent SEO content to draw the right customers at the right time. Further, our content strategy will include content created in different formats, such as good eye-catching imagery and entertaining videos (Skipworth et al., 2020). This strategy will encourage engagement and hence build a loyal community of followers that will generate free publicity for the business through word of mouth. A remarketing strategy will allow the business to create advertisement campaigns that target individuals who have already visited the website on social media. We intend to get our company featured on local news and online news channels to tell our customer stories and show our brand, and its accomplishments to get free publicity for the business. Our public relations professionals will work tirelessly to position the company in the good public eye to earn positive media mentions.
Measurement and Information
Most importantly, the company’s chief goal is to establish a business that will live off its cash flow without adding more capital from outside sources once the business is legitimately running. This outcome will indicate substantial success and business sustainability, especially given the ongoing COVID-19 pandemic (ASPR Tracie, 2021). The success of our marketing efforts will also determine our success. We will monitor the source of our leads and establish the number of leads that end up becoming customers to track growth and success. The volume and frequency of sales will provide insights into the overall success of the business. Consequently, obtaining market information will include looking through newspapers and analyzing economic data released by the government to discover market trends and competitor activities. The accounting and marketing departments will gather and track information about customers, which will establish customer satisfaction and make commendations and insights about sales increases.
Operational Strategy
Operational Structure
Establishing a viable business structure will certify that only professional and qualified individuals are hired. The ideal design of the business will be made up of the management team, which will consist of the Chief Executive officer and the chief financial officer. Under the managers will be the sales and marketing manager, the human resource manager, the accountant, the transport and logistics manager, customer service executives, and the dispatch riders. However, these positions might not be filled at the start of the business; hence, some of the posts will be outsourced. Our key medical equipment suppliers are The Workwear Group Holdings Ltd, Cardinal Health, Steinbach AG, and GE Healthcare. The inputs required from suppliers include drugs, medical equipment, blood, and other medical-related fluids. The estimated cost of supplies is $200,000 in the first year. Our suppliers are reliable and able to supply cost-effective drugs and equipment in the proper quantities.
Outsourcing and Motivation
The existence of diverse stakeholders such as suppliers and service users in organizations may need them to pursue a range of conflicting goals. The comprehensive objectives have an important impact on how particular roles are developed within organizations that require them to pursue more significant needs such as outsourcing to attain a sustainable public interest. For starters, logistics will be outsourced to improve the effectiveness of operations. Research indicates that employees value pubic recognition and are highly responsive to praise (StaffScapes, 2020). When rewards are linked to promotions, bonuses, or gifts, employees tend to be highly energized and motivated. This strategy will be employed in promoting better performance and employee happiness in the business.
Operational Risks
One of the operational risks experienced in medical courier services is that such supplies require exceptional care. For instance, some supplies need storage of assured temperature ranges while others have short shelf lives. This risk may be managed by ensuring the storage containers are fitted with proper temperature maintenance equipment. Further, the business may experience stockpiles due to colossal stock-taking to avoid disruptions that may be risky due to products expiring on the shelves. Ensuring good supply and logistics operations will manage this occurrence. Keeping up with modern technology is a key consideration and may be a risk to the business’ operations (Bektemu et al., 2018). Controlling and tracking the operational costs of technology will reform this risk. Outsourcing is a key risk of worry and will be managed by implementing proper third-party management strategies. Human errors are an even greater concern that requires accounting frameworks to minimize them (Jacobs, 2018). We are aware of the impact of regulation on the operation of companies, hence laying down strategies that ensure compliance with the law will manage the overall process.
Financial Plan
Capital Requirements and Funding Plan
The medical courier services business is owned and operated by the family. The family has restricted the sourcing for the initial start-up capital to be generated from three chief areas. Part of the start-up finance will be raised via crowdfunding. I have started a handful of businesses, and one of them was successfully funded via crowdsourcing. A pest control service business successfully had a start-up capital of $12,000 raised via crowdsourcing. The success projected success of the crowdsourcing campaign would bring our courier business to the next level. Part of the remaining capital will be generated from personal savings and family members. If any further funding is required within the first three years, a loan from the bank will come in handy to finance the business until it can sustain itself.
P&L and Balance Sheet
Valuation and Justification
The market valuation approach method of valuation will be used to evaluate the viability of the business after the three years. The model attempts to establish the value of the company by making a comparison to its competitors to similar companies in the market (Ward, 2021). This method is preferable because there exist enough comparable businesses.
References
ASPR Tracie. (2021). COVID-19 Healthcare delivery impacts. Web.
Bektemur, G., Muzoglu, N., Arici, M. A., & Karaaslan, M. K. (2018). Cost analysis of medical device spare parts. Pakistan Journal of Medical Sciences, 34(2), 472.
Deloitte. (2020). COVID-19: Scenario analysis in uncertain times. Web.
Grand View Research. (2020). Medical supply delivery service market report, 2020-2027. Web.
Health IT Outcomes. (2021). 9 technology megatrends for healthcare in 2020. Web.
Industry Arc. (2021). Medical courier market research report. Web.
Jacobs, D. (2018). Top 11 Operational risks for the year. Web.
Skipworth, H., Delbufalo, E., & Mena, C. (2020). Logistics and procurement outsourcing in the healthcare sector: a comparative analysis. European Management Journal, 38(3), 518-532.
StaffScapes. (2020). Seven employee motivation strategies that boost productivity. Web.
Ward, S. (2021). 3 business valuation methods. Web.