Appendix II: Business Plan Template [Title page] [Insert Name of Service or Program] A Business Proposal/Plan Developed by [list names of all contributors] Date [date of most recent revision] [End of title page] [Insert page break] [Section I] Executive Summary [Instructions for writing the executive summary are provided in Chapter 11. The executive summary should be in the same general order as the business plan itself (see table of contents below). The executive summary should highlight the most important aspects of each major section of the business plan. A major goal is to make the executive summary as quick and easy to read as possible. In this regard, sentences should be short and to the point. Bullet points can be used to highlight facts. Subheading (as shown below) may not be needed depending on the length of the executive summary.] Background and Description [Briefly define the patient care need, define the service opportunity, and describe the service.] Market Analysis and Strategy [Briefly describe who and/or what is the target market, describe what percentage of that market the service is expected to obtain, describe the plan/strategy for entering the market, and identify what competition already exists in the market.] Operational Structure and Processes [Briefly describe how the program or service will be run; describe how customers will receive service, describe important work processes, and regulatory requirements or clinical standards that exist for this business.] Financial Projections [Identify how much money (investment) is needed to get the program start and what will be the operating costs for a given level of service, describe expected income and sources of income based on that same level of service, and define the net income on an annual basis. Based on the net income define the payback period for the initial investment.]Appendix II: Business Plan Template Milestones, Schedule & Action Plan [Define the anticipated timeline for accomplishing major milestones and goals of the program. List the long-range growth and expansion objectives.] Critical Risks and Opportunities [Briefly describe the major strengths and opportunities of the program, including if applicable management, skilled/experienced personnel, unique product/service, low overhead, high margin, good service, emphasis on quality. Briefly describe possible future changes in regulation, reimbursement, costs, competition, customers, or other changes that may adversely effect the program.] [End of executive summary section] [Insert page break] [Section II] Table of Contents Section Page Background and Description ...........................................................................................................................................[page #] Market Analysis and Strategy..........................................................................................................................................[page #] Operational Structure and Processes................................................................................................................................[page #] Financial Projections .......................................................................................................................................................[page #] Milestones, Schedule and Action Plan.............................................................................................................................[page #] Critical Risks and Opportunities......................................................................................................................................[page #] Exit Strategy ....................................................................................................................................................................[page #] Supportive Documents.....................................................................................................................................................[page #] Financial pro forma statements..........................................................................................................................[page #] Letters of support...............................................................................................................................................[page #] [End of table of contents] [Insert page break]Appendix II: Business Plan Template [Section III] Background and Description [Insert information from questions and responses in Chapters 1 and 2] [Define the patient care need (e.g., XY million people in the United States have diabetes and of these nearly 50% are not compliant with their medications. Non-compliance in this patient population can lead to serious complications. Studies have shown that more frequent education of diabetics by healthcare providers reduces the incidence of complications and reduces overall healthcare costs.] [Define the service opportunity and describe how others have met the need (e.g., Although diabetic patients may see their primary care physician only a few times each year, they visit their pharmacist monthly or more often. Pharmacists are well equipped to provide the counseling that diabetics require. Pharmacy-run diabetic management services have been shown to be effective and generate revenue.] [Describe the program or service, whether this is a new or existing service (e.g., if it is an existing one, what plan is to expanding or enhancing the service), and in what part of the organization this service will reside.] [Describe the anticipated outcomes of the program (financial, clinical, humanistic), extrapolate from previously published pharmacy literature if appropriate.] [Describe the anticipated effect the program/service will have on other aspects of the organization.] [Define the organizational strategic goals that the program may help fulfill.] [End of background and description section] [Insert page break] [Section IV] Market Analysis and Strategy [Insert information from questions and responses in Chapters 3, 4, and 7] [Define the customers of the program, and define how the customers will find the program or who will refer customers.] [Describe the market, market segments, and the target market for the program.] [Identify the competition, describe their strengths and weaknesses, and describe their market share.] [Describe what percentage of that market the service (market share) is expected to obtain.] [Define the plan/strategy for entering the market, and for ongoing promotion.] [Define the growth potential of the business.] [End of market information section] [Insert page break]Appendix II: Business Plan Template [Section V] Operational Structure and Processes [Insert information from questions and responses in Chapters 5 and 6.] [Briefly describe how the program or service will be run; describe the organizational structure, how customers will receive service, important work processes and workflow, reporting mechanisms.] [Describe what support systems are necessary for the program to operate.] [Describe the facility and equipment requirements of the program.] [Describe the FTE requirements of the program.] [Describe how quality will be monitor and what regulatory requirements or standards of care exist.] [End of operational structure and processes section] [Insert page break] [Section VI] Financial Projections [Insert information from questions and responses in Chapter 9 and from pro forma financial statements.] [Identify how much money is needed to make this venture successful, specify the projected amounts needed for initial set-up (facilities, equipment), and annual operating costs (labor, non-labor expenses.] [Identify the major reimbursement source for this service and payer mix.] [Identify the payback period of this service and ROI.] [Describe the financial projection (revenue and expense) for the next three years; include the best case, most likely case, and worst case scenario.] [Define the sensitivity of the profitability of the program to changes in reimbursement or income, and costs.] [End of financial projections section] [Insert page break]Appendix II: Business Plan Template [Section VII] Milestones, Schedule, and Action Plan [Insert information from questions and responses in Chapter 10.] [Describe the major accomplishments or milestones of the service.] [List the time frames for accomplishing the milestones and goals.] [List the long-range growth and expansion objectives.] [End of milestones, schedule & action plan section] [Insert page break] [Section VIII] Critical Risks and Opportunities [Insert information from questions and responses in Chapter 8.] [Describe the strengths of the service, including if applicable management, skilled/experienced personnel, unique product/service, low overhead, high margin, good service, emphasis on quality, and others.] [Describe the limitations on the service, including if applicable capital, management resources, personnel, competitors, and others.] [Describe possible future changes in regulation, reimbursement, costs, competition, customers, or other changes that may adversely effect the program.] [End of critical risks and problems section] [Insert page break] [Section IX] Exit Strategy [Insert information from questions and responses in Chapter 8.] [Describe the criteria that would be used to make a decision to exit the business, and describe the plan for exiting this business when and if the need should arise] [End of exit strategy section] [Insert page break]Appendix II: Business Plan Template [Section X] Conclusion [End with several sentences that reiterate the value of the program to both customers and the organization]. [End of conclusion section] [Insert page break] [Section XI] Supportive Documents [Attach the following supportive documents if appropriate: a chart that identifies the major competitors and their market share; a chart that compares the strengths and weakness of the proposed program to those of the competitors; an organizational chart illustrating the lines of authority and responsibility within the program and how the program relates/reports to the larger organization; job descriptions of the major personnel positions; a listing of major facilities and capital expenditures needed for the program with a description and cost of each; pro forma financial statements (best case, most likely case, and worst case scenarios); a financial breakeven analysis; and a time line depicting significant milestones and their priority for completion.] [Attached letters for support from key stakeholders and/or customers.] [End of supportive document section] [End of business plan document]