To: Amanda Smith
ABC Investment Company
From: James Johns
25th July, 20XX
Dear Ms. Smith,
Thank you very much for the meeting yesterday. I am extremely excited to start my XYZ pharmacy business on Main Boulevard, Charlottesville, and looking forward to your company investing in it. The XYZ pharmacy will be providing pharmaceutical products to the customers at an affordable price. I have prepared this proposal for you, with all the details. I would like your company to have a look at the entire investment opportunity and share your business assistance to support my pharmacy business idea.
Looking forward to hearing from you. Let me know if you have any queries.
XYZ pharmacy will provide convenience and extraordinary service and medication to the customers. My team of highly qualified pharmacists will provide expert pharmaceutical care to our community, with competitive prices. XYZ pharmacy will full fill all the international standards of professional ethics and services.
XYZ pharmacy will be located on the Main Boulevard, in block E. There is a 4,000 square foot shop available for rent. Nearby are a few clinics and a children’s hospital. I think the location is ideal for a pharmacy.
A large variety of prescription drugs, personal care products, and herbal medicines will be available at the pharmacy:
The qualified staff at the pharmacy will be side by side in providing consultancy and to assist the customers in every step.
Hours of operation:
Sunday -Saturday: 7 am -12 am
Main Boulevard, Charlottesville
Pharmaceuticals, snack food items
2 workers will be hired for services
The already existing pharmacies in the region are very few and the products they are selling are at very high prices. Moreover, most common products are usually out-of-stock because of the high demand.
My main objective is to launch a sustainable and supportive pharmacy business that grows by retailing better and authentic pharmaceutical products to the clients. Also,
People living in the community often buy medicine monthly. Some of the payments are made through insurance and some pay from personal accounts. Our target audience is
Children 0-12 years
Mothers 20-40 years
Market Analysis: I have mapped out the locations of the competitive pharmacies in the community and the finalized location for XYZ pharmacy is ideal. The idea is to develop and maintain relationships with local consumers by providing extraordinary services to lure them away from big pharmaceutical brands. The main focus will be the customer’s needs.
Competitive Analysis: The neighborhood I have chosen is a low-income neighborhood and according to a conducted survey, the people are not happy with the high-brand pharmacy branch in the community, because of high prices and the required affordable items being out-of-stock.
My team plans to advertise in all mediums. We will use social media platforms to advertise our pharmacy and to create a buzz about it. Also, we will be putting out pamphlets in nearby clinics and hospitals. We will print advertisements in all community-based newspapers and magazines. Also, we will place ad banners on the internet to raise brand awareness.
I would like your company to initially invest $200,000, for the start-up cost and the running costs, for the first 2 years. Estimated start-up expense details are provided below:
Names Cost Legal paperwork $1,000 Marketing $1,000 Land rental (1-year advance) $5,000 Insurance $5,000 Medicine and health care products $100,000 Snacking items + Drinks $22,000 Utilities $3,000 Equipment $10,000 Inventory $40,000 Cash $5,000 Miscellaneous $1,000 Total $193,000
Expenses for each month will be the following:
Names Cost/month Total Cost /year Employee Salary $500 $1,000 $12,000 Utility Bills $500 $500 $6,000 Miscellaneous $500 $500 $6,000 Total $1,500 $2,000 $24,000
This pharmacy will surely attract a large number of customers because of its affordability and convenience. I am very optimistic and certain that we will break even within the first couple of years and start generating a profit by the end of the third year. Below is the sales forecast for the first fiscal year, based on information collected in the field.
Items Forecast Sales Medicine $50,000 Personal care $50,000 General items $10,000
First 6 months: $110,000
First fiscal year: $210,000
Second fiscal year: $380,000
I will be the sole owner of the pharmacy.
I will be hiring a qualified and hardworking pharmacist who will also be serving as a salesperson for the pharmacy. His job will be to provide assistance to the customers and maintain the store. It will be his duty to keep the store shelves organized.
Also, I will hire a cashier to maintain the records.
I would like to seekyour approval to proceed with the necessary arrangements related to the opening of the pharmacy. After the approval, I will inform the relevant departments to start the process and then we can work on the Terms and Conditions for future references.
You can contact me with any of the following ways: