Friday, October 25, 2013

Write A New Business Plan

A new business plan is the equivalent of drawing a map with directions to reach your goals. I learned this as a freshman in college and have since put it to valuable use; preparing a new business plan annually.

When I graduated from Brooklyn College of Pharmacy, I sat down with my wife, and together we wrote a "business" plan. I had a job paying $50.00/week working in my father’s pharmacy and she was hired to teach 3rd grade in East Meadow, NY earning $2,400 a year (no joke). In 1950, believe it or not, we felt like we were “in the chips.”

We sat down to etch a plan for our future. My goal was to open my own pharmacy and she was prepared to support everything we decided to do and have children. We succeeded in doing both. It took about a year before we had the courage to open our first pharmacy. My partner was a classmate, a decorated veteran who fought the war in the Pacific. Teamed together we were very fortunate. We opened in a very small village, Rosedale, NY, and our pharmacy flourished. I am sure you know the rest of the story.

The point I wish to make here is that we wrote a new business plan every December. My partner and I spent many hours sketching out where we thought our best paths would take us. By this careful planning, we were able to grow much faster than we anticipated.

We sat down with our accountant to determine where the bulk of our sales came from, the average profit of each segment and the amount of inventory needed. We studied our market. We looked at every business in Rosedale and at our competition. By undergoing this process, we were able to see many new opportunities.

I can assure you that if done diligently, it will enable you to expand your annual volume. Think abut the opportunities with OTC cash sales. Think about sending out salespeople and think about your showroom.

Good luck!

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