2. Correlaciones entre restos humanos y materiales
2.2 Ajuares
2.2.2. J Série ancienne, estilo intercultural o estilo figurativo
2.2.2.3 Reflexiones sobre los recipientes de piedra blanda
XYZ Pharmacy
Competitors
Sourcing/Production of Scientifically-Researched &
Developed Products Br
an d Im ag e
Exhibit 4: Proposed Future Management Structure
Board of Directors
Executive Director
GM – Operations
Research &
Developmen t Coordinator Manager –
Admin. &
HR
Marketin g Manager Material
s/Logisti cs Manager Finance
Manager
Finance Department
Logistics Dept
Marketing Dept (Wholesale and
Retail)
Customer Relationship Management
Dept
Exhibit 5:
Proposed Future Head Count in Different Departments
Department Finance &
Invoicing
Marketing &
CRM
Material Management
& Logistics
R&D Support
HR
Head Count (Direct Employees)
3 5 2 1 2
Contract Employees 2 1 1 1 1
Total Number of Employees (including GM)
20
Exhibit 6: Evaluation of Distribution Alternatives
Factors Selling directly to retailers
Selling to distributors
Investment High Low
Feasibility Low High
Resources required High Low
Margins for City Pharmacy High Low
Administration Complex Easy
Warehouse required? Yes No (Use distributors)
Exhibit 7: Evaluation of Retail Alternatives
Factors Setting up City
Pharmacy Chain of Retail Stores
Use of Existing Retailer Network
Investment High Low
Implementation Time High Low
Feasibility High Medium
Resources required High Low
Margins for City Pharmacy High Low
Administration Complex Easy
EXHIBIT 8a: 3-YEAR FORECAST NET INCOME STATEMENT FOR A DRUGS AND COSMETICS SHOP (YEAR Drug Sales 20,000,000 20,000,0
00 20,000,0 Cosmetics Sales 10,000,000 10,000,0
00 10,000,0 Total revenues 80,000,000 30,000,
000 30,000,
Direct Cost of Sales 15,000,000 15,000,0
00 15,000,0 Gross Margin 65,000,000 15,000,
000 15,000,
Administrative Exp. 6,000,000 6,000,00
0 6,000,00 Depreciation 867,000 867,000 867,000 867,000 867,000 867,000 867,000 867,000 867,000 867,000 867,000 867,000 10,404,00 0 Electricity 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 100,000 1,200,000
Insurance 2,000,000 _ _ _ _ _ _ _ _ _ _ _ 2,000,000
Rent 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 500,000 6,000,000
Legal Expenses 2,000,000 _ _ _ _ _ _ _ _ _ _ _ 2,000,000
Loan Repayments 1,500,000 1,500,00
0 1,500,00 NET PROFIT 41,573,000 3,573,0
00 3,573,0 NET CASH BALANCE 41,573,000 3,573,00
0 3,573,00
CASH BAL. B/F 0 41,573,0
CASH BAL. C/F 41,573,000 45,146,0
00 48,719,0
EXHIBIT 8b: 3-YEAR FORECAST NET INCOME STATEMENT FOR A DRUGS AND COSMETICS SHOP (YEAR 2) - UG. SHS.
ITEM/MONTH 13 14 15 16 17 18 19 20 21 22 23 24 TOTALS
CASH INFLOWS
Loan Funds 0 0 0 0 0 0 0 0 0 0 0 0 0
Personal Contribution 0 0 0 0 0 0 0 0 0 0 0 0 0
Drug Sales 25,000,000 25,000,0
00 25,000,0 Cosmetics Sales 12,500,000 12,500,0
00 12,500,0 Total revenues 37,500,000 37,500,
000 37,500,
Direct Cost of Sales 18,750,000 18,750,0
00 18,750,0 Gross Margin 18,750,000 18,750,
000 18,750,
Administrative Exp. 6,300,000 6,300,00
0 6,300,00 Depreciation 1,084,000 1,084,00
0 1,084,00 Electricity 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 110,000 1,320,000
Insurance 2,450,000 _ _ _ _ _ _ _ _ _ _ _ 2,450,000
Rent 550,000 550,000 550,000 550,000 550,000 550,000 550,000 550,000 550,000 550,000 550,000 550,000 6,600,000
Legal Expenses 1,000,000 _ _ _ _ _ _ _ _ _ _ _ 1,000,000
Loan Service
Loan Repayments 1,500,000 1,500,00
0 1,500,00 NET PROFIT 3,173,000 6,623,0
00 6,623,0
CASH BAL. B/F 78,876,000 82,049,0
00 88,672,0
CASH BAL. C/F 82,049,000 88,672,0
00 95,295,0
EXHIBIT 8c: 3-YEAR FORECAST NET INCOME STATEMENT FOR A DRUGS AND COSMETICS SHOP (YEAR 3) - UG. SHS.
ITEM/MONTH 25 26 27 28 29 30 31 32 33 34 35 36 TOTALS
CASH INFLOWS
Loan Funds 0 0 0 0 0 0 0 0 0 0 0 0 0
Personal Contribution 0 0 0 0 0 0 0 0 0 0 0 0 0
Drug Sales 30,000,000 30,000,0
00 30,000,0 Cosmetics Sales 15,000,000 15,000,0
00 15,000,0 Total revenues 45,000,000 45,000,0
00 45,000,0
Direct Cost of Sales 22,500,000 22,500,0
00 22,500,0 Gross Margin 22,500,000 22,500,0
00 22,500,0
Administrative Exp. 6,615,000 6,615,00
0 6,615,00 Depreciation 1,300,500 1,300,50
0 1,300,50 Electricity 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 120,000 1,440,000
Insurance 2,900,000 _ _ _ _ _ _ _ _ _ _ _ 2,900,000
Rent 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 600,000 7,200,000
NET PROFIT 7,252,500 11,152,5
00 11,152,5
CASH BAL. B/F 152,902,000 160,154,
500 171,307,
CASH BAL. C/F 160,154,500 171,307,
000 182,459,
Exhibit 9: EXPLANATORY NOTES AND ASSUMPTIONS TO FORECAST NET INCOME STATEMENTS
A. Business Concept
The main goal of our retail pharmacy and cosmetics (XYZ Pharmacy & Cosmetics Uganda Ltd.) shop is to provide prescription medications and cosmetics products for our 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 additional efficiencies - we avoid disruptions in cash flow often associated with insurance payments and we can eliminate unnecessary services for the type of knowledgeable, repeat customer taking maintenance-type medication.
The XYZ Pharmacy & Cosmetics Uganda Ltd. will operate from one store/shop front that will primarily serve retail customers and a few wholesale buyers. We will thrive by employing friendly and knowledgeable personnel, which, along with our great prices, will drive the repeat business that we will rely upon. We only expect that as the price of medication continues to skyrocket; The XYZ Pharmacy
& Cosmetics Uganda Ltd. will appeal more and more to the customer's sense of value and convenience.
Our advertising, mainly through ads in newspapers and magazines targeted across various pharmaceutical/cosmetics market segments, will be targeted at those who are looking to save money on a pricey but necessary and regular expense.
The XYZ Pharmacy & Cosmetics Uganda Ltd. will be led by Ms. Nancy Miriam, a Bachelors of Pharmacy graduate from Makerere University with experience in the pharmaceutical industry. Costs will be minimized by maintaining only one pharmacist and filling the void with pharmaceutical techs. We expect to reach profitability right from the first year of trading and will generate substantial sales by year two.
B. Revenue Assumptions
Revenue assumptions for this pharmaceutical/cosmetics retail trading business consist of sales of OTC (over-the-counter) prescriptions and cosmetics on a month-by-month basis. Revenue assumptions used in the cash flow depict monthly sales of UShs. 20 million and UShs. 10 million for OTC prescriptions and cosmetics products respectively during the first year of trading. Monthly sales are thereafter projected to increase by 25% in the second year of business, and by a further 20%
increment in the third year of trading.
C. Direct Cost of Sales
Direct cost of sales are the month-on-month direct expenditures on pharmaceutical and cosmetics inventory purchases. Direct cost of sales is 50% of the projected monthly sales revenues.
D. Operating Expenses
Payroll: This operating expense line indicates the monthly salary and emoluments payments to XYZ Pharmacy & Cosmetics Uganda Ltd. staff that include one trained pharmacist and 3 dispensing nurses. The pharmacist will be paid a monthly salary and benefits package of UShs. 1.2 million, while each one of the dispensing nurses will earn a monthly payroll package of UShs. 420,000. Payroll expenses are projected to increase by a factor of 5 per cent per annum.
SGA (Sales + General + Administrative Expenses): This operating expense line includes the general business overheads of running and/or operating the pharmacy/cosmetics retail/wholesale business in terms of sales and marketing promotions and routine administrative expenses that may include stationery, phone bills, office administration, as well as all the contingency and miscellaneous expenditures put together in a given trading period. We project to spend UShs. 6 million per month on SGA in the first year. This SGA expense is then set to increase by 5 per cent per annum thereafter.
Depreciation: We have used an average asset (including trading inventory) depreciation rate of 2.89% per month of total monthly sales revenues – which is based on the assumption that Depreciation is 10% of Fixed Assets. Since the cash flows show an increasing trend in periodical sales revenues, depreciation rates are also expected to move up in a similar fashion.
Electricity: These are the monthly utility bills that the pharmacy/cosmetics retail business expects to pay on electricity consumption basically. Starting off at a modest UShs. 100,000 per month, payments for the electricity utility are also expected to go up by 10% per annum in tandem with prevailing inflation rate trends.
Insurance: Since all the assets, stock of XYZ Pharmacy & Cosmetics Uganda Ltd. have to be insured comprehensively against all manner of risks and liabilities, we assume that we incur an insurance expense of about 1% on the market value of all core business assets. It is upon applying this ratio that the insurance premium cost progressively moves up from UShs. 2,000,000 in the first year, to UShs.
2,450,000 in the second year, and eventually peaking to UShs. 2,900,000 by the third year – reflecting a growing business trend for the business assets. Insurance premiums are paid once a year – only in the first month of each business year.
Rent: XYZ Pharmacy & Cosmetics Uganda Ltd. is a new pharmacy/cosmetics trading enterprise and is therefore staring out in hired/rented premises. Rental costs for a space that is deemed adequate and sufficient for this type of business in Mukono town are currently UShs. 500,000 per month. Rental costs are projected to increase by a factor of 10% per annum – in line with prevailing inflationary trends in the economy.
Legal Expense: This is an expense line that covers and includes such item as company registration, acquisition of pharmaceutical trading license, payment of affiliation fees with the relevant professional bodies/organizations, etc. Legal expenses are a flat-line expense that is paid out only once a year (i.e. usually in the first month). Cash flows show that the legal expense is UShs. 2 million in the first year, while it reduces to UShs. 1 million in the second year and third year respectively. This is explained by the fact that there are more company-formation legal expenses that are incurred at the commencement of business in the first year as compared to the subsequent trading years.
Expensed Equipment: This expense line is only shown for the first year of business. This is due to the fact that money is spent on purchasing capital equipment for internal use within the company premises and making the appropriate installations only once. Expensed equipment expenditure is also reflected in the Start Up expenses of the Business Plan literature and includes inter alia items like – office equipment (chairs, file cabinets, desks, etc.); front counter, storage bins, cash register, and assorted bottles, boxes, envelopes, etc. for dispensing and shipment.
D. Accounting Policies Applicable Loan Facility
Starting the pharmaceutical/cosmetics trading business will require a capital injection of UShs. 50 million. The principal project promoter of XYZ Pharmacy &
Cosmetics Uganda Ltd. – Ms. Nancy Miriam will make a personal equity injection of UShs. 10 million towards the total initial project capital cost. The project promoter then expects to raise the balance of UShs. 40 million as a soft loan facility. We have assumed that this loan will be recoverable in a period of 3 years from the date of contraction. The table below shows the breakdown of start-up project costs and source of funding.
S/No .
Expense Item Start Up Cost (UShs)
Financing (UShs)
Loan Funds Own Funds 1 Expensed
Equipment 8,000,000 0 8,000,000
2 Partitioning 7,000,000 7,000,000 0
3 Full computer set with a laser printer and back up system
1,250,000 1,250,000 0
4 Computer software
550,000 550,000 0
5 Installation of
computer system 900,000 900,000 0
6 Legal expenses 2,000,000 0 2,000,000
7 Electricity (first 5
months) 500,000 500,000 0
8 Rent (first 5
months) 2,500,000 2,500,000 0
9 Salary for
Pharmacist (first 5
months) 6,000,000 6,000,000 0
10 Salaries for 3 Nurses (first 5
months) 6,300,000 6,300,000 0
11 Purchase of drugs 10,000,000 10,000,000 0
12 Purchase of
cosmetics 5,000,000 5,000,000 0
TOTAL 50,000,000 40,000,000 10,000,000
Repayment of Principal
The UShs. 50 million loan facility is to be repaid to the lending institution in two (2) equal annual principal installments amounting to UShs. 20 million each p.a.
(Ref. to Cash Flow Analysis tables Year 1 – Year 3).
The proposed loan facility recovery schedule in this respect serves an instructional purpose and should thus be viewed as a functional pointer on the recovery schedule that XYZ Pharmacy & Cosmetics Uganda Ltd. proposes to employ in its efforts to recover the credit facility out of the financial resources and operating income generated by the sustained operational management of the pharmaceutical/cosmetics retailing business within the proposed timeframe.