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is a medical marketing company specializing in pharmaceutical, biotechnical and medical device detailing for the benefit of the medical community. DocBuzz, Inc. is the only company of its kind; a business especially designed for doctors and the medical community, owned and operated by practicing physicians. The pharmaceutical market is one of the most profitable industries, with revenue in excess of $96.3 billion annually. The problem that the pharmaceutical industry has is simply time. Time for research and development, time for branding, time for marketing and sales, time to gain the trust and acceptance of the medical community. In this industry, we can equate time with money. Two additional industries have similar situations with their products. Those industries are the biotech and the medical device companies. While the revenues are not as great as what one will find within the pharmaceutical industry, these companies face heavy competition within their own individual industries. DocBuzz, Inc., has developed a method that allows all of these industries to benefit from prelaunch marketing, product branding, and postlaunch sales support--all accomplished with the direct intervention of practicing physicians. DocBuzz, Inc., gives the client companies the opportunity to market directly to the decision makers, establishing immediate credibility through our extensive network of physicians and other medical professionals. Providing live conferences, 24 hours a day, seven days a week, access to a myriad of current information on various pharmaceutical products, new biotech developments and medical devices, medical chat rooms, and online marketing make our e-detailing the most cost effective of any service offered. The pharmaceutical, biotech and medical device industries will contract with DocBuzz, Inc., to provide marketing services, and because we are practicing physicians, we have immediate access to our colleagues. We can deliver these companies' message directly to the decision makers for 75% of what these industries are currently budgeting. In addition, DocBuzz, Inc., by virtue of its unique incentive program will allow additional revenue to participating physicians and other medical practitioners. DocBuzz has developed a winning strategy to provide the best and most up to date information to the medical community, while providing a method for these industries to announce, promote and market their products through respected practicing physicians. The individual professionals within the medical community benefit by receiving the most up to date industry information, all received via the Internet, and at the end of the e-detailing they will have the option to request samples, additional information on the product and/or the visit from a pharmaceutical company representative. Professionals on our medical panel can earn points by participating in our e-detailing and/or by referral of others who join our program.
3. 4.
1.2 Mission
DocBuzz, Inc., offers pharmaceutical, biotechnical and medical device manufacturers a reliable, high quality alternative to in-house resources for sales and marketing. DocBuzz, Inc., improves the return on sales and marketing investment by accelerating the physician learning curve on prelaunch, new, and existing products--through Web access to educational detailing and marketing research. In addition, DocBuzz, Inc., will benefit small and innovative biotechnology and pharmaceutical companies that do not have an extensive sales force to cover North America.
1.3 Objectives
To establish ourselves as a premier pharmaceutical e-detailing company, targeting medical professionals-i.e. physicians, nurse practitioners, physician assistants, dentists, and podiatrists. We will offer value added services such as CME, current medical information updates, and physician meeting facilities (chat room and bulletin board). To hire staff both currently identified and unidentified to implement our business concept. To sign up 5% of the more than 650K prescribing medical professionals by year three, and provide 300K pharmaceutical detailing per year, by year three. To reach a break-even point of $35,936 by the end of year two
Company Summary Experienced physicians founded DocBuzz, Inc., as a company providing high-level expertise in e-detailing of pharmaceutical, biotechnical products and medical equipment to physicians and other medical professionals. It serves to capitalize the growing number of small and mid-sized companies as well as established larger companies to improve upon the awareness of pharmaceutical products and to increase the written prescription pattern of such products.
Start-up Funding
$99,000
$309,000
$408,000
Assets
$5,000
$304,000
$0
$304,000
Total Assets
$309,000
Liabilities
Current Borrowing
$0
Long-term Liabilities
$0
$0
$0
Total Liabilities
$0
Capital
Planned Investment
Investor 1
$158,000
Investor 2
$250,000
$0
$408,000
($99,000)
Total Capital
$309,000
$309,000
Total Funding
$408,000
Start-up
Requirements
Start-up Expenses
Legal
$3,000
Stationery etc.
$20,000
Brochures
$7,500
Consultants
$20,000
Insurance
$2,500
Rent
$10,000
$5,000
Expensed Equipment
$30,000
Other
$1,000
$99,000
Start-up Assets
Cash Required
$304,000
$5,000
Long-term Assets
$0
Total Assets
$309,000
Total Requirements
$408,000
Services DocBuzz, Inc., offers e-detailing of pharmaceutical products and augmentation of pharmaceutical companies sales forces. According to the IMS Health Report, pharmaceutical detailing is a 50 billion dollar a year industry. Detailing is the portion of the pharmaceutical sales organization that provides information on new pharmaceutical products, faceto-face meetings with physicians, physician assistants, and nurse practitioners. Detailing is vital as new products are introduced, because the pharmaceutical companies must then make the medical professionals aware of the products, the method of administration, side effects and a myriad of other information. DocBuzz, Inc. offers the pharmaceutical companies the ability use e-detailing, which offers all of the benefits of the standard method of detailing, but with this difference: DocBuzz, Inc., uses the Internet, websites, personal referral networks, conferences, and Web conferences to achieve effective results at a lower cost to the pharmaceutical companies.
DocBuzz, Inc., provides a support infrastructure to pharmaceutical companies' sales representatives nationwide by offering 24 hour, seven day a week service through our online literature and sampling requests. Our company represents client companies, as an extension of its already established pharmaceutical sales force, not as a replacement. As a physician owned company, we understand first-hand our client's endeavor to reach the busy, hurried medical provider, and the frustration and failure of missed contacts. We offer an additional tool to insure that the pharmaceutical company's message is delivered and that the expenditure time with the medical professional is more productive. The physician will not have the time to listen to pharmaceutical sales representative but will make the time to talk to a trusted member of the medical community. More importantly, the product recommendations are considered more credible since the recommendation is coming from a physician. By using our Internet sampling request, physicians will make their needs known to us, and in turn, we pass that information directly to the sales representative. This increases the productivity of both the sales representative and the physician. One of the tasks of a pharmaceutical company is to provide educational descriptions of their products to targeted physicians. This is most cost effectively achieved by the Internet's 24/7 access availability, and our unique incentive program (VIRP). By associating with DocBuzz, pharmaceutical representatives, a vital part of the industries marketing and sales, could offer email response or telephone the physician at a more convenient time 24 hours a day, seven days a week.
Andersen Consulting surveyed 68 senior marketing and sales executives representing 18 large pharmaceutical companies in North America. The finding illustrates the pressure that the industry is experiencing. The difference between an average performance operating margin and the high performance-operating margin is 42%. That is not much of a difference, until one realizes that this is a one billion dollar industry, and if DocBuzz could simply improve a companies marketing and sales capability by 30%, that would translate into an additional $135 million in operating margin. The pharmaceutical industry generates $93.6 billion annually. Our greatest competition comes from the pharmaceutical industry itself. The competitive pressure within the industry provides the perfect climate for us to launch our services. The industry has to make marketing and strategic alliance decisions so quickly, that markets are being ignored and these markets, when combined, are huge. For example, currently there is no e-detailing to the thousands of Physician Assistants and Nurse Practitioners. Research indicates that there are approximately 650,000 physicians in the United States; however, there is at least twice that number of Physician Assistants and Nurse Practitioners in the United States. The DocBuzz, Inc., target market, in addition to physicians, is to the physician assistants and nurse practitioners. DocBuzz, Inc., has identified four start-up companies that are in various stages of development. These companies are:
These businesses are focusing on e-detailing to the physician, but are not actively marketing to the physician assistants or nurse practitioners. In addition, we are the only company that is physician owned and operated. This difference is significant because as practicing physicians, we have the ability to reach the medical decision maker. As physicians, we have strong credibility when making a recommendation to a colleague. This ability will translate into increased prescription pattern of pharmaceutical products that we recommend.
3.4 Technology
DocBuzz, Inc., will have complete e-detailing facilities with the ability to prepare and deliver interactive multimedia presentations. We will have the capabilities to provide live chat, and prerecorded video presentations on a private and secured site. DocBuzz, Inc., facilities house complete e-detailing operations, including the ability to prepare and deliver customized multimedia presentations. The ability to provide this type of interactive service is vital since it is one aspect of our company that separates us from our competition. As technology improves, the services we offer to the pharmaceutical, biotech and medical devices companies will grow as we incorporate the new improved technology.
3.6 Fulfillment
DocBuzz, Inc., will provide consulting, sales and marketing service to the pharmaceutical industry. The pharmaceutical companies will pay an upfront fee for our consulting service. In addition, DocBuzz, Inc., will generate additional income streams by selling products that our clients produce; retaining the difference between the wholesale and the retail price of the product.
Additional detailed information regarding the sales forecast, unit price, sales, direct unit cost and direct cost of sales is found in the Sales Strategy section
Market Analysis Summary Currently, the largest market segment is the pharmaceutical industry. In addition to pharmaceuticals, DocBuzz, Inc., will also target the fast growing biotechnical companies and medical device manufacturers. The market has demonstrated a sustained annual growth of approximately 11 percent. With this growth, the R and D costs will continue to increase. Through our prelaunch and marketing services, we will enable the pharmaceutical products to gain faster market share and increase their return on investment.
Market Analysis
Year 1
Year 2
Year 3
Year 4
Year 5
Potential Customers
Growth
CAGR
Pharmaceutical Companies
14%
31
35
40
46
52
13.80%
Medical Professionals
14%
650,000
741,000
844,740
963,004
1,097,825
14.00%
Bio Tech
17%
1,000,000
1,170,000
1,368,900
1,601,613
1,873,887
17.00%
Medical Devices
7%
3,000,000
3,210,000
3,434,700
3,675,129
3,932,388
7.00%
Total
10.39%
4,650,031
5,121,035
5,648,380
6,239,792
6,904,152
10.39%
Strategy and Implementation Summary The United States pharmaceutical market is the initial focus of DocBuzz, Inc., emphasizing the sale of pharmaceutical products to all targeted professionals. A special DocBuzz, Inc., liaison is assigned to the pharmaceutical company to evaluate their current market position, its strength and weaknesses. Then, DocBuzz, Inc., will design a complimentary e-marketing strategy and a targeted list of medical professional end users. Due to the shear amount of revenue that the pharmaceutical industry generates, this is the primary targeted industry. The quickly growing biotech and the less quick moving medical devices industries will receive similar service. Both of these industries require prelaunch marketing and focusing the medical community's attention on the new products, the benefits that these new products will bring, and basically building market needs prior to the product's official launch.
DocBuzz, Inc., will utilize the principal's personal contacts within the pharmaceutical, biotech and medical device industry. All brochures and interactive CD presentations will be designed and created by DocBuzz, Inc. Personal telephone calls by one of the physicians will follow every mailing of material. Live presentations and question and answer sessions will be arranged by DocBuzz, Inc.
The industry average per face-to-face-detailing is $200, with poor to moderate effectiveness. DocBuzz, Inc., provides e-detailing availability 24 hours a day, 7 days a week for the modest charge of $150 per e-detailing. DocBuzz, Inc., offers discounts for high volume clients (package discounts).
DocBuzz, Inc., will use contacts that are known to the principals of the company as a base on which to build our network core. DocBuzz, Inc., will use the Internet to deliver literature mailing requests and real time demonstrations. Literature mailing, phone sales, automated multimedia Power Point presentations, and personal visits by our principle physicians.
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Sales Forecast
Year 1
Year 2
Year 3
Sales
Pharaceutical Companies
$1,775,000
$1,900,000
$3,000,000
Medical Professionals
$717,000
$500,000
$1,000,000
Bio-Tech
$1,440,000
$430,000
$1,714,200
Medical Devices
$600,000
$750,000
$850,000
Other
$0
$234,800
$417,992
Total Sales
$4,532,000
$3,814,800
$6,982,192
Year 1
Year 2
Year 3
Pharaceutical Companies
$9,170
$20,000
$30,000
Medical Professionals
$2,395
$25,000
$60,000
Bio-Tech
$34,200
$43,000
$55,000
Medical Devices
$24,000
$24,000
$24,000
Other
$0
$0
$0
$69,765
$112,000
$169,000
5. 6.
Established Internet product distribution organizations--for example, Amazon.com, Buy.com, and various Travel sites. Other medical Internet sites for cross promotion.
5.5 Milestones
The table below indicates specific milestones that we feel are critical to our success. The reader will notice that we listed each specific milestone, start and end date, budget allocated (if any) the specific person responsible for the successful accomplishment. As each milestone is reached, it is deleted out of our plan, and replaced with a new milestone. This is an example of why our business plan will never be complete, we view it as a living document that is in a constant state of change and growth. We meet on a monthly basis, to review our milestones, and meet with our strategic consultants on a monthly basis, until such time as the consultants can be replaced with our own employees.
Milestones
Milestone
Start Date
End Date
Budget
Manager
Department
3/4/2001
5/1/2001
$0
Mike Wu
Admin
5/3/2001
6/3/2001
$1,500
DFN
Consultant
5/20/2001
7/5/2001
$600
Mike Wu
Admin
5/1/5393
7/5/2001
$0
DFN
Consultant
7/5/2001
12/30/2001
$3,000
Other
5/1/2001
12/30/2001
$0
Dr. Rayner
Admin
Totals
$5,100
Management Summary The company recognizes that initially we have management gaps. The company is seeking to fill these positions, and should the company require the services of one or more of these positions, the company will hire a consultant to fill the role of a virtual executive as the immediate need presents itself. Robert E. Rayder, MD, FAAP Founder and Principal Michael Y. Wu, MD, FAAP Founder and Principal Dr's. Rayder and Wu are university-trained pediatricians with a combined 35 years experience in successful private practice. They have significant involvement in the medical and pharmaceutical communities. Both hold faculty positions in several university/medical schools. CEO (TBA): We are actively searching a dynamic individual MBA with both pharmaceutical and Internet expertise to manage the overall operation of the company. IT Director (TBA): The IT director will oversee the IT development of the company including Web development. CFO (TBA): The CFO will be in charge of the overall finance of the company. Marketing Director (TBA): The marketing director will develop and implement the marketing plan of the company.
Personnel Plan
Year 1
Year 2
Year 3
Dr. Wu
$75,000
$75,000
$82,500
Dr. Rayder
$75,000
$75,000
$82,500
CEO
$50,004
$50,004
$55,000
IT Director
$39,996
$39,996
$44,000
Marketing Director
$39,996
$39,996
$44,000
Secretary
$22,800
$23,500
$25,000
Secretary 2
$0
$22,800
$23,500
Secretary 3
$0
$22,800
$23,500
Bookkeepter
$0
$0
$22,800
Secretary 4
$0
$0
$22,800
Secretary 5
$0
$0
$28,000
CFO
$50,004
$50,004
$55,000
Total People
12
Total Payroll
$352,800
$399,100
$508,600
Read more: http://www.bplans.com/medical_internet_marketing_business_plan/management_summary_fc.php#ixzz1wHaoHDrC Financial Plan We are looking to fund a total package of $836,000 to support our growth plan, management style and vision. This total package has been broken into three phases, which is important to note, since at any time the management may decide that further funding is not necessary. Our three-year sales projection shown below, profit and loss statement, cash flow analysis and balance sheet herein supports this financial plan.
General Assumptions
Year 1
Year 2
Year 3
Plan Month
10.00%
10.00%
10.00%
10.00%
10.00%
10.00%
Tax Rate
30.00%
30.00%
30.00%
Other
The following benchmark chart indicates our key financial indicators for the first three years. We project major growth in sales and operating expenses during times of expansion.
Break-even Analysis
$55,836
Assumptions:
2%
$54,976
Year 1
Year 2
Year 3
Sales
$4,532,000
$3,814,800
$6,982,192
$69,765
$112,000
$169,000
$0
$0
$0
$69,765
$112,000
$169,000
Gross Margin
$4,462,235
$3,702,800
$6,813,192
Gross Margin %
98.46%
97.06%
97.58%
Expenses
Payroll
$352,800
$399,100
$508,600
$204,000
$214,000
$224,000
Depreciation
$0
$0
$0
Leased Equipment
$30,000
$30,000
$30,000
Utilities
$0
$0
$0
Insurance
$0
$0
$0
Rent
$19,992
$20,000
$20,000
Payroll Taxes
$52,920
$59,865
$76,290
Other
$0
$0
$0
$659,712
$722,965
$858,890
$3,802,523
$2,979,835
$5,954,302
EBITDA
$3,802,523
$2,979,835
$5,954,302
Interest Expense
$0
$0
$0
Taxes Incurred
$1,140,757
$893,951
$1,786,291
Net Profit
$2,661,766
$2,085,885
$4,168,011
Net Profit/Sales
58.73%
54.68%
59.69%
Year 1
Year 2
Year 3
Cash Received
Cash Sales
$4,532,000
$3,814,800
$6,982,192
$4,532,000
$3,814,800
$6,982,192
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$4,532,000
$3,814,800
$6,982,192
Expenditures
Year 1
Year 2
Year 3
Cash Spending
$352,800
$399,100
$508,600
Bill Payments
$1,395,906
$1,342,043
$2,225,381
$1,748,706
$1,741,143
$2,733,981
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
$0
Dividends
$0
$0
$0
$1,748,706
$1,741,143
$2,733,981
$2,783,294
$2,073,657
$4,248,211
Cash Balance
$3,087,294
$5,160,951
$9,409,162
Year 1
Year 2
Year 3
Assets
Current Assets
Cash
$3,087,294
$5,160,951
$9,409,162
$5,000
$5,000
$5,000
$3,092,294
$5,165,951
$9,414,162
Long-term Assets
Long-term Assets
$0
$0
$0
Accumulated Depreciation
$0
$0
$0
$0
$0
$0
Total Assets
$3,092,294
$5,165,951
$9,414,162
Year 1
Year 2
Year 3
Current Liabilities
Accounts Payable
$121,528
$109,300
$189,500
Current Borrowing
$0
$0
$0
$0
$0
$0
$121,528
$109,300
$189,500
Long-term Liabilities
$0
$0
$0
Total Liabilities
$121,528
$109,300
$189,500
Paid-in Capital
$408,000
$408,000
$408,000
Retained Earnings
($99,000)
$2,562,766
$4,648,651
Earnings
$2,661,766
$2,085,885
$4,168,011
Total Capital
$2,970,766
$5,056,651
$9,224,662
$3,092,294
$5,165,951
$9,414,162
Net Worth
$2,970,766
$5,056,651
$9,224,662
Ratio Analysis
Year 1
Year 2
Year 3
Industry Profile
Sales Growth
0.00%
-15.83%
83.03%
8.60%
0.16%
0.10%
0.05%
46.70%
100.00%
100.00%
100.00%
74.90%
Long-term Assets
0.00%
0.00%
0.00%
25.10%
Total Assets
100.00%
100.00%
100.00%
100.00%
Current Liabilities
3.93%
2.12%
2.01%
42.80%
Long-term Liabilities
0.00%
0.00%
0.00%
17.20%
Total Liabilities
3.93%
2.12%
2.01%
60.00%
Net Worth
96.07%
97.88%
97.99%
40.00%
Percent of Sales
Sales
100.00%
100.00%
100.00%
100.00%
Gross Margin
98.46%
97.06%
97.58%
0.00%
39.73%
42.39%
37.88%
83.50%
Advertising Expenses
1.32%
1.83%
1.15%
1.20%
83.90%
78.11%
85.28%
2.60%
Main Ratios
Current
25.45
47.26
49.68
1.59
Quick
25.45
47.26
49.68
1.26
3.93%
2.12%
2.01%
60.00%
128.00%
58.93%
64.55%
4.40%
122.97%
57.68%
63.25%
10.90%
Additional Ratios
Year 1
Year 2
Year 3
58.73%
54.68%
59.69%
n.a
Return on Equity
89.60%
41.25%
45.18%
n.a
Activity Ratios
12.49
12.17
12.17
n.a
Payment Days
27
32
24
n.a
1.47
0.74
0.74
n.a
Debt Ratios
0.04
0.02
0.02
n.a
1.00
1.00
1.00
n.a
Liquidity Ratios
$2,970,766
$5,056,651
$9,224,662
n.a
Interest Coverage
0.00
0.00
0.00
n.a
Additional Ratios
Assets to Sales
0.68
1.35
1.35
n.a
4%
2%
2%
n.a
Acid Test
25.45
47.26
49.68
n.a
Sales/Net Worth
1.53
0.75
0.76
n.a
Dividend Payout
0.00
0.00
0.00
n.a