Are you about starting a pharmaceutical distribution business? If YES, here is a complete sample pharmaceutical distribution business plan template & feasibility report you can use for FREE. Okay, so we have considered all the requirements for starting a pharmaceutical distribution business.

We also took it further by analyzing and drafting a sample pharmaceutical distribution marketing plan template backed up by actionable guerrilla marketing ideas for pharmaceutical distribution businesses. So let’s proceed to the business planning section.

Why Start a Pharmaceutical Distribution Business?

The pharmaceutical distribution companies can be referred to as companies that stand in the gap between drug manufacturing companies and retailing pharmacies as well as end users. This is an industry that is recession proof and so any enterprising entrepreneur can go into this business. To however start this kind of business, one would require knowledge of drugs and how distribution in this industry works.

One thing that must be done before starting this kind of business is to hire a business consultant who understands the industry and has knowledge on this kind of business and who would look into the business concept and determine if the business would survive and make profit as it should.

Another thing that would be required when starting this business is a comprehensive business plan. Writing a business plan is vital especially if you intend to approach an investor or a financial institution for a loan. Writing a comprehensive business plan might be a bit intimidating; however there are options available for any serious entrepreneur, which is either hiring a business plan writer to write a business plan or going online to source for free templates.

Below is one of such templates, a sample pharmaceutical distribution business plan;

A Sample Pharmaceutical Distribution Business Plan Template

1. Industry Overview

This is an industry that covers the wholesale of pharmaceuticals as well as medical goods. These drugs or medical goods are distributed to specialist retailers, hospitals, retail pharmacies, doctors, as well as specialist medical practitioners.

The pharmaceutical distribution industry generates revenue of over $30 billion and has a growth that has been tagged at 0.6% from 2012 to 2017. The industry is one that has more than 2,300 businesses employing nearly 67,000 people.

The industry is one that has undergone a great number of changes within the past five years with most of the players in the industry facing challenges; which is because most of those in the industry have moved away from the traditional wholesale model.

The changes that have occurred in the industry has been due to the fact that there are structural changes occurring as external players like the supermarket has entered into the provision of pharmaceutical services. Most of the changes in this industry came in during 2005, which was as a result of partial deregulation in the community pharmacies that came into effect in that year.

There has been progress in the industry over the last decade especially with the introduction of improved technologies and developed infrastructures. Globally in 2014, the industry was worth $1 trillion; which was an increase from 2013, where the industry was valued at $980.1 billion. The United States and Canada contributed 41% of sales in the industry.

In this industry, smaller pharmaceutical companies pose no direct threat to larger pharmaceutical distribution companies. This is because smaller companies eventually sell to larger pharmaceutical distribution companies years along the line.

The industry is stiff with competition as there is a strong competition amongst high-level workers and leading researchers.

2. Executive Summary

Dove Pharmaceutical Distribution Company is a standard drug distribution company based here in Louisville – Kentucky, USA that will serve our target market which constitutes smaller retail pharmacies as well as healthcare professionals. We are in business to offer generic and branded drugs to our customers here.

Our vision is to ensure that we are the preferred pharmaceutical distribution company in Louisville – Kentucky through our supply of quality drugs as well as offering the best prices for these drugs to our customers. Our aim is also to be the leading brand in the industry by the year 2022.

Our distribution channel is of the best standard practice and we have closed all loopholes that will not allow for a loose system of distribution. Our storage area is well ventilated and secured which means that our drugs are kept in a well ventilated area and free of dust and dirt.

We have deployed structures and plans in all our distribution processes in order to ensure that we remain abreast of all technological developments in the industry; this will ensure that we are able to give our customers our very best when it comes to serving them.

We are committed to bringing in competent and professional employees who have the knowledge and expertise necessary to bring our company to its desired level. We intend to ensure that our employees undergo training that will make them become more productive and also enhance their skill set.

Our employees will be well paid in comparison to other employees in similar start-ups such as ours in the industry. Asides from being well paid, our employees will undergo continuous assessment in order to ensure that those who perform well are well promoted or given incentives.

We intend to ensure that we offer our customers excellent service, the best in the industry. Our customer care executives have been well trained and are updated as regards the trends in the industry in order to better serve our customers.

Finally, our owner, Steve Bannon who is an entrepreneur has an MBA degree from Harvard and Victor Trump has been a sales representative for major drug manufacturers in and around Kentucky. Both men have over 30 years of experience and have the professional experience to ensure that the company gets to its desired level.

3. Our Products and Services

Our aim at Dove Pharmaceutical Distribution Company is to be able to supply both branded and generic drugs and other medical accessories to all our customers here in Louisville – Kentucky and in locations around the state as well.

We are also established to make profit and in order to ensure that we generate enough revenue to make profit; we intend to create multiple sources of income, by offering other services as well as creating a franchise for those who intend to use our drug distribution model when starting up rather than start from the scratch. All our sources of income will be under all the legal and permissible laws of the united states of America.

Therefore, some of the products and services which we intend to offer our customers are;

  • Sale of branded and generic drugs in wholesale to chain pharmacies, local pharmacies and internet pharmacies
  • Sale of medical related equipment
  • Advisory services
  • Franchises

4. Our Mission and Vision Statement

  • Our vision is to be the preferred pharmaceutical distribution company in Louisville – Kentucky through our supply of quality drugs as well as offering the best prices for these drugs to our customers. We also hope to be a leading brand in the industry by the year 2022.
  • In order to achieve our vision, we intend to ensure that we liaise with only trusted pharmaceutical companies as well as with doctors and other healthcare professionals in order to ensure that we source for as well as supply quality drugs to our customers.

Our Business Structure

Having a strong business structure is very important for any business that intends to be able to run smoothly with as less hitches as possible, because a sound business structure embodies the corporate values of the organization. This is why we are taking our business structure very seriously here at Dove Pharmaceutical Distribution Company and intend to build one that would take our business to where we intend it to be.

We intend to employ competent and professional employees into our pharmaceutical drug distribution company, especially those that understand the industry and have the right knowledge on how to ensure that we attain our desired goals and objectives as a business. We would continually ensure that our employees are well-trained so that this could enhance their skills and improve productivity for our business.

We would also ensure that these employees understand our corporate values as a business and are committed to our vision. Furthermore, we intend to ensure that the employees are well paid and given a welfare package that is the best across similar start-ups such as ours in the industry.

Therefore, the business structure which we intend building at Dove Pharmaceuticals Distribution Company is;

  • Chief Executive Officer
  • Human Resources and Admin Manager
  • Purchasing Manager
  • Inventory Manager
  • Accountant/Cashier
  • Customer Service Executive
  • Marketing and Sales Executives
  • Cleaner
  • Truck Driver
  • Security Guard

5. Job Roles and Responsibilities

Chief Executive Officer

  • Makes strategic decisions on behalf of the company
  • Reviews strategies made for the company and ensure that ineffective policies are tweaked
  • Negotiates with high level clients on behalf of the company

Human Resources Manager

  • Ensures that the right employees are sourced for and hired on behalf of the company
  • Conducts orientation training and induction for new staff
  • In charge of staff welfare packages and assessment trainings

Purchasing Manager

  • Sources for reliable drug vendors and manufacturers on behalf of the company
  • Prepares and reviews contract documents for these vendors and drug manufacturers
  • Ensures that the correct drugs are sourced on behalf of the company

Inventory Manager

  • In charge of ensuring that the correct stock is recorded on behalf of the company
  • Monitors the drugs taken out of the company
  • Ensures that depleted stock are replenished as soon as possible


  • Prepares all financial information and statements on behalf of the company
  • Ensures that correct tax document and information are submitted to the tax authorities
  •  Drafts the budgets on behalf of the company

Customer Service Executive

  • In charge of answering inquiries and helping clients with orders on behalf of the company
  • Ensures that complaints from clients are promptly resolved
  • Keeps an accurate database of customers on behalf of the company

Marketing and Sales Executives

  • Conducts marketing survey that will ensure that we gain new markets
  • Draft
  • Ensures that the premises are secured and safe especially after business hours
  • Monitors the surveillance camera to check incoming and outgoing products and personnel
  • Reviews security procedures and ensure that they are continually updated

6. SWOT Analysis

In order to ensure that we build a standard pharmaceutical distribution company here in Louisville – Kentucky, we hired a reputable business consultant to look at our business concept and know if we are able to survive in this business environment and how we would be able to fare against our competitors in the industry.

The business consultant took a look at our strengths, weaknesses, opportunities and threats that we were likely to face here in Louisville – Kentucky as well as in the whole of the United States of America as a whole.

Below is the result that was gotten from the critically conducted SWOT Analysis on behalf of Dove Pharmaceuticals Distribution Company;

  • Strengths

Our strength lies in the fact that we would be offering quality branded and generic drugs to our customers in order to keep up with our brand image. We also are located in a strategic location here in Louisville – Kentucky and have a competitive advantage over our competitors. Also, we have hired several competent and professional employees to ensure that we are able to attain our desired goals and objectives.

Also, asides from offering quality drugs to our customers, we also will offer several other services to our various customers. Finally, the owners of our company have the expertise and knowledge required to ensure that we attain our goals and objectives.

  • Weaknesses

There are stringent regulations for this industry as players have to abide by a huge number of regulations put forth by the government. There are also enough competitive players in the industry that we will have to compete with which might weaken our position in our location.

  • Opportunities

Most of the people who use more drugs are new born babies and the baby boomers asides those who are sick and there are increasing number of baby boomers in existence which means that there will always be a demand for drugs. Also, the increase in medical insurance has seen the increase in those who can purchase drugs for use.

  • Threats

Every business experiences threats every now and then and so every entrepreneur that intends to start or run a business should be prepared to face threats that would arise during the course of business and ensure that there are proactive measures to combat any threats.

Therefore the threats that we are likely to face during the course of starting this business are; governmental policies which might stem from tightening monetary policies that would affect the pharmaceutical industry. Another threat might be from increase in raw materials and labor costs which would affect the costs of our drugs; however we have put measures in place to cushion the effect of the rising costs.


  • Market Trends

The pharmaceutical distribution business is one where companies engage in the distribution of drugs at wholesale and retail level to customers either for end use or for further distribution to others in the drug distribution business. This market is one that is very important as it brings the drugs closer from the drug manufacturers to the consumers and or retailers.

Every pharmaceutical distribution company that intends to operate in a standard and efficient way must be willing to ensure that they have both branded and generic drugs ready for customers and ensure that the drugs are of a high quality for the consumers.

This is an industry that is very vital as everyone regardless of age requires drugs at every point in time, this means that there is always demand for the products in this industry and so it is an industry that can never be affected by economic downturn as people would always use drugs no matter what.

The trend in this industry is that people can come in to get drugs for themselves or have it sent to where they live as long as all documentations have been signed for and approved. Also, depending on the kind of drugs gotten, most end users usually pay for high end drugs through their insurance.

Lastly, technology has come to play a huge role in the pharmaceutical industry as research for drugs have become quicker amongst drug manufacturing companies ensuring that customers and healthcare professionals do not have to wait a very long time for drugs that would alleviate their ailments.

Asides, from research and development, technology has ensured that drugs are now distributed more efficiently and that there is more accountability for the distributors in order to stem the abuse of drugs. Technology has also helped drug manufacturing companies advertise the benefits of their drugs for their potential and existing customers making it easy for pharmaceutical distribution companies to be able to have quick turnovers for certain drugs that have received massive advertisement and publicity.

8. Our Target Market

Even though almost everyone uses drugs which should make the target market unlimited, the target market for pharmaceuticals distribution companies is actually more limited especially as huge drug distribution companies rarely serve end user customers.

However, to help us understand and know who our target market are, we have conducted a market research that should enable us strategize accordingly depending on our location and other factors that would allow us penetrate the target market.

In other words, the market research we have conducted would enable us know who our target market are and what they would expect from us in terms of service, and how best we can serve them. Therefore, from results, we are in business to distribute our drugs to the following groups of people;

  • Hospitals
  • Retail pharmaceutical companies
  • Healthcare clinics
  • Non-governmental organizations
  • Internet pharmaceutical companies
  • Specialist retailers

Our competitive advantage

Our reason for starting the pharmaceutical distribution business is so as to ensure that we build a business that we become the preferred pharmaceutical distribution company in Louisville – Kentucky through our supply of quality drugs as well as offering the best prices for these drugs to our customers. Our aim also is to be the leading brand in the industry by the year 2022.

We are going to be a pharmaceutical distribution company where our competitive advantage will be based on superior pricing, which will arise from us offering quality drugs at comparable low prices for our different clients. We would do this by ensuring that we operate a low overhead. This we believe will stand us out from our competitors.

Another competitive edge that we have against our competitors is the fact that we have hired experienced and competent employees who are professionals and understand the industry as well as our core values and therefore know how well to ensure that we attain our desired goals through their high level of commitment and productivity.

Another competitive advantage we have is that we employ the use of technology in ensuring that we serve our customers better. This results in better and efficient way of dealing with orders and delivery of our drugs. Finally, we have the best management team that will ensure that the business attains its intended goals and desires through effective communication and implementation of the company’s values to our customers.


  • Sources of Income

Dove Pharmaceutical Distribution Company has been established with the aim of generating revenue and making profit in the pharmaceuticals industry here in the United States of America. Our intention at generating revenue is to ensure that we offer a variety of products and services to our different clients here in Louisville – Kentucky.

We intend to generate revenue for Dove Pharmaceutical Distribution Company through the sale of these products and services;

  • Sale of branded and generic drugs in wholesale to chain pharmacies, local pharmacies and internet pharmacies
  • Sale of medical related equipment
  • Advisory services
  • Franchises

10. Sales Forecast

The industry is one that would always see a demand as people of all ages use drugs for various ailments and purposes.

Our positioning in Louisville – Kentucky is very vital to our growth and since we chose a strategic location, we are quite optimistic of meeting our target revenue and achieving a profit margin in the first year of business that will not only sustain the business but grow it as well.

In being able to carry out a sales projection for our business, we conducted a critical survey of the industry in order to analyze our chances in the industry. The critical analysis took several assumptions into consideration especially those that are peculiar to similar businesses such as ours in the drugs industry.

Below are the sales projections for Dove Pharmaceutical Distribution Company here in Louisville – Kentucky;

  • First Fiscal Year-: $1,500,000
  • Second Fiscal Year-: $3,000,000
  • Third Fiscal Year-: $6,500,000

N.B: This sale projection is done based on several factors that are obtainable in the industry such as the fact that there won’t be an arrival of a major competitor in our same location, and also that there won’t be an interference of governmental policies in our industry. Should there be any change either positive or negative in any of the factors, it would lead to an increase or decrease in the above projected figures.

  • Marketing Strategy and Sales Strategy

Marketing is a very important aspect of any business either start-up or existing business as it helps generate the revenue that will sustain the business. In order to ensure that we draft the right marketing strategies for our business, we intend to conduct a thorough market survey that would allow us know who our target market is and penetrate the business as well.

For this reason, we have hired a marketing consultant to help us conduct the market survey by using detailed information that we would use to be able to attract the intended number of customers to our pharmaceutical distribution business here in Louisville – Kentucky, and around the whole United States of America.

Most of our marketing strategies would be based on advertisements that are targeted towards the right audience and ones that will appeal to the sense of values of our customers. Asides from generating revenue for our business, our marketing strategies would also generate and increase awareness for our pharmaceutical distribution business, here in Louisville – Kentucky.

We would also ensure that we empower our marketing and sales team in such a way that they would be able to draft marketing strategies that would align with the corporate values and principles of Dove Pharmaceutical Distribution Company.

In summary, below are the marketing and sales strategies that we will adopt at Dove Pharmaceutical Distribution Company in order to generate revenue for our company;

  • Ensure that we align with several drug manufacturers, doctors and healthcare professionals and other stakeholders in the industry in order to introduce our pharmaceutical distribution industry
  • Throw a grand party during our launch in order to generate interest and awareness for our pharmaceutical distribution company
  • Engage in direct marketing and sales to our target market
  • Ensure that we place adverts in local and national newspapers, as well as on radio and television stations
  • Ensure that our pharmaceutical distribution business is listed in online and offline directories
  • Use social media platforms such as Facebook, LinkedIn, Twitter and Google Plus in order to raise awareness and market our pharmaceutical distribution business
  • Pass out handbills and fliers in conspicuous places in order to market and raise awareness for our business

11. Publicity and Advertising Strategy

Every business that is established to generate revenue and make profit does so in addition to be able to favorably compete with its other competitors either in the same environment or in other strategic locations that would have an impact on its own business. Drafting publicity and advertising strategies is very important for any business that intends to survive in the business environment.

We intend to hire a reputable brand consultant here in Louisville – Kentucky, who understands the market and knows the industry so well so that he could help us draft strategies that would positively promote our pharmaceutical distribution company to existing and potential customers here in Kentucky and around the United States of America as well.

Therefore, some of the publicity and advertising strategies that we would adopt at Dove Pharmaceutical Distribution Company are;

  • Ensure that we increase our awareness in the local community by sponsoring relevant community programs
  • Install our billboards in strategic and conspicuous locations in and around Louisville – Kentucky
  • Ensure that we place adverts in local and national newspapers and on radio and television stations
  • Ensure that we distribute fliers and handbills in target locations
  • Use our social media platforms – LinkedIn, Facebook, Google Plus and Twitter – to positively promote our business
  • Sponsor weekly or monthly press releases on the benefits of pharmaceutical distribution companies as well as other information that would benefit the target market

12. Our Pricing Strategy

In determining the right prices for selling our drugs, we intend to take so many factors into cognizance. The factors we intend to look at that will help us determine what prices to set for our drugs are; overhead costs, operating costs, as well as what prices our competitors are offering similar drugs for. We will ensure that the prices for our drugs remain competitive enough in order not to chase away customers.

Due to this, we intend to offer a discount on the prices of our drugs especially to customers especially those that pay for the drugs out of their pockets without using insurance for the first 3 months in operation. Due to our calculations, we are sure that we would be able to survive on low margins for the three months that we would be offering these discounts to our existing and potential customers here in Louisville – Kentucky.

  • Payment Options

Ensuring that our customers have different options when it comes to paying for their drugs is very important to us and so we have come up with different payment options platform that will suit all our different types of customers. Therefore the different payment options we intend to offer our customers here at Dove Pharmaceuticals Distribution Company are;

  • Payment via cash
  • Payment via Point of Sale (POS) Machine
  • Payment via online payment portal
  • Payment via Insurance
  • Payment via check
  • Payment via credit card

The above payment options are ones that were carefully chosen for us by our bank and will work without hitches of any sorts to our various customers.

13. Startup Expenditure (Budget)

Every business needs to lay out a breakdown on how it intends to spend its initial capital and what it would spend it on. The pharmaceutical distribution company is one that requires a huge capital especially in buying the drugs needed for distribution on a large scale, buying a delivery truck, leasing a facility and paying employee salaries and utility bills.

Therefore the key areas where we intend to spend our start-up capital are;

  • Total business registration fee in the United States of America – $750
  • Other legal expenses (licenses and permits) and software (accounting, admin, drug, and other software pertinent to customers) – $5,250
  • Leasing of a huge facility for at least two years and renovation of the facility – $300,000
  • Cost of hiring a business consultant – $20,000
  • Insurance coverage (workers’ compensation, general liability) – $5,000
  • Operational cost for the first 3 months (employees’ salaries, payment of utility bills) – $200,000
  • Marketing promotion expenses (For grand opening ceremony as well as general marketing expenses) – $10,000
  • Other start-up expenses (stationery, computer, phones, cash machines, scales for shipping) – $10,000
  • Cost of start-up inventory (drugs, packaging materials, assorted bottles and shipping boxes) – $500,000
  • Storage hardware – (shelves, bins, signage) – $3,000
  • Cost of purchasing two delivery trucks – $400,000
  • Cost of launching a website – $1,000
  • Cost of throwing an opening party – $5,000
  • Miscellaneous – $20,000

From the above breakdown, we would need an estimate of $1,180,000 in order to successfully start up and operate our pharmaceutical distribution company here in Louisville – Kentucky. It should be noted that the above amount includes employee’s salaries, leasing of a facility as well as purchasing of inventory and delivery trucks. It should also be noted that most of the items purchased will be used for more than a year and can be termed as assets.

Generating Funding / Startup Capital for Dove Pharmaceutical Distribution Business

Dove Pharmaceutical Distribution Company is a business owned and operated by two partners, Steve Bannon, an entrepreneur, who has an MBA degree from Harvard and Victor Trump, who has been a sales representative for major drug manufacturers in and around Kentucky.

The two men intend to grow a business that is of high standards and have therefore decided to seek for start-up capital from the below sources. Therefore the areas where they intend to seek for capital are;

  • From personal savings and sale of stock
  • Apply for loan from bank
  • Seek loan from private investor

N.B: From personal savings and sale of stocks, we were able to generate the sum of $230,000. We sought for a loan of $650,000 repayable at 3% interest in 5 years from our bank that has been approved as all documents pertaining to the loan have been signed and we are told to expect the amount in our account anytime soon.

Finally, we have sought for a loan of $300,000 from a private investor who is asking for 3% equity in return. He has also offered to mentor us in certain areas.

14. Sustainability and Expansion Strategy

No business is established with the intention of failing or not growing to a particular level. Our business is no different and our intention to draft sustainability and expansion strategies is to ensure that we remain in business for a very long time. In this regard, we intend to hire competent employees; we supply quality brand and generic drugs, and also ensuring that we retain a high number of our existing and potential customers.

Hiring competent employees is very vital as the employees are the ones who take the business to its desired goal, this is why it is very important to hire those who are attuned to the company’s goals and also understand it and are committed to ensuring that they help bring the company to where it is supposed to be.

Our employees will be well trained so that the productivity will be increased for the company. We will also ensure that our employees are not only well paid with great welfare packages but we will also ensure that they work in an environment that is deemed conducive and safe.

Our aim is to ensure that we supply quality drugs that are either branded or generic to our various customers. We know and understand the importance of ensuring that our brand is associated with the distribution of drugs – either branded or generic – that are of high quality, and so we would liaise with drug manufacturers and healthcare professionals as well as other stakeholders to ensure that we are aware of what drugs to get and distribute for our various customers in the United States of America.

Finally, we know how important our customers are to us and so we intend to ensure that we retain a high level of our customers. We intend to offer our customers excellent service the kind that is unrivalled across the industry. Also, our repeat customers will receive a certain kind of discounts from us as well as those who refer others to us.

Also, our customer service executives are well trained to handle all the inquiries and orders from our various clients here in Kentucky and also all around the United States of America. We believe that the above sustainability measures when deployed will be of immense benefit to our business.

Check List / Milestone

  • Business Name Availability Check: Completed
  • Business Registration: Completed
  • Opening of Corporate Bank Accounts: Completed
  • Securing Point of Sales (POS) Machines: Completed
  • Opening Mobile Money Accounts: Completed
  • Opening Online Payment Platforms: Completed
  • Application and Obtaining Tax Payer’s ID: In Progress
  • Application for business license and permit: Completed
  • Purchase of Insurance for the Business: Completed
  • Conducting feasibility studies: Completed
  • Generating capital from family members: Completed
  • Applications for Loan from the bank: In Progress
  • Writing of Business Plan: Completed
  • Drafting of Employee’s Handbook: Completed
  • Drafting of Contract Documents and other relevant Legal Documents: In Progress
  • Design of The Company’s Logo: Completed
  • Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
  • Recruitment of employees: In Progress
  • Creating Official Website for the Company: In Progress
  • Creating Awareness for the business both online and around the community: In Progress
  • Health and Safety and Fire Safety Arrangement (License): Secured
  • Opening party / launching party planning: In Progress
  • Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
  • Purchase of trucks: Completed