Nutrolat: Complementary Medicine Practice In Nutrition

Business Description and Legal Structure

The business or trading name of the new business of complementary medicine practice in nutrition is “Nutrolat”.

The new business of Nutrolat will be as a sole trader that is also known as sole proprietorship in which the business owner will be legally responsible for all the aspects of the contemporary medicine practice (Schaper, Volery, Weberand Gibson2014).

As Nutrolat will have a sole proprietorship business it will be the simplest form of the business structure that will be comparatively simple and inexpensive to set up. Moreover, the new business of contemporary medicine practice will take decisions regarding starting and running business (Watson, McGowanand Cooper2016).

The products that will be offered by Nutrolat includes a wide range of prescription drugs or supplements for nutrition to the patients residing within Australia. The services that will be offered by Nutrolat will include offering teaching sessions to patients regarding nutrition, hypertension and diabetes.

Certain nutrition-based supplements will be offered by Neutrolat will include fiber powder, plant protein, supplements in weight management vitamin tablets and sports nutrition products(Watson, McGowan and Cooper 2016). These products will be highly tested, researched and formulated to develop a product that needs the nutritional needs of people.

For commencing this new business, a building space will be taken on lease for the use by this Nutrolat company This location will be situated on the main street and the space will have backstop parking for eight cars and will have enough space for storing medicines and for doctors to have separate space for chamber(Watson, McGowan and Cooper 2016).

The domain name selected for the Nutrolat complementary medicine is www.nutrolat.org.

Retail drug license is needed by Nutrolat complementary medicine practice for carrying out the new business. Such drug licence will be required for setting up the pharmacy business and will be under the review of “State Drugs Standard Control Organization”(Watson, McGowan and Cooper 2016).

Vision

The new business will have vision of offering nutrition drugs that will focus on offering high quality health care to the residents within the Australian locality.

Goals

The business goals set by Nutrolat are mentioned below:

• To form a health care practice that is capable to service off its own cash flow in 12 months.
• To position itself among the renowned companies offering nutrition based products in the locality.

Objectives

The business objectives set by Nutrolat are mentioned below:

• To increase revenue from its nutrition based products by 10% at the end of first year of its business
• To increase its loyal consumer base by 12% at the end of its first year of business

Mission and Legal Structure

The mission of the new nutrient drug company “Nutrolat” is to form a health care practice that is capable to service off its own cash flow in 12 months. The new business of offering nutrition drugs will focus on offering high quality health care to the residents within the Australian locality(Watson, McGowan and Cooper 2016). Moreover, the legal structure of Nutrolat will be so that the drug transactions are governed by the General Terms and Conditions of nutritional products sold by the new drug company. The legal structure of the business has also mandated that it will obtain separate license for manufacturing each nutrient based supplement and drug.

Mission Description and Legal Structure

Certain legal and regulatory requirements are to be followed by Nutrolat in carrying out its business operations in a sustainable manner. Certain regulatory provisions will be followed by Nutrolat that includes the following:

• As per the food and drug safety act of Australia, Nutrolat must make sure that the nutrition products of the company that contain allergenic or hypertensive ingredients are recognized within the rules of label declaration provided within the drug safety law(Watson, McGowan and Cooper 2016).
• Nutrient based drugs of Nutrolat must include substances that are intended for use as drug components that includes empty gelatin capsules.

Strengths · Wide network · Increased trust and goodwill · Satisfaction of dealer · The supplements have been designed with extreme case	Weaknesses · There is high distribution cost and they have dealer network in remote locations · It is also doubtful a leader can sustain the momentum that the company is able to maintain through successful planning is carrying out in full swing · Pushing products aggressively can makeconsumers feel irritated
Opportunities · Due to increased health concerns there is a huge opportunity for health and nutritional supplements sale · There are major competitors that can pose a threat to this new business	Threats · Low barriers to entry

Nutrolat will position itself as the supplement for nutrition and will try to eliminate the various types of medicines that is been used for nutrition and save a huge amount of money for the customers(Watson, McGowan and Cooper 2016). The competitive edge for the product is its all-in-one nature that will fulfill all the requirement for nutrition a body needs to function properly and remain healthy.

Nutrolat is deemed to face tough competition from the local family practitioners and from major nutrition-based drug company. There are several nutrition-based companies in Australia because of increasing health concerns in the nation (McKenzieand Sansone2017).

Nutrolat, being the supplement for the nutrition could be used by various age groups and hence the strategies could be segregated into two various segments (Rathod2016). It will generally be marketed as a product which completes the whole nutrient requirement of the body with so side-effects. Hence the advertisements would be provided in the local newspapers to reach the nearby customers and newsletters coupled with advertisement in magazines will be provided to target customer from other places. Moreover, social media can also be used to make people aware of the product (Matheis 2014). Therefore, the primary mission of Nutrolat is to provide its customer a supplement for various medicines to fulfill their nutrition requirement. The motto of the product is to ensure the health of the customer is maintained and replace the medicines which generally has side-effects.

The main objective behind marketing of the product is to increase sales volume and even replace medicines. Furthermore, secondary objective is to reduce the expenses of the customers on nutrition providing medicines and replace the same with Nutrolat (Chambersand Humble2017). The target market for the product will be primarily aged people and women who might lack nutrition. However, it will also attend the needs of various other working people and kids. The marketing mix of the production is of most importance and hence the same is mentioned below:

• Product- The product is the Nutrolat which is a supplement for nutrition and the same will be available for various age groups as per their gender. Moreover, the same will also be available in different flavors with attractive packaging (McKenzie 2017). The packaging will be available is such a way that it will be distinctive for all the age group so as one does not need to read it but can understand just by seeing the product.
• Price- The product will not be very high priced but should be affordable by even the lower middle-class people. The primary aim of the product is the replacement of different kinds of medicines for nutrition for one product that is Nutrolat. Moreover, discounts will be provided when purchased in bulk or even BOGO offers will be provided with realistic prices (Finch 2016).
• Place- While in Australia, the product will not only be available in medical sore but also convenience stores. The product will be also advertised and distributed in malls while conducting marketing campaigns. It will also be available on online stores and people could buy it online which will be delivered as soon as possible.  
• Promotion- It will be promoted with the help of medical representative so as to convince the doctors to prescribe it to patients. Moreover, all of its benefits will be shown to the people to make them take a wise decision (Jung, Choand Choi2015).

Nutrolat Company will employ certain people such as:

• Phone representatives or sales agents: Two at month three and an additional employee at the sixth month of business operation
• Pharmacists that will have one year of experience
• Pharmaceutical technicians that has an experience of six months to two years
• Counter person or phone representatives that has an experience of one to two years
• Order fulfillment agents that has three months to one year of experience in that field

Certain specialist services will be offered by Nutrolat to all its target consumer segments in order to attain high competitive edge within the Australian pharmaceutical market. Such services are explained under:

• Clinic of Nutrolat is a general family practice and will offer excellent treatment to all its patients of all ages, income, races, ethnicities and physical abilities (Mastorakis and Siskos 2016). The nutrition product selling companywill be offered through family clinic that does not require creating any marketing materials specified at one or two of such groups that can appeal to all consumers with similar message.
• Nutrolat will also offer general and specialist nutrition product-based services along with offering offices and clinics of nutritionists and then prescribing certain specific nutrition products (Brownand Grundy2016).

The hours of operation of the Nutrolat is observed to be from 10 am to 11 pm all the days from Montary to Saturday except Sunday.

Legal and Regulatory Requirements

Certain supplier agreement along with the credit terms will be followed by Nutrolat in operating its new nutrition product-based business (Jekunen2014). The agreement will make sure that the suppliers of the company such as raw materials of the nutrition-based supplements. In addition, raw materials have been condemned or seized and the raw material receipt date at Nutrolat destination will be received. The supplier must offer warrants that can facilitate the nutrition productsselling company along with providing insurance certificate as an additional issued endorsement (Bullockand Horne2017).

With the recent years focus on human health as well as well-being certain equipment requirement, the requirements for safety and quality of dietary supplements (Tichyet al.2014). Nutrolat also makes sure of maintainingequipment’s that will measure product safety and quality. Moreover, certain equipment’s that will also be used by this new business will be delta track metabolic cart, mini mitter activity monitors, lange skinfold calipers, panitabio electrical impedence analyzer and sitron multi frequency bioelectric spectrometer (Kang2018). Such equipment’s will be helpful in tracking the effectiveness of such nutrient products as well as proper manufacturing of the same.

Nutrolat will use the software of Master controlpharmaceutical document management software that will offer a better control and facilitates in increasing overall time to market (Cook2016). This record keeping software implementation will facilitate in promoting efficiency, simplifying workflows and making compliance simpler. Automation in the record keeping prices of Nutrolat company will be ensured through which the pharmaceuticaldocument management system can decrease the document cycle time along with approving suchdocuments on nutritional products. Document control can be integrated with the e-submission tools that can offer line of products and services focused on providing nutritional products and advices to consumers in a virtual workplace (Montalván, Vélez and Rodríguez2017).

Startup Expenses
Buildings / Real Estate
Purchase	$                       40,000
Construction	10,000
Remodeling	–
Other	500
Total Buildings and R / E	$                       50,500
Leasehold Improvements
Fiber powder	$                         5,400
Plant protein	$                         5,500
Teaching sessions on nutrition	$                         4,500
Sports nutrition products	$                         4,300
Total L / H Improvements	$                       19,700
Capital Equipment List
Furniture	$                       55,000
Equipment	$                         1,500
Fixtures	$                         1,500
Machinery	$                         6,500
Other	$                         2,500
Total Capital Equipment	$                       67,000
Location and Admin Expenses
Rental	$                                  –
Utility Deposits	5,500
Legal and Accounting Fees	4,500
Prepaid Insurance	55,000
Pre-opening Salaries	5,500
Other	5,500
Total Location and Admin Expenses	$                       76,000
Opening Inventory
Category 1	$                         2,560
Category 2	$                         2,450
Category 3	$                         2,350
Category 4	$                         2,250
Category 5	$                         2,560
Total Inventory	$                       12,170
Advertising and Promotional Expenses
Advertising	$                         1,400
Signage	$                         1,500
Printing	$                         1,600
Travel & Entertainment	$                         1,700
Other / Additional categories	–
Total Adv and Promo expenses	$                         6,200
Payroll and payroll taxes
Expense 1	$                       25,000
Expense 2	25,000
Total Payroll and payroll taxes	$                       50,000

To maintain sustainability of the new business, Nutrolat will focus on implementing certain sustainability strategies such as establishing certain systems and processes that ensures business model innovation (Parikhet al.2018). The new business will consider maintaining efficient supply chain with better supplier self-assessment that will ensure sustainable packaging of all its urgent drugs.

	Fixed Expenses
Fixed Expenses
Bldgs / Real Estate	$                   50,500
Leasehold Improvements	19,700
Capital Equipment	67,000
Location / Admin Expenses	76,000
Opening Inventory	–
Advertising / Promo Expenses	6,200
Other Expenses	50,000
Total Fixed Expenses	$                 269,400
	Variable Expenses
Inventory or Materials	673632.0
Direct labor (includes payroll taxes)	3262363.0
Other expenses	873232.0
Other expenses	673267.0
Salaries (includes payroll taxes)	672367.0
Supplies	83393933.0
Total Variable Expenses	8954879400%
Breakeven Sales level   =	0

		Year 1	Year 2	Year 3	Year 4	Year 5	Total
Operating activities
	Net income	$0	$0	$0	$0	$0	$0
	Depreciation	$27,440	$27,989	$28,538	$29,086	$29,635	$142,688
	Accounts receivable	$0	$0	$0	$0	$0	$0
	Inventories	$0	$0	$0	$0	$0	$0
	Accounts payable	$0	$0	$0	$0	$0	$0
	Amortization	5,000	5,000	$5,000	$5,000	$5,000	$25,000
	Other liabilities	25,000	25,000	$25,000	$25,000	$25,000	$125,000
	Other operating cash flow items	0	0	$0	$0	$0	$0
	Total operating activities	$57,440	$57,989	$58,538	$59,086	$59,635	$292,688
							$0
Investing activities						$0
	Capital expenditures	$0	$0	$0	$0	$0	$0
	Acquisition of business	15,000	15,000	15,000	15,000	15,000	$75,000
	Sale of fixed assets	$10,000	$10,000	$10,000	$10,000	$10,000	$50,000
	Other investing cash flow items	0	0	0	0	0	$0
	Total investing activities	$25,000	$25,000	$25,000	$25,000	$25,000	$125,000
Financing activities
	Long-term debt/financing	($95,000)	$0	$0	$0	$0	($95,000)
	Preferred stock	0	0	0	0	0	0
	Total cash dividends paid	5,000	5,000	5,000	5,000	5,000	25,000
	Common stock	0	0	0	0	0	0
	Other financing cash flow items	5,000	5,000	5,000	5,000	5,000	25,000
	Total financing activities	($85,000)	$10,000	$10,000	$10,000	$10,000	($45,000)
Cumulative cash flow	($2,560)	$92,989	$93,538	$94,086	$94,635	$372,688
Beginning cash balance	$0	($2,560)	$90,429	$183,966	$278,053
Ending cash balance	($2,560)	$90,429	$183,966	$278,053	$372,688

		Year 1	Year 2	Year 3	Year 4	Year 5
Gross revenue		$80,000	$81,600	$84,864	$89,956	$97,152
Cost of goods sold		$67,000	$68,340	$71,074	$75,338	$81,365
Gross margin		$13,000	$13,260	$13,790	$14,618	$15,787
Other revenue [source]		$56,000	$57,000	$58,000	$59,000	$59,650
Interest income		$670,000	$680,000	$685,000	$690,000	$695,000
Total revenue		$739,000	$750,260	$756,790	$763,618	$770,437
Sales and marketing		$6,200	$6,324	$6,577	$6,972	$7,529
Payroll and payroll taxes		$50,000	$51,000	$53,040	$56,222	$60,720
Depreciation		$27,440	$27,989	$28,538	$29,086	$29,635
Maintenance, repair, and overhaul		$0	$0	$0	$0	$0
Total operating expenses		$83,640	$85,313	$88,155	$92,280	$97,885
		$655,360	$664,947	$668,636	$671,337	$672,553
Interest expense on long-term debt		$0	$0	$0	$0	$0
		$655,360	$664,947	$668,636	$671,337	$672,553
Loss (gain) on sale of assets		$8,876	$8,900	$89,500	$89,500	$90,000
Other unusual expenses (income)		$0	$0	$0	$0	$0
		$664,236	$673,847	$758,136	$760,837	$762,553
	30%	$199,271	$202,154	$227,441	$228,251	$228,766
		$464,965	$471,693	$530,695	$532,586	$533,787

Nutrolat is observed to face certain business risks in selling its nutrient based drugs that needs to be controlled by this new business. These risks can include politics in healthcare, business ethics by the medical practitioners (Solaimani, Heikkilä and Bouwman, 2017). To deal with such risks perfect monitoring of the nutrient drugs sold by the practitioners is necessary along with making sure that the post marketing monitoring of pharmaceutical products and its side effects is carried out.

Business and Financial Risk Analysis

Certain effective policies and procedures are to be followed by Nutrolat in operating business in profitable manner. The company must follow the regulatory rules related with drug related concerns such as safety, quality, quantity, pricing, patents, market flow and the research and development incentives (Uzarskiet al.2015). It is also deemed to be important for Nutrolat to follow the policies set by Australian Food and Drug Association in which the consumers can attain benefit from access to advanced pharmaceutical system in the world.

 It is important to comply with the laws, rules, regulations and professional standards presented in the Charter including the dieticians Association of Australia statement of Ethical practice and Code of professional conduct. It should help in making sure that the company adheres to the laws, rules and regulations and ensures following the organizational policies and procedures to remain sustainable within the business environment. It is done for the purpose of promoting the nutrition based drugs and medicines considering the fact that those can make people lead a healthy and better life (Uzarski et al., 2015). Nutrolat’s organizational policies and procedures should allow the staffs to get involved in the nutrition care, furthermore understand their roles and responsibilities by gaining relevant education and training related to the various aspects of nutrition care. The organizational policies and procedures would assist them in understanding the role of food and nutrition that could support the patients for achievement of the optimal nutrition, prevent malnutrition and improve the clinical outcomes of the patients (Solaimani, Heikkilä and Bouwman¸2017). 

The medical practices in nutrition should be based on the Australian Dietary Guidelines for the patients. Not only the staffs would provide nutrition related I formation to the patients, but would also maintain the food hygiene and safety issues for ensuring faster recovery, proper health and wellbeing (Parikh et al., 2018).  

This policy would help the company to manage the medical practices properly, furthermore maintain proper level of micro-nutrients in the body to overcome the health issues and improve the clinical outcomes. It could enable providing the right medicines to the individuals that would be safe for maintaining the health and hygiene of the people.

This policy on drugs should focus on reducing the drug related harms and maintain a balance between the supply reduction, demand reduction and strategies to reduce the chances of harm (Cook, 2016). The supply reduction techniques aimed at managing the illicit drugs at the borders and within Australia as well, implemented by the Commonwealth law enforcement agencies. This would help in improving the skills of workers through training and development, monitor and evaluate the collection of data and information regarding the drugs, prevent illicit usage of drugs and identifying the best practices to treat the patients effectively.

Strategies in dealing with threats and weaknesses

The Compliance policy would enable wholesale pharmacy distribution to more than 5000 independent pharmacies across Australia and set the right prices to influence the consumer buying behaviors too (Uzarski et al., 2015). It would also maintain the quality standards and make sure that the products are distributed properly in the marketplace.

In promoting the nutrition-based drugs of Nutrolat, certain effective advertising strategies are implemented (Reymen, Berends, Oudehand and Stultiëns 2017). The company will distribute leaflets to all its patients that also contains factual information regarding services. Social media channels such as Facebook and Website can be used in promoting the biographical information, location, photos, medicinal benefits of the nutrition drugs. In addition, patient friendly brochures, videos and mailings will also be used.

The competitive advantages that can be attained by Nutrolat is its superior pricing. This are nutrition-based drug company will be a low-cost provider by making sure that the costs for its nutritional products are kept low through operating efficiencies (Burns 2016). The costs set for the products is deemed to be justified based on the exceptional medicinal qualities provided by its nutrition supplements that is not yet offered by its competitors. This can further offer Nutrolat with competitive advantages including offering quick shipment and front store pick up along with offering superior consumer service.

Certain legal and regulatory requirements are to be followed by Nutrolat in carrying out its business operations in a sustainable manner (Steenkameret al.2018). Certain regulatory provisions will be followed by Nutrolat that includes the following:

• As per the food and drug safety act of Australia, Nutrolat must make sure that the nutrition products of the company that contain allergenic or hypertensive ingredients are recognized within the rules of label declaration provided within the drug safety law (Austin 2016).
• Nutrient based drugs of Nutrolat must include substances that are intended for use as drug components that includes empty gelatin capsules.

Conclusion

The business or trading name of the new business of complementary medicine practice in nutrition will be “Nutrolat”. The new business of offering nutrition drugs will focus on offering high quality health care to the residents within the Australian locality. Moreover, the legal structure of Nutrolat will be so that the drug transactions are governed by the General Terms and Conditions of nutritional products sold by the new drug company. Social media channels such as Facebook and Website can be used in promoting the biographical information, location, photos, medicinal benefits of the nutrition drugs. The costs set for the products is deemed to be justified based on the exceptional medicinal qualities provided by its nutrition supplements that is not yet offered by its competitors. This can further offer Nutrolat with competitive advantages including offering quick shipment and front store pick up along with offering superior consumer service.

Competitor analysis

References

Austin, M., 2016. Business development for the biotechnology and pharmaceutical industry. Routledge.

Brinckmann, J. and Kim, S.M., 2015. Why we plan: the impact of nascent entrepreneurs’ cognitive characteristics and human capital on business planning. Strategic entrepreneurship journal, 9(2), pp.153-166.

Brown, L. and Grundy, T., 2016. Project management for the pharmaceutical industry. Routledge.

Bullock, K.C. and Horne, S., 2017. A Didactic Community Pharmacy Course to Improve Pharmacy Students’ Clinical Skills and Business Management Knowledge. American Journal of Pharmaceutical Education, p.ajpe6581.

Burns, P., 2016. Entrepreneurship and small business. Palgrave Macmillan Limited.

Chambers, I. and Humble, J., 2017. Plan for the planet: a business plan for a sustainable world. Routledge.

Cook, A.G., 2016. Forecasting for the pharmaceutical industry: models for new product and in-market forecasting and how to use them. Gower.

Finch, B., 2016. How to write a business plan. Kogan Page Publishers.

Jekunen, A., 2014. Decision-making in product portfolios of pharmaceutical research and development–managing streams of innovation in highly regulated markets. Drug design, development and therapy, 8, p.2009.

Jung, J.H., Cho, D.Y. and Choi, S.Y., 2015. Study on Medicine Related Policies for Management Strategies and Performances of the Pharmaceutical Industry. The Korean Journal of Health Service Management, 9(4), pp.157-169.

Kang, H.D., 2018. Pharmaceutical Start-ups’ Technology and Financing Strategy. Journal of Pharmaceutical Innovation, pp.1-12.

Lidstone, J. and MacLennan, J., 2017. Marketing planning for the pharmaceutical industry. Routledge.

Mastorakis, K. and Siskos, E., 2016. Value focused pharmaceutical strategy determination with multicriteria decision analysis techniques. Omega, 59, pp.84-96.

Matheis, S., 2014. Preparation of a Class A certification in the field of pharmaceutical packaging through mapping and optimization of business processes and implementation of the Oliver Wight Class A Behaviors for Business Excellence.

McKenzie, D., 2017. Identifying and spurring high-growth entrepreneurship: experimental evidence from a business plan competition. American Economic Review, 107(8), pp.2278-2307.

McKenzie, D.J. and Sansone, D., 2017. DP12523 Man vs. Machine in Predicting Successful Entrepreneurs: Evidence from a Business Plan Competition in Nigeria.

Montalván, Á.O.Y., Vélez, K.M.C. and Rodríguez, J.F., 2017. Study of the methods for decision making in the monitoring and control of production in the ecuadorian pharmaceutical industries for project use using comprehensive control panel and business.

Parikh, D., Burnside, S., Bhat, S.S. and Liu, J., Celgene Corp, 2018. Pharmaceutical tablet. U.S. Patent Application 29/594,820.

Rathod, S., 2016. Injunctions in Indian Pharmaceutical Patent Infringement Actions: Some Observations.

Reymen, I., Berends, H., Oudehand, R. and Stultiëns, R., 2017. Decision making for business model development: a process study of effectuation and causation in new technology?based ventures. R&D Management, 47(4), pp.595-606.

Schaper, M.T., Volery, T., Weber, P.C. and Gibson, B., 2014. Entrepreneurship and small business.

Solaimani, S., Heikkilä, M. and Bouwman, H., 2017. Business Model Implementation within Networked Enterprises: A Case Study on a Finnish Pharmaceutical Project. European Management Review.

Steenkamer, B., Baan, C., Putters, K., van Oers, H. and Drewes, H., 2018. Population health management guiding principles to stimulate collaboration and improve pharmaceutical care. Journal of health organization and management, 32(2), pp.224-245.

Tichy, E.M., Pilch, N.A., Smith, L.D., Maldonado, A.Q. and Taber, D.J., 2014. Building a business plan to support a transplantation pharmacy practice model. American Journal of Health-System Pharmacy, 71(9), pp.751-757.

Uzarski, D., Burke, J., Turner, B., Vroom, J. and Short, N., 2015. A Plan for Academic Biobank Solvency—Leveraging Resources and Applying Business Processes to Improve Sustainability. Clinical and translational science, 8(5), pp.553-557.

Watson, K., McGowan, P. and Cooper, S., 2016. Reimagining the extracurricular business plan competition through the incorporation of effectuation.