May 15, 2015 VITALITY PHARMACY BUSINESS PLAN

National Student Business Plan Competition

University of Tasmania Representatives

Vitality Pharmacy Team Members: Chanelle Rolls, Jenna Leighton,

Lauren Haworth and Mark Jones

Guild National Student Business Plan Competition Contents Page

EXECUTIVE SUMMARY- HIGHLY DIFFERENTIATED SERVICE AND COMMUNITY OUTREACH SERVICE – Page 2
OVERVIEW OF THE BUSINESS – Page 4
MARKETING AND SALES STRATEGY – Page 4
MANAGEMENT TEAM AND PERSONNEL SUMMARY – Page 7
OPERATIONS MANAGEMENT - Page 8
FINANCIAL FORECASTS – Page 10

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 May 15, 2015 VITALITY PHARMACY BUSINESS PLAN

EXECUTIVE SUMMARY- HIGHLY DIFFERENTIATED SERVICE AND COMMUNITY OUTREACH SERVICE

Innovative Professional Service
Currently, there is not a 24 hour pharmacy in Tasmania; nor is there the market to sustain one. However, there is a gap
that needs to be bridged. Emergency services are being unnecessarily burdened with call-outs to people who could be
tended to by a pharmacist. Furthermore, ambulances are increasingly attending avoidable incidents regarding drug
related problems. Our aim is to reduce this burden and improve the quality use of medicines, especially in terms of
preventing adverse drug related outcomes and better managing chronic disease. We will do this through increasing the
access to essential medications and empowering the community with education. The 2014 ‘Tasmanian After Hours
Survey’ conducted by the Tasmanian Medicare
Local over a four day period in pharmacies around
the state concluded that: ‘Of the total number of
patients presenting with a non-script primary health
care query (n = 498), the highest proportion of
these patients received over-the-counter Medicine
(n = 449), followed by Health Advice (n = 162). A
small proportion of patients were referred to a
General Practitioner (n = 40), an Emergency
Department (n = 5) or an Allied Health professional
(n = 5).’

Patient outcomes for non-script primary health care queries (n = 498)

A pharmacy as a business relies on its accessibility. There is at least one pharmacy in almost all regional centers however
this does not mean that all people can access a pharmacy easily during business hours. In Lindisfarnes surrounding
suburbs up to 20% of the adult population do not own a car and there is limited accessible public transport. Many
families only own one car, which is occupied during the day by one of the parents who to go to work. Additionally,
elderly patients who are still living at home, often get their family and neighbours to collect their medications for them
and never get to talk to their pharmacist face-to-face.

You can buy insurance for almost anything; through our service, we aim to provide ‘medication access insurance’ or 24-
hour access. Our 24-hour pharmacy has an out-of-hours phone number which is redirected to the proprietor pharmacist
who is ‘on call’. The pharmacist then assesses the patient via voice call or video (Skype or FaceTime) conference and
decides whether; a pharmacist call out is warranted (eg. if a ‘Pharmacist Only’/S3 medication is required/ if they can
wait until the morning) or if the patient needs to be referred on to an emergency service.

Vitality Pharmacy will be providing home deliveries with a difference. The difference being the opportunity to talk with a
pharmacist in your own home. Our service will cost a yearly subscription fee, that can be paid annually or direct debited
throughout the year, and will require our customers to leave their prescriptions on file in store. In return, our customers
will receive; a regular delivery, the ability to add on front of shop items, the opportunity to regularly engage with a
pharmacist, up to 3 additional after hours/non-regular deliveries each year and the peace of mind that they will never
be without their essential medications.

We will strive to build trusting relationships with our community which will result in our business coming to mind as the
first-port-of-call for all of their health concerns and queries. Bringing together the convenience of online ordering, direct
delivery, buying locally and being able to interact regularly with a health professional, Vitality Pharmacy will be creating
a vital ‘after hours and beyond’ service for Tasmania.

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 May 15, 2015 VITALITY PHARMACY BUSINESS PLAN

Community Outreach Initiative

The population of Australia is aging and technology is continuously improving. So, we are going to get in ahead of the
pack to bring these two facts together. In our store, there will be four pods available for free self-health monitoring of
blood pressure, blood glucose and weight/waist circumference/BMI. Each pod will have an iPad® with attachments for
measuring and recording each of these. In each pod, and on the iPads®, will also be information regarding what these
health measurements mean and when they should consult the pharmacist for further advice and information. One of
the three pods will be set-up for a pharmacist or trained assistant to facilitate blood glucose checks. All of the devices
and programs we use will be available for patients to come in to our store and use for free and will also be available for
rent, so that people can have them in their own home, through ‘Staying Connected’. Our pods can also be used for
private consultations with patients. Our delivery vehicle will always have an iPad® with the required attachments so that
blood pressure and blood glucose can be checked if required at the time of medication delivery. Our aim is to teach our
community how easy these devices are to use and record their health statistics in our pharmacy or within their own
home, as well as promote the overall importance of monitoring and taking control of one's own health.

To come into our store and use the self-health pods is free, however, each patient will need a password to gain access to
the iPads®. To get a password, each patient will first have to attend one of our information and demonstration sessions.
We will run a free morning tea on the first pension day of each month (these dates will be put on our store’s free
calendar), which will also help increase foot traffic into the pharmacy. At these morning teas, we will be demonstrating
and teaching our older community how easy and useful technology can be for their health and overall quality of life. As
many older people live away from their family, the ability to use technology and applications like Skype® and Facebook®
will also enable older Australians to better engage with their family, friends and community; improving their mental
health. As people become more familiar with the technology, we can also help them to access applications that can help
keep your brain active and thus potentially decrease the onset of dementia and associated conditions.

At each of our morning teas, we will have a representative from Integrated Living Tasmania. Integrated Living have a
program called ‘Staying Connected’ which has funding to have iPads rented out to older Australians over 65 for a small
nominal fee of $8.00 a week, including internet access.
Initially, we will focus on three health issues, being; hypertension, weight management and diabetes. We will link in with
state and national health promotions to facilitate our marketing. In the future, we aim to roll out education and training
on using our technology for many other chronic health problems including hyper/hypothyroidism, pain, asthma and
COPD, high cholesterol and depression. There is the potential that once this program is functioning well, we can
franchise the model to other pharmacies around Australia.

OVERVIEW OF THE BUSINESS

Vitality Pharmacy is located on Hobart’s Eastern Shore; Lindisfarne, Tasmania. We are situated in the shopping precinct,
just off the highway to adjoining neighbouring suburbs. With just a 15 minute drive from Tasmania’s capital city, Hobart,
Vitality Pharmacy aims to bridge a health care gap that can currently be seen in Tasmania. We are an independant
pharmacy group, delivering exceptional health advice and quality products right across the Eastern Shore. Owned and
managed by four innovative, highly qualified and game-changing pharmacists, Vitality Pharmacy is the breath of fresh air
needed to motivate our community to achieve the best outcomes for their health.

MARKETING AND SALES STRATEGY

We plan to make Vitality Pharmacy the name associated with the community’s health care needs. The pharmacy is
located in an area that has potential for financial growth and as a vital player in the healthcare domain, we plan to be a
key part of this. We will take a varied approach to marketing by advertising through a number of mediums. This will
allow us to target specific demographics in a cost efficient way.
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The main focus of our marketing campaign will be to differentiate us from other pharmacies. We will not only focus on
the benefits of shopping at Vitality Pharmacy, but also highlight the health services we offer. Consumers are often
unaware of what services a pharmacy can offer. We believe advertising them will increase their awareness and
therefore increase their use. Our varied advertising techniques will give us an advantage in the competitive market.

We are focused on becoming a more

sustainable and eco-friendly pharmacy. We
will updating the lighting in our pharmacy
to line up with the Sustainable Pharmacy
Program initiatives as well as encouraging
customers to recycle their paper bags from
their pharmacy goods if a bag is required.
We will do this with a message printed on
the bags themselves. We are also giving
out reusable bags with purchases over
$40.00. At current we have identified that
our printing costs and we are aiming to
reduce these significantly by becoming as
‘paperless’ as possible. We will be emailing
all CMI’s to patients instead of printing
them out, alternatively they can access
CMI’s on the Medadvisor app.
Traditional Advertisement
Vitality Pharmacy will continue to use traditional avenues for advertising such as radio and television. We understand a
large proportion of our customers will be older so we’ll use advertisement that they are used to. These forms of
advertisement are designed to raise the visibility of Vitality Pharmacy. We will advertise our products, services and
upcoming events.
Online Presence
We expect our younger customers and hopefully eventually our older customers to have basic competency in
technology. Vitality Pharmacy has a regularly updated website. Our customers can use this website to browse our
products, keep up to date with events and even order ahead. The convenience of our website will allow our customers
access to our pharmacy from anywhere. It also allows us to advertise all products available from our wholesalers
without necessarily having to stock the item in store. This will allow more floor space for our other services. We will also
utilise social media to promote our business. We will use both Twitter and Facebook. These will allow us to engage with
the community and easily promote the events we are running. This can be with both text and images. Vitality Pharmacy
will also be able to promote our Facebook page through inexpensive advertisement. We can target this advertisement
to locals who are likely to utilise our services. This will allow us to save money by not advertising to irrelevant people.

Vitality pharmacy is currently producing an app for various mobile devices. As well as being a valuable tool for the
consumer, this app will provide a unique avenue for us to promote our business. Once the app has been downloaded it
will be displayed on the user’s home screen. This means they will view our logo multiple times a day even when the app
itself isn’t in use. This can remind the consumer about our business as well as prompt them to return. The application
will also produce push notifications that can remind consumers of their need to collect their repeat prescriptions. This
will increase the number of returning customers. The push notifications can also be set to show the consumer unique
promotions that are only available to customers using the app.

Company Car

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The planned overhaul of our delivery system will lead to our company car being on the road for more hours. Our car will
be fully branded with the Vitality Pharmacy logo. It will also be painted to match the colour theme of our pharmacy. We
plan on this car becoming somewhat of a ‘novelty’ in the community to draw attention to it, this will allow our car to be
free advertisement around the areas we offer our delivery service.
Vitality Pharmacy Calendar
Vitality Pharmacy will offer our customers free calendars annually. These calendars will include the Vitality Pharmacy
logo as well as our contact details. Each month will also contain a number of our products as well as information about
the services we offer. The calendars will also display when each monthly free morning tea/pod information is. The
calendars will provide year-long advertisement for Vitality Pharmacy in the consumer’s home and serve as a prompt to
return to our pharmacy. These calendars cost just under $5.00 each and we will offset this cost by offering advertising
space for local businesses that do not compromise our pharmacies message to advertise in. These calendars will become
somewhat of a community calendar with our constant branding rather than purely pharmacy based, we want to work
with the community for the better of the wider communities health.
Vitality Bags
Since November 2013 Tasmania has been plastic bag free. This means retailers cannot provide consumers with non-
biodegradable, lightweight plastic bags. As a marketing strategy we are going to have reusable fabric bags which are
given for free to anyone who spends over $40.00 in the pharmacy or they can be purchased for $2.50.
Other Business Considerations
Our business partners have negotiated and been able to secure care of the local 190 bed nursing home Queen Victoria
Nursing Home. These patients are all on dose administration aids. To ensure we make the most of this opportunity
financially we are outsourcing the packing of these aids to ‘Dose-Aid’ at a cost of 98c/day per person. This also greatly
decreases staff requirements for the packing and we only require minimal staffing to check these packs. These packs are
also done for patients in the community and are charged at the same cost as the current concession co-payment. This
means the cost of having it packed is in line with the cost of their medicines thus making it easier for patients to follow
the cost. This means that the cost also increases with the concessional cost thus taking into account cost of inflation on
the business, unlike other models in which the same cost is charged every year.
Due to the recent PBS changes there has been a loss of gross profit, we are going to focus on gaining back the loss by
maximising our opportunities. Unfortunately we cannot guarantee any extra funding past June 30 2015 so as a business
we should not rely on this money. Should the money become available past June we will endeavor to change the
process in which we approach customers. For example a customer who is eligible for a medscheck is also likely to be a
good candidate for a home medication review as well as signing up to a dose administration aid program, it is important
to capitalise on all opportunities that present themselves for both the best case scenario for our business and thus
ensuring the best care for the patient. This frame of mind should be used when assessing all patients.
Our pharmacy will also be part of the sustainable pharmacy program as originally trialled by the Pharmacy Guild of
Australia and Seed Consulting Services. We will focus on cutting electricity costs by turning off all computer equipment
at night and considering heating requirements, especially at the end of the day. We will initially invest funds into newer
more energy efficient light fittings which will decrease energy costs year after year.
When comparing our rental costs to benchmarks of similar pharmacies around Australia we were paying almost triple
per sq. metre. It is possible that the shop is too big or that the location is particularly expensive, however we believe
that the premises is ideal and convenient for our customers, at present there are no smaller or cheaper suitable
premises in the area. We have however been able to negotiate with the landlord to sign a ten year lease agreement as
our lease is due to expire in two years. As a result of these new lease terms the landlord has agreed to decrease our rent
costs by one third.
We are bringing stock levels down to within benchmarking as stock turn for this pharmacy is 6.7 times per year which we
consider to be too low. We would aim for a stock turn between nine and 11 (in line with industry benchmarks), this
equates to a stock decrease $80,000. Most of the decrease in stock needs to come from Front of Shop stockholding, so
we will carefully monitor our purchases and range of these products. These funds can be used to reduce debt or to
invest back into the business. The stock turn of prescription items is appropriate (14 times per year).

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Marketing costs are significantly higher than benchmarking due to our new services being implemented. This extra
marketing funding is important, although It should subsequently
decrease after the first year.

MANAGEMENT TEAM AND PERSONNEL SUMMARY

Pharmacist and Operations Manager - Chanelle Rolls
Chanelle has a keen eye for detail. Her strengths are in formulating, undertaking and evaluating policies and procedures
to ensure an efficient daily running of the business. Chanelle is first and foremost a pharmacist who enjoys building solid
relationships with her customers. She understands the social strengths and limitations of the southern Tasmania and
hopes to make a difference in the health of her community.
Pharmacist In Charge - Jenna Leighton
With experience in both management and leadership, Jenna oversees the day-to-day running of the pharmacy. Jenna
understands the importance of maintaining communication to all staff, customers and stakeholders. The creative flare
that she brings to the business keeps everyone on track, engaged and motivated. She believes that education is key;
facilitating staff education regularly to keep everyone informed and up-to-date. Jenna is a committed advocate for
quality use of medicines and, together with her team, is constantly striving to improve the health care of Tasmanians.
Pharmacist and Marketing Manager - Mark Jones
Mark has always had a passion for innovation. He has a unique ability to see marketing opportunities in everyday life.
Some say Mark puts the Mark into marketing. Mark has experience in a variety of pharmacy settings as well as other
retail environments. He brings this wealth of experience to our business giving us an advantage over our competitors.
Mark is also a fully qualified pharmacist allowing him to contribute to all aspects of the pharmacy.
Pharmacist and Financial Advisor - Lauren Haworth
Lauren Haworth is our resident number cruncher. She has a number of financial qualifications to compliment her
pharmacy degree. Lauren isn’t afraid to make the tough financial calls if it will help our business thrive. Lauren’s financial
knowledge compliments her use of Xero Accounting System, this helps us keep accountant costs down.
Vitality Employees
The best asset to any business is good staff, not only are good staff pertinent to creating a loyal customer base but they
are also on the frontline of preventing shoplifting. The business as it currently stands is overstaffed when compared to
industry benchmarks. In order to make this business more viable we need to reduce staffing in the short term with the
vision to return to a higher staff level in the future years. We will assess dispensing patterns and point of sale statistics
from software in order to best tailor our staffing needs to the busier times of the day. We expect to have 1.8 FTE
proprietor pharmacists with the other 2 part time proprietor pharmacists each working a day of the weekend and
rotating through deliveries during the week. We have one full time dispense technician as well as one full-time
pharmacy assistant, a part-time pharmacy assistant and two pharmacy students who share the weekend shifts.

All staff are encouraged to pursue any further education within the scope of pharmacy. The pharmacy offers any
applicable training to its employees and if they take up an opportunity we will assist them with either full or part
payment of the training. All staff are mental health first aid trained and those that drive the car have completed a
defensive driving course to ensure their safety when at work. Two of our proprietors are already consultant pharmacists
and the other two are Stage 1 accredited. We have budgeted for these proprietors to become fully accredited.

Jenna our pharmacist in charge will be based in the dispensary and works with the dispense technician on checking
scripts, counselling patients on their medicines and looking after the nursing home patients. Chanelle, our pharmacist
and operations manager is based out the front of the dispensary and fills the role of a Maitre D pharmacist. She will help
patients who come in to use our health pods. Chanelle is in charge of KPIs to try and help raise our S2 and S3 sales. Our
on call roster that supports the 24-hour pharmacy initiative is staffed by all four proprietors as this helps reduce staff
costs.

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Our dispense technician’s role is to assist the workflow of scripts in and out as well as to oversee dispensary processes
and ordering. This frees up the pharmacist to reach the full potential of our redesigned pharmacy processes.
Our full time pharmacy assistant is in charge of front of house processes including stock control and point of sale service.
This assistant works in conjunction with Chanelle, our Maitre D pharmacist to best serve our customer’s needs and is
responsible for overseeing the other pharmacy assistants. All pharmacy assistants are responsible for cleaning the
pharmacy.

OPERATIONS MANAGEMENT
This Operations Management System (OMS) will be implemented to drive our pharmacy toward achieving our desired
business performance outcomes and results. We will focus on improving employee performance by aligning the business
goals with employee objectives. The OMS provides specific and measurable Key Performance Indicators (KPI’s) for all
facets of our pharmacy business model and continuous monitoring of these KPI’s will ensure employees are performing
to the expectations defined in their job descriptions. This drives the need for continuous informal and formal feedback
and identifies when new expectations and parameters need to be set. Our OMS seeks to improve our overall
productivity by aligning our business vision and mission to set KPIs so that every employee is working towards a
common goal.
Vitality Pharmacy vision
Vitality Pharmacy- equitable primary health care access for all.
Vitality Pharmacy mission
To ensure quality primary health care is accessible to all people in our community by providing a pharmacist led ‘unique
to Tasmania’ after hours delivery service.
To provide excellence in pharmacist led chronic disease management using consumer friendly technology to enhance
the current community pharmacy professional services offering.
SWOT analysis
Strengths Weaknesses

Management- All proprietors have extensive management experience Management- Potential for conflict
and hold postgraduate management qualifications. between multiple proprietors.
Staff- Adequately trained and competent. Low turnover of staff. Staff- Potential for staff not to embrace
Infrastructure- Utilising limited space in the physical pharmacy by new initiatives.
providing online purchases and delivery. Infrastructure- Current physical pharmacy
Location- Local developments and physical pharmacy in a high infrastructure limits business vision growth.
thoroughfare area.. Customers- May not embrace new
Finances- Adequate financial assets and cash flow. technology
Market opportunities- Potential for growth of our customer base with
new and exciting professional services.
Customers- Well established and loyal customer base.

Opportunities Threats

Competition- Little competition due to unique services. Internal capabilities- limited buy in power
Internal capabilities- Not restricted to a banner group. as an independent.
Technology and infrastructure- New utilisation of technology Technology and infrastructure- Ability to
Market opportunities- Room for growth in a niche market. adapt to ever Changing technology.
Demographics- Customer base has low car to person ratio, a key target Demographics- low socioeconomic area
for our unique service. that may not prioritise health.

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Political and economic outlook- Move towards more pharmacist led Political and economic outlook- Outcomes
chronic disease management professional services, our strategic of the 6CPA to be announced.
planning aligns with this. Financial- Significant startup cost.
Financial- Key services align with the shift in trend of government
funding from remuneration of dispensing to professional services.

Key Performance Indicators

Key performance indicators are used to help define and measure progress towards achieving its goals. They are
quantifiable measures that can be expressed in either financial or non-financial terms and reflect the nature of the
business.
It is important that these KPI’s follow the SMART principle which are; specific, measurable, achievable, realistic and time
specific.
Below are some measures for three key divisions in our pharmacy, the physical business- being the dispensary, retail/
online store and the delivery business. Regular reports from the dispensing and point of sale system will be analysed and
this is what increased goals will be based on. If data does not exist for some of the below measures, monitoring of these
will be undertaken over a few months and an estimated goal will be created from this starting point.
KPI’s- Pharmacist and Dispensary
 4-5% increase in number of dispensed prescriptions each year
 100% of all Pharmacy Practice Incentive maximums reached each month, e.g. 10 HMR’s per accredited
pharmacist per month
 12% increase in number of Clinical Interventions recorded every quarter
KPI’s - Retail/ online store
 1% increase in gross profit $ every quarter
 5% increase in number of items sold per transaction every quarter
 10% increase in number of transactions through the point of sale every quarter
 10% increase in number of items sold in Chronic disease state related sections (i.e Hypertension- Blood pressure
monitors, Weight management- fitbits, and Diabetes- glucometers) every quarter
KPI’s - Marketing strategies
 20% increase in app downloads every quarter for the next two years
 10% increase in new memberships to the delivery service every quarter
 10% increase in social media consumer reach every quarter
 50% increase in number of new members to Vitality delivery membership every quarter
IT management outline
Vitality Pharmacy will utilise the best health IT systems to enable efficient and reliable customer service.
Fred Dispense®- Reliable dispensing software, Streamlining of customer services, 24 hour support.
Fred Office®- Back of house administration, Customisable interface, Integration with other pharmacy software, 24 hour
support.
Fred POS- Integrated point of sale, 24 hour support.
Guildcare®- Support with CPA service, integration with dispensing software
‘Benchmarking.com.au’ Pharmacy Business Benchmarking 2015 – Reliable and accurate data analysis and
benchmarking
Xero on-line Accounting system - to optimise efficiencies for financial data entry and wages
preparation
We will also have access to the Australian Medical Handbook, Australian Pharmaceutical Formulary, eMIMS, Australian
Drug index and Therapeutic guidelines on a number of portable iPads which can be used as references by all members of
staff.

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FINANCIAL FORECASTS
Costing the pharmacy
Goodwill at 22% capitalisation $737000

Non-current Assets $238,733

Stock Carried $279,991

Total Value of the Business $1,255,724

The pharmacy will be purchased for a total of $1,255,724 by the four proprietors. A total of $1,000,000 will be invested
by the proprietors initially.

Financial Projections to 2018

2015 2016 2017 2018

Non-Prescription Sales $991,049 $1,030,988 $1,083,156 $1,137,963

Prescription $1,686,617 $2,080,143 1 $2,121,733 $2,164,145

Total Sales $2,677,665 $3,111,131 $3,204,889 $3,302,108

Less cost of goods sold $1,819,384 $ 2,208,904 $2,289,291 $2,394,094

Gross Margin $858,281 $902,227 $916,598 $908,079

Delivery Membership Fee $7,5002 $10,000 $12,500

DAA income $11,1023 $16,120 $21,294

Other professional income (PPIs etc.) $41,182 $36,000 4 $36,000 $36,000

Gross margin plus other income $899,463 $956,829 $978,718 $977,873

Total revenue (Sales plus other income +DAA +Delivery) $2,718,847 $3,165,733 $3,267,009 $3,371,902

2015 2016 2017 2018

Expenses

Salaries and wages $353,370 $232,1765 $239,141 $246,315

Rent $146,128 $99,337 $102,317 $105,387

Outgoings – Rental and Rates $6519 $6714 $6916 $7123

Accounting $11,286 $5,230 $5,386 $5,548

Advertising $31,588 $32,535 $20,600 $21,218

Bank Charges $8,686 $8,686 $8,686 $8,686

Computer Expenses $12,689 $13,069 $13,461 $13,865

Depreciation $30,994 $27,000 $24,000 $21,000

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Electricity, Water, Heating $14,136 $7,401 $7,623 $7,852

Insurance $8,536 $8,792 $9,055 $9,327

Interest paid $77,933 $75,000 $74,000 $71,000

Leasing Expenses $3,122 $3,122 $3,122 $3,122

Motor Vehicle Expenses $3,596 $6,883 $7,089 $7,301

Postage, Freight, Printing $9,300 $3,547 $3,681 $3,791

Repairs, Maintenance, Service $4,141 $4,265 $4,393 $4,524

Subs and Registrations $14,806 $16,115 $16,598 $17,096

Superannuation $31,803 $22,056 $22,718 $23,399

Telephone $5,650 $5,819 $5,994 $6,173

Training $2,318 $3,718 $2,459 $2,532

Abnormal Expenses $2,461 $2,534 $2,610 $2,689

Payroll Tax $06 $0 $0 $0

Worker’s Compensation $2,845 $2,930 $3,018 $3,108

Other Expenses $16,866 $17,371 $17,893 $18,429

Community engagement $3438.80 $907.40 $907.40

Delivery service $1020

Upgrade lighting under Sustainable Pharmacy Program $3,000 $400 $400

DAA costs $12,4857 $17,836 $23,186

Total Expenses $804,218 $624,243 $615,510 $633,978

Overestimated Inflation of 3%

Summary of Financial Outcomes

2015 2016 2017 2018
Total Expenses $804,218 $624,243 $615,510 $633,978
Gross Profit $95,245 $332,586 $363,208 $343,895
Tax Paid $28,573 $99,775 $108,962 $103,168
Net Profit $66,672 $232,811 $254,246 $240,727

1With addition of 190 bed Nursing Home

2
At $50 a year for standard month delivery, higher tiers of delivery have an increased cost

36.10/week

4 Given the unknown of the 6CPA we feel we can only safely account for income from HMRs

5Wages do not include proprietors wage. Depending on profit we will at least be drawing the Australian Fair work commission minimum wage from the business FTE
of $640.90 per week.

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6There is no payroll tax in Tasmania with wages under $1,000,000

7
98c/day

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