This practice-based activity will allow participants to apply sets of rules, utilize developmental tools, and be provided with constructive feedback through assessment tools for seven key components of business practices: 1) business development, 2) financial management, 3) operations, 4) marketing, 5) regulatory compliance, 6) education, and 7) collaborative practice modeling. These business components are assessed across five stages in the life cycle of a compounding practice: 1) the new marketplace, 2) first year of practice, 3) growth plateau, 4) new niche market, and 5) succession planning. This activity will provide participants with the means to further growth, or better position a compounding practice in the marketplace.

Participants will assess their competency across seven components of business by completing a Personal Business Ready Profiler at the start of the activity, upon completion of each of the seven components of business practices, and at the close of the activity. This self-assessment tool helps the participant to understand whether they are business prospectors, expanders, developers, or entrepreneurs, allowing for further personal and professional development.

The business development component of this activity includes the creation and assessment of mission and vision statements, roles and responsibilities, risks and rewards, and SWOT analyses, all of which set the stage for the establishment of short- and long-term goals for a compounding practice, during any stage of its evolution.

The operations component evaluates and forecasts marketing requirements, resources, and financials against the day-to-day operations of a compounding practice. Financial ratios are now qualitatively expressed in relation to designated time points along an operational timeline where the participant establishes cornerstones and milestones. Operations, merged with the investment requirements and forecasted revenues of a compounding practice, ensure the strategies undertaken maintain the business’s integrity from the perspective of nine financial ratios.

The marketing component is divided into four subsections: corporate branding, sales, communication, and relationship building. Corporate branding will be addressed from the perspectives of brand management and recognition, customer relations, market research, financial metrics and return on investment, public relations, social media, advertising, graphic design, content development, sales, and pricing unique to a compounding pharmacy practice. Participants will then create marketing material, incorporating rules and applying strategies provided during the seminar and applying an assessment tool to evaluate the impact and effectiveness of their marketing material concepts. Additional modes of communication are evaluated and assessed for their efficiency and efficacy with respect to a compounding pharmacy practice.

The regulatory compliance component brings together business, contracts, and many other laws and regulations. Specific regulations are addressed, providing the participant with dos and don’ts in relation to the Drug Quality and Security Act, the Anti-Kickback statute, advertising restrictions, DEA rules and regulations, marketer (employee) standard operating procedure guidelines, out-of-state marketing and sales, office use compounding, the Stark Law, state-specific rules and regulations, insurance rules and regulations, telemedicine, and HIPAA HITECH compliance.  Changes to standards of practice, such as USP Chapter <800>, are also addressed.

The educational component assists the compounding pharmacist in establishing a short- and long-term strategic plan for theoretical and practical training, as well as a competency assessment plan for themselves and all other personnel.

Finally, the collaborative component establishes a strategy for the development of co-traveler, collaborative practice relationship building in support of communication and sales initiatives. From the establishment of a value proposition to more formal collaborative strategies, the ability to sell an idea, a concept, and oneself are important factors leading to the success of a compounding practice.

As the activity begins, a culture is created the moment the participant walks through the door. Participants can be assessed, at any time, for their potential as prospective business partners. Relationships will be forged based on one’s business savvy and teams will be constructed. Each team will embark on a dynamic process of establishing a strategy to purchase one of a number of existing compounding pharmacies for sale. These existing practices are in variable states of disrepair and require careful analysis. Participants will utilise the skills and tools they acquired and place them into an investment proposal booklet. Participants will verbally present arguments to secure funds from financial investors. Participants not presenting will assess risk and reward potentials for each of the components of business being presented and how they relate to any and all of the other business components. The team seeking the investment is given the opportunity to defend themselves against criticism from their colleagues. This last activity is itself a competency assessment and a tribute to the importance of the integration of the seven components of business development.