Business Plan for Sun Shine Optometry Pty Ltd
VerifiedAdded on 2023/04/23
|46
|8101
|229
AI Summary
Read the business plan for Sun Shine Optometry Pty Ltd prepared by Komplete Accounting Group. Learn about their vision, mission, objectives, ownership, products & services, competitive, marketing, operational management and financial strategies.
Contribute Materials
Your contribution can guide someone’s learning journey. Share your
documents today.
BUsiness plan
Sun Shine Optometry Pty Ltd (Client Company) KOMPLETE ACCOUNTING GROUP
Team
Prepared by
[Course title]
The information provided in the
document is confidential and hence it is
recommended that only authorized
people should handle the document. The
document is prepared with a narrow and
limited intended use in picture and hence
the document cannot be used for
purpose other than for which it is
created. (For detailed description of
permissible usage of document, refer to
the Usage Policy in our Initial Agreement
Sun Shine Optometry Pty Ltd (Client Company) KOMPLETE ACCOUNTING GROUP
Team
Prepared by
[Course title]
The information provided in the
document is confidential and hence it is
recommended that only authorized
people should handle the document. The
document is prepared with a narrow and
limited intended use in picture and hence
the document cannot be used for
purpose other than for which it is
created. (For detailed description of
permissible usage of document, refer to
the Usage Policy in our Initial Agreement
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Confidentiality Agreement
The undersigned user of the document hereby acknowledges that
the information provided in the document is highly confidential
and hence agrees to maintain utmost confidentiality and owe not
to disclose any information contained in this agreement, other
than that information which is readily available in any public
domain, unless with written consent of the Client Company.
The undersigned user also acknowledges that he will not abuse the
content of the document and owes not to copy, or otherwise reproduce
any information contained in the document without the written consent of
the Client Company or its duly authorised agent. Further, the undersigned
user agrees to return the document upon request.
____________________________________
______________________
Signature Date
_____________________________________
Name
The undersigned user of the document hereby acknowledges that
the information provided in the document is highly confidential
and hence agrees to maintain utmost confidentiality and owe not
to disclose any information contained in this agreement, other
than that information which is readily available in any public
domain, unless with written consent of the Client Company.
The undersigned user also acknowledges that he will not abuse the
content of the document and owes not to copy, or otherwise reproduce
any information contained in the document without the written consent of
the Client Company or its duly authorised agent. Further, the undersigned
user agrees to return the document upon request.
____________________________________
______________________
Signature Date
_____________________________________
Name
Executive Summary
Vision, Mission and Objectives of the Company
Vision
To pioneer the industry by providing high quality eye health and vision
care accessible to all people.
Mission
To provide eye health and vision care services at affordable price thereby
ensuring that no individual is denied benefit of optometry in areas of our
operation.
Objectives:
Our objectives include:
The enhancement and development of reach of optometry to
common people;
To promote high standards of treatment and practice optometry
professionally;
To promote the advancement of the science of optometry.
Ownership, Business Structure and Key Management Profile
Constitution:
Sunshine Optometry Pty Ltd is a Private Limited Company registered
under the Corporation Act with Dr. Pauline as promoter and 100% stake
holder of the company.
Key Managerial Persons:
Dr. Pauline acts as the proprietor and chief optometrist for the company
who will be engaged in offering optometric services to the people.
Purpose of the Plan
The purpose of this document to help Dr. Pauline identify all the
requirements necessary to start the business and the financial projections
necessary to assess the viability of the business
Vision, Mission and Objectives of the Company
Vision
To pioneer the industry by providing high quality eye health and vision
care accessible to all people.
Mission
To provide eye health and vision care services at affordable price thereby
ensuring that no individual is denied benefit of optometry in areas of our
operation.
Objectives:
Our objectives include:
The enhancement and development of reach of optometry to
common people;
To promote high standards of treatment and practice optometry
professionally;
To promote the advancement of the science of optometry.
Ownership, Business Structure and Key Management Profile
Constitution:
Sunshine Optometry Pty Ltd is a Private Limited Company registered
under the Corporation Act with Dr. Pauline as promoter and 100% stake
holder of the company.
Key Managerial Persons:
Dr. Pauline acts as the proprietor and chief optometrist for the company
who will be engaged in offering optometric services to the people.
Purpose of the Plan
The purpose of this document to help Dr. Pauline identify all the
requirements necessary to start the business and the financial projections
necessary to assess the viability of the business
Products & Services
Services Offered:
Being a licensed optometrist practitioner, Dr. Pauline can render the
following services
Eye check-up;
Extensive eye check-up;
Prescription of lens and glasses to patients;
Co-management of LASIK procedures; and
Treatment of other eye related diseases
Products offered:
The company will sell the following products –
Contact lens
Glasses
Frames and
Other medicines
Competitive, Marketing, Operational Management and Financial
Strategies
Competitive Strategy:
Use of immense experience and exposure of promoter gained after
working in a large optometric company; and
Exploitation of contacts with major suppliers of eyewear and
medicines gained during the course of job.
Marketing Strategy:
Trying everything which is reasonably expected to spread awareness
about the company starting from traditional advertising methods (such as
use of print media, etc.) to creation of online presence and digital
marketing
Operations Strategy:
ABC Analysis for stock maintenance ("6 Steps for an Optimal Optical Inventory
Policy", 2014);
Services Offered:
Being a licensed optometrist practitioner, Dr. Pauline can render the
following services
Eye check-up;
Extensive eye check-up;
Prescription of lens and glasses to patients;
Co-management of LASIK procedures; and
Treatment of other eye related diseases
Products offered:
The company will sell the following products –
Contact lens
Glasses
Frames and
Other medicines
Competitive, Marketing, Operational Management and Financial
Strategies
Competitive Strategy:
Use of immense experience and exposure of promoter gained after
working in a large optometric company; and
Exploitation of contacts with major suppliers of eyewear and
medicines gained during the course of job.
Marketing Strategy:
Trying everything which is reasonably expected to spread awareness
about the company starting from traditional advertising methods (such as
use of print media, etc.) to creation of online presence and digital
marketing
Operations Strategy:
ABC Analysis for stock maintenance ("6 Steps for an Optimal Optical Inventory
Policy", 2014);
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Using established policies for screening and selection of human
resources;
Regular analysis of process.
Financial Strategy:
The promoter has decided to finance the entire requirement of funds from
own sources and hence no external financial support was taken.
Key Financial Data
Here is some of the key financial data –
Financing
Financing
Equity Contributions
Management
Investment
$1,50,000.
00
Total Equity
Financing
$1,50,000.
00
Banks and Lenders
Bank Loan $0.00
Total Debt Financing $0.00
Total Financing
$1,50,000
.00
Pro-forma Profit and Loss (Yearly)
Pro-forma Profit and Loss (Yearly)
Year 1 2 3
Sales
$23,35,2
42
$28,02,2
90
$32,78,68
0
Operating Costs
$5,82,41
6
$6,52,87
3 $96,293
EBITDA
$6,43,25
0
$8,17,92
6
$16,24,54
2
Taxes, Interest, and
Depreciation
$2,21,73
7
$2,34,39
4 $4,56,213
Net Profit
$4,21,51
3
$5,83,53
2
$11,68,32
9
resources;
Regular analysis of process.
Financial Strategy:
The promoter has decided to finance the entire requirement of funds from
own sources and hence no external financial support was taken.
Key Financial Data
Here is some of the key financial data –
Financing
Financing
Equity Contributions
Management
Investment
$1,50,000.
00
Total Equity
Financing
$1,50,000.
00
Banks and Lenders
Bank Loan $0.00
Total Debt Financing $0.00
Total Financing
$1,50,000
.00
Pro-forma Profit and Loss (Yearly)
Pro-forma Profit and Loss (Yearly)
Year 1 2 3
Sales
$23,35,2
42
$28,02,2
90
$32,78,68
0
Operating Costs
$5,82,41
6
$6,52,87
3 $96,293
EBITDA
$6,43,25
0
$8,17,92
6
$16,24,54
2
Taxes, Interest, and
Depreciation
$2,21,73
7
$2,34,39
4 $4,56,213
Net Profit
$4,21,51
3
$5,83,53
2
$11,68,32
9
1 2 3
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Sales, Operating Costs, and Profit Forecast
Amount
Monthly Break-even Analysis
Monthly Break Even Analysis
Year 1 2 3
Monthly Revenue $92,472
$1,03,65
9 $15,289
Yearly Revenue $11,09,669
$12,43,9
09
$1,83,46
6
1 2 3
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
Break Even Analysis
Amount
Important Ratios:
Business Ratios - Yearly
Year 1 2 3
Sales
Sales Growth 0.0% 20.0% 17.0%
Gross Margin 52.5% 52.5% 52.5%
Financials
Profit Margin
18.05
% 20.82% 35.63%
Assets to
Liabilities 43.98 42.64 57.71
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Sales, Operating Costs, and Profit Forecast
Amount
Monthly Break-even Analysis
Monthly Break Even Analysis
Year 1 2 3
Monthly Revenue $92,472
$1,03,65
9 $15,289
Yearly Revenue $11,09,669
$12,43,9
09
$1,83,46
6
1 2 3
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
Break Even Analysis
Amount
Important Ratios:
Business Ratios - Yearly
Year 1 2 3
Sales
Sales Growth 0.0% 20.0% 17.0%
Gross Margin 52.5% 52.5% 52.5%
Financials
Profit Margin
18.05
% 20.82% 35.63%
Assets to
Liabilities 43.98 42.64 57.71
Equity to Liabilities 42.98 41.64 56.71
Assets to Equity 1.02 1.02 1.02
Assets to Equity 1.02 1.02 1.02
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Table of Contents
Executive Summary.......................................................................................................................2
Vision, Mission and Objectives of the Company..............................................................2
Vision...........................................................................................................................................2
Mission........................................................................................................................................2
Objectives:.................................................................................................................................2
Ownership, Business Structure and Key Management Profile....................................2
Constitution:.............................................................................................................................2
Key Managerial Persons:......................................................................................................2
Purpose of the Plan....................................................................................................................2
Products & Services...................................................................................................................3
Services Offered:.....................................................................................................................3
Products offered:.....................................................................................................................3
Competitive, Marketing, Operational Management and Financial Strategies.......3
Competitive Strategy:...........................................................................................................3
Marketing Strategy:................................................................................................................3
Operations Strategy:..............................................................................................................3
Financial Strategy:..................................................................................................................4
Key Financial Data......................................................................................................................4
Financing....................................................................................................................................4
Pro-forma Profit and Loss (Yearly)....................................................................................4
Monthly Break-even Analysis..............................................................................................5
Important Ratios:....................................................................................................................5
Research and Analysis..................................................................................................................9
The Product...................................................................................................................................9
Industry Trend :...........................................................................................................................9
Economic and Regulatory Environment..............................................................................9
Market Analysis & Customer Profile.....................................................................................9
Market Research.......................................................................................................................10
SWOT Analysis...........................................................................................................................10
Threats:....................................................................................................................................10
Opportunity:............................................................................................................................11
Business Core Values..............................................................................................................11
Operations.......................................................................................................................................12
Sales Techniques......................................................................................................................12
Executive Summary.......................................................................................................................2
Vision, Mission and Objectives of the Company..............................................................2
Vision...........................................................................................................................................2
Mission........................................................................................................................................2
Objectives:.................................................................................................................................2
Ownership, Business Structure and Key Management Profile....................................2
Constitution:.............................................................................................................................2
Key Managerial Persons:......................................................................................................2
Purpose of the Plan....................................................................................................................2
Products & Services...................................................................................................................3
Services Offered:.....................................................................................................................3
Products offered:.....................................................................................................................3
Competitive, Marketing, Operational Management and Financial Strategies.......3
Competitive Strategy:...........................................................................................................3
Marketing Strategy:................................................................................................................3
Operations Strategy:..............................................................................................................3
Financial Strategy:..................................................................................................................4
Key Financial Data......................................................................................................................4
Financing....................................................................................................................................4
Pro-forma Profit and Loss (Yearly)....................................................................................4
Monthly Break-even Analysis..............................................................................................5
Important Ratios:....................................................................................................................5
Research and Analysis..................................................................................................................9
The Product...................................................................................................................................9
Industry Trend :...........................................................................................................................9
Economic and Regulatory Environment..............................................................................9
Market Analysis & Customer Profile.....................................................................................9
Market Research.......................................................................................................................10
SWOT Analysis...........................................................................................................................10
Threats:....................................................................................................................................10
Opportunity:............................................................................................................................11
Business Core Values..............................................................................................................11
Operations.......................................................................................................................................12
Sales Techniques......................................................................................................................12
Marketing Strategy...................................................................................................................12
Competitive Strategy & Advantage:..................................................................................12
Pricing policy..............................................................................................................................13
Staff Training and Presentation...........................................................................................13
Workspace:..................................................................................................................................14
.....................................................................................................................................................14
Flow chart of Process...............................................................................................................15
Management...................................................................................................................................16
Organization Structure............................................................................................................16
Financials.........................................................................................................................................17
Setup Costs.................................................................................................................................17
General Assumptions...............................................................................................................18
Budgets........................................................................................................................................19
Sales – Yearly.........................................................................................................................19
Personnel – Yearly.................................................................................................................20
Pro-forma Statement of Profit & Loss................................................................................21
Pro-forma Cash flow Statement...........................................................................................23
Pro-forma Balance Sheet.................................................................................................................24
Bibliography:.......................................................................................................................................25
Appendix.............................................................................................................................................27
Monthly Expenses towards Employee Benefits..............................................................30
Expanded Statement of Profit & Loss................................................................................31
Expanded Cash flow Statement.......................................................................................................34
Competitive Strategy & Advantage:..................................................................................12
Pricing policy..............................................................................................................................13
Staff Training and Presentation...........................................................................................13
Workspace:..................................................................................................................................14
.....................................................................................................................................................14
Flow chart of Process...............................................................................................................15
Management...................................................................................................................................16
Organization Structure............................................................................................................16
Financials.........................................................................................................................................17
Setup Costs.................................................................................................................................17
General Assumptions...............................................................................................................18
Budgets........................................................................................................................................19
Sales – Yearly.........................................................................................................................19
Personnel – Yearly.................................................................................................................20
Pro-forma Statement of Profit & Loss................................................................................21
Pro-forma Cash flow Statement...........................................................................................23
Pro-forma Balance Sheet.................................................................................................................24
Bibliography:.......................................................................................................................................25
Appendix.............................................................................................................................................27
Monthly Expenses towards Employee Benefits..............................................................30
Expanded Statement of Profit & Loss................................................................................31
Expanded Cash flow Statement.......................................................................................................34
Research and Analysis
The Product
The eyewear industry in Australia (which consists of glass, frame, contact
lenses and sun glasses segments) posted a positive growth in 2018. A
marginal optometric company derived more as much as 80% of its
revenue from sale of prescription optical while the revenue generated
from consultancy remained restricted to 20%. Therefore the product the
company deals with holds majority of the share of revenue and hence the
positive growth in purchase of the product in Australian Optometry
industry is a prospect to the company. The market is dominated by
fashion trends and has become a key driver for sales, especially in sun
glasses and spectacle frame segments. In 2017 and 2018, international
brands held major chunk of eyewear market such that three of the top
four industry’s rankings were occupied the international players. These
international players are Luxottica, Specsavers, Essilor Australia and are
followed by a local player Subshades Eyewear (Kell, n.d.).
Industry Trend :
The industry as a whole in Australia has recorded an average growth rate
of 2.9% p.a ("Complex optical market demands adaptation, industry expert", n.d.). and has
reached a revenue mark of 3.7 billion ("Optometry Market – Global Industry Analysis,
Size, Share, Growth, Trends, and Forecast 2017 - 2025", n.d.). At present there are 3,219
players in the market and the industry has generated employment to
16,416 personnel. The industry is recently witnessing intense competition
and such competition is resulting in lowering of prices of the products.
Out of 3,219 optometry practices established in Australia, 35% of the
companies are standalone practices.
Economic and Regulatory Environment
The Optometry Board of Australia regulates the professional and
academic matters.
The Product
The eyewear industry in Australia (which consists of glass, frame, contact
lenses and sun glasses segments) posted a positive growth in 2018. A
marginal optometric company derived more as much as 80% of its
revenue from sale of prescription optical while the revenue generated
from consultancy remained restricted to 20%. Therefore the product the
company deals with holds majority of the share of revenue and hence the
positive growth in purchase of the product in Australian Optometry
industry is a prospect to the company. The market is dominated by
fashion trends and has become a key driver for sales, especially in sun
glasses and spectacle frame segments. In 2017 and 2018, international
brands held major chunk of eyewear market such that three of the top
four industry’s rankings were occupied the international players. These
international players are Luxottica, Specsavers, Essilor Australia and are
followed by a local player Subshades Eyewear (Kell, n.d.).
Industry Trend :
The industry as a whole in Australia has recorded an average growth rate
of 2.9% p.a ("Complex optical market demands adaptation, industry expert", n.d.). and has
reached a revenue mark of 3.7 billion ("Optometry Market – Global Industry Analysis,
Size, Share, Growth, Trends, and Forecast 2017 - 2025", n.d.). At present there are 3,219
players in the market and the industry has generated employment to
16,416 personnel. The industry is recently witnessing intense competition
and such competition is resulting in lowering of prices of the products.
Out of 3,219 optometry practices established in Australia, 35% of the
companies are standalone practices.
Economic and Regulatory Environment
The Optometry Board of Australia regulates the professional and
academic matters.
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Market Analysis & Customer Profile
The market in and around the area of Merrylands is well established with
lot of players already rendering the same products and services. Initially,
the company wants to restrict itself to the geographical area of
Merrylands. As per the Census released by the Government of Australia,
the following are the features of demography in and around the target
market area –
The average household income AUD 1,355 per week which comes to
around AUD 70,460;
The median age group of people in Merrylands was 32 years; and
Most of the population is directly engaged in either full time or part-
time job
Market Research
The market analysis shows signs of healthy competition in the optometric
market and the chances for establishment of monopoly are near to zero
(International, 2019). As per the latest analysis available (pertaining to 2014-
15), the bifurcation of existing players in the market are as follows
("Optometry Australia", n.d.):
Stand-alone : 35%
Buying groups : 29%
Franchises : 20%; and
Corporates : 16%
The report also suggests that majority of these practices are located in
capital cities thereby implying the availability of scope of
SWOT Analysis
Threats:
The optometry industry is witnessing increase in complexity which makes
it challenging to the independent practitioners. The complexity is a result
of the impact of macro retail and global trend which gained a lot of
momentum ("Complex optical market demands adaptation, industry expert", n.d.). These
The market in and around the area of Merrylands is well established with
lot of players already rendering the same products and services. Initially,
the company wants to restrict itself to the geographical area of
Merrylands. As per the Census released by the Government of Australia,
the following are the features of demography in and around the target
market area –
The average household income AUD 1,355 per week which comes to
around AUD 70,460;
The median age group of people in Merrylands was 32 years; and
Most of the population is directly engaged in either full time or part-
time job
Market Research
The market analysis shows signs of healthy competition in the optometric
market and the chances for establishment of monopoly are near to zero
(International, 2019). As per the latest analysis available (pertaining to 2014-
15), the bifurcation of existing players in the market are as follows
("Optometry Australia", n.d.):
Stand-alone : 35%
Buying groups : 29%
Franchises : 20%; and
Corporates : 16%
The report also suggests that majority of these practices are located in
capital cities thereby implying the availability of scope of
SWOT Analysis
Threats:
The optometry industry is witnessing increase in complexity which makes
it challenging to the independent practitioners. The complexity is a result
of the impact of macro retail and global trend which gained a lot of
momentum ("Complex optical market demands adaptation, industry expert", n.d.). These
factors force the local independent practitioners to change and adapt the
trend if they choose to remain in competition.
Increasing competitive pressure, influenced by corporate players and
online competition which lead the players in the market to adopt retail
oriented approach to the business has forced the prices of the optics to
steep downward (Kell, n.d.) ("Optometry and Optical Dispensing – Australia Industry Report |
IBISWorld", n.d.).
Opportunity:
Increasing incidence of digital eyestrain have contributed to volume
growth as experts suggest that people who spend more than 2 hours
before screen are likely to experience fatigue in eyes and hence using
eyewear is recommended.
Business Core Values
The Core business values of the company are as follows:
Customer satisfaction;
Ethical and unbiased advice;
Objectivity; and
Unconditional Commitment to the patients
trend if they choose to remain in competition.
Increasing competitive pressure, influenced by corporate players and
online competition which lead the players in the market to adopt retail
oriented approach to the business has forced the prices of the optics to
steep downward (Kell, n.d.) ("Optometry and Optical Dispensing – Australia Industry Report |
IBISWorld", n.d.).
Opportunity:
Increasing incidence of digital eyestrain have contributed to volume
growth as experts suggest that people who spend more than 2 hours
before screen are likely to experience fatigue in eyes and hence using
eyewear is recommended.
Business Core Values
The Core business values of the company are as follows:
Customer satisfaction;
Ethical and unbiased advice;
Objectivity; and
Unconditional Commitment to the patients
Operations
Sales Techniques
The following 3 steps are adopted to boost the sales ("7 Techniques to Boost
Annual Sale", 2016) –
Creation of culture: Strong trust of employees towards the product
they sell will boost the sales. Therefore the target of the company is
to create strong sense of belief among the marketing personnel that
whatever they are selling indeed are the best products available in
the market.
Reiteration of message: In the case of products like contact lens
which should be changed annually, messages like “Approved for
Annual Supply”, will add an emphasis that the patient should
change the lens annually and chances are that he will come back on
time to replace his lens.
Discounts – Age old practice, but still works;
Marketing Strategy
The following marketing strategies are adopted by the company ("7 Fantastic
Internet Marketing Strategies for Optometrists", 2019) –
Online marketing: By creation of a website and using several digital
marketing methods such as Search Engine Optimization, Pay-per-
click, Content marketing, Social media marketing, referral program,
etc.
Traditional marketing via print media such as broachers, hoardings
and newspapers; and
Maintaining healthy business relationships with local physicians.
Competitive Strategy & Advantage:
The competitive strategy of the company lies in the experience of the
promoter. Having engaged in the industry for past 10 years for ‘Big W’ as
optometrist, the promoter has built up reputation over a period of time
and have recurring patients with trust on the promoter and the treatment
Sales Techniques
The following 3 steps are adopted to boost the sales ("7 Techniques to Boost
Annual Sale", 2016) –
Creation of culture: Strong trust of employees towards the product
they sell will boost the sales. Therefore the target of the company is
to create strong sense of belief among the marketing personnel that
whatever they are selling indeed are the best products available in
the market.
Reiteration of message: In the case of products like contact lens
which should be changed annually, messages like “Approved for
Annual Supply”, will add an emphasis that the patient should
change the lens annually and chances are that he will come back on
time to replace his lens.
Discounts – Age old practice, but still works;
Marketing Strategy
The following marketing strategies are adopted by the company ("7 Fantastic
Internet Marketing Strategies for Optometrists", 2019) –
Online marketing: By creation of a website and using several digital
marketing methods such as Search Engine Optimization, Pay-per-
click, Content marketing, Social media marketing, referral program,
etc.
Traditional marketing via print media such as broachers, hoardings
and newspapers; and
Maintaining healthy business relationships with local physicians.
Competitive Strategy & Advantage:
The competitive strategy of the company lies in the experience of the
promoter. Having engaged in the industry for past 10 years for ‘Big W’ as
optometrist, the promoter has built up reputation over a period of time
and have recurring patients with trust on the promoter and the treatment
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
because they feel safe in the hands of promoter. Further, the promoter
having directly dealt with the suppliers of eye wear and medicines, gained
contacts of vendors and wholesalers in the segment and maintains a
healthy human relationship with them which will help in reduction of
overall cost of the supplies.
Pricing policy
The company is adopting penetrating policy of pricing in the initial days.
The company decides to do so owing to the following reasons (Bhasin, n.d.):
The Merrylands Suburbs in which the optometry is proposed to be
established consist of majority of population who are living in
middle-class standards;
The policy if implemented successfully, would often increase both
sales volume and the overall market share as well of the company;
By adopting the strategy, the company is targeted with the existing
patients who are dissatisfied with the existing optometry companies
and hence looking for a switch ("How to use penetration pricing strategy most
effectively", n.d.);
Further, this method is most suitable to the existing situation of the
company, since the optometry industry is well established in
Australia and hence the company being a later entrant should
lowdown prices in order to survive tough competition from the
established competitors; and
Finally, looking at the present market trend where the prices are
falling, owing to competition, the only way to survive the situation
seems to be to enter into the market with reduced prices.
Staff Training and Presentation
Optometry industry deals with arguable most sensitive part in human
anatomy, which is the eye. Therefore proper training to all the employees
who will be entrusted with a delicate job is highly essential. The company
drafter a policy wherein it decided to train its staff in regular intervals and
also as and when required to keep them up-to-date with the latest
having directly dealt with the suppliers of eye wear and medicines, gained
contacts of vendors and wholesalers in the segment and maintains a
healthy human relationship with them which will help in reduction of
overall cost of the supplies.
Pricing policy
The company is adopting penetrating policy of pricing in the initial days.
The company decides to do so owing to the following reasons (Bhasin, n.d.):
The Merrylands Suburbs in which the optometry is proposed to be
established consist of majority of population who are living in
middle-class standards;
The policy if implemented successfully, would often increase both
sales volume and the overall market share as well of the company;
By adopting the strategy, the company is targeted with the existing
patients who are dissatisfied with the existing optometry companies
and hence looking for a switch ("How to use penetration pricing strategy most
effectively", n.d.);
Further, this method is most suitable to the existing situation of the
company, since the optometry industry is well established in
Australia and hence the company being a later entrant should
lowdown prices in order to survive tough competition from the
established competitors; and
Finally, looking at the present market trend where the prices are
falling, owing to competition, the only way to survive the situation
seems to be to enter into the market with reduced prices.
Staff Training and Presentation
Optometry industry deals with arguable most sensitive part in human
anatomy, which is the eye. Therefore proper training to all the employees
who will be entrusted with a delicate job is highly essential. The company
drafter a policy wherein it decided to train its staff in regular intervals and
also as and when required to keep them up-to-date with the latest
treatments available in the market and the best practices adopted by
successful optometry companies.
successful optometry companies.
Workspace:
The following is the floor plan of the company ("Floor Plan Design | Barbara Wright
Design", n.d.)
The following is the floor plan of the company ("Floor Plan Design | Barbara Wright
Design", n.d.)
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Flow chart of Process
Management
Organization Structure
Dr. Pauline
Optometry Services
Examinations
Laboratory Work
Product
Management
Administrative
Staff
Accounting
Sales - Marketing
Administrative
Organization Structure
Dr. Pauline
Optometry Services
Examinations
Laboratory Work
Product
Management
Administrative
Staff
Accounting
Sales - Marketing
Administrative
Financials
Setup Costs
Projected Start- up Costs
Business Start-up Year 1
Initial Lease Payments
$10,0
00
Working Capital
$44,0
00
FF&E
$23,0
00
Leasehold Improvements
$5,00
0
Security Deposits
$5,00
0
Insurance
$3,00
0
Optometry Equipment
$25,0
00
Inventory
$30,0
00
Miscellaneous and Unforeseen
Costs
$5,00
0
Total Start-up Costs
$1,50,
000
Setup Costs
Projected Start- up Costs
Business Start-up Year 1
Initial Lease Payments
$10,0
00
Working Capital
$44,0
00
FF&E
$23,0
00
Leasehold Improvements
$5,00
0
Security Deposits
$5,00
0
Insurance
$3,00
0
Optometry Equipment
$25,0
00
Inventory
$30,0
00
Miscellaneous and Unforeseen
Costs
$5,00
0
Total Start-up Costs
$1,50,
000
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Initial Lease Payments
7%
Working Capital
29%
FF&E
15%
Leasehold Improvements
3%
Securi
ty
Depos
its
3%
Insura
nce
2%
Optometry Equipment
17%
Invent
ory
20%
Miscellaneous and Unforeseen
Costs
3%
Use of Funds
7%
Working Capital
29%
FF&E
15%
Leasehold Improvements
3%
Securi
ty
Depos
its
3%
Insura
nce
2%
Optometry Equipment
17%
Invent
ory
20%
Miscellaneous and Unforeseen
Costs
3%
Use of Funds
General Assumptions
General Assumptions
Year 1 2 3
Short Term Interest Rate 1.9% 1.9% 1.9%
Long Term Interest Rate 4.5% 4.5% 4.5%
Income Tax Rate 27.5% 27.5% 27.5%
Withholding Tax 15.0% 15.0% 15.0%
Salary growth rate 2.1% 2.1% 2.1%
Marketing Expenses 1% of Sales 1% of Sales 1% of Sales
Sale of Glasses 2 times the no.
of patients visit
the general
check-up
2 times the no.
of patients visit
the general
check-up
2 times the no.
of patients visit
the general
check-up
Sale of Contact Lens 1/3rd of Sale
volume of
Glasses
1/3rd of Sale
Volume of
Glasses
1/3rd of Sale
Volume of
Glasses
Advanced Check-up 1/3rd of General
Check-up
1/3rd of General
Check-up
1/3rd of General
Check-up
Medicine General Check-
up + Advanced
Check-up
General Check-
up + Advanced
Check-up
General Check-
up + Advanced
Check-up
Dividend 20% on share
capital
20% on share
capital
20% on share
capital
Other assumptions:
Fee charged for check-up: ("Fees, Charges & Medicare - Eyecare Plus Optometrists Australia",
n.d.)
Price of Contact Lenses: ("Buy Contact Lenses Online | Specsavers Australia", n.d.)
Short-term Interest rate: ("[Quick Access] Australia Short Term Interest Rate [Data & Charts]", n.d.)
Long-term Interest Rate: ("Australia Interest Rate - Australia Economy Forecast & Outlook", n.d.)
Price of glasses: ("Glasses | Specsavers Australia", n.d.)
Tax Rate: ("What To Know About Australia's New Company Tax Rates (2018)", 2018)
General Assumptions
Year 1 2 3
Short Term Interest Rate 1.9% 1.9% 1.9%
Long Term Interest Rate 4.5% 4.5% 4.5%
Income Tax Rate 27.5% 27.5% 27.5%
Withholding Tax 15.0% 15.0% 15.0%
Salary growth rate 2.1% 2.1% 2.1%
Marketing Expenses 1% of Sales 1% of Sales 1% of Sales
Sale of Glasses 2 times the no.
of patients visit
the general
check-up
2 times the no.
of patients visit
the general
check-up
2 times the no.
of patients visit
the general
check-up
Sale of Contact Lens 1/3rd of Sale
volume of
Glasses
1/3rd of Sale
Volume of
Glasses
1/3rd of Sale
Volume of
Glasses
Advanced Check-up 1/3rd of General
Check-up
1/3rd of General
Check-up
1/3rd of General
Check-up
Medicine General Check-
up + Advanced
Check-up
General Check-
up + Advanced
Check-up
General Check-
up + Advanced
Check-up
Dividend 20% on share
capital
20% on share
capital
20% on share
capital
Other assumptions:
Fee charged for check-up: ("Fees, Charges & Medicare - Eyecare Plus Optometrists Australia",
n.d.)
Price of Contact Lenses: ("Buy Contact Lenses Online | Specsavers Australia", n.d.)
Short-term Interest rate: ("[Quick Access] Australia Short Term Interest Rate [Data & Charts]", n.d.)
Long-term Interest Rate: ("Australia Interest Rate - Australia Economy Forecast & Outlook", n.d.)
Price of glasses: ("Glasses | Specsavers Australia", n.d.)
Tax Rate: ("What To Know About Australia's New Company Tax Rates (2018)", 2018)
Budgets
Sales – Yearly
Yearly Sales
Forecast
Year 1 2 3 4 5
Growth (%) 0.0% 20.0% 17.0% 14.0% 12.0%
Consultation Fee
$2,38,29
0 $2,85,948
$3,34,55
9
$3,81,39
7
$4,27,16
5
Sale of Glasses
$14,37,0
72
$17,24,48
6
$20,17,6
49
$23,00,1
20
$25,76,1
34
Sale of Contact
Lenses
$2,19,96
0 $2,63,952
$3,08,82
4
$3,52,05
9
$3,94,30
6
Advanced Check up
$1,22,20
0 $1,46,640
$1,71,56
9
$1,95,58
8
$2,19,05
9
Medicines
$3,17,72
0 $3,81,264
$4,46,07
9
$5,08,53
0
$5,69,55
4
Totals
$23,35,2
42
$28,02,2
90
$32,78,6
80
$37,37,
695
$41,86,2
18
Cost of Sales
Forecast
Year 1 2 3 4 5
Growth (%) 0.0% 20.0% 17.0% 14.0% 12.0%
Consultation Fee $36,660 $43,992 $51,471 $58,677 $65,718
Sale of Glasses
$7,33,20
0 $8,79,840
$10,29,4
13
$11,73,5
31
$13,14,3
54
Sale of Contact
Lenses $67,210 $80,652 $94,363
$1,07,57
4
$1,20,48
2
Advanced Check up $18,330 $21,996 $25,735 $29,338 $32,859
Medicines
$2,54,17
6 $3,05,011
$3,56,86
3
$4,06,82
4
$4,55,64
3
Totals
$11,09,5
76
$13,31,4
91
$15,57,8
45
$17,75,
943
$19,89,0
56
Gross Profit
Year 1 2 3 4 5
Sales – Yearly
Yearly Sales
Forecast
Year 1 2 3 4 5
Growth (%) 0.0% 20.0% 17.0% 14.0% 12.0%
Consultation Fee
$2,38,29
0 $2,85,948
$3,34,55
9
$3,81,39
7
$4,27,16
5
Sale of Glasses
$14,37,0
72
$17,24,48
6
$20,17,6
49
$23,00,1
20
$25,76,1
34
Sale of Contact
Lenses
$2,19,96
0 $2,63,952
$3,08,82
4
$3,52,05
9
$3,94,30
6
Advanced Check up
$1,22,20
0 $1,46,640
$1,71,56
9
$1,95,58
8
$2,19,05
9
Medicines
$3,17,72
0 $3,81,264
$4,46,07
9
$5,08,53
0
$5,69,55
4
Totals
$23,35,2
42
$28,02,2
90
$32,78,6
80
$37,37,
695
$41,86,2
18
Cost of Sales
Forecast
Year 1 2 3 4 5
Growth (%) 0.0% 20.0% 17.0% 14.0% 12.0%
Consultation Fee $36,660 $43,992 $51,471 $58,677 $65,718
Sale of Glasses
$7,33,20
0 $8,79,840
$10,29,4
13
$11,73,5
31
$13,14,3
54
Sale of Contact
Lenses $67,210 $80,652 $94,363
$1,07,57
4
$1,20,48
2
Advanced Check up $18,330 $21,996 $25,735 $29,338 $32,859
Medicines
$2,54,17
6 $3,05,011
$3,56,86
3
$4,06,82
4
$4,55,64
3
Totals
$11,09,5
76
$13,31,4
91
$15,57,8
45
$17,75,
943
$19,89,0
56
Gross Profit
Year 1 2 3 4 5
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Total
$12,25,6
66
$14,70,7
99
$17,20,8
35
$19,61,
752
$21,97,1
62
$12,25,6
66
$14,70,7
99
$17,20,8
35
$19,61,
752
$21,97,1
62
Personnel – Yearly
Personnel Plan - Yearly
Year 1 2 3
Dr. Pauline (Promoter)
$1,14,
753
$1,17,
163
$1,19,
623
Practice Manager
$80,43
8
$82,12
7
$83,85
2
Optical Dispenser
$51,02
4
$52,09
6
$1,06,
379
Optometric Assistant
$1,27,
500
$1,73,
570
$2,21,
519
Receptionist
$43,23
0
$44,13
8
$45,06
5
Total
$4,16,
945
$4,69,
093
$5,76,
438
Numbers of Personnel
Year 1 2 3
Dr. Pauline (Promoter) 1 1 1
Practice Manager 1 1 1
Optical Dispenser 1 1 2
Optometric Assistant 3 4 5
Receptionist 1 1 1
Totals 7 8 10
Dr. Pauline
(Promoter)
28%
Practice
Manager
19%
Optical Dispenser
12%
Optometric
Assistant
31%
Receptionist
10%
Personnel Expense Breakdown
Assumptions:
Optometrist Salary: ("Optometrist Salaries in Australia | Indeed.com", n.d.)
Personnel Plan - Yearly
Year 1 2 3
Dr. Pauline (Promoter)
$1,14,
753
$1,17,
163
$1,19,
623
Practice Manager
$80,43
8
$82,12
7
$83,85
2
Optical Dispenser
$51,02
4
$52,09
6
$1,06,
379
Optometric Assistant
$1,27,
500
$1,73,
570
$2,21,
519
Receptionist
$43,23
0
$44,13
8
$45,06
5
Total
$4,16,
945
$4,69,
093
$5,76,
438
Numbers of Personnel
Year 1 2 3
Dr. Pauline (Promoter) 1 1 1
Practice Manager 1 1 1
Optical Dispenser 1 1 2
Optometric Assistant 3 4 5
Receptionist 1 1 1
Totals 7 8 10
Dr. Pauline
(Promoter)
28%
Practice
Manager
19%
Optical Dispenser
12%
Optometric
Assistant
31%
Receptionist
10%
Personnel Expense Breakdown
Assumptions:
Optometrist Salary: ("Optometrist Salaries in Australia | Indeed.com", n.d.)
Practice Manager Salary: (Manager, n.d.)
Optometrist Assistant Salary: ("Optometrist Assistant Salary (Australia) | PayScale", n.d.)
Optical Dispenser: ("Optical Dispenser Hourly Pay (Australia) | PayScale", n.d.)
Receptionist” ("Front Desk Receptionist Hourly Pay (Australia) | PayScale", n.d.)
Optometrist Assistant Salary: ("Optometrist Assistant Salary (Australia) | PayScale", n.d.)
Optical Dispenser: ("Optical Dispenser Hourly Pay (Australia) | PayScale", n.d.)
Receptionist” ("Front Desk Receptionist Hourly Pay (Australia) | PayScale", n.d.)
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Pro-forma Statement of Profit & Loss
Pro forma Profit and Loss (Yearly)
Year 1 2 3
Sales
$23,35,2
42
$28,02,2
90
$32,78,6
80
Cost of Goods Sold
$11,09,5
76
$13,31,4
91
$15,57,8
45
Gross Margin 52.49% 52.49% 52.49%
Gross Profit
$12,25,6
66
$14,70,7
99
$17,20,8
35
Expenses
Payroll
$4,16,94
5
$4,69,09
3
$5,76,43
8
General and
Administrative $15,000 $15,600 $16,224
Marketing Expenses $23,352 $28,023 $32,787
Professional Fees and
Licenses $400 $412 $424
Insurance Costs $1,250 $1,313 $1,378
Equipment Costs $15,000 $16,500 $18,150
Rent and Utilities $5,000 $5,500 $6,050
Miscellaneous Costs $28,023 $33,627 $39,344
Payroll Taxes $77,446 $82,805 $86,466
Total Operating Costs
$5,82,4
16
$6,52,8
73 $96,293
EBITDA
$6,43,2
50
$8,17,9
26
$16,24,5
42
Income Tax
$2,12,27
2
$2,24,93
0
$4,46,74
9
Interest Expense $0 $0 $0
Depreciation Expenses $9,464 $9,464 $9,464
Net Profit
$4,21,5
13
$5,83,5
32
$11,68,3
29
Profit Margin 18.05% 20.82% 35.63%
Pro forma Profit and Loss (Yearly)
Year 1 2 3
Sales
$23,35,2
42
$28,02,2
90
$32,78,6
80
Cost of Goods Sold
$11,09,5
76
$13,31,4
91
$15,57,8
45
Gross Margin 52.49% 52.49% 52.49%
Gross Profit
$12,25,6
66
$14,70,7
99
$17,20,8
35
Expenses
Payroll
$4,16,94
5
$4,69,09
3
$5,76,43
8
General and
Administrative $15,000 $15,600 $16,224
Marketing Expenses $23,352 $28,023 $32,787
Professional Fees and
Licenses $400 $412 $424
Insurance Costs $1,250 $1,313 $1,378
Equipment Costs $15,000 $16,500 $18,150
Rent and Utilities $5,000 $5,500 $6,050
Miscellaneous Costs $28,023 $33,627 $39,344
Payroll Taxes $77,446 $82,805 $86,466
Total Operating Costs
$5,82,4
16
$6,52,8
73 $96,293
EBITDA
$6,43,2
50
$8,17,9
26
$16,24,5
42
Income Tax
$2,12,27
2
$2,24,93
0
$4,46,74
9
Interest Expense $0 $0 $0
Depreciation Expenses $9,464 $9,464 $9,464
Net Profit
$4,21,5
13
$5,83,5
32
$11,68,3
29
Profit Margin 18.05% 20.82% 35.63%
Pro forma Profit and Loss (Yearly)
Year 1 2 3
Sales $23,35,242 $28,02,290 $32,78,680
Operating Costs $5,82,416 $6,52,873 $96,293
EBITDA $6,43,250 $8,17,926 $16,24,542
Taxes, Interest, and
Depreciation $2,21,737 $2,34,394 $4,56,213
Net Profit $4,21,513 $5,83,532 $11,68,329
1 2 3
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Sales, Operating Costs, and Profit Forecast
Amount
Pay-roll Taxes: ("Income tax calculator | ASIC's MoneySmart", 2018)
Year 1 2 3
Sales $23,35,242 $28,02,290 $32,78,680
Operating Costs $5,82,416 $6,52,873 $96,293
EBITDA $6,43,250 $8,17,926 $16,24,542
Taxes, Interest, and
Depreciation $2,21,737 $2,34,394 $4,56,213
Net Profit $4,21,513 $5,83,532 $11,68,329
1 2 3
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
$3,000,000
$3,500,000
Sales, Operating Costs, and Profit Forecast
Amount
Pay-roll Taxes: ("Income tax calculator | ASIC's MoneySmart", 2018)
Pro-forma Cash flow Statement
Pro-forma Cash Flow Analysis - Yearly
Year 1 2 3
Cash From Operations
$4,30,97
7
$5,92,99
6
$11,77,7
93
Cash From Receivables $0 $0 $0
Operating Cash
Inflow
$4,30,9
77
$5,92,9
96
$11,77,7
93
Other Cash Inflows
Equity Investment
$1,50,00
0 $0 $0
Increased Borrowings $0 $0 $0
Sales of Business
Assets $0 $0 $0
A/P Increases $37,902 $43,587 $50,125
Total Other Cash
Inflows
$1,87,9
02
$43,58
7 $50,125
Total Cash Inflow
$6,18,8
79
$6,36,5
84
$12,27,9
18
Cash Outflows
Repayment of Principal $0 $0 $0
A/P Decreases $24,897 $29,876 $35,852
A/R Increases $0 $0 $0
Asset Purchases
$1,15,00
0
$1,48,24
9
$2,94,44
8
Dividends $30,000 $30,000 $30,000
Total Cash Outflows
$1,69,8
97
$2,08,1
25
$3,60,30
0
Net Cash Flow
$4,48,9
82
$4,28,4
58
$8,67,61
8
Cash Balance
$4,48,9
82
$8,77,4
40
$17,45,0
59
Pro-forma Cash Flow Analysis - Yearly
Year 1 2 3
Cash From Operations
$4,30,97
7
$5,92,99
6
$11,77,7
93
Cash From Receivables $0 $0 $0
Operating Cash
Inflow
$4,30,9
77
$5,92,9
96
$11,77,7
93
Other Cash Inflows
Equity Investment
$1,50,00
0 $0 $0
Increased Borrowings $0 $0 $0
Sales of Business
Assets $0 $0 $0
A/P Increases $37,902 $43,587 $50,125
Total Other Cash
Inflows
$1,87,9
02
$43,58
7 $50,125
Total Cash Inflow
$6,18,8
79
$6,36,5
84
$12,27,9
18
Cash Outflows
Repayment of Principal $0 $0 $0
A/P Decreases $24,897 $29,876 $35,852
A/R Increases $0 $0 $0
Asset Purchases
$1,15,00
0
$1,48,24
9
$2,94,44
8
Dividends $30,000 $30,000 $30,000
Total Cash Outflows
$1,69,8
97
$2,08,1
25
$3,60,30
0
Net Cash Flow
$4,48,9
82
$4,28,4
58
$8,67,61
8
Cash Balance
$4,48,9
82
$8,77,4
40
$17,45,0
59
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
1 2 3
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
Proforma Cash Flow (Yearly)
Axis Title
Pro-forma Balance Sheet
Pro-forma Balance Sheet - Yearly
Year 1 2 3
Assets
Cash
$4,48,98
2 $8,77,440
$17,45,05
9
Amortized Development Costs $45,000 $59,825 $89,270
Optometry Equipment $35,000 $1,09,125 $3,29,961
FF&E $22,500 $44,737 $88,905
Inventory $30,000 $67,062 $1,40,674
Accumulated Depreciation ($9,464) ($18,929) ($28,393)
Total Assets
$5,72,0
18
$11,39,2
61
$23,65,4
75
Liabilities and Equity
Accounts Payable $13,005 $26,716 $40,990
Long Term Liabilities $0 $0 $0
Other Liabilities $0 $0 $0
Total Liabilities $13,005 $26,716 $40,990
Net Worth
$5,59,0
13
$11,12,5
45
$23,24,4
86
Total Liabilities and Equity
$5,72,0
18
$11,39,2
61
$23,65,4
75
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
$1,400,000
$1,600,000
$1,800,000
Proforma Cash Flow (Yearly)
Axis Title
Pro-forma Balance Sheet
Pro-forma Balance Sheet - Yearly
Year 1 2 3
Assets
Cash
$4,48,98
2 $8,77,440
$17,45,05
9
Amortized Development Costs $45,000 $59,825 $89,270
Optometry Equipment $35,000 $1,09,125 $3,29,961
FF&E $22,500 $44,737 $88,905
Inventory $30,000 $67,062 $1,40,674
Accumulated Depreciation ($9,464) ($18,929) ($28,393)
Total Assets
$5,72,0
18
$11,39,2
61
$23,65,4
75
Liabilities and Equity
Accounts Payable $13,005 $26,716 $40,990
Long Term Liabilities $0 $0 $0
Other Liabilities $0 $0 $0
Total Liabilities $13,005 $26,716 $40,990
Net Worth
$5,59,0
13
$11,12,5
45
$23,24,4
86
Total Liabilities and Equity
$5,72,0
18
$11,39,2
61
$23,65,4
75
1 2 3
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Proforma Balance Sheet
Total Assets
Total Liabilities
Net Worth
Year
Bibliography:
Fees, Charges & Medicare - Eyecare Plus Optometrists Australia. Retrieved from
https://www.eyecareplus.com.au/fees-charges-medicare/
Buy Contact Lenses Online | Specsavers Australia. Retrieved from
https://www.specsavers.com.au/contact-lenses
7 Fantastic Internet Marketing Strategies for Optometrists. (2019). Retrieved from
https://www.webfx.com/industries/health/optometrist/
Dr. Sachdev Eye Hospital. Flow chart of Eye Check-up [Image]. Retrieved from
http://www.eyespecialist.co.in/go/five_step
Optometry Australia. Retrieved from http://www.optometry.org.au/blog-news/2014/5/27/market-
analysis-reveals-strong-competition-nationwide/
Floor Plan Design | Barbara Wright Design. Retrieved from
http://barbarawrightdesign.com/services/design/floor-plan-design/
Bhasin, H. Penetration pricing explained with examples and case study. Retrieved from
https://www.marketing91.com/penetration-pricing/
How to use penetration pricing strategy most effectively. Retrieved from
https://services.amazon.in/seller-blog/how-to-use-penetration-pricing-strategy.html
Complex optical market demands adaptation, industry expert. Retrieved from
https://www.insightnews.com.au/Article3/658/Complex-optical-market-demands-adaptation-industry-
expert
Kell, M. Australian Optics: Our Place in the Global Market - mivision. Retrieved from
https://www.mivision.com.au/2017/08/australian-optics-our-place-in-the-global-market/
Optometry and Optical Dispensing – Australia Industry Report | IBISWorld. Retrieved from
https://www.ibisworld.com.au/industry-trends/market-research-reports/health-care-social-assistance/
optometry-optical-dispensing.html
6 Steps for an Optimal Optical Inventory Policy. (2014). Retrieved from
http://www.optometrytimes.com/modern-medicine-cases/6-steps-optimal-optical-inventory
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Proforma Balance Sheet
Total Assets
Total Liabilities
Net Worth
Year
Bibliography:
Fees, Charges & Medicare - Eyecare Plus Optometrists Australia. Retrieved from
https://www.eyecareplus.com.au/fees-charges-medicare/
Buy Contact Lenses Online | Specsavers Australia. Retrieved from
https://www.specsavers.com.au/contact-lenses
7 Fantastic Internet Marketing Strategies for Optometrists. (2019). Retrieved from
https://www.webfx.com/industries/health/optometrist/
Dr. Sachdev Eye Hospital. Flow chart of Eye Check-up [Image]. Retrieved from
http://www.eyespecialist.co.in/go/five_step
Optometry Australia. Retrieved from http://www.optometry.org.au/blog-news/2014/5/27/market-
analysis-reveals-strong-competition-nationwide/
Floor Plan Design | Barbara Wright Design. Retrieved from
http://barbarawrightdesign.com/services/design/floor-plan-design/
Bhasin, H. Penetration pricing explained with examples and case study. Retrieved from
https://www.marketing91.com/penetration-pricing/
How to use penetration pricing strategy most effectively. Retrieved from
https://services.amazon.in/seller-blog/how-to-use-penetration-pricing-strategy.html
Complex optical market demands adaptation, industry expert. Retrieved from
https://www.insightnews.com.au/Article3/658/Complex-optical-market-demands-adaptation-industry-
expert
Kell, M. Australian Optics: Our Place in the Global Market - mivision. Retrieved from
https://www.mivision.com.au/2017/08/australian-optics-our-place-in-the-global-market/
Optometry and Optical Dispensing – Australia Industry Report | IBISWorld. Retrieved from
https://www.ibisworld.com.au/industry-trends/market-research-reports/health-care-social-assistance/
optometry-optical-dispensing.html
6 Steps for an Optimal Optical Inventory Policy. (2014). Retrieved from
http://www.optometrytimes.com/modern-medicine-cases/6-steps-optimal-optical-inventory
Optometrist Salaries in Australia | Indeed.com. Retrieved from
https://au.indeed.com/salaries/Optometrist-Salaries
Manager, P. Practice Manager Salaries in Australia | Indeed.com. Retrieved from
https://au.indeed.com/salaries/Practice-Manager-Salaries
Optometrist Assistant Salary (Australia) | PayScale. Retrieved from
https://www.payscale.com/research/AU/Job=Optometrist_Assistant/Salary
Optical Dispenser Hourly Pay (Australia) | PayScale. Retrieved from
https://www.payscale.com/research/AU/Job=Optical_Dispenser/Hourly_Rate
Front Desk Receptionist Hourly Pay (Australia) | PayScale. Retrieved from
https://www.payscale.com/research/AU/Job=Front_Desk_Receptionist/Hourly_Rate
[Quick Access] Australia Short Term Interest Rate [Data & Charts]. Retrieved from
https://www.ceicdata.com/en/indicator/australia/short-term-interest-rate
Australia Interest Rate - Australia Economy Forecast & Outlook. Retrieved from https://www.focus-
economics.com/country-indicator/australia/interest-rate
Income tax calculator | ASIC's MoneySmart. (2018). Retrieved from
https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/income-tax-calculator
International, E. (2019). Eyewear in Australia. Retrieved from https://www.euromonitor.com/eyewear-
in-australia/report
Kell, M. Australian Optics: Our Place in the Global Market - mivision. Retrieved from
https://www.mivision.com.au/2017/08/australian-optics-our-place-in-the-global-market/
Complex optical market demands adaptation, industry expert. Retrieved from
https://www.insightnews.com.au/Article3/658/Complex-optical-market-demands-adaptation-industry-
expert
Optometry Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 -
2025. Retrieved from https://www.mrrse.com/optometry-market/toc].
7 Techniques to Boost Annual Sale. (2016). Retrieved from http://www.optometrytimes.com/modern-
medicine-cases/7-techniques-boost-your-annual-supply-sales/page/0/2
Glasses | Specsavers Australia. Retrieved from https://www.specsavers.com.au/glasses
What To Know About Australia's New Company Tax Rates (2018). (2018). Retrieved from
https://www.penguinaccounts.com.au/australia-company-tax-changes-2018/
https://au.indeed.com/salaries/Optometrist-Salaries
Manager, P. Practice Manager Salaries in Australia | Indeed.com. Retrieved from
https://au.indeed.com/salaries/Practice-Manager-Salaries
Optometrist Assistant Salary (Australia) | PayScale. Retrieved from
https://www.payscale.com/research/AU/Job=Optometrist_Assistant/Salary
Optical Dispenser Hourly Pay (Australia) | PayScale. Retrieved from
https://www.payscale.com/research/AU/Job=Optical_Dispenser/Hourly_Rate
Front Desk Receptionist Hourly Pay (Australia) | PayScale. Retrieved from
https://www.payscale.com/research/AU/Job=Front_Desk_Receptionist/Hourly_Rate
[Quick Access] Australia Short Term Interest Rate [Data & Charts]. Retrieved from
https://www.ceicdata.com/en/indicator/australia/short-term-interest-rate
Australia Interest Rate - Australia Economy Forecast & Outlook. Retrieved from https://www.focus-
economics.com/country-indicator/australia/interest-rate
Income tax calculator | ASIC's MoneySmart. (2018). Retrieved from
https://www.moneysmart.gov.au/tools-and-resources/calculators-and-apps/income-tax-calculator
International, E. (2019). Eyewear in Australia. Retrieved from https://www.euromonitor.com/eyewear-
in-australia/report
Kell, M. Australian Optics: Our Place in the Global Market - mivision. Retrieved from
https://www.mivision.com.au/2017/08/australian-optics-our-place-in-the-global-market/
Complex optical market demands adaptation, industry expert. Retrieved from
https://www.insightnews.com.au/Article3/658/Complex-optical-market-demands-adaptation-industry-
expert
Optometry Market – Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2017 -
2025. Retrieved from https://www.mrrse.com/optometry-market/toc].
7 Techniques to Boost Annual Sale. (2016). Retrieved from http://www.optometrytimes.com/modern-
medicine-cases/7-techniques-boost-your-annual-supply-sales/page/0/2
Glasses | Specsavers Australia. Retrieved from https://www.specsavers.com.au/glasses
What To Know About Australia's New Company Tax Rates (2018). (2018). Retrieved from
https://www.penguinaccounts.com.au/australia-company-tax-changes-2018/
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Appendix
Monthly Sales Analysis - Revenue
Month 1 2 3 4 5 6 7 8 9 10 11 12
Consultation Fee
$19,50
0
$19,56
5
$19,63
0
$19,69
5
$19,76
0
$19,82
5
$19,89
0
$19,95
5
$20,02
0
$20,08
5
$20,15
0
$20,21
5
Sale of Glasses
$1,17,6
00
$1,17,9
92
$1,18,3
84
$1,18,7
76
$1,19,1
68
$1,19,5
60
$1,19,9
52
$1,20,3
44
$1,20,7
36
$1,21,1
28
$1,21,5
20
$1,21,9
12
Sale of Contact
Lenses
$18,00
0
$18,06
0
$18,12
0
$18,18
0
$18,24
0
$18,30
0
$18,36
0
$18,42
0
$18,48
0
$18,54
0
$18,60
0
$18,66
0
Advanced Check up
$10,00
0
$10,03
3
$10,06
7
$10,10
0
$10,13
3
$10,16
7
$10,20
0
$10,23
3
$10,26
7
$10,30
0
$10,33
3
$10,36
7
Medicines
$26,00
0
$26,08
7
$26,17
3
$26,26
0
$26,34
7
$26,43
3
$26,52
0
$26,60
7
$26,69
3
$26,78
0
$26,86
7
$26,95
3
Totals
$1,91,1
00
$1,91,7
37
$1,92,3
74
$1,93,0
11
$1,93,6
48
$1,94,2
85
$1,94,9
22
$1,95,5
59
$1,96,1
96
$1,96,8
33
$1,97,4
70
$1,98,1
07
Monthly Sales Analysis - Units
Month 1 2 3 4 5 6 7 8 9 10 11 12
Consultation Fee 300 301 302 303 304 305 306 307 308 309 310 311
Sale of Glasses 600 602 604 606 608 610 612 614 616 618 620 622
Sale of Contact
Lenses 200 201 201 202 203 203 204 205 205 206 207 207
Advanced Check up 100 100 101 101 101 102 102 102 103 103 103 104
Medicines 400 401 403 404 405 407 408 409 411 412 413 415
Totals 1600
1605.3
33
1610.6
67 1616
1621.3
3
1626.6
7 1632
1637.3
33
1642.6
67 1648
1653.3
33
1658.6
67
Monthly Sales Analysis - Cost of Sales
Month 1 2 3 4 5 6 7 8 9 10 11 12
Consultation Fee $3,000 $3,010 $3,020 $3,030 $3,040 $3,050 $3,060 $3,070 $3,080 $3,090 $3,100 $3,110
Sale of Glasses
$60,00
0
$60,20
0
$60,40
0
$60,60
0
$60,80
0
$61,00
0
$61,20
0
$61,40
0
$61,60
0
$61,80
0
$62,00
0
$62,20
0
Sale of Contact
Lenses $5,500 $5,518 $5,537 $5,555 $5,573 $5,592 $5,610 $5,628 $5,647 $5,665 $5,683 $5,702
Advanced Check up $1,500 $1,505 $1,510 $1,515 $1,520 $1,525 $1,530 $1,535 $1,540 $1,545 $1,550 $1,555
Medicines
$20,80
0
$20,86
9
$20,93
9
$21,00
8
$21,07
7
$21,14
7
$21,21
6
$21,28
5
$21,35
5
$21,42
4
$21,49
3
$21,56
3
Totals
$90,80
0
$91,10
3
$91,40
5
$91,70
8
$92,01
1
$92,31
3
$92,61
6
$92,91
9
$93,22
1
$93,52
4
$93,82
7
$94,12
9
Month 1 2 3 4 5 6 7 8 9 10 11 12
Consultation Fee
$19,50
0
$19,56
5
$19,63
0
$19,69
5
$19,76
0
$19,82
5
$19,89
0
$19,95
5
$20,02
0
$20,08
5
$20,15
0
$20,21
5
Sale of Glasses
$1,17,6
00
$1,17,9
92
$1,18,3
84
$1,18,7
76
$1,19,1
68
$1,19,5
60
$1,19,9
52
$1,20,3
44
$1,20,7
36
$1,21,1
28
$1,21,5
20
$1,21,9
12
Sale of Contact
Lenses
$18,00
0
$18,06
0
$18,12
0
$18,18
0
$18,24
0
$18,30
0
$18,36
0
$18,42
0
$18,48
0
$18,54
0
$18,60
0
$18,66
0
Advanced Check up
$10,00
0
$10,03
3
$10,06
7
$10,10
0
$10,13
3
$10,16
7
$10,20
0
$10,23
3
$10,26
7
$10,30
0
$10,33
3
$10,36
7
Medicines
$26,00
0
$26,08
7
$26,17
3
$26,26
0
$26,34
7
$26,43
3
$26,52
0
$26,60
7
$26,69
3
$26,78
0
$26,86
7
$26,95
3
Totals
$1,91,1
00
$1,91,7
37
$1,92,3
74
$1,93,0
11
$1,93,6
48
$1,94,2
85
$1,94,9
22
$1,95,5
59
$1,96,1
96
$1,96,8
33
$1,97,4
70
$1,98,1
07
Monthly Sales Analysis - Units
Month 1 2 3 4 5 6 7 8 9 10 11 12
Consultation Fee 300 301 302 303 304 305 306 307 308 309 310 311
Sale of Glasses 600 602 604 606 608 610 612 614 616 618 620 622
Sale of Contact
Lenses 200 201 201 202 203 203 204 205 205 206 207 207
Advanced Check up 100 100 101 101 101 102 102 102 103 103 103 104
Medicines 400 401 403 404 405 407 408 409 411 412 413 415
Totals 1600
1605.3
33
1610.6
67 1616
1621.3
3
1626.6
7 1632
1637.3
33
1642.6
67 1648
1653.3
33
1658.6
67
Monthly Sales Analysis - Cost of Sales
Month 1 2 3 4 5 6 7 8 9 10 11 12
Consultation Fee $3,000 $3,010 $3,020 $3,030 $3,040 $3,050 $3,060 $3,070 $3,080 $3,090 $3,100 $3,110
Sale of Glasses
$60,00
0
$60,20
0
$60,40
0
$60,60
0
$60,80
0
$61,00
0
$61,20
0
$61,40
0
$61,60
0
$61,80
0
$62,00
0
$62,20
0
Sale of Contact
Lenses $5,500 $5,518 $5,537 $5,555 $5,573 $5,592 $5,610 $5,628 $5,647 $5,665 $5,683 $5,702
Advanced Check up $1,500 $1,505 $1,510 $1,515 $1,520 $1,525 $1,530 $1,535 $1,540 $1,545 $1,550 $1,555
Medicines
$20,80
0
$20,86
9
$20,93
9
$21,00
8
$21,07
7
$21,14
7
$21,21
6
$21,28
5
$21,35
5
$21,42
4
$21,49
3
$21,56
3
Totals
$90,80
0
$91,10
3
$91,40
5
$91,70
8
$92,01
1
$92,31
3
$92,61
6
$92,91
9
$93,22
1
$93,52
4
$93,82
7
$94,12
9
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
Monthly Sales Analysis - Gross Profit
Mont
hs 1 2 3 4 5 6 7 8 9 10 11 12
Totals
$1,00,3
00
$1,00,6
34
$1,00,9
69
$1,01,3
03
$1,01,6
37
$1,01,9
72
$1,02,3
06
$1,02,6
40
$1,02,9
75
$1,03,3
09
$1,03,6
43
$1,03,9
78
1 2 3 4 5 6 7 8 9 10 11 12
0
100
200
300
400
500
600
700
Monthly Sales (Units)
Numbers of Units
1 2 3 4 5 6 7 8 9 10 11 12
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Sales Revenue By Product
Dollars of Revenue
Mont
hs 1 2 3 4 5 6 7 8 9 10 11 12
Totals
$1,00,3
00
$1,00,6
34
$1,00,9
69
$1,01,3
03
$1,01,6
37
$1,01,9
72
$1,02,3
06
$1,02,6
40
$1,02,9
75
$1,03,3
09
$1,03,6
43
$1,03,9
78
1 2 3 4 5 6 7 8 9 10 11 12
0
100
200
300
400
500
600
700
Monthly Sales (Units)
Numbers of Units
1 2 3 4 5 6 7 8 9 10 11 12
$0
$20,000
$40,000
$60,000
$80,000
$100,000
$120,000
$140,000
Sales Revenue By Product
Dollars of Revenue
Monthly Expenses towards Employee Benefits
Personnel Analysis -
Monthly
Month 1 2 3 4 5 6 7 8 9 10 11 12
Dr. Pauline (Promoter) $9,563
$9,56
3
$9,56
3
$9,56
3
$9,56
3
$9,56
3
$9,56
3
$9,56
3
$9,56
3
$9,56
3
$9,56
3
$9,56
3
Practice Manager $6,703
$6,70
3
$6,70
3
$6,70
3
$6,70
3
$6,70
3
$6,70
3
$6,70
3
$6,70
3
$6,70
3
$6,70
3
$6,70
3
Optical Dispenser $4,252
$4,25
2
$4,25
2
$4,25
2
$4,25
2
$4,25
2
$4,25
2
$4,25
2
$4,25
2
$4,25
2
$4,25
2
$4,25
2
Optometric Assistant $10,625
$10,6
25
$10,6
25
$10,6
25
$10,6
25
$10,6
25
$10,6
25
$10,6
25
$10,6
25
$10,6
25
$10,6
25
$10,6
25
Receptionist $3,603
$3,60
3
$3,60
3
$3,60
3
$3,60
3
$3,60
3
$3,60
3
$3,60
3
$3,60
3
$3,60
3
$3,60
3
$3,60
3
Totals $34,745
$34,7
45
$34,7
45
$34,7
45
$34,7
45
$34,7
45
$34,7
45
$34,7
45
$34,7
45
$34,7
45
$34,7
45
$34,7
45
Personnel Analysis -
Monthly
Month 1 2 3 4 5 6 7 8 9 10 11 12
Dr. Pauline (Promoter) $9,563
$9,56
3
$9,56
3
$9,56
3
$9,56
3
$9,56
3
$9,56
3
$9,56
3
$9,56
3
$9,56
3
$9,56
3
$9,56
3
Practice Manager $6,703
$6,70
3
$6,70
3
$6,70
3
$6,70
3
$6,70
3
$6,70
3
$6,70
3
$6,70
3
$6,70
3
$6,70
3
$6,70
3
Optical Dispenser $4,252
$4,25
2
$4,25
2
$4,25
2
$4,25
2
$4,25
2
$4,25
2
$4,25
2
$4,25
2
$4,25
2
$4,25
2
$4,25
2
Optometric Assistant $10,625
$10,6
25
$10,6
25
$10,6
25
$10,6
25
$10,6
25
$10,6
25
$10,6
25
$10,6
25
$10,6
25
$10,6
25
$10,6
25
Receptionist $3,603
$3,60
3
$3,60
3
$3,60
3
$3,60
3
$3,60
3
$3,60
3
$3,60
3
$3,60
3
$3,60
3
$3,60
3
$3,60
3
Totals $34,745
$34,7
45
$34,7
45
$34,7
45
$34,7
45
$34,7
45
$34,7
45
$34,7
45
$34,7
45
$34,7
45
$34,7
45
$34,7
45
Expanded Statement of Profit & Loss
Profit and Loss Statement (First Year)
Months 1 2 3 4 5 6 7 8 9 10 11 12
Sales
$1,91,1
00
$1,91,7
37
$1,92,3
74
$1,93,0
11
$1,93,6
48
$1,94,2
85
$1,94,9
22
$1,95,5
59
$1,96,1
96
$1,96,8
33
$1,97,4
70
$1,98,1
07
Cost of Goods Sold $90,800 $91,103 $91,405 $91,708 $92,011 $92,313 $92,616 $92,919 $93,221 $93,524 $93,827 $94,129
Gross Margin 52.5% 52.5% 52.5% 52.5% 52.5% 52.5% 52.5% 52.5% 52.5% 52.5% 52.5% 52.5%
Gross Profit
$1,00,30
0
$1,00,63
4
$1,00,96
9
$1,01,30
3
$1,01,63
7
$1,01,97
2
$1,02,30
6
$1,02,64
0
$1,02,97
5
$1,03,30
9
$1,03,64
3
$1,03,97
8
Expenses
Payroll $34,745 $34,745 $34,745 $34,745 $34,745 $34,745 $34,745 $34,745 $34,745 $34,745 $34,745 $34,745
General and Administrative $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Marketing Expenses $1,946 $1,946 $1,946 $1,946 $1,946 $1,946 $1,946 $1,946 $1,946 $1,946 $1,946 $1,946
Professional Fees and Licenses $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $33
Insurance Costs $104 $104 $104 $104 $104 $104 $104 $104 $104 $104 $104 $104
Equipment Costs $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Rent and Utilities $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417
Miscellaneous Costs $2,335 $2,335 $2,335 $2,335 $2,335 $2,335 $2,335 $2,335 $2,335 $2,335 $2,335 $2,335
Payroll Taxes $6,454 $6,454 $6,454 $6,454 $6,454 $6,454 $6,454 $6,454 $6,454 $6,454 $6,454 $6,454
Total Operating Costs $48,535 $48,535 $48,535 $48,535 $48,535 $48,535 $48,535 $48,535 $48,535 $48,535 $48,535 $48,535
EBITDA
$51,76
5
$52,10
0
$52,43
4
$52,76
8
$53,10
3
$53,43
7
$53,77
1
$54,10
6
$54,44
0
$54,77
4
$55,10
9
$55,44
3
Federal Income Tax
$17,37
1
$17,42
9
$17,48
7
$17,54
5
$17,60
3
$17,66
0
$17,71
8
$17,77
6
$17,83
4
$17,89
2
$17,95
0
$18,00
8
State Income Tax $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Profit and Loss Statement (First Year)
Months 1 2 3 4 5 6 7 8 9 10 11 12
Sales
$1,91,1
00
$1,91,7
37
$1,92,3
74
$1,93,0
11
$1,93,6
48
$1,94,2
85
$1,94,9
22
$1,95,5
59
$1,96,1
96
$1,96,8
33
$1,97,4
70
$1,98,1
07
Cost of Goods Sold $90,800 $91,103 $91,405 $91,708 $92,011 $92,313 $92,616 $92,919 $93,221 $93,524 $93,827 $94,129
Gross Margin 52.5% 52.5% 52.5% 52.5% 52.5% 52.5% 52.5% 52.5% 52.5% 52.5% 52.5% 52.5%
Gross Profit
$1,00,30
0
$1,00,63
4
$1,00,96
9
$1,01,30
3
$1,01,63
7
$1,01,97
2
$1,02,30
6
$1,02,64
0
$1,02,97
5
$1,03,30
9
$1,03,64
3
$1,03,97
8
Expenses
Payroll $34,745 $34,745 $34,745 $34,745 $34,745 $34,745 $34,745 $34,745 $34,745 $34,745 $34,745 $34,745
General and Administrative $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Marketing Expenses $1,946 $1,946 $1,946 $1,946 $1,946 $1,946 $1,946 $1,946 $1,946 $1,946 $1,946 $1,946
Professional Fees and Licenses $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $33 $33
Insurance Costs $104 $104 $104 $104 $104 $104 $104 $104 $104 $104 $104 $104
Equipment Costs $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250 $1,250
Rent and Utilities $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417 $417
Miscellaneous Costs $2,335 $2,335 $2,335 $2,335 $2,335 $2,335 $2,335 $2,335 $2,335 $2,335 $2,335 $2,335
Payroll Taxes $6,454 $6,454 $6,454 $6,454 $6,454 $6,454 $6,454 $6,454 $6,454 $6,454 $6,454 $6,454
Total Operating Costs $48,535 $48,535 $48,535 $48,535 $48,535 $48,535 $48,535 $48,535 $48,535 $48,535 $48,535 $48,535
EBITDA
$51,76
5
$52,10
0
$52,43
4
$52,76
8
$53,10
3
$53,43
7
$53,77
1
$54,10
6
$54,44
0
$54,77
4
$55,10
9
$55,44
3
Federal Income Tax
$17,37
1
$17,42
9
$17,48
7
$17,54
5
$17,60
3
$17,66
0
$17,71
8
$17,77
6
$17,83
4
$17,89
2
$17,95
0
$18,00
8
State Income Tax $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Interest Expense $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Depreciation Expense $789 $789 $789 $789 $789 $789 $789 $789 $789 $789 $789 $789
Net Profit
$33,60
6
$33,88
2
$34,15
9
$34,43
5
$34,71
1
$34,98
8
$35,26
4
$35,54
1
$35,81
7
$36,09
4
$36,37
0
$36,64
6
Net Profit
$33,60
6
$33,88
2
$34,15
9
$34,43
5
$34,71
1
$34,98
8
$35,26
4
$35,54
1
$35,81
7
$36,09
4
$36,37
0
$36,64
6
Profit and Loss Statement (Second Year)
2
Quarter Q1 Q2 Q3 Q4 2
Sales
$5,60,4
58
$7,00,5
73
$7,56,6
18
$7,84,6
41
$28,02,2
90
Cost of Goods Sold
$2,66,2
98
$3,32,8
73
$3,59,5
03
$3,72,8
18
$13,31,4
91
Gross Margin 52.5% 52.5% 52.5% 52.5% 52.5%
Gross Profit
$2,94,
160
$3,67,
700
$3,97,
116
$4,11,
824
$14,70,
799
Expenses
Payroll
$93,81
9
$1,17,2
73
$1,26,6
55
$1,31,3
46
$4,69,09
3
General and
Administrative $3,120 $3,900 $4,212 $4,368 $15,600
Marketing Expenses $5,605 $7,006 $7,566 $7,846 $28,023
Professional Fees and
Licenses $82 $103 $111 $115 $412
Insurance Costs $263 $328 $354 $368 $1,313
Equipment Costs $3,300 $4,125 $4,455 $4,620 $16,500
Rent and Utilities $1,100 $1,375 $1,485 $1,540 $5,500
Miscellaneous Costs $6,725 $8,407 $9,079 $9,416 $33,627
Payroll Taxes
$16,56
1
$20,70
1
$22,35
7
$23,18
5 $82,805
Total Operating
Costs
$1,30,
575
$1,63,
218
$1,76,
276
$1,82,
805
$6,52,8
73
EBITDA
$1,63,
585
$2,04,
481
$2,20,
840
$2,29,
019
$8,17,9
26
Federal Income Tax
$44,98
6
$56,23
2
$60,73
1
$62,98
0
$2,24,93
0
State Income Tax $0 $0 $0 $0 $0
Interest Expense $0 $0 $0 $0 $0
Depreciation Expense $2,366 $2,366 $2,366 $2,366 $9,464
Net Profit
$1,16,
233
$1,45,
883
$1,57,
743
$1,63,
673
$5,83,5
32
2
Quarter Q1 Q2 Q3 Q4 2
Sales
$5,60,4
58
$7,00,5
73
$7,56,6
18
$7,84,6
41
$28,02,2
90
Cost of Goods Sold
$2,66,2
98
$3,32,8
73
$3,59,5
03
$3,72,8
18
$13,31,4
91
Gross Margin 52.5% 52.5% 52.5% 52.5% 52.5%
Gross Profit
$2,94,
160
$3,67,
700
$3,97,
116
$4,11,
824
$14,70,
799
Expenses
Payroll
$93,81
9
$1,17,2
73
$1,26,6
55
$1,31,3
46
$4,69,09
3
General and
Administrative $3,120 $3,900 $4,212 $4,368 $15,600
Marketing Expenses $5,605 $7,006 $7,566 $7,846 $28,023
Professional Fees and
Licenses $82 $103 $111 $115 $412
Insurance Costs $263 $328 $354 $368 $1,313
Equipment Costs $3,300 $4,125 $4,455 $4,620 $16,500
Rent and Utilities $1,100 $1,375 $1,485 $1,540 $5,500
Miscellaneous Costs $6,725 $8,407 $9,079 $9,416 $33,627
Payroll Taxes
$16,56
1
$20,70
1
$22,35
7
$23,18
5 $82,805
Total Operating
Costs
$1,30,
575
$1,63,
218
$1,76,
276
$1,82,
805
$6,52,8
73
EBITDA
$1,63,
585
$2,04,
481
$2,20,
840
$2,29,
019
$8,17,9
26
Federal Income Tax
$44,98
6
$56,23
2
$60,73
1
$62,98
0
$2,24,93
0
State Income Tax $0 $0 $0 $0 $0
Interest Expense $0 $0 $0 $0 $0
Depreciation Expense $2,366 $2,366 $2,366 $2,366 $9,464
Net Profit
$1,16,
233
$1,45,
883
$1,57,
743
$1,63,
673
$5,83,5
32
Profit and Loss Statement (Third
Year)
3
Quarter Q1 Q2 Q3 Q4 3
Sales
$6,55,7
36
$8,19,6
70
$8,85,2
44
$9,18,0
30
$32,78,6
80
Cost of Goods Sold
$3,11,5
69
$3,89,4
61
$4,20,6
18
$4,36,1
97
$15,57,8
45
Gross Margin 52.5% 52.5% 52.5% 52.5% 52.5%
Gross Profit
$3,44,
167
$4,30,
209
$4,64,
625
$4,81,
834
$17,20,
835
Expenses
Payroll
$1,15,2
88
$1,44,1
09
$1,55,6
38
$1,61,4
03
$5,76,43
8
General and
Administrative $3,245 $4,056 $4,380 $4,543 $16,224
Marketing Expenses $6,557 $8,197 $8,852 $9,180 $32,787
Professional Fees and
Licenses $85 $106 $115 $119 $424
Insurance Costs $276 $345 $372 $386 $1,378
Equipment Costs $3,630 $4,538 $4,901 $5,082 $18,150
Rent and Utilities $1,210 $1,513 $1,634 $1,694 $6,050
Miscellaneous Costs $7,869 $9,836
$10,62
3
$11,01
6 $39,344
Payroll Taxes
$17,29
3
$21,61
6
$23,34
6
$24,21
0 $86,466
Total Operating
Costs
$1,55,
452
$1,94,
315
$2,09,
860
$2,17,
633
$7,77,2
61
Year)
3
Quarter Q1 Q2 Q3 Q4 3
Sales
$6,55,7
36
$8,19,6
70
$8,85,2
44
$9,18,0
30
$32,78,6
80
Cost of Goods Sold
$3,11,5
69
$3,89,4
61
$4,20,6
18
$4,36,1
97
$15,57,8
45
Gross Margin 52.5% 52.5% 52.5% 52.5% 52.5%
Gross Profit
$3,44,
167
$4,30,
209
$4,64,
625
$4,81,
834
$17,20,
835
Expenses
Payroll
$1,15,2
88
$1,44,1
09
$1,55,6
38
$1,61,4
03
$5,76,43
8
General and
Administrative $3,245 $4,056 $4,380 $4,543 $16,224
Marketing Expenses $6,557 $8,197 $8,852 $9,180 $32,787
Professional Fees and
Licenses $85 $106 $115 $119 $424
Insurance Costs $276 $345 $372 $386 $1,378
Equipment Costs $3,630 $4,538 $4,901 $5,082 $18,150
Rent and Utilities $1,210 $1,513 $1,634 $1,694 $6,050
Miscellaneous Costs $7,869 $9,836
$10,62
3
$11,01
6 $39,344
Payroll Taxes
$17,29
3
$21,61
6
$23,34
6
$24,21
0 $86,466
Total Operating
Costs
$1,55,
452
$1,94,
315
$2,09,
860
$2,17,
633
$7,77,2
61
Paraphrase This Document
Need a fresh take? Get an instant paraphrase of this document with our AI Paraphraser
EBITDA
$1,88,
715
$2,35,
894
$2,54,
765
$2,64,
201
$9,43,5
74
Federal Income Tax
$89,35
0
$1,11,6
87
$1,20,6
22
$1,25,0
90
$4,46,74
9
State Income Tax $0 $0 $0 $0 $0
Interest Expense $0 $0 $0 $0 $0
Depreciation Expense $2,366 $2,366 $2,366 $2,366 $9,464
Net Profit
$96,99
9
$1,21,
840
$1,31,
777
$1,36,
745
$4,87,3
61
$1,88,
715
$2,35,
894
$2,54,
765
$2,64,
201
$9,43,5
74
Federal Income Tax
$89,35
0
$1,11,6
87
$1,20,6
22
$1,25,0
90
$4,46,74
9
State Income Tax $0 $0 $0 $0 $0
Interest Expense $0 $0 $0 $0 $0
Depreciation Expense $2,366 $2,366 $2,366 $2,366 $9,464
Net Profit
$96,99
9
$1,21,
840
$1,31,
777
$1,36,
745
$4,87,3
61
Cash Flow Analysis (First Year)
Month 1 2 3 4 5 6 7 8 9 10 11 12
Cash From Operations $34,394 $34,671 $34,947 $35,224 $35,500 $35,777 $36,053 $36,329 $36,606 $36,882 $37,159 $37,435
Cash From Receivables $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Operating Cash Inflow $34,394 $34,671 $34,947 $35,224 $35,500 $35,777 $36,053 $36,329 $36,606 $36,882 $37,159 $37,435
Other Cash Inflows
Equity Investment
$1,50,00
0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Increased Borrowings $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Business Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
A/P Increases $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159
Total Other Cash Inflows
$1,53,15
9 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159
Total Cash Inflow
$1,87,55
3 $37,829 $38,106 $38,382 $38,659 $38,935 $39,211 $39,488 $39,764 $40,041 $40,317 $40,594
Cash Outflows
Repayment of Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
A/P Decreases $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075
A/R Increases $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Asset Purchases
$1,15,00
0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,31,124
Total Cash Outflows
$1,17,07
5 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075
$2,33,19
9
Month 1 2 3 4 5 6 7 8 9 10 11 12
Cash From Operations $34,394 $34,671 $34,947 $35,224 $35,500 $35,777 $36,053 $36,329 $36,606 $36,882 $37,159 $37,435
Cash From Receivables $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Operating Cash Inflow $34,394 $34,671 $34,947 $35,224 $35,500 $35,777 $36,053 $36,329 $36,606 $36,882 $37,159 $37,435
Other Cash Inflows
Equity Investment
$1,50,00
0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Increased Borrowings $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Sales of Business Assets $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
A/P Increases $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159
Total Other Cash Inflows
$1,53,15
9 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159
Total Cash Inflow
$1,87,55
3 $37,829 $38,106 $38,382 $38,659 $38,935 $39,211 $39,488 $39,764 $40,041 $40,317 $40,594
Cash Outflows
Repayment of Principal $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
A/P Decreases $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075
A/R Increases $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Asset Purchases
$1,15,00
0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $0 $2,31,124
Total Cash Outflows
$1,17,07
5 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075
$2,33,19
9
Net Cash Flow $70,478 $35,755 $36,031 $36,307 $36,584 $36,860 $37,137 $37,413 $37,690 $37,966 $38,242
-
$1,92,60
5
Cash Balance $70,478
$1,06,23
3
$1,42,26
4
$1,78,57
1
$2,15,15
5
$2,52,01
5
$2,89,15
2
$3,26,56
5 $3,64,255
$4,02,22
1
$4,40,46
3
$2,47,85
8
Expanded Cash flow Statement
-
$1,92,60
5
Cash Balance $70,478
$1,06,23
3
$1,42,26
4
$1,78,57
1
$2,15,15
5
$2,52,01
5
$2,89,15
2
$3,26,56
5 $3,64,255
$4,02,22
1
$4,40,46
3
$2,47,85
8
Expanded Cash flow Statement
Secure Best Marks with AI Grader
Need help grading? Try our AI Grader for instant feedback on your assignments.
Cash Flow Analysis (Second
Year)
2
Quarter Q1 Q2 Q3 Q4 2
Cash From Operations
$1,18,59
9
$1,48,24
9
$1,60,10
9
$1,66,03
9
$5,92,99
6
Cash From
Receivables $0 $0 $0 $0 $0
Operating Cash
Inflow
$1,18,5
99
$1,48,2
49
$1,60,1
09
$1,66,0
39
$5,92,9
96
Other Cash Inflows
Equity Investment $0 $0 $0 $0 $0
Increased Borrowings $0 $0 $0 $0 $0
Sales of Business
Assets $0 $0 $0 $0 $0
A/P Increases $8,717 $10,897 $11,769 $12,204 $43,587
Total Other Cash
Inflows $8,717 $10,897
$11,76
9 $12,204 $43,587
Total Cash Inflow
$1,27,3
17
$1,59,1
46
$1,71,8
78
$1,78,2
43
$6,36,5
84
Cash Outflows
Repayment of
Principal $0 $0 $0 $0 $0
A/P Decreases $5,975 $7,469 $8,067 $8,365 $29,876
A/R Increases $0 $0 $0 $0 $0
Asset Purchases $29,650 $37,062 $40,027 $41,510
$1,48,24
9
Dividends $6,000 $7,500 $8,100 $8,400 $30,000
Total Cash Outflows
$41,62
5 $52,031
$56,19
4 $58,275
$2,08,1
25
Net Cash Flow
$85,69
2
$1,07,1
15
$1,15,6
84
$1,19,9
68
$4,28,4
58
Cash Balance
$5,34,6
74
$6,41,7
88
$7,57,4
72
$8,77,4
40
$8,77,4
40
Year)
2
Quarter Q1 Q2 Q3 Q4 2
Cash From Operations
$1,18,59
9
$1,48,24
9
$1,60,10
9
$1,66,03
9
$5,92,99
6
Cash From
Receivables $0 $0 $0 $0 $0
Operating Cash
Inflow
$1,18,5
99
$1,48,2
49
$1,60,1
09
$1,66,0
39
$5,92,9
96
Other Cash Inflows
Equity Investment $0 $0 $0 $0 $0
Increased Borrowings $0 $0 $0 $0 $0
Sales of Business
Assets $0 $0 $0 $0 $0
A/P Increases $8,717 $10,897 $11,769 $12,204 $43,587
Total Other Cash
Inflows $8,717 $10,897
$11,76
9 $12,204 $43,587
Total Cash Inflow
$1,27,3
17
$1,59,1
46
$1,71,8
78
$1,78,2
43
$6,36,5
84
Cash Outflows
Repayment of
Principal $0 $0 $0 $0 $0
A/P Decreases $5,975 $7,469 $8,067 $8,365 $29,876
A/R Increases $0 $0 $0 $0 $0
Asset Purchases $29,650 $37,062 $40,027 $41,510
$1,48,24
9
Dividends $6,000 $7,500 $8,100 $8,400 $30,000
Total Cash Outflows
$41,62
5 $52,031
$56,19
4 $58,275
$2,08,1
25
Net Cash Flow
$85,69
2
$1,07,1
15
$1,15,6
84
$1,19,9
68
$4,28,4
58
Cash Balance
$5,34,6
74
$6,41,7
88
$7,57,4
72
$8,77,4
40
$8,77,4
40
Cash Flow Analysis (Third
Year)
3
Quarter Q1 Q2 Q3 Q4 3
Cash From
Operations
$2,35,55
9
$2,94,44
8
$3,18,00
4
$3,29,78
2
$11,77,7
93
Cash From
Receivables $0 $0 $0 $0 $0
Operating Cash
Inflow
$2,35,5
59
$2,94,4
48
$3,18,0
04
$3,29,7
82
$11,77,
793
Other Cash
Inflows
Equity Investment $0 $0 $0 $0 $0
Increased
Borrowings $0 $0 $0 $0 $0
Sales of Business
Assets $0 $0 $0 $0 $0
A/P Increases $10,025 $12,531 $13,534 $14,035 $50,125
Total Other Cash
Inflows $10,025 $12,531 $13,534 $14,035 $50,125
Total Cash Inflow
$2,45,5
84
$3,06,9
80
$3,31,5
38
$3,43,8
17
$12,27,
918
Cash Outflows
Repayment of
Principal $0 $0 $0 $0 $0
A/P Decreases $7,170 $8,963 $9,680 $10,038 $35,852
A/R Increases $0 $0 $0 $0 $0
Year)
3
Quarter Q1 Q2 Q3 Q4 3
Cash From
Operations
$2,35,55
9
$2,94,44
8
$3,18,00
4
$3,29,78
2
$11,77,7
93
Cash From
Receivables $0 $0 $0 $0 $0
Operating Cash
Inflow
$2,35,5
59
$2,94,4
48
$3,18,0
04
$3,29,7
82
$11,77,
793
Other Cash
Inflows
Equity Investment $0 $0 $0 $0 $0
Increased
Borrowings $0 $0 $0 $0 $0
Sales of Business
Assets $0 $0 $0 $0 $0
A/P Increases $10,025 $12,531 $13,534 $14,035 $50,125
Total Other Cash
Inflows $10,025 $12,531 $13,534 $14,035 $50,125
Total Cash Inflow
$2,45,5
84
$3,06,9
80
$3,31,5
38
$3,43,8
17
$12,27,
918
Cash Outflows
Repayment of
Principal $0 $0 $0 $0 $0
A/P Decreases $7,170 $8,963 $9,680 $10,038 $35,852
A/R Increases $0 $0 $0 $0 $0
Asset Purchases $58,890 $73,612 $79,501 $82,446
$2,94,44
8
Dividends $6,000 $7,500 $8,100 $8,400 $30,000
Total Cash
Outflows $72,060 $90,075 $97,281
$1,00,8
84
$3,60,3
00
Net Cash Flow
$1,73,5
24
$2,16,9
05
$2,34,2
57
$2,42,9
33
$8,67,6
18
Cash Balance
$10,50,
964
$12,67,
869
$15,02,
126
$17,45,
059
$17,45,
059
$2,94,44
8
Dividends $6,000 $7,500 $8,100 $8,400 $30,000
Total Cash
Outflows $72,060 $90,075 $97,281
$1,00,8
84
$3,60,3
00
Net Cash Flow
$1,73,5
24
$2,16,9
05
$2,34,2
57
$2,42,9
33
$8,67,6
18
Cash Balance
$10,50,
964
$12,67,
869
$15,02,
126
$17,45,
059
$17,45,
059
1 out of 46
Related Documents
![[object Object]](/_next/image/?url=%2F_next%2Fstatic%2Fmedia%2Flogo.6d15ce61.png&w=640&q=75){kind=small}
Your All-in-One AI-Powered Toolkit for Academic Success.
+13062052269
info@desklib.com
Available 24*7 on WhatsApp / Email
![[object Object]](/_next/static/media/star-bottom.7253800d.svg)
Unlock your academic potential
© 2024 | Zucol Services PVT LTD | All rights reserved.