Business Plan for Optometry Pty Ltd

This business plan outlines the services, financing, vision, mission, business objectives, industry analysis, marketing strategies, financial forecasts, and exit strategy for Optometry Pty Ltd.

Business Plan
Optometry Pty
Ltd.,
Prepared on 28/01/2019
All the information that is contained in the document is confidential and is to be
read, interpreted and analysed only by the persons duly authorized to do so. For
the purpose of reference of use, a detailed confidentiality policy has been
provided. The business plan cannot be used along with any prospectus or cannot
be construed as an offering for securities.

Confidentiality Agreement
The reader of the report duly acknowledge that the information contained in the
report is sensitive and confidential. Therefore the reader hereby expressly
agrees not to disclose or share any information contained in this report without
the prior, express written permission of Optometry Pty Ltd., or its authorised
agent appointed by the company from time to time.
The reader also acknowledges that the information furnished in the business
plan is in every bit confidential in nature, other than such information which is
available in the public domain or any other means and abuse of unauthorised
use of the information by way of disclosure or otherwise by the reader may
cause grave harm or damage (whether financial or non-financial) to the
company.
This plan should not be copied or otherwise reproduced by any means without
prior, express written consent of the company or its duly authorized agent
appointed by the company from time to time.
The plan should be read and interpreted in full and the reader acknowledges to
consider the report as a whole in interpretation and drawing conclusions and
shall not disclose the conclusions so drawn to any person without prior, express
written consent of the company or its duly authorized agent appointed by the
company from time to time.
The reader agrees to forthwith return the plan upon request.
Signature Date
Name

Table of Contents
Confidentiality Agreement...........................................................................................................2
Executive Summary.......................................................................................................................6
Services:.........................................................................................................................................6
Financing:......................................................................................................................................6
Vision:.............................................................................................................................................6
Mission:...........................................................................................................................................6
Business Objectives:..................................................................................................................7
Industry:.........................................................................................................................................7
Economic and Regulatory requirement:.............................................................................8
Competitors and Market Analysis:........................................................................................8
Marketing Strategies:................................................................................................................9
Competitive Advantage:...........................................................................................................9
Business Core Values:...............................................................................................................9
Key Financial Forecasts..............................................................................................................10
Sales forecast:............................................................................................................................10
Business ratios:..........................................................................................................................10
Summary of initial structure of financing:............................................................................11
Initial Investment:.....................................................................................................................11
Analysis:...................................................................................................................................12
Exit Strategy:..............................................................................................................................12
Optometric Services and Sales................................................................................................13
Optometric Services:...............................................................................................................13
Products offered by the Company:.....................................................................................13
Marketing Plan...............................................................................................................................14
Marketing Objectives:..............................................................................................................14
Pricing Objectives:....................................................................................................................14
Organizational Budgets..............................................................................................................16
Financial Plan:................................................................................................................................17
Underlying assumptions:........................................................................................................17
Statement of Profit and Loss:...............................................................................................18
Cash flow Statements:............................................................................................................19
Balance Sheet:...........................................................................................................................20
Break-even Analysis:...............................................................................................................21
Business Ratios:........................................................................................................................21

Three Year Profit and Loss Account:..................................................................................22
Cash flow statements for three years:.............................................................................................24
Bibliography:.......................................................................................................................................27

Executive Summary
The purpose of the business plan is to utilise the available funds of $150,000 for
the development of a business with an objective to practice optometry and
includes a forecast of financial statements of the first three financial years
following the commencement of the business. Optometry Pty Ltd (“the
company”) is a Merrylands based corporation that is going to be engaged in
providing optometric services to the customers in the targeted geographical area
chosen as market for the practice.
Services:
Dr. Pauline will provide optometric services to the patients. The following
services can be covered under optometric services are:
 Eye check-up;
 Treatment for Eye diseases; and
 LASIK management
The main source of revenue to the corporation is fees from patients and other
reimbursements, if any from insurance companies where the client claims for the
same. Apart from services, the corporation may also incidental revenue from
sale of products such as glasses, contact lens, glasses repairs and sale of frames.
Financing:
Dr. Pauline inherited $150,000 and hence there is no requirement for raising any
funds from financial institutions. The company may however require working
capital funding if any to cover the gap between current assets and current
liabilities and if such requirement arises the interest rate is assumed to be 12%.
Vision:
We strive to become a global pioneer in the industry backed by continuous
efforts towards innovation and client satisfaction
Mission:
Complete satisfaction of the patients with unmatched visual experience, with
tailor made treatment to patients depending upon their problem.
Business Objectives:
The objectives of the company are as follows:

 To enhance and contribute to the development of eye health of the
patients
 To conduct and promote high standards of practice of optometry; and
 To contribute to the advancement of science of optometry.
Industry:
Geographically, the global optometry market has been broadly categorised into
following geographical segments.
 North America
 Europe
 Asia Pacific
 Latin America
 Middle East; and
 Africa
These broad geographical segments are further classified into major countries
within the region. The primary target of the company shall be Australia which
falls under the Asia Pacific region.
The industry analysis of the optometry suggests some key metrics which are as
follows (Ibisworld.com.au, n.d.):
 Revenue - $4 billion
 Annual Growth (expected in 2019) – 2.9%
 The optometry practices are 3219 out of which 35% of the companies are
standalone practices.
Recent studies of the trends in market suggests that the industry is facing
increasingly competitive environment over past 5 years and is favourable to new
corporates. The industry is witnessing significant growth in the sales of glasses
through internet and e-commerce domains. The return on investment of the
industry is favourable.
Economic and Regulatory requirement:
The optometry industry in Australia is governed by the Optometry Board of
Australia. The Board performs various functions related to the profession which
include (Optometryboard.gov.au, n.d.) –

 Registering the students who are aspiring to be optometrists and qualified
optometrists;
 Codification of standards, guidelines and various other codes in relation to
the profession;
 Issuing notifications, resolving the complaints and looking after the
discipline of members;
 Accrediting the course of study for students.
The optometry department also falls under constant supervision of Department
of Health (Australia Government) (Health.gov.au, n.d.).
Competitors and Market Analysis:
There are around 60 top optometrists in Merrylands and only 15 are located in
suburbs of Merrylands. The company targets an average client who will most
likely be a middle class man or woman living in the suburbs of Merrylands. The
primary target market of the company is the suburbs of Merrylands and the
customer profile and common traits of prospective customers in the area are as
follows (Quickstats.censusdata.abs.gov.au, n.d.):
 The majority of customers are middle class;
 The total population consists of 10.6 % of people aged 65 years or above
who are most likely to have need for the optometric products;
 The median age of people in Merrylands was 32 years;
 More than 84% of population are actively engaged in some kind of
employment (whether full time or part-time); and
 The average household income of people in Merrylands per annum is
$70,460
The experience of the promoter of the company is the main advantage of the
company to sustain the competition.
Marketing Strategies:
Apart from traditional advertisement media such as printed ads, hoardings, etc.
the company shall also focus on internet based strategy. The pricing will be done
economically in such a way that the customers feel the services and items
pocket friendly thereby conquering the patients base. In the case of the
optometric products such as glasses and lens, the company is planning to adopt
penetration policy owing to well established competition.

Competitive Advantage:
The main competitive advantage of the company is its experienced promoter
and the company wants to bank upon this advantage and utilise it to the
optimum level.
Business Core Values:
The following are the core business values of the company:
 The primary focus of the company is its customers and patients;
 The team of the company works as an inclusive and collaborative force
and obtain the effect of synergy;
 The company commits for integrity, honesty and transparency;
 The company acts with accountability; and
 The company commits to consistently aim and achieve clinical excellence.

Key Financial Forecasts
Sales forecast:
Proforma Profit and Loss (Yearly)
Year 1 2 3
Sales $14,51,7
36
$17,42,08
3
$20,38,2
37
Operating Costs $6,75,24
2
$7,41,732 $8,09,20
5
EBITDA $4,94,21
2
$6,61,613 $8,32,70
9
Taxes, Interest, and Depreciation $1,96,01
5
$1,90,158 $2,37,20
9
Net Profit $2,98,19
7
$4,71,455 $5,95,50
0
1 2 3
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Sales, Operating Costs, and Profit
Forecast
Sales EBITDA Net Profit
Year
Business ratios:
Business Ratios - Yearly
Year 1 2 3
Sales
Sales Growth 0.0% 20.0% 17.0%
Gross Margin 80.6% 80.6% 80.6%
Financials
Profit Margin 20.54% 27.06
%
29.22
%
Assets to Liabilities 13.08 11.96 13.28
Equity to Liabilities 12.08 10.96 12.28
Assets to Equity 1.08 1.09 1.08
Liquidity
Acid Test 4.87 3.78 3.55
Cash to Assets 0.37 0.32 0.27

Business Plan
Summary of initial structure of financing:
Initial Investment:
The initial investment estimated to be required for set up of the business is
$150,000. The Start-up costs and the sources of funds are mentioned in the table
below:
Projected Startup Costs
Business Start-up Year 1
Initial Lease Payments $10,00
0
Working Capital $44,00
0
FF&E $23,00
0
Leasehold Improvements $5,000
Security Deposits $5,000
Insurance $3,000
Optometry Equipment $25,00
0
Inventory $30,00
0
Miscellaneous and Unforeseen Costs $5,000
Total Start-up Costs $1,50,0
00

Initial Lease Payments
7%
Working Capital
29%
FF&E
15%
Leasehold Improvements
3%
Security Deposits
3%
Insurance
2%
Optometry Equipment
17%
Inventory
20%
Miscellaneous and Unforeseen Costs
3%
Use of Funds

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
Analysis:
The promoter is not seeking any contribution towards equity from the third party.
Hence the promoter wants to retain 100% of ownership of equity. Further, owing
to sufficiency of available funds, the promoter is not even seeking any finance
from bankers and third party lenders.
Exit Strategy:
The promoter may, if the business turns out to be successful, seek to sell the
practice to any interested and qualified third party. The Company may approach
a qualified broker to dispose of the business of the company on its behalf.

Optometric Services and Sales
The company offers the below mentioned products and services to the patients:
Optometric Services:
Dr. Pauline is a licensed optometrist practitioner and his practice will render
treatment for –
 General Eye check-up;
 Treatment for eye disorders;
 Comprehensive eye examinations;
 Prescription of appropriate lens and glasses for sight related problems;
and
 Co-management of LASIK Procedures
It is assumed that the company starts with a minimum of 300 patients for eye
check-up per month and the inflow is expected to grow at a steady pace.
As already mentioned earlier in the executive summary, the revenue for services
shall be received by way of direct payment from customers, reimbursement from
companies in which the patient works or reimbursement from the insurance
companies.
Apart from optometric services, the company is also expected to earn incidental
revenue from repair of the eye wears.
Products offered by the Company:
The company will also sell prescription lenses, glasses, frames, contact lens and
a variety of medicines. It is expected that the company achieves 80% of its
expected revenue from sale of products rather than services.
The source of revenue for products include:
Direct payment from customers,
Reimbursement from companies; and
Reimbursement from the insurance companies.
The forecasted sales from various revenue centers are as follows:
Yearly Sales
Forecast
Year 1 2 3 4 5
Growth (%) 0.0% 20.0% 17.0% 14.0% 12.0%
General Optometric
Services
$3,66,600 $4,39,920 $5,14,706 $5,86,765 $6,57,177
Sale of Glasses $9,53,160 $11,43,792 $13,38,23
7
$15,25,59
0
$17,08,66
1
Sale of Contact lens $1,31,976 $1,58,371 $1,85,294 $2,11,236 $2,36,584
Repair of Glasses
and frames
$4,260 $5,112 $5,981 $6,818 $7,637
0 $0 $0 $0 $0 $0
Totals $14,55,9
96
$17,47,19
5
$20,44,2
18
$23,30,4
09
$26,10,0
58

Marketing Plan
The company intends to conduct and maintain an exhaustive and extensive
campaign to ensure maximum visibility of the business in the targeted market.
The company thereby also aims to enhance the brand value of the company.
Marketing Objectives:
 The company intends to create a website in order to initiate its online
presence and spend reasonable amount towards digital marketing to push
clicks to the website.
 Plan and execute a local campaign for the company’s targeted market via
print media such as newspapers, advertisements, hoardings and flyers.
The campaign’s overall objective will be enhancement of public awareness
and positive word of mouth.
 Building and maintaining relationship with the local physicians and other
doctors with reputation.
Pricing Objectives:
The company intends to adopt penetration policy of pricing for its products to
seize considerable market share. The company feels it necessary in a view of
already established market and the number of competitors. The main focus of
the company is mid-range products and initially decided to abstain from dealing
with large quantities of luxurious and costly products. The company feels it
necessary owing to the fact that majority of residents living in the targeted
market are middle class and earn an average household income which is less
than the country’s average as a whole.
The forecasted Revenue per product and service of the company is as follows:
Inventory
Product Name Cost Per
Unit
Profit Per
Item
Revenue
Per Item
General Optometric Services $5.00 $95.00 $65.00
Sale of Glasses $30.00 $100.00 $130.00
Sale of Contact lens $15.00 $30.00 $45.00
Repair of Glasses and frames $3.00 $7.00 $10.00
$0.00 $0.00 $0.00
General Optometric Services Sale of Glasses
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
Yearly Sales
1
2
3
4
5

Source for Prices are as follows:
 Contact lenses : (Specsavers.com.au, n.d.)
 Eye check-up : (Smith, n.d.)
 Glasses : (Specsavers.com.au, n.d.)

Organizational Budgets
The Budgeted Expenditure towards Employment benefits are as follows:
Personnel Summary
Position Growth
(%)
1 2 3
Dr. Pauline 2.1% $97,200 $99,241 $1,01,32
5
Practice Manager 2.1% $68,000 $69,428 $70,886
Glass Technicians 2.1% $67,700 $69,122 $70,573
Assistants 2.1% $38,300 $39,104 $39,925
Receptionist 2.1% $39,500 $40,330 $41,176
Total 2.1% $3,10,700 $3,17,225 $3,23,88
6
Source of assumptions – Base Salaries for the first year:
 Optometric Practitioner: (Payscale.com, n.d.)
 Practice Manager : (Payscale.com, n.d.)
 Glass Technicians : (Payscale.com, n.d.)
 Assistants : (Payscale.com, n.d.)
 Receptionist : (Payscale.com, n.d.)
 Growth Rate : (Tradingeconomics.com, 2019)
Number of personnel required
Numbers of
Personnel
Year 1 2 3
Dr. Pauline 2 2 2
Practice
Manager
1 1 1
Glass
Technicians
1 1 1
Assistants 3 4 5
Receptionist 2 2 2
Totals 9 10 11
Break-down of Personnel expenditure:
Dr. Pauline
37%
Practice Manager
13%
Glass Technicians
13%
Assistants
22%
Receptionist
15%
Personnel Expense Breakdown

Financial Plan:
Underlying assumptions:
The following assumptions are adopted in preparing the financial statements:
 The company experiences a growth rate of 20% during the first year;
 The revenue from sale of products is 4 times greater than the revenue
from services;
 The company will provide all the finance required through equity alone;
and
 The company shall settle the short term payables on monthly basis
The other general assumptions are as follows:
General Assumptions
Year 1 2 3
Short Term Interest
Rate
12.0
%
12.0
%
12.0
%
Long Term Interest
Rate
10.0
%
10.0
%
10.0
%
Income Tax Rate 27.5
%
27.5
%
27.5
%
Source for assumptions:
Income Tax Rate : (Penguin Management, 2018)
Revenue : (Abs.gov.au, n.d.)

Statement of Profit and Loss:
Proforma Profit and Loss (Yearly)
Year 1 2 3
Sales $14,55,99
6
$17,47,19
5
$20,44,21
8
Cost of Goods Sold $2,83,560 $3,40,272 $3,98,118
Gross Margin 80.52% 80.52% 80.52%
Gross Profit $11,72,43
6
$14,06,92
3
$16,46,10
0
Expenses
Payroll $5,24,000 $5,74,108 $6,26,090
General and Administrative $30,000 $31,200 $32,448
Marketing Expenses $7,280 $8,736 $10,221
Professional Fees and
Licensure
$2,000 $2,060 $2,122
Insurance Costs $1,987 $2,086 $2,191
Equipment Costs $7,596 $8,356 $9,191
Rent and Utilities $7,800 $8,190 $8,600
Miscellaneous Costs $16,000 $20,966 $24,531
Payroll Taxes $78,600 $86,116 $93,914
Total Operating Costs $6,75,26
3
$7,41,81
9
$8,09,30
6
EBITDA $4,97,17
3
$6,65,10
4
$8,36,79
4
Federal Income Tax $1,64,067 $1,82,904 $2,30,118
State Income Tax $24,859 $0 $0
Interest Expense $0 $0 $0
Depreciation Expenses $8,214 $8,214 $8,214
Net Profit $3,00,03
3
$4,73,98
6
$5,98,46
1
Profit Margin 20.61% 27.13% 29.28%

1 2 3
$0
$500,000
$1,000,000
$1,500,000
$2,000,000
$2,500,000
Sales, Operating Costs, and Profit
Forecast
Sales EBITDA Net Profit
Year

Cash flow Statements:
Proforma Cash Flow Analysis - Yearly
Year 1 2 3
Cash From Operations $3,08,24
7
$4,82,201 $6,06,675
Cash From Receivables $0 $0 $0
Operating Cash Inflow $3,08,2
47
$4,82,20
1
$6,06,675
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
$43,587 $50,125
Total Cash Inflow $4,96,1
49
$5,25,78
8
$6,56,801
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
$1,20,550 $1,51,669
Dividends $2,92,83
5
$3,37,540 $4,24,673
Total Cash Outflows $4,32,7
32
$4,87,96
7
$6,12,193
Net Cash Flow $63,417 $37,821 $44,607
Cash Balance $63,417 $1,01,23
8
$1,45,846
1 2 3
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
Proforma Cash Flow (Yearly)
Total Cash Inflow Total Cash Outflows Cash Balance
Year

Balance Sheet:
Proforma Balance Sheet - Yearly
Year 1 2 3
Assets
Cash $63,417 $1,01,238 $1,45,84
6
Amortized Development Costs $45,000 $57,055 $72,222
Optometry Equipment $25,000 $85,275 $1,99,02
7
FF&E $15,000 $33,083 $55,833
Inventory $30,000 $60,138 $98,055
Accumulated Depreciation ($8,214) ($16,429) ($24,643
)
Total Assets $1,70,203 $3,20,36
0
$5,46,3
39
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 $1,57,198 $2,93,64
4
$5,05,3
50
Total Liabilities and Equity $1,70,203 $3,20,36
0
$5,46,3
39
1 2 3
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
Proforma Balance Sheet
Total Assets Total Liabilities Net Worth
Year

Break-even Analysis:
Monthly Break Even
Analysis
Year 1 2 3
Monthly
Revenue
$69,882 $76,769 $83,753
Yearly Revenue $8,38,579 $9,21,2
32
$10,05,0
42
1 2 3
$0
$200,000
$400,000
$600,000
$800,000
$1,000,000
$1,200,000
Break Even Analysis
Monthly Revenue Yearly Revenue
Year
Business Ratios:
Business Ratios -
Yearly
Year 1 2 3
Sales
Sales Growth 0.0% 20.0
%
17.0
%
Gross Margin 80.5
%
80.5
%
80.5
%
Financials
Profit Margin 20.6
1%
27.1
3%
29.2
8%
Assets to
Liabilities
13.0
9
11.9
9
13.3
3
Equity to
Liabilities
12.0
9
10.9
9
12.3
3
Assets to Equity 1.08 1.09 1.08
Liquidity
Acid Test 4.88 3.79 3.56
Cash to Assets 0.37 0.32 0.27

Three Year Profit and Loss Account:
Profit and Loss Statement (First Year)
Months 1 2 3 4 5 6 7
Sales $1,19,1
00
$1,19,50
6
$1,19,91
2
$1,20,31
8
$1,20,72
4
$1,21,13
0
$1,21,5
36
Cost of Goods Sold $23,190 $23,270 $23,350 $23,430 $23,510 $23,590 $23,670
Gross Margin 80.5% 80.5% 80.5% 80.5% 80.5% 80.5% 80.5%
Gross Profit $95,910 $96,236 $96,562 $96,888 $97,214 $97,540 $97,866
Expenses
Payroll $43,667 $43,667 $43,667 $43,667 $43,667 $43,667 $43,667
General and Administrative $2,500 $2,500 $2,500 $2,500 $2,500 $2,500 $2,500
Marketing Expenses $607 $607 $607 $607 $607 $607 $607
Professional Fees and
Licensure
$167 $167 $167 $167 $167 $167 $167
Insurance Costs $166 $166 $166 $166 $166 $166 $166
Equipment Costs $633 $633 $633 $633 $633 $633 $633
Rent and Utilities $650 $650 $650 $650 $650 $650 $650
Miscellaneous Costs $1,333 $1,333 $1,333 $1,333 $1,333 $1,333 $1,333
Payroll Taxes $6,550 $6,550 $6,550 $6,550 $6,550 $6,550 $6,550
Total Operating Costs $56,272 $56,272 $56,272 $56,272 $56,272 $56,272 $56,272
EBITDA $39,638 $39,964 $40,290 $40,616 $40,942 $41,268 $41,594
Federal Income Tax $13,421 $13,466 $13,512 $13,558 $13,604 $13,649 $13,695
State Income Tax $2,033 $2,040 $2,047 $2,054 $2,061 $2,068 $2,075
Interest Expense $0 $0 $0 $0 $0 $0 $0
Depreciation Expense $685 $685 $685 $685 $685 $685 $685
Net Profit $23,499 $23,773 $24,046 $24,319 $24,593 $24,866 $25,139
Profit and Loss Statement (First Year Cont.)
Month 8 9 10 11 12 1
Sales $1,21,9
42
$1,22,3
48
$1,22,75
4
$1,23,16
0
$1,23,56
6
$14,55,9
96
Cost of Goods Sold $23,750 $23,830 $23,910 $23,990 $24,070 $2,83,560
Gross Margin 80.5% 80.5% 80.5% 80.5% 80.5% 80.5%
Gross Profit $98,192 $98,518 $98,844 $99,170 $99,496 $11,72,43
6
Expenses
Payroll $43,667 $43,667 $43,667 $43,667 $43,667 $5,24,000
General and Administrative $2,500 $2,500 $2,500 $2,500 $2,500 $30,000
Marketing Expenses $607 $607 $607 $607 $607 $7,280
Professional Fees and
Licensure
$167 $167 $167 $167 $167 $2,000
Insurance Costs $166 $166 $166 $166 $166 $1,987
Equipment Costs $633 $633 $633 $633 $633 $7,596
Rent and Utilities $650 $650 $650 $650 $650 $7,800
Miscellaneous Costs $1,333 $1,333 $1,333 $1,333 $1,333 $16,000
Payroll Taxes $6,550 $6,550 $6,550 $6,550 $6,550 $78,600
Total Operating Costs $56,272 $56,272 $56,272 $56,272 $56,272 $6,75,263
EBITDA $41,920 $42,246 $42,572 $42,898 $43,224 $4,97,173
Federal Income Tax $13,741 $13,787 $13,832 $13,878 $13,924 $1,64,067
State Income Tax $2,082 $2,089 $2,096 $2,103 $2,110 $24,859
Interest Expense $0 $0 $0 $0 $0 $0
Depreciation Expense $685 $685 $685 $685 $685 $8,214
Net Profit $25,413 $25,686 $25,959 $26,233 $26,506 $3,00,033

Profit and Loss Statement (Second Year)
2
Quarter Q1 Q2 Q3 Q4 2
Sales $3,49,439 $4,36,799 $4,71,743 $4,89,215 $17,47,195
Cost of Goods Sold $68,054 $85,068 $91,873 $95,276 $3,40,272
Gross Margin 80.5% 80.5% 80.5% 80.5% 80.5%
Gross Profit $2,81,385 $3,51,731 $3,79,869 $3,93,938 $14,06,923
Expenses
Payroll $1,14,822 $1,43,527 $1,55,009 $1,60,750 $5,74,108
General and Administrative $6,240 $7,800 $8,424 $8,736 $31,200
Marketing Expenses $1,747 $2,184 $2,359 $2,446 $8,736
Professional Fees and Licensure $412 $515 $556 $577 $2,060
Insurance Costs $417 $522 $563 $584 $2,086
Equipment Costs $1,671 $2,089 $2,256 $2,340 $8,356
Rent and Utilities $1,638 $2,048 $2,211 $2,293 $8,190
Miscellaneous Costs $4,193 $5,242 $5,661 $5,871 $20,966
Payroll Taxes $17,223 $21,529 $23,251 $24,113 $86,116
Total Operating Costs $1,48,364 $1,85,455 $2,00,291 $2,07,709 $7,41,819
EBITDA $1,33,021 $1,66,276 $1,79,578 $1,86,229 $6,65,104
Federal Income Tax $36,581 $45,726 $49,384 $51,213 $1,82,904
State Income Tax $0 $0 $0 $0 $0
Interest Expense $0 $0 $0 $0 $0
Depreciation Expense $2,054 $2,054 $2,054 $2,054 $8,214
Net Profit $94,387 $1,18,497 $1,28,141 $1,32,963 $4,73,986
Profit and Loss Statement (Third Year)
3
Quarter Q1 Q2 Q3 Q4 3
Sales $4,08,844 $5,11,055 $5,51,939 $5,72,381 $20,44,218
Cost of Goods Sold $79,624 $99,530 $1,07,492 $1,11,473 $3,98,118
Gross Margin 80.5% 80.5% 80.5% 80.5% 80.5%
Gross Profit $3,29,220 $4,11,525 $4,44,447 $4,60,908 $16,46,100
Expenses
Payroll $1,25,218 $1,56,523 $1,69,044 $1,75,305 $6,26,090
General and Administrative $6,490 $8,112 $8,761 $9,085 $32,448
Marketing Expenses $2,044 $2,555 $2,760 $2,862 $10,221
Professional Fees and
Licensure
$424 $530 $573 $594 $2,122
Insurance Costs $438 $548 $591 $613 $2,191
Equipment Costs $1,838 $2,298 $2,482 $2,574 $9,191
Rent and Utilities $1,720 $2,150 $2,322 $2,408 $8,600
Miscellaneous Costs $4,906 $6,133 $6,623 $6,869 $24,531
Payroll Taxes $18,783 $23,478 $25,357 $26,296 $93,914
Total Operating Costs $1,61,861 $2,02,327 $2,18,513 $2,26,606 $8,09,306
EBITDA $1,67,359 $2,09,198 $2,25,934 $2,34,302 $8,36,794
Federal Income Tax $46,024 $57,530 $62,132 $64,433 $2,30,118
State Income Tax $0 $0 $0 $0 $0
Interest Expense $0 $0 $0 $0 $0
Depreciation Expense $2,054 $2,054 $2,054 $2,054 $8,214
Net Profit $1,19,282 $1,49,615 $1,61,749 $1,67,816 $5,98,461

Cash Flow Analysis (First Year)
Month 1 2 3 4 5 6 7 8
Cash From
Operations
$24,184 $24,457 $24,731 $25,004 $25,277 $25,551 $25,824 $26,097
Cash From
Receivables
$0 $0 $0 $0 $0 $0 $0 $0
Operating Cash
Inflow
$24,184 $24,457 $24,731 $25,004 $25,277 $25,551 $25,824 $26,097
Other Cash Inflows
Equity Investment $1,50,000 $0 $0 $0 $0 $0 $0 $0
Increased Borrowings $0 $0 $0 $0 $0 $0 $0 $0
Sales of Business
Assets
$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
Total Other Cash
Inflows
$1,53,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159 $3,159
Total Cash Inflow $1,77,343 $27,616 $27,889 $28,162 $28,436 $28,709 $28,982 $29,256
Cash Outflows
Repayment of
Principal
$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
A/R Increases $0 $0 $0 $0 $0 $0 $0 $0
Asset Purchases $1,15,000 $0 $0 $0 $0 $0 $0 $0
Dividends $0 $0 $0 $0 $0 $0 $0 $0
Total Cash Outflows $1,17,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075 $2,075
Net Cash Flow $60,268 $25,541 $25,814 $26,088 $26,361 $26,634 $26,908 $27,181
Cash Balance $60,268 $85,809 $1,11,623 $1,37,711 $1,64,072 $1,90,70
6
$2,17,614 $2,44,795
Cash flow statements for three years:

Cash Flow Analysis (First Year Cont.)
Month 9 10 11 12 1
Cash From Operations $26,371 $26,644 $26,917 $27,191 $3,08,247
Cash From Receivables $0 $0 $0 $0 $0
Operating Cash Inflow $26,371 $26,644 $26,917 $27,191 $3,08,247
Other Cash Inflows
Equity Investment $0 $0 $0 $0 $1,50,000
Increased Borrowings $0 $0 $0 $0 $0
Sales of Business
Assets
$0 $0 $0 $0 $0
A/P Increases $3,159 $3,159 $3,159 $3,159 $37,902
Total Other Cash Inflows $3,159 $3,159 $3,159 $3,159 $1,87,902
Total Cash Inflow $29,529 $29,802 $30,076 $30,349 $4,96,149
Cash Outflows
Repayment of Principal $0 $0 $0 $0 $0
A/P Decreases $2,075 $2,075 $2,075 $2,075 $24,897
A/R Increases $0 $0 $0 $0 $0
Asset Purchases $0 $0 $0 $0 $1,15,000
Dividends $0 $0 $0 $2,31,124 $2,92,835
Total Cash Outflows $2,075 $2,075 $2,075 $2,33,199 $4,32,732
Net Cash Flow $27,454 $27,728 $28,001 -
$2,02,850
$63,417
Cash Balance $2,72,249 $2,99,977 $3,27,97
8
$1,25,128 $63,417

Cash Flow Analysis (Second Year)
2
Quarter Q1 Q2 Q3 Q4 2
Cash From Operations $96,440 $1,20,55
0
$1,30,194 $1,35,01
6
$4,82,201
Cash From Receivables $0 $0 $0 $0 $0
Operating Cash Inflow $96,440 $1,20,55
0
$1,30,194 $1,35,01
6
$4,82,201
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 $11,769 $12,204 $43,587
Total Cash Inflow $1,05,158 $1,31,44
7
$1,41,963 $1,47,22
1
$5,25,788
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 $24,110 $30,138 $32,549 $33,754 $1,20,550
Dividends $67,508 $84,385 $91,136 $94,511 $3,37,540
Total Cash Outflows $97,593 $1,21,99
2
$1,31,751 $1,36,63
1
$4,87,967
Net Cash Flow $7,564 $9,455 $10,212 $10,590 $37,821
Cash Balance $70,982 $80,437 $90,648 $1,01,23
8
$1,01,238
Cash Flow Analysis (Third Year)
3
Quarter Q1 Q2 Q3 Q4 3
Cash From Operations $1,21,335 $1,51,669 $1,63,802 $1,69,869 $6,06,675
Cash From Receivables $0 $0 $0 $0 $0
Operating Cash Inflow $1,21,335 $1,51,669 $1,63,802 $1,69,869 $6,06,675
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 $1,31,360 $1,64,200 $1,77,336 $1,83,904 $6,56,801
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 $30,334 $37,917 $40,951 $42,467 $1,51,669
Dividends $84,935 $1,06,168 $1,14,662 $1,18,908 $4,24,673
Total Cash Outflows $1,22,439 $1,53,048 $1,65,292 $1,71,414 $6,12,193
Net Cash Flow $8,921 $11,152 $12,044 $12,490 $44,607
Cash Balance $1,10,160 $1,21,312 $1,33,356 $1,45,846 $1,45,846

Bibliography:
Payscale.com. (n.d.). Entry Level Front Desk Receptionist Salary in Sydney, New South Wales
(Australia) | PayScale. [online] Available at:
https://www.payscale.com/research/AU/Job=Front_Desk_Receptionist/Salary/51510965/Entry-Level-
Sydney [Accessed 28 Jan. 2019].
Payscale.com. (n.d.). Entry Level Glazier Hourly Pay in Sydney, New South Wales (Australia) |
PayScale. [online] Available at:
https://www.payscale.com/research/AU/Job=Glazier/Hourly_Rate/f07dc826/Entry-Level-Sydney
[Accessed 28 Jan. 2019].
Payscale.com. (n.d.). Mid Career Administrative Assistant with Administration Skills Salary in Sydney,
New South Wales (Australia) | PayScale. [online] Available at:
https://www.payscale.com/research/AU/Job=Administrative_Assistant/Salary/34f4c348/Mid-Career-
Sydney-Administration [Accessed 28 Jan. 2019].
Payscale.com. (n.d.). Mid Career Optometrist Salary in Sydney, New South Wales (Australia) |
PayScale. [online] Available at:
https://www.payscale.com/research/AU/Job=Optometrist/Salary/646e07c3/Mid-Career-Sydney
[Accessed 28 Jan. 2019].
Tradingeconomics.com. (2019). Australia Annual Change in Hourly Rates of Pay | 2019 | Data | Chart.
[online] Available at: https://tradingeconomics.com/australia/wage-growth [Accessed 28 Jan. 2019].
Specsavers.com.au. (n.d.). Glasses & Eyewear | Try Frames Online | Specsavers Australia. [online]
Available at: https://www.specsavers.com.au/glasses [Accessed 28 Jan. 2019].
Specsavers.com.au. (n.d.). Buy Contact Lenses Online | Specsavers Australia. [online] Available at:
https://www.specsavers.com.au/contact-lenses [Accessed 28 Jan. 2019].
Quickstats.censusdata.abs.gov.au. (n.d.). 2016 Census QuickStats: Merrylands. [online] Available at:
http://quickstats.censusdata.abs.gov.au/census_services/getproduct/census/2016/quickstat/
SSC12588 [Accessed 28 Jan. 2019].
Penguin Management. (2018). What To Know About Australia's New Company Tax Rates (2018).
[online] Available at: https://www.penguinaccounts.com.au/australia-company-tax-changes-2018/
[Accessed 28 Jan. 2019].
Abs.gov.au. (n.d.). 8553.0 - Optometry and Optical Dispensing Services, Australia, 1997-98. [online]
Available at:
http://www.abs.gov.au/ausstats/abs@.nsf/mediareleasesbytopic/E17BCF5F1F2239F6CA2568A9001
36363?OpenDocument [Accessed 28 Jan. 2019].
Ibisworld.com.au. (n.d.). Optometry and Optical Dispensing – Australia Industry Report | IBISWorld.
[online] Available at: https://www.ibisworld.com.au/industry-trends/market-research-reports/health-
care-social-assistance/optometry-optical-dispensing.html [Accessed 28 Jan. 2019].
Overton, M. (n.d.). Buying Into the Great Optometry Dream - mivision. [online] mivision. Available at:
https://www.mivision.com.au/2018/04/buying-into-the-great-optometry-dream/ [Accessed 28 Jan.
2019].
Smith, S. (n.d.). Blog | How Much Does Eye Exam Cost?. [online] Outlookeyecentre.com.au.
Available at: https://www.outlookeyecentre.com.au/blogs/how-much-does-an-eye-exam-cost-with-an-
optometrist [Accessed 28 Jan. 2019].

Health.gov.au. (n.d.). Department of Health | Optometry Market Analysis. [online] Available at:
http://www.health.gov.au/internet/main/publishing.nsf/Content/optometry_market%20analysis
[Accessed 28 Jan. 2019].
Optometryboard.gov.au. (n.d.). Optometry Board of Australia - About. [online] Available at:
https://www.optometryboard.gov.au/About.aspx [Accessed 28 Jan. 2019].