ACC304 Accounting Capstone: Business Plan for Sun Shine Optometry

This business plan outlines the vision, mission, and objectives of Sun Shine Optometry Pty Ltd, a private limited company owned by Dr. Pauline. It details the services and products offered, including eye check-ups, lens prescriptions, contact lenses, and glasses. The plan covers competitive, marketing, operational, and financial strategies, with a focus on leveraging Dr. Pauline's experience and contacts. Key financial data, including pro-forma profit and loss statements, break-even analysis, and important business ratios, are presented. The document includes a market analysis, SWOT analysis, and core business values. Operational aspects such as sales techniques, marketing strategies, pricing policy, and staff training are discussed. Finally, the plan provides financial projections, including setup costs, budgets, and pro-forma financial statements. Desklib provides students access to similar solved assignments and past papers.

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

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

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

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);

 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

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

Equity to Liabilities 42.98 41.64 56.71
Assets to Equity 1.02 1.02 1.02

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

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

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.

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

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