ACC304 Accounting Capstone: Business Plan for Clear Vision Optical

This accounting capstone project presents a comprehensive business plan for Clear Vision Optical, an optometry practice envisioned by Pauline in Merrylands, Sydney. The plan details the company's vision and mission, focusing on delivering high-quality, affordable optical solutions. It includes an industry analysis, competitive strategies, and marketing approaches, emphasizing a low-cost business model to enhance revenue. The report covers operational aspects, HR policies, and administrative functions, alongside a strategic risk assessment. Crucially, it provides financial forecasts, startup expense projections, and breakeven analysis to assess the business's viability, offering a detailed roadmap for Pauline's potential venture.

Running head: ACCOUNTING CAPSTONE
Accounting Capstone
Name of the Student:
Name of the University:
Author’s Note

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Executive Summary
The main purpose of this assessment is to analyse the market situation for the business which is
at the initial stages of planning. The assessment covers the business of optometrist which would
be providing optical solutions to the customers and also state the vision and mission of the
customers of the business. The assessment would also be including operation, management,
administration and financing part of the business. The management would also be following a
low-cost business model for the purpose of enhancing the revenue of the business. The
assessment would be forecasting the start up expenses of the business and also forecast the
financial statements of the intended business.

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Table of Contents
Business proposal, research and analysis........................................................................................4
Operations......................................................................................................................................10
Product Description and Uniqueness.........................................................................................10
Customer Satisfaction Survey....................................................................................................10
Customer Billing process and Accounting................................................................................11
Sales Techniques and Incentive.................................................................................................11
Marketing Practices...................................................................................................................11
Warranties and health requirements..........................................................................................11
Suppliers and Credit Options.....................................................................................................12
Pricing and Costing Strategies...................................................................................................12
Business Location......................................................................................................................13
HR Policies and Rewards and recognitions of employees........................................................13
Analysis of Mission and Vision and costs of the business........................................................14
ATO and Other Regulations......................................................................................................14
Administration...............................................................................................................................14
Business Location and Rental Requirements............................................................................14
Utilities and IT facilities............................................................................................................15
Staff Types and Roles................................................................................................................15
HR policies................................................................................................................................16

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Process and Activity Analysis...................................................................................................16
Advertisement and Promotion...................................................................................................16
Accounting system.....................................................................................................................17
Management..................................................................................................................................17
Business Registration.................................................................................................................17
Management hierarchy..............................................................................................................17
Strategic Tools which is used by the business...........................................................................17
Risk Assessment........................................................................................................................18
Financial........................................................................................................................................18
What if Analysis and Sensitivity Analysis................................................................................21
Start Up Expenses......................................................................................................................23
Breakeven Analysis...................................................................................................................24
Financial Analysis.....................................................................................................................24
Reference.......................................................................................................................................27

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Business proposal, research and analysis
Vision
The main vision of the business is aimed at fulfilling the requirements of clients by
offering exclusive and best in-house lenses produced by proposed business named Clear Vision
Optical. The vision the business is aimed at delivering the best services to the customers by
making the best use of state of art technology thereby fulfilling the needs of the clients.
Mission statement
Clear Vision Optical aims at becoming one of the global leaders in providing pioneering
optical solution at an affordable price.
Description of idea
The main idea for Clear Vision Optical will be based on operating at low profit and low
risk margin owned by Mr. Silvia Presley who has more than 15 years of experience as a licensed
optician. It needs to be understood that the business considers patient requirement with highest
priority. The initial opening of the business will be consisting of one store located in suburb of
Merrylands in Sydney. The business will aim at opening more shops in the next five year. The
exclusive right for the store will be given to Lucas Murray. The overall idea of the store will be
based on keeping moderate to high end optical items. In addition to this, it will also include
introduction of well-known brands such as Versace, Ray ban and Gucci. The overall expected
sale is seen to increase significantly over the next two years from its operation (Kim 2018).
Industry analysis, trends, growth opportunities

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The optical market in Sydney is expected to have a steady growth in 2019. The main
sales will be driven by ageing population and the growth will be driven by vision correction,
marketing campaigns and launching of new products of leading brands. In addition to this, the
optical market will also comprise of several number of people with myopia and presbyopia. The
overall balance of myopia for the people in Sydney is expected to significantly increase
compared to the last decade. This is mainly due to increased use of electronic devices and less
time spent in outdoors. The most notable global competitor for the brand can be identified with
Luxotica which is a leading seller of sunglasses and other eyewear products (Kiely and Slater
2015).
As per the depictions of the industry it can be clearly inferred that 75% of the optical
stores in Sydney are owned independently. The overall anticipation of such a market is depicted
to be positive in the next five years thereby supported with favourable demographic trends.
Economic and regulatory environment (and assessment of any barriers to industry entry)
The economic and regulatory environment of doing business in Sydney is comprised of
business regulations which is designed to ensure fair competition, integrity and sufficient
protection for the relevant parties. The applicable regulatory environment for social business in
Sydney will be based on Australian intellectual property laws, Australian business and
environmental laws, financial reporting in Australia and Australian business and Australian
export and import laws (Gibson 2016).
Competitor and market analyses- Target market, competitors
As per the report of IBIS world can be clearly inferred that the optometry and optical
dispensing industry has been contending with a tough competition in the last five years. Several

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corporate players have continued with online competition which has influenced on increasing
performance in the industry. The overall report has been able to suggest that in increasing price
wars have pushed the prices to lower level as both online and bricks and mortar optometry chains
have contested for a greater number of consumers seeking for competitively priced eyewear. The
most notable global competitor for the brand can be identified with Luxottica which is a leading
seller of sunglasses and other eyewear products. Some of the other competitors within the
industry can be identified with Specsavers. The existence of such players in the market can be
considered as the main threat for the business (Westheimer 2016).
The market analysis further shows that the distribution of industry enterprises are in line
with lesser extent of ageing profile with optimum household income. Additionally, the
geographic distribution of optometrists has also impacted on the location of the shops across
Sydney. However, as the business is mainly focused in the suburbs of Sydney, it is focused
towards driving the demand of people living in such areas rather than urban areas where most of
the optometry practices are done (Jong et al. 2018).
The target customer will range from demographic groups in Sydney demanding for
frames, lenses, sunglasses and spectacles. The age group for children will range from 6 to 13
years while the age group for adult customers will range from 18 to 40 years. However, the main
demand for such a product will be generated by individuals with his group of 45 to 70 years
(Barrett et al. 2018).
Competitive strategy, goals
The key success factors for dispensing the competitive strategy goals should be mainly be
based on the following three ideas namely:

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 Driving effectiveness through product promotion
 Proximity to key markets
 Being a member of buyers group and promoting several types of marketing schemes
Some of the different types of external factors such as private health insurance membership
and median age of population in optometry can also significantly impact in dispensing the
appropriate competitive strategy for the business (Wilson 2015).
Competitive advantage, its source, why the idea/ product is unique, will work
It is to be noted that Clear Vision Optical will be consisting of certain unique selling
propositions which shall differentiate them from the competitors:
The manufacturing of high-quality products at a lower price will be the main USP of the
business.
 Such a USP will be followed by setting lower price for products such as lenses, frames
and sunglasses to ensure appropriate eye care solution to every class of customers.
 High stability and colour of sunglasses will be depicted as another unique feature as the
products will not be hampered by pollution, rain or sunlight.
 The lens and sunglasses will block harmful UV rays (Gyawali and Moodley 2018)
Market research
As per the industry statistics and market size and the total revenue generated in Australia
for such a business is identified with $ 4 billion. Then will growth rate from 2014 2019 is
protected with 2.9%. In addition to this, total employment generated is seen with 16,416 and

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total businesses comprise of 3219. The likely increase in the projected sales volume is expected
to grow by an additional 3.4% in the next five years (Roman 2017).
Marketing strategy
Under the marketing strategy Product features for the business will comprise of design
where, lenses and accessories. The designed wear will encompass of various types of sportswear,
frames and sunglasses. This will be noted with different styles and sizes of frames as part of the
taste and preference of the customers. The lenses provided by the business will range from
Contact lens and ophthalmic lens. The accessories will include solution for lens, lens coating
material and anti-coatings which will provide easy cleaning along with Teflon coating. The
pricing strategy will be mainly focused with affordable pricing which will aim at middle to lower
income earning individuals. Due to such a focus, the main strategy will be adopted by market
penetration pricing which will allow the company to initially set the prices at a lower level for
the products. The type of service is offered to the customer will be comprising of eye exam,
professional services and insurance billing. The eye exam will assist in recognising general
health condition and the customer will be detected via eye exam. Furthermore, it will include
referrals to specialists and help in managing the post eye surgery health. The different types of
professional service will include the service provided by independent optometrists. The
insurance billing will have dedicated to 2 windows for lenses, sunglasses and designer frames
(McNeill 2016).
The promotion and advertising and plan will be mainly relied on traditional advertising
revenues such as television, radio and newspaper. The company will also make the best use of

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Internet and social media such as Facebook, Instagram and Twitter to promote its eyewear
products.
Business core values
The core business values will comprise of pride, tradition, long-term relationships, trust
and corporate citizenship. The pride factor will include employers taking initiatives in supplying
vision care products, designing and making the best eyewear. The trust factor will be created by
focusing on improving people’s life by providing superior vision care options. The building of
long-term relationship will ensure enduring customers with employees and suppliers for better
service. The corporate citizenship factor will be built on being a good corporate citizen for
treating the communities and environment fit utmost respect (Haddadi et al. 2018).
Broad business objectives
The broad business object is identified with the following points
 Working as a team of dedicated and right people who can prescribe the best eyewear
solution
 Being easily approachable as an eye care practitioner
 Continually pushing to improve the products and building relationships with the
customers (Rathod 2017)
Operations
Product Description and Uniqueness
The management of the company has planned to offer the best quality of optical products
which are available in the market and would also be offering lenses from famous brands so that

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the business can enhance the revenue of the business. The business is based on the expertise of
Paulina who is an experienced optometrist and would be relying on the talents and other
optometrists. Therefore, the business would be providing advisory check-ups, medical
examination, treatment of disease and also prescribe optical lenses for the benefits of the clients.
This would provide the customers one stop destination for solving their problems. In addition to
this, the business would be appointing experienced optometrists so that ample advice and care is
taken of the customers of the business (Sadgrove 2016). In an overall estimate, the product
combined with service would give an edge to the business over other companies/
Customer Satisfaction Survey
As per the polices which is formulated by the management, the business would be
keeping the needs of the customers foremost and ensure that they do not face any kind of risks
from the products which is offered by the customers. The business model of the company is
developed for maintaining low risks and low costs of the business (Uhl and Gollenia 2016)(.
Therefore, it can be said that the management considers the satisfaction of the customers as
important component of the business.
Customer Billing process and Accounting
The management has made plans that the products which are offered by the business are
billed separately while the services of the doctors would also be billed separately. This is
undertaken by the management in order to ensure efficiency in reporting framework. This would
also segregate the revenue generated by the business and assist the accunting process.

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Sales Techniques and Incentive
The sales strategy of the business involves selling the best quality of products at cheapest
price which itself would attract new customers to the business. The optical products which are
referred can be purchased from the same shop. In addition to this, the management would also be
engaging in effective advertisement to make the company knows among the customers.
Marketing Practices
The management of the Vision Opticals aims to extensively promote the products and
services which is offered by the business. The management would be promoting the products and
name of the company with the help of social media and television media and the intention of the
business is to reach out to a wide range of customers in the market.
Warranties and health requirements
The management of the business considers the health of the customers to be of utmost
priority and therefore the management would be using only those optical lenses which are
certified to be appropriate and which will not harm the public in any way (Dumas et al. 2013).
The lenses which would he offered would have a period of warranty which would vary from
product to product. In addition to this, the management needs to meet registration and health
standards requirements which are applicable in the country.
Suppliers and Credit Options
The management of the company would be entering into tie up agreements with lens
making company for the supply of lenses and the stock would be purchased on consignment