Detailed Business Plan: Optometry Practice in Merrylands, Sydney

This business plan, prepared for Optometry Pty Ltd, details the establishment of an optometry practice in Merrylands, Sydney, utilizing a $150,000 initial investment. The plan encompasses a confidentiality agreement, executive summary, and outlines services, financing, vision, mission, and business objectives. It includes an industry analysis, economic and regulatory requirements, and a competitor and market analysis, with specific marketing strategies and competitive advantages. Core business values are defined, and key financial forecasts, including sales, operating costs, and profit forecasts for three years, are presented. Detailed financial statements, such as the statement of profit and loss, cash flow statements, balance sheet, and break-even analysis, are provided, alongside business ratios and an exit strategy. The plan also covers optometric services, product offerings, and a comprehensive marketing plan, organizational budgets, and financial planning. The financial plan includes underlying assumptions, and three-year financial projections, including a profit and loss account, cash flow statements, and a bibliography. The plan projects the company's financial performance over three years, offering a comprehensive guide for the business's launch and growth. The business plan is a result of a student assignment to showcase the viability of an optometry business.

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