XYZ Optical
Business Plan
February 19, 2014
Elvis Presley
XYZ Optical
1 Main Street
London, Onta
rio
X1X 1X1
September 17, 2014
Dear John Smith,
I'm very pleased to enclos
e my business plan for XYZ Optical. In this business plan you'll find a
wealth of information about my business, a thorough assessment of opportunities in the marketplace,
and a detailed plan for seizing them. I look forward to the possibility of working with you to make
XYZ Optical a success.
I am eager to hear your answer regarding financing, and to answer any questions you may have
. You
can reach me at (XXX) XXX-XXXX. Thank you for your time and attention.
Sincerely,
Elvis Presley
Executive Summary
XYZ Optical is low risk profit running optical store which has been in business a little over a year
with the current owner, and in practice for five. I am a Licensed Optician with over 10 years of
experience, providing state of the art frame and lens technology with superior quality service. The
needs of my patients is my highest priority.
By purchasing XYZ Optical, I will ha
ve a customer base built over five years. The store is located in
London, ON. in a vibrant and growing strip
mall, which includes other stores such as Tim Horton’s,
LCBO, Fresh Co, 7/11 convenience store with gas station, and many others. Traffic is consistent with
a parking lot of 300 spaces.
Currently the store’s inventory and assets have all been paid off. Which makes it an ideal turnkey
purchase
. With only rent, heat, and payroll having the highest expenses. As I will be the only
Optician working the cost of payroll will be greatly reduced compared to the cost of the current paid
employee.
The store is currently open five days with an aver
age g
ross monthly income of $13,000. I plan to add
a 6th
day of operation to increase daily business. I also plan bringing in an Optometrist 1 day a week.
Having big names such as Ray Ban, Oakley, Burberry, Coach, Michael Kors, Alexander Macqueen
etc. XYZ Optical holds the exclusive rights to the Alexander Macqueen line in the London and
Kitchener-Waterloo area, making this store more attractable which will lead to higher sales. The
store is a mid to high end optical store. By introducing new brands such as Gucci and Versace I
intend to increa
se the sales of the business even further.
The purchase price of the store, after negotiations, is $71,500. With a personal equity injection of
$10,000 financ
ing the remainder of the portion.
With competitive
pricing, improved marketing and introducing new eyewear brands XYZ Optical
will be more profitable than ever before. With superior customer service I intend to be the number
one store in the region. Targeting customers of all ages I can cater to all family members. I plan to
have a positive cash flow and have a profit by the end of the year.
Business Description
Business Overview
Legal name of business:
(TBA)
Trad
e name of business:
XYZ Opt
ical
Business Address:
1 Ma
in Street, London, Ontario, X1X 1X1
Phone number:
(XXX) XXX-XXXX
E-mail address:
Elvi
Structure of business:
Incorporat
ed
Date business esta
blished:
N/A
Nature of business:
Retail eyewear and lens sales
Business Background
Services
The business is a retail based optical store selling eyewear frames, lenses and contact lenses.
Operations/Management
The Business will be owned and managed by Elvis Presley who has a wealth of experience in eye
care business and has been a Licensed Optician for ten years while managing optical eye care centers
since 2005. The store will be open six days a week, serving between 15-20 clients per day for
eyewear purchase, inquires and repairs. The expectation will be quality service from the day of
opening operations. I am basing this expectation on the reality of the customer base which is
currently served at XYZ Optical. It is a busy practice of more than 1500 patients and growing.
Positioning and Pricing
The closest optical is approximately 7 kilometers from XYZ Optical and offer different products and
prices. B
ased on my investigation the prices are much higher than those I will be proposing. I expect
to beat the competition on price, positioning and quality of servi
ce. Due to the positioning and the
cost of operations I will be able to offer various discounts to customers. This pricing and marketing
strategy will allow XYZ Optical to obtain new customers and keep existing ones. I intend to stay
competitive by providing incomparable quality of service and staying informed and up to date in this
industry and market.
Cost
Daily Costs depends on which lens is sold to a customer. Lenses include single vision, progressives
and bifoca
ls.
Business
Vision
M
y vision is focused on meeting my client's needs by offering the best, exclusive frames and lens
products at XYZ Optical. I plan to accomplish this by providing exceptional customer service and
using state of the art technology to satisfy the needs of my clients.
Business Objectives
Short-term Objectives
1. To develop a satisfied clientele base by providing new products and to maintain the quality of
servic
e.
2. To advertise more in the local community.
Long-term Objectives
1. To increase the number of operating days from five to six
2. To increase sales revenue by 10 percent in the coming years.
Product/Service
Description
Providing a wide range of brand name frames and lenses.
Competitive Advantage
To secure mo
re excl
usive brands not offered in the region, while providing superior quality service.
Demographic
London is the fifth fastest growing city in Canada with a population growth rate of about 2% per
year. According to the Ontario Places to Grow plan, London's population is projected to be about
500,500 by the year 2019. Population varies throughout the year because of variations in the
University of London student population. The 2001 census enumerated 334,943 residents of London.
49.1% were male and 50.9% were female. Average age is 23 years of age. Bet
ween 1994 and 2010,
the population of London grew 10.7%. The 2011 metro population density of London was 335.6
people per square kilometer.
Regulatory
I am a Licensed Optician, registered under College of Opticians.
Industry Outlook
The optical industry is a rapidly growing. With the aging population it is expected more of the
population w
ill require corrective eyewear, which will in turn lead to increased sales in bifocal /
progressive lenses. Wearing glasses has also become a fashion statement and accessory for younger
adu
lts which in turn generates increased sales in corrective sunglasses.
Competitors
Competitor:
Opti
cal Optical
Strengths
2 for 1 sales, Name recognition
Weakness
es
Low end product of frames and lenses, no brand names
Competitor
Purba Vision
Strengt
hs
Low pricing
Weaknes
ses
Low end product of fram
e and lenses
Competitor
V Vision
Strengt
hs
Low pricing
Weaknes
ses
Low end product of fram
e and lenses, no name brands
XYZ Optical SWOT Analysis
Strengths
Numerous s
trengths exist in an existing optical store. It is the chance to provide a wider range of
products for cl
ients who seek state of the art technology lenses and exclusive frame lines. Acquiring
this business in an area of where there is an already established and growing eye care clientele,
makes this location a strong contender for repeat business.
Weaknesses
Perceived weaknesses in the business are the costs of providing quality serv
ices, which include
securing exclusive brands. Lack of name recognition.
Opportunities
Opportunities lie in securing exclusive brands, hence in enhancing store image. Offering bundled
sales w
ith eyewear and contacts.
Securing contracts with employers to offer their employees discounted eyewear purchases at XYZ
Optical.
Targets
There are two different customer segments,
1) Generation X who have higher income and are at the age of 35 and above leading to more bifocal /
progressiv
e lenses which have higher margins
2) Young a
dults aged 16-35 with disposable income, who are fashion forward, leading to corrective
sunglass
purchase
P
rofessional Advisors
Sarah Smith – B.A. LL.B. – Jane Doe LLP Lawyers
Roger Rabbit – Rabbit Accounts
Sales & Marketing
Positioning
Customers will value the cost of the service relative to its competitors as I
will offer state of the art
lens technology along with excellent customer service.
Pricing
Average pricing seen in table below
Frame Pricing
$99-$509
Lens Pricing:
Single Vision
$169-$335
Bifocal
$200
Progressive
$309-$1200
Contacts:
Per Box
$25
Yearly (8 Boxes)
$180
Promotions
A promotional discount of 30% will be offered on a single pair eyewear purchase
A 2 for 1 will be offered by paying full price on first pair and a free sunglass will be off
ered
from lower end brands (with an opportunity to upgrade to higher end brands)
Discounts for referrals using our referral coupon system and group sign-ups.
Sales
Products will be sold directly from the business. Customers will pay using cash, debit or credit cards
and insurance benefits when applicable.
Business Operations
The Team
Elvis Presley
–
Li
censed Optician
–
Full Time Employee - Owner
Marie Presley
–
Occasional - Part time employee
Dr. Versace - Opt
ometrist
Suppliers
Fram
e Suppliers
–
Ey
es Eyes, Lavender, and Independents, Delivery can be next day or back ordered
Lens Suppliers - ABC Vision, Hans, and Yz E yes, Delivery can be next day or back ordered
Contact Lens Suppliers - Alvin, and Johnson & Johnson, Delivery can be next day or back ordered
All completed jobs will be ready for pic
k up for the customer with five to seven business days
Financial Information
Fin
ancial High
lights - Cash Flow
Throughout the f
irst year of business, the cash flow will be positive. The clientele is already available
and it is a matter of executing the plan to serve those clients.
Please see a
ttached Schedule A
Schedule A – Cash Flow Year 1
Mo
nt h
Oct
Nov Dec Jan Feb
Mar
Apr
May
Jun Jul
Aug
Se
p
Sa
les
$12
,
000
$10,000 $15,
000
$10,
000
$12,
000
$15
,000
$14
,000
$11
,000 $12,0
00
$10,
000
$13,
000
$15
,000
Owner
cas
h
Ba
nk
Ac
count
510000
51
0000
51
0000
510
000
510
000
510000 510000
51
0000
51
0000
510
000
510
000
510000
Loa
n Payment
$75
1
$75
1
$7
51
$7
51 $751
$75
1
$75
1
$75
1
$7
51
$7
51 $751
$75
1
Total Estimated
Gas
h Flow
$2
1,
249
$19,249
$24
,249
$19,249
$2
1,249
$24
,249 $
23
,249
$20
,249
$21
,
249
$19,249
$22
,249
$24
,249
Cos
t
of
Sa
l
es
Pu
rc
hases
lens/Frames Sl 5
00
ssoo
S3000
ssoo
51
500
S3000
s2
600
Sl
200
S1500
ssoo
51
500
S3000
Es
timated
Exo
e
nses
Wa
ges
$2
,
000
$2,000 $2,
000
$2
,
000
$2
,
000
$2
,000
$2
,000 $2,000 $2,
000
$2
,
000
$2
,
000
$2
,000
Advertisi
nP
56
00
S600
S600
B
us
ine
ss
I
ns
ura nce
$1
00
$1
00
$1
00
$1
00
$100
$100 $1
00
$1
00
$'100 $1
00
$100
$100
Pr
ofess
ional F
ees
$9
50
Rent
S5
5
14
s2
757
s2
757
52
757
52
757
s2
757
s2
757
s2
757
S27
57 52
757
52
757
s2
757
Ala
rm
$26
$26
$26 $26 $26
$26 $26 $26
$26
$26 $26
$26
Debit M
ach
ine
5250
51
75
5300
5175 5
25
0 5300
527
5 51
80
52
50 5175 5275 5300
Suppli
es
$5
00
$5
00
Te
leohone
/l
nternet
5210
51
45
S1
45
S145 S145 S145 5145 51
45
S'1
45
S145 S145 S145
Util
it
i
es
Gas
/ Hydro
$250
$250
$2
50
$2
50 $250 $250
$250 $250
$2
50
$2
50 $
25
0 $250
Total Co
st
$10
,
950
$6
,253 $9,
528
$6
,253 $7,
628
$8
,
578
$8
,653
$6
,658
$7
,6
28
$6
,253 $7,053
$8
,
578
N
et
cash Fl
ow
510
299
512 996 514 721 512
996
513 621
515
671
514 596
513 591 513 6 21 512
996
515
196
515
671
Schedule A – Cash Flow Year 2
Mo
nt h Oct Nov Dec Jan
Feb
Mar
Apr
May
Jun
July Aug A
ug
Sa
les
$13
,000
$11
,000 $16,
000
$
11
,
000
$13
,000
$16
,000
$15
,000 $12,000 $13,
000
$
11
,
000
$14,000
$16
,000
Owner
cas
h
Ban
k
Ac
count
510000
51
0000
510
000
510
000
510
000
510000
510000
51
0000
51
0000
510
000
510 000
510000
loa
n Payment
$75
1
$75
1
$7
51
$7
51
$75
1
$75
1
$75
1
$75
1
$7
51
$7
51
$75
1
$75
1
Total Estimated
cash Flow
$22
,249
$20
,249
$2
5,249
$20
,249
$22
,249
$25
,249
$24
,249
$21
,249
$22
,249
$20
,249
$23
,249
$25
,249
Cos
t
of
Sa
l
es
Pu
rchases lens/Frames
51 600
5900
53
1
00
5900
51 600
53100
52
700
51300
51600
5900
51
500
53100
Est
imated
Ex
oe
nses
Wa
ges
Advertisi
nP
$2
,000
5600
$2,000
$2
,
000
$2
,
000
$2
,000
S600
$2
,000
$2
,000 $2, 000
$2
,
000
S600
$2
,
000
$2
,000
$2
,000
B
us
ine
ss
I
ns
ura nce
$1
00
$1
00
$1
00
$1
00
$100 $100 $1
00
$1
00
$1
00
$1
00
$100 $100
Pr
ofess
ional F
ees
$9
50
Rent
s2
757 s2 757
52
757
52
757
s2
757
s2
757
s2
757
s2
757
52
757
52
757
52
757
s2
757
Ala
rm
$26
$26
$26 $26
$26 $26 $26 $26
$26 $26
$26 $26
Debit M
ach
ine
5250
51
75
5300
5175 5250 5300
5275
51
80
52
50 5175
527
5
5300
Suppli
es
$5
00
$5
00
Te
leohone
/l
nternet 51
45
51
45
S145 S145 S145 S145 51
45
51
45
S145 S145 S145 S145
Util
it
i
es
Gas
/ Hydro
$250 $250
$2
50
$2
50 $250 $250
$250 $250
$2
50
$2
50 $250 $250
Total Co
st
$8
,228
$6
,
353
$9
,
628
$6
,
353
$7
,728
$8
,678
$8
,753
$6
,758
$7
,728
$6
,
353
$7
,053
$8
,678
N
et
cash Fl
ow
51402
1
513
896
515 621 513
896
514
52
1
516 571
515
496 514 491 514 521
513
896
51
6196
516 571
