Clear Vision, Inc.

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Company Overview

Clear Vision, Inc. is a leading manufacturer of cutting edge eye care solutions. Our innovative new liquid-drop contact lenses are a breakthrough for the personal vision and eye care industry that will create an entirely new and highly lucrative niche. Clear Visions is FDA approved production facilities that is designed to create high quality personal eye care solutions and products. They have continually grown and massively expanded over their more than 15 years of experience in the eye care industry. Clear Vision’s focus on innovation has continually driven this growth as it is doing once again as we look towards the launch of next generation products. With one eye on the future and the other on globally transforming vision solution technology, Clear Vision is committed to exploring the possibilities and distributing liquid lenses nationwide. Clear Vision will leverage this innovative and state-of-the-art personal vision solution as a major brand to existing and future markets while maintaining our international operations driven by key strategies ensuring our consumer products are safe to deliver and sustain solid revenue growth.

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Recruiting and Training a Diversified Workforce

No matter what the industry, employer, or specifics of the position, ensuring our company has a diversified workforce requires overcoming the challenge of finding and recruiting minorities. As the baby boomer generation comes to the age of retirement and social forces in the US continue to favor more and more diverse populations, employers will need to rely on and hire more and more minorities. The Census Bureau reports that Hispanics, African Americans, and other minority groups make up 30% of the total US population. The seriousness of the need for such diversity is not lost upon large companies like American Express. They currently employ 66,000 workers worldwide and routinely and systematically target students on college campus that belong to minority groups, work with and help different ethnic organizations, and sponsor mentoring programs for underrepresented ethnic demographics. Kenneth Chenault, American Express’s CEO and chairman, was the first African American to ever lead a Fortune 500 company when he assumed the post for American Express back in 2001.

Hiring minorities simply for the sake of diversity is not the sole impetus behind such a large company’s focus on hiring a diverse workforce. They are also interested in providing these minority communities greater buying power which they can leverage to ensure profit growths in a more diverse country. For example, according to market research specialists HispanTelligence, the Hispanic community alone has a combined purchasing power of nearly $700 billion.

Some of these companies believe a diverse workforce better facilitates their understanding of minority groups’ consumer preferences to give them an edge over their competition in the market. But successfully building a diverse workforce to effectively accomplish all these things is not an easy job when it comes down to it. One serious challenge is, according the US Equal Employment Opportunity Commission, the gross underrepresentation of these minority groups in influential and strategic roles within American corporations. This is not the only issue; however, as others like recruiting and retention present huge challenges as companies strive to improve diversity management. Unfortunately, there is no single cure for these challenges, other than a growing consensus among experts that the first step is for employers to adopt diversity management into their core principles. Another key strategy is to use employee referral programs to spread favourable word-of-mouth about a company within target communities. Such programs are often ineffective due to a lack of program guidance and proper incentives. Therefore, human resource departments must be proactive with such programs, their incentives, and aiding employees with creative ways like providing help with locating potential referees (www.workforce.com).

Start-up Capital from a Lender or Investor

Clear Vision, Inc. requires adequate funding to concentrate fully on realizing its vision. According to the official website of the US Small Business Administration, the proper way for a company of Clear Vision’s stage of development, assets, and size to secure the needed equity financing is venture capital in lieu of relying upon banks and public markets. In general, such venture capital investments provide cash in return for both an active position within the company as well as shares. This is different from traditional financing sources in the following specific ways:

  • Venture capital investments focus on young companies with high-growth potential
  • Venture capital provide equity capital to such companies rather than a debt they must repay
  • By taking on a higher amount of risk, venture capital investments also offer investors a greater potential return
  • These opportunities provide lengthier investment horizons over traditional financing options
  • Allows investors to monitor portfolio companies by participating on as a member of the board or governance team as well as with capital structure and strategic marketing
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As with most businesses, the long-term success and growth of Clear Vision depends upon its access to equity capital. Typically, lenders require collateral, security, or some sort of equity cushion before agreeing to lend small businesses money. Their relative lack of equity limits the debt financing such businesses have access to, and furthermore, debt financing would obligate the small business to use current interest payments to pay off this debt which in turn limits equity available to support growth. Venture capital, however, establishes a financial cushion for the small business at the cost of allowing equity providers to ultimately retain the last call on the company’s assets. Because of the lower priority and the fact they typically don’t draw pay checks, equity providers in general expect a higher return on investment (ROI) than traditional lenders do (www.sba.gov).

Chart of Accounts

Clear Vision, Inc. will develop, prepare, and utilize numerous accounts such as a balance sheet, a ratios expense account, a depreciation account, an expenditures and incomes account, and capital accounts for business partners. These capital accounts will detail both remunerations received from and profits of credit given to partner businesses as well as detail any and all capital reductions and gains in ensure all changes in capital for partners is thoroughly recorded.

We will prepare a depreciation account to provide information regarding depreciations charged on any fixed asset of our business. A depreciation can is as a non-cash expense that reflects a reduction in the value of business assets without a reduction to the cash in the business’s related accounts. We will also prepare a balance sheet which will help identify various important elements of and information about accounting. Information such as Clear Vision’s liabilities, equity capital, and available assets will be identified in this balance sheet. Another important account is the profit and loss account that records all expenses and related incomes for the business as a whole. All accounts will help Clear Vision’s accuracy in order to ensure the disclosure depicting the correct representation of our financial statements in a proper manner for the future ventures.

Applicability of GAAP

Currently, Clear Vision’s business model design is a partnership firm. Normally, only corporations are expected to adhere to predominant accounting and International Financial Reporting standards. Such standards are inapplicable to Clear Vision in its current form as a partnership firm. While not required to comply with these standards, it remains extremely important to prepare and utilize timely reports to ensure all stakeholders receive appropriate information at all times concerning the financial position of Clear Vision.

Performa Balance Sheet

Liabilities

Amount

Assets

Amount

Partner’s Capital

135,500

Building

155,000

Loans

110,000

Equipments

100,000

Payables

65,000

Receivables

55,500

Total

$310,500

$310,500

The above Performa Balance Sheet shows the currently available Partner’s Capital of $135,500 and that Clear Vision has the necessary building and equipment to ensure it can meet customer demands for products and services. A loan of $110,000 to ensure the business can perform daily operations is also recorded on the balance sheet. Accounts receivable and payable are also recorded in order to properly gage their effect upon Clear Visions profitability.

Performa Income Statement

Particulars

Amount

Particulars

Amount

Salary

40,000

Revenue

213,000

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Electricity

30,000

Training

29,000

Depreciation

39,000

Net Profit

75,000

Total

213,000

213,000

The Performa Income Statement provides estimations of the company’s earning revenues up to $213,000. The correlating expenses incurred due to salary, electricity, training and depreciation for this revenue was $138,000. This leaves Clear Vision expecting to earn $75,000 in net profits.

Protecting Assets

Clear Vision, Inc. must safeguard and protect its assets with the utmost attention, priority, and care. Therefore, with the company’s current equipment and property assets totaling $255,000, Clear Vision must obtain a substantial insurance policy to protect against potential risk or loss. Insuring these crucial assets protects the company against possible losses from fire or destruction. In addition, implementing internal control systems and procedures to ensure the regular maintenance of such assets and their replacement when deemed necessary is also essential.

It is evident that in today’s economy, that companies are dependent on service and technology; however, their most valuable business assets is normally not the heavy equipment or machinery in the factory, but the intangible assets that are woven throughout the fabric of the company. The intangible and proprietary assets are those elements that enable a company to distinguish itself from competitors. Intangible assets such as intellectual property, trade secrets, pricing formulas, customer lists, business plans, recipes and the like are typically the foundation upon which a company is built in a business world full of copycat competitors. It is imperative to develop a strategy to properly protect these intangible assets, thus positioning the company to grow and prosper against your competitors. Business owners should do everything in their powers to protect those valuable assets (www.entrepreneur.com).

Impact of Regulatory Environment

Clear Vision, Inc. has thoroughly researched and examined both our competitors and the market to ensure our liquid contact lenses will be priced with the competition in mind. Fortunately, our market research revealed no other liquid-drop lenses currently on the market. Clear Vision can target its ideal demographic instead of having to set high prices to signal luxury or prestige or having to attempt offset low prices by continually moving high quantities of products. Instead, Clear Vision can market this cutting edge vision solution as it sees fit: by value pricing it in order to build and sustain a loyal customer base that will feel comfortable with using and recommending our new brand of liquid drop lenses over traditional contact lenses (Kent, 2004).

The environmental impact of disposing of waste is huge and causes serious problems if not discarded effectively as to some will rot over time. This rotting can often generate gasses like methane which not only smell bad but can become explosive under the right conditions. Incinerating waste is a problematic alternative because plastics produce toxic substances such as dioxins in the form of gasses when burned. These gasses can pollute the air and cause acid rain, ash from trash incinerators can contain all sorts of other toxins like heavy metals. Due to these potential dangers, many active campaigns against incinerating trash currently exist. On the other hand, burning waste can potentially generate relatively cheap energy. More information can be found on the Renewable Energy Association’s website such as biomass and energy maps from waste projects. The bottom line is that throwing things away wastes resources including the raw materials and energy used to make the items as well as money. Reducing waste means reducing our negative impact on the environmental. It also leads to saving money and using less energy. (www.greenchoices.org).

It is Clear Vision, Inc.’s responsibility to ensure that their products comply with FDCA regulations.FDA.gov advises a review of their product labeling, promotional materials, and website to ensure that claims are not adulterated or that products are misbranded in violation of the FDCA.21 U.S.C. §§ 331,351,352. Failure to promptly correct any such violations of FDCA regulations could result in enforcement action being initiated by FDA without further notice.Such actions may include, but are not limited to injunction, seizure, and civil money penalties.Any firm failing to take needed corrective action may also be referred to the FDA’s Office of Criminal Investigations for possible prosecution of criminal violations of the FDCA and other federal laws (www.fda.gov).

Reference(s)

DiversityBusiness.com. (2013). “America's Top 25 Government Agencies for Multicultural Business Opportunities.” Retrieved May 13, 2014 from http://www.diversitybusiness.com/news/supplierdiversity/45201337.asp

Entrepreneur.com. (2014) “Protecting Your Company’s Most Important Assets.” Retrieved on

May 6, 2014 from http://www.entrepreneur.com/article/45740#

FDA.gov. (2014) “Medical Devices/Resources for You.” Retrieved on May 10, 2014 from

http://www.fda.gov/MedicalDevices/ResourcesforYou/Industry/ucm341507.htm

Green Choices.org. (2014). “Environment Impacts.” Retrieved on May 11, 2014 from

http://www.greenchoices.org/green-living/waste-recycling/environmental-impacts

Kent B. M. (2004). “The Pricing Strategy Audit.” Cambridge: Strategy Publications.

SBA.gov. (2014). “Venture Capital.” Retrieved on May 2, from

http://www.sba.gov/content/venture-capital-startups-high-growth-technology-companies

Workforce.com. (2006). “The Art and Science of Recruiting a Diverse Workforce.” Retrieved on

May 2, 2014 from http://www.workforce.com/articles/the-art-and-science-of-recruiting-

a-diverse-workforce