Market Research Report
Based on the parameters below, we project this business would break even in 1.9 years with a net present value of $165,568.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$24,082||$36,123||$48,165||$49,799||$51,490|
|Net Cash Flow||-$45,226||$24,082||$36,123||$48,165||$49,799||$205,958|
Startup costs are estimated as the larger of PYE and median income multiplied by the cost of living in the city. The positive cash flows in years 1 to 5 are estimated from the PYE. The first year is discounted by 50%, the second year is discounted by 75%, the fourth through tenth years are inflated according to a growth rate estimated from the GDP growth rate of the state. The profit margin is defaulted 10%. In year 5 a “terminal value” equal to the year 5 net operating income times three is added. The hurdle rate is defaulted to 15%. All values are net of taxes.
How is this opportunity calculated?
The following ten market factors are the most important determinants used to calculate the need for businesses of this type in Albuquerque.
- median income
- gross rent
- population density
- July temperature
- land area
- household size
- November temperature
- May temperature
- family households
- median resident age
Abrasive blast cleaning businesses can provide a range of services, from surface contaminant removal and cleaning, to the preparation and finishing of many different types of surfaces.
Blast Off Removal NM LLC
300 San Pedro Dr SE Albuquerque, NM 87108
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About Albuquerque and its Consumers
Albuquerque is the most populous city in the U.S. state of New Mexico. It is the county seat of Bernalillo County,and it is situated in the central part of the state, straddling the Rio Grande. The city population was 555,417 as of the July 1, 2012 population estimate from the United States Census Bureau,and ranks as the 32nd-largest city in the U.S. The Albuquerque MSA has a population of 902,797 according to the United States Census Bureau's most recently available estimate for July 1, 2013.Albuquerque is the 59th-largest United States metropolitan area. The Albuquerque MSA population includes the city of Rio Rancho, Bernalillo, Placitas, Corrales, Los Lunas, Belen, Bosque Farms, and forms part of the larger Albuquerque Santa Fe Las Vegas combined statistical area, with a total population of 1,163,964 as of the July 1, 2013 Census Bureau estimates. Albuquerque is home to the University of New Mexico (UNM), Central New Mexico Community College (CNM), Presbyterian Health Services, Kirtland Air Force Base, Sandia National Laboratories, Lovelace Respiratory Research Institute, and Petroglyph National Monument. The Sandia Mountains run along the eastern side of Albuquerque, and the Rio Grande flows through the city, north to south.
Albuquerque is the most populous city in the U.S. state of New Mexico. It is the county seat of Bernalillo County,and it is situated in the central part of the state, straddling the Rio Grande. The city population was 555,417 as of the July 1, 2012 population estimate from the United States Census Bureau,and ranks as the 32nd-largest city in the U.S. The Albuquerque MSA has a population of...description source
Population Population (2012) 555,417 Population Density 2,958 ppl/sq mi Population Growth Rate 1.8% Median Income $43,606 Median Age 35.3 Unemployment 7.1% Family Household Percent 59.7% Avg. Household Size 2.4 Avg. House Price $186,100 Foreign Born 10.1% Married 34.6% Cost of Living 49.2%
Demographics White 41.8% Hispanic / Latino 47.0% Black / African American 2.9% Asian 2.1% Native American 4.0%
Market & Regulatory Conditions For New Mexico
Third parties rate New Mexico's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness C- Ease of starting a small business D Cost of hiring a new employee D Overall regulatory friendliness D+ Friendliness of health and safety regulations B+ Friendliness of employment, labor, and hiring regulations F Friendliness of tax code F Friendliness of licensing regulations F Friendliness of environmental regulations B+ Friendliness of zoning regulations C Publicity of training programs B- Publicity of networking programs A- Current economic health of small business 32th/50 Change in revenue over past 12 months 6th/50 Forecast of small business's future economic health 5th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 37th/50 Cost of Doing Business 17th/50 Economy 43th/50 Infrastructure 15th/50 Workforce 30th/50 Quality of life 33th/50 Technology and innovation 32th/50 Business friendliness 47th/50 Education 36th/50 Cost of living 26th/50 Access to capital 23th/50Source: CNBC (2014)
Tax Friendliness New Mexico Corporate Tax Rate 5.1% Avg Local Corporate Tax Rate in New Mexico 2.1% Avg Combined Corporate Tax Rate 7.3% Overall tax friendliness 38th/50 Corporate tax rank 35th/50 Individual income tax rank 35th/50 Sales tax rank 45th/50 Unemployment insurance tax rank 10th/50 Property tax rank 1th/50Source: Tax Foundation (2015)
Resources to Get Started
Now that you have a potential location and idea for your business, here is a list of helpful resources you may need to get started.