Market Research Report
Based on the parameters below, we project this business would break even in 2.8 years with a net present value of $404,244.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$66,707||$100,061||$133,414||$139,457||$145,773|
|Net Cash Flow||-$186,780||$66,707||$100,061||$133,414||$139,457||$583,094|
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 Alexandria.
- median income
- gross rent
- population density
- July temperature
- November temperature
- May temperature
- household size
- median resident age
- land area
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.
7000 Arundel Mills Cir Hanover, MD 21076
9630 Black Maple Dr Fairfax, VA 22031
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About Alexandria and its Consumers
Alexandria is an independent city in the Commonwealth of Virginia. As of the 2010 census, the population was 139,966,in 2013, the population was estimated to be 151,218. Located along the Western bank of the Potomac River, Alexandria is approximately six miles (9.6 kilometers) south of downtown Washington, D.C. Like the rest of Northern Virginia, as well as central Maryland, modern Alexandria has been shaped by its proximity to the nation's capital. It is largely populated by professionals working in the federal civil service, in the U.S. military, or for one of the many private companies which contract to provide services to the federal government. One of Alexandria's largest employers is the U.S. Department of Defense. Others include the Institute for Defense Analysesand the Center for Naval Analyses. In 2005, the United States Patent and Trademark Office moved to Alexandria. The historic center of Alexandria is known as Old Town. With its concentration of boutiques, restaurants, antique shops and theaters, it is a major draw for tourists. Like Old Town, many Alexandria neighborhoods are compact, walkable, high-income suburbs of Washington, D.C. It is the seventh largest and highest income independent city in Virginia.
Alexandria is an independent city in the Commonwealth of Virginia. As of the 2010 census, the population was 139,966,in 2013, the population was estimated to be 151,218. Located along the Western bank of the Potomac River, Alexandria is approximately six miles (9.6 kilometers) south of downtown Washington, D.C. Like the rest of Northern Virginia, as well as central Maryland, modern Alexandria...description source
Population Population (2012) 146,294 Population Density 9,735 ppl/sq mi Population Growth Rate 4.5% Median Income $82,748 Median Age 35.7 Unemployment 4.6% Family Household Percent 45.5% Avg. Household Size 2.0 Avg. House Price $477,100 Foreign Born 23.9% Married 38.5% Cost of Living 73.4%
Demographics White 52.9% Hispanic / Latino 16.4% Black / African American 20.9% Asian 5.9% Native American 0.2%
Market & Regulatory Conditions For Virginia
Third parties rate Virginia's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness A Ease of starting a small business A- Cost of hiring a new employee A Overall regulatory friendliness B+ Friendliness of health and safety regulations A- Friendliness of employment, labor, and hiring regulations A- Friendliness of tax code A- Friendliness of licensing regulations A Friendliness of environmental regulations A- Friendliness of zoning regulations B Publicity of training programs A- Publicity of networking programs A- Current economic health of small business 39th/50 Change in revenue over past 12 months 26th/50 Forecast of small business's future economic health 12th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 8th/50 Cost of Doing Business 30th/50 Economy 29th/50 Infrastructure 19th/50 Workforce 10th/50 Quality of life 22th/50 Technology and innovation 10th/50 Business friendliness 5th/50 Education 9th/50 Cost of living 32th/50 Access to capital 19th/50Source: CNBC (2014)
Tax Friendliness Virginia Corporate Tax Rate 5.3% Avg Local Corporate Tax Rate in Virginia 0.3% Avg Combined Corporate Tax Rate 5.6% Overall tax friendliness 27th/50 Corporate tax rank 6th/50 Individual income tax rank 39th/50 Sales tax rank 6th/50 Unemployment insurance tax rank 37th/50 Property tax rank 26th/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.