Market Research Report

Abrasive Blast Cleaning Service opportunities in Ann Arbor, MI
$91,123 Potential Yearly Earnings What's this number?
$306,830 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 1.9 years with a net present value of $306,830.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $455,617 $683,425 $911,233 $933,103 $955,497
Net Costs $410,055 $615,082 $820,110 $839,792 $859,947
Net Operating Profits $45,562 $68,342 $91,123 $93,310 $95,550
Capital
      Startup Cost -$87,752
      Terminal Value $286,649
Net Cash Flow -$87,752 $45,562 $68,342 $91,123 $93,310 $382,199

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.

Financial Parameters

Change these parameters to customize your financial model

  Statistical Analysis
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 Ann Arbor.

  1. median income
  2. gross rent
  3. population density
  4. July temperature
  5. white
  6. household size
  7. land area
  8. November temperature
  9. May temperature
  10. precipitation

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  About Ann Arbor and its Consumers

Ann Arbor is a city in the US state of Michigan and the county seat of Washtenaw County. The 2010 census recorded its population to be 113,934, making it the sixth largest city in Michigan. The Ann Arbor Metropolitan Statistical Area (MSA) includes all of Washtenaw County, which had a population of 344,791 as of 2010. The city is also part of the larger Detroit–Ann Arbor–Flint, MI Combined Statistical Area (CSA). Ann Arbor is home to the University of Michigan, a world-renowned institution of higher education. The university shapes Ann Arbor's economy significantly as it employs about 30,000 workers, including about 12,000 in the medical center. The city's economy is also centered on high technology, with several companies drawn to the area by the university's research and development money, and by its graduates. According to the United States Census Bureau, the city has a total area of 28.70 square miles (74.33 km2), of which, 27.83 square miles (72.08 km2) of it is land and 0.87 square miles (2.25 km2) is water,[1] much of which is part of the Huron River

Ann Arbor is a city in the US state of Michigan and the county seat of Washtenaw County. The 2010 census recorded its population to be 113,934, making it the sixth largest city in Michigan. The Ann Arbor Metropolitan Statistical Area (MSA) includes all of Washtenaw County, which had a population of 344,791 as of 2010. The city is also part of the larger Detroit–Ann Arbor–Flint, MI Combined...

description source
  • Population
    Population (2012) 116,121
    Population Density 4,172 ppl/sq mi
    Population Growth Rate 1.9%
    Median Income $49,219
    Median Age 27.5
    Unemployment 7.7%
    Family Household Percent 43.6%
    Avg. Household Size 2.2
    Avg. House Price $229,200
    Foreign Born 16.8%
    Married 54.7%
    Cost of Living 50.5%
  • Average Temperature
    January 24.5°F -4.2°C
    February 27.4°F -2.6°C
    March 36.5°F 2.5°C
    April 48.8°F 9.3°C
    May 59.4°F 15.2°C
    June 68.8°F 20.4°C
    July 72.6°F 22.6°C
    August 71.1°F 21.7°C
    September 63.8°F 17.7°C
    October 51.9°F 11.1°C
    November 40.4°F 4.7°C
    December 28.9°F -1.7°C
  • Demographics
    White 70.4%
    Hispanic / Latino 4.1%
    Black / African American 7.6%
    Asian 14.3%
    Native American 0.2%

  Market & Regulatory Conditions For Michigan

Third parties rate Michigan's business and regulatory conditions according to their own methods. We report them here for informational purposes.

  • Small-Business Friendliness
    Overall small business friendliness D
    Ease of starting a small business D+
    Cost of hiring a new employee C-
    Overall regulatory friendliness D+
    Friendliness of health and safety regulations C-
    Friendliness of employment, labor, and hiring regulations D+
    Friendliness of tax code C-
    Friendliness of licensing regulations D+
    Friendliness of environmental regulations D+
    Friendliness of zoning regulations D+
    Publicity of training programs C+
    Publicity of networking programs B-
    Current economic health of small business 28th/50
    Change in revenue over past 12 months 15th/50
    Forecast of small business's future economic health 25th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 26th/50
    Cost of Doing Business 31th/50
    Economy 28th/50
    Infrastructure 16th/50
    Workforce 15th/50
    Quality of life 45th/50
    Technology and innovation 14th/50
    Business friendliness 32th/50
    Education 34th/50
    Cost of living 17th/50
    Access to capital 23th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Michigan Corporate Tax Rate 6.0%
    Avg Local Corporate Tax Rate in Michigan 0.0%
    Avg Combined Corporate Tax Rate 6.0%
    Overall tax friendliness 13th/50
    Corporate tax rank 10th/50
    Individual income tax rank 14th/50
    Sales tax rank 7th/50
    Unemployment insurance tax rank 47th/50
    Property tax rank 27th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

The following cities have the highest PYE for Abrasive Blast Cleaning Service within 500 miles of Ann Arbor based on a number of market characteristics. See More Results

The following businesse types have the highest PYE in Ann Arbor. See More Results