Market Research Report
Based on the parameters below, we project this business would break even in 2.0 years with a net present value of $118,198.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$17,445||$26,167||$34,889||$36,305||$37,779|
|Net Cash Flow||-$35,587||$17,445||$26,167||$34,889||$36,305||$151,116|
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 Athens.
- median income
- gross rent
- population density
- July temperature
- land area
- November temperature
- household size
- May temperature
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About Athens and its Consumers
Athens, located in northeastern Georgia about an hour east of Atlanta, is the home of the University of Georgia and is the fourth-largest city in the state. Started as a trading settlement called Cedar Shoals in the 1700s, it was chosen in 1801 as the site of Georgia's first state college and renamed Athens after the city in Greece. Much of the city's economy and culture is based on the university. Today, Athens is home to more than 100,000 residents. It is one of the hippest small cities in America and one of the most progressive cities in the South. Athens has arts and cultural options rivaling those in cities many times its size. Its thriving music scene produced legendary bands like the B-52's and REM; today's rising stars can be seen the 40 Watt Club and the Georgia Theatre. AthFest presents more than a hundred bands on various stages over a weekend each June. Athens is also home to the State Botanical Garden of Georgia, a a 313-acre preserve associated with the University of Georgia, that has several flower and herb gardens and five miles of nature trails.
Athens, located in northeastern Georgia about an hour east of Atlanta, is the home of the University of Georgia and is the fourth-largest city in the state. Started as a trading settlement called Cedar Shoals in the 1700s, it was chosen in 1801 as the site of Georgia's first state college and renamed Athens after the city in Greece. Much of the city's economy and culture is based on the...description source
Population Population (2012) 118,999 Population Density 1,022 ppl/sq mi Population Growth Rate 3.1% Median Income $25,344 Median Age 24.2 Unemployment 5.7% Family Household Percent 44.6% Avg. Household Size 2.3 Avg. House Price $164,143 Foreign Born 10.4% Married 32.3% Cost of Living 53.5%
Demographics White 64.3% Hispanic / Latino 5.5% Black / African American 25.1% Asian 3.6% Native American 0.1%
Market & Regulatory Conditions For Georgia
Third parties rate Georgia'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 B Overall regulatory friendliness B+ Friendliness of health and safety regulations B+ Friendliness of employment, labor, and hiring regulations A- Friendliness of tax code B Friendliness of licensing regulations B Friendliness of environmental regulations B- Friendliness of zoning regulations B Publicity of training programs B+ Publicity of networking programs A Current economic health of small business 31th/50 Change in revenue over past 12 months 39th/50 Forecast of small business's future economic health 8th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 1th/50 Cost of Doing Business 20th/50 Economy 3th/50 Infrastructure 1th/50 Workforce 1th/50 Quality of life 32th/50 Technology and innovation 16th/50 Business friendliness 14th/50 Education 32th/50 Cost of living 22th/50 Access to capital 11th/50Source: CNBC (2014)
Tax Friendliness Georgia Corporate Tax Rate 4.0% Avg Local Corporate Tax Rate in Georgia 3.0% Avg Combined Corporate Tax Rate 7.0% Overall tax friendliness 36th/50 Corporate tax rank 8th/50 Individual income tax rank 42th/50 Sales tax rank 17th/50 Unemployment insurance tax rank 36th/50 Property tax rank 30th/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.