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 $225,267.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$32,546||$48,818||$65,091||$67,733||$70,482|
|Net Cash Flow||-$61,641||$32,546||$48,818||$65,091||$67,733||$281,929|
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 Augusta.
- median income
- gross rent
- land area
- July temperature
- population density
- November temperature
- household size
- May temperature
- family households
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.
Lokey Robert Pressure Cleaning & Sand Blasting
1432 Cherokee Country Club Rd Lot 44 Lincolnton, GA 30817
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About Augusta and its Consumers
AugustaRichmond County is a consolidated city-county in the U.S. state of Georgia, located at the fall line of the Savannah River, at the head of its navigable portion. According to the United States Census Bureau, the Augusta-Richmond County balance has a total area of 306.5 square miles (793.8 km2). 302.1 square miles (782.4 km2) of it is land and 4.3 square miles (11.1 km2) of it (1.42%) is water. The city was named after Princess Augusta of Saxe-Gotha-Altenburg (1719-1772), wife of Frederick, Prince of Wales. She was the mother of King George III of the United Kingdom. According to 2012 US Census estimates, the Augusta-Richmond County population was 197,872. not counting the unconsolidated cities of Hephzibah and Blythe. Augusta is the principal city of the Augusta-Richmond County Metropolitan Statistical Area, which as of 2010 had an estimated population of 556,877, making it the third-largest city and the second-largest metro area in the state after Atlanta. It is the 116th-largest city in the United States. Internationally, Augusta is best known for hosting The Masters golf tournament each spring.
AugustaRichmond County is a consolidated city-county in the U.S. state of Georgia, located at the fall line of the Savannah River, at the head of its navigable portion. According to the United States Census Bureau, the Augusta-Richmond County balance has a total area of 306.5 square miles (793.8 km2). 302.1 square miles (782.4 km2) of it is land and 4.3 square miles (11.1 km2) of it (1.42%) is...description source
Population Population (2012) 197,872 Population Density 654 ppl/sq mi Population Growth Rate 1.0% Median Income $35,938 Median Age 34.3 Unemployment 6.8% Family Household Percent 57.8% Avg. Household Size 2.3 Avg. House Price $102,064 Foreign Born 3.4% Married 41.5% Cost of Living 49.7%
Demographics White 44.1% Hispanic / Latino 2.2% Black / African American 50.6% Asian 1.4% Native American 0.2%
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.