Market Research Report
Based on the parameters below, we project this business would break even in 2.1 years with a net present value of $316,289.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$46,686||$70,029||$93,373||$97,964||$102,782|
|Net Cash Flow||-$99,068||$46,686||$70,029||$93,373||$97,964||$411,128|
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 Aurora.
- median income
- gross rent
- population density
- July temperature
- land area
- household size
- family households
- November temperature
- May temperature
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.
Master Blaster Plumbing & Drain LLC
6385 W 52nd Ave Arvada, CO 80002
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About Aurora and its Consumers
The City of Aurora is a Home Rule Municipality in the State of Colorado, spanning Arapahoe and Adams counties, with the extreme southeastern portion of the city extending into Douglas County. Aurora is one of the principal cities of the Denver-Aurora-Broomfield, CO Metropolitan Statistical Area (Metro Denver). The city's population was 325,078 in the 2010 Census,which makes it the third most populous city in the state of Colorado and the 56th most populous city in the United States. The city of Aurora manages more than 100 parks,more than 6,000 acres (24 km2) of open space and natural areas,and six award-winning municipal golf courses (Aurora Hills, Meadow Hills, Murphy Creek, Saddle Rock, Springhill and Fitzsimons). Aurora also is home to several privately owned golf courses including Blackstone Country Club, Common Ground Golf Course, Heather Ridge Country Club, Heritage Eagle Bend Golf and Country Club, John F. Kennedy Golf Course and Valley Country Club.
The City of Aurora is a Home Rule Municipality in the State of Colorado, spanning Arapahoe and Adams counties, with the extreme southeastern portion of the city extending into Douglas County. Aurora is one of the principal cities of the Denver-Aurora-Broomfield, CO Metropolitan Statistical Area (Metro Denver). The city's population was 325,078 in the 2010 Census,which makes it the third most...description source
Population Population (2012) 339,030 Population Density 2,200 ppl/sq mi Population Growth Rate 4.3% Median Income $49,593 Median Age 33.5 Unemployment 4.7% Family Household Percent 65.3% Avg. Household Size 2.6 Avg. House Price $172,200 Foreign Born 20.4% Married 48.0% Cost of Living 55.6%
Demographics White 46.8% Hispanic / Latino 29.7% Black / African American 14.9% Asian 5.3% Native American 0.3%
Market & Regulatory Conditions For Colorado
Third parties rate Colorado's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness B+ Ease of starting a small business B+ 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 B+ Friendliness of tax code B+ Friendliness of licensing regulations B+ Friendliness of environmental regulations B- Friendliness of zoning regulations B- Publicity of training programs D+ Publicity of networking programs C Current economic health of small business 33th/50 Change in revenue over past 12 months 33th/50 Forecast of small business's future economic health 9th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 8th/50 Cost of Doing Business 35th/50 Economy 8th/50 Infrastructure 29th/50 Workforce 5th/50 Quality of life 12th/50 Technology and innovation 9th/50 Business friendliness 16th/50 Education 28th/50 Cost of living 34th/50 Access to capital 1th/50Source: CNBC (2014)
Tax Friendliness Colorado Corporate Tax Rate 2.9% Avg Local Corporate Tax Rate in Colorado 4.5% Avg Combined Corporate Tax Rate 7.4% Overall tax friendliness 20th/50 Corporate tax rank 12th/50 Individual income tax rank 16th/50 Sales tax rank 43th/50 Unemployment insurance tax rank 35th/50 Property tax rank 22th/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.