Market Research Report
Based on the parameters below, we project this business would break even in 8.4 years with a net present value of $3,176.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$5,673||$8,509||$11,345||$12,028||$12,752|
|Net Cash Flow||-$47,888||$5,673||$8,509||$11,345||$12,028||$51,008|
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 Austin.
- median income
- gross rent
- population density
- July temperature
- land area
- November temperature
- household size
- May temperature
- February 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.
Serving the Austin Area.
Gosco Equipment Inc
Serving the Austin Area.
Texas Green Blast, LLC
7018 Avignon Drive Round Rock, TX 78681
American Bolt Co
5214 Burleson Rd Austin, TX 78744
TIP: Your market is dominated by regional chains. Consider entering the market with an independant business or a national franchise.
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About Austin and its Consumers
Austin is the capital of Texas and the seat of Travis County. Located in Central Texas and the American Southwest,it is the 11th-most populous city in the United States of America and thefourth-most populous city in the state of Texas. It was the third-fastest-growing large city in the nation from 2000 to 2006.Austin is also the second largest state capital in the United States.Austin has a population of 865,504 (2014 estimate) The city is the cultural and economic center of the AustinRound Rock metropolitan area, which had an estimated population of 1,926,998 in April 2014. The city grew throughout the 19th century and became a center for government and education with the construction of the Texas State Capitol and the University of Texas at Austin. After a lull in growth from the Great Depression, Austin resumed its development into a major city and, by the 1980s, it emerged as a center for technology and business. A number of Fortune 500companies have headquarters or regional offices in Austin including Advanced Micro Devices, Apple Inc., eBay, Google, IBM, Intel, Texas Instruments, 3M, and Whole Foods Market. Dell's worldwide headquarters is located in nearby Round Rock, a suburb of Austin.
Austin is the capital of Texas and the seat of Travis County. Located in Central Texas and the American Southwest,it is the 11th-most populous city in the United States of America and thefourth-most populous city in the state of Texas. It was the third-fastest-growing large city in the nation from 2000 to 2006.Austin is also the second largest state capital in the United States.Austin has a...description source
Population Population (2012) 842,592 Population Density 2,828 ppl/sq mi Population Growth Rate 6.6% Median Income $49,987 Median Age 31.1 Unemployment 5.2% Family Household Percent 51.9% Avg. Household Size 2.4 Avg. House Price $217,700 Foreign Born 18.5% Married 42.9% Cost of Living 50.2%
Demographics White 47.1% Hispanic / Latino 36.3% Black / African American 7.6% Asian 6.4% Native American 0.3%
Market & Regulatory Conditions For Texas
Third parties rate Texas'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 A 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 A Publicity of training programs C+ Publicity of networking programs C Current economic health of small business 13th/50 Change in revenue over past 12 months 29th/50 Forecast of small business's future economic health 17th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 2th/50 Cost of Doing Business 23th/50 Economy 1th/50 Infrastructure 1th/50 Workforce 11th/50 Quality of life 37th/50 Technology and innovation 2th/50 Business friendliness 20th/50 Education 27th/50 Cost of living 18th/50 Access to capital 5th/50Source: CNBC (2014)
Tax Friendliness Texas Corporate Tax Rate 6.3% Avg Local Corporate Tax Rate in Texas 1.9% Avg Combined Corporate Tax Rate 8.2% Overall tax friendliness 10th/50 Corporate tax rank 39th/50 Individual income tax rank 6th/50 Sales tax rank 36th/50 Unemployment insurance tax rank 15th/50 Property tax rank 36th/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.