Market Research Report

Abrasive Blast Cleaning Service opportunities in Austin, TX
$11,345 Potential Yearly Earnings What's this number?
$3,176 Net Present Value What's this number?

  Financial Projections

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 Revenues $56,727 $85,090 $113,454 $120,281 $127,519
Net Costs $51,054 $76,581 $102,109 $108,253 $114,767
Net Operating Profits $5,673 $8,509 $11,345 $12,028 $12,752
Capital
      Startup Cost -$47,888
      Terminal Value $38,256
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.

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 Austin.

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

  Competitors

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.

Clemtex Inc, Regional Competitor
Serving the Austin Area.

Gosco Equipment Inc Regional Competitor
Serving the Austin Area.

Texas Green Blast, LLC Regional Competitor
7018 Avignon Drive Round Rock, TX 78681

American Bolt Co Regional Competitor
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 Austin–Round 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%
  • Average Temperature
    January 48.9°F 9.4°C
    February 51.2°F 10.7°C
    March 58.2°F 14.6°C
    April 66.9°F 19.4°C
    May 74.7°F 23.7°C
    June 80.4°F 26.9°C
    July 83.4°F 28.6°C
    August 83.8°F 28.8°C
    September 78.4°F 25.8°C
    October 68.9°F 20.5°C
    November 58.9°F 14.9°C
    December 50.0°F 10.0°C
  • 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/50
    Source: 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/50
    Source: 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/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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