Market Research Report
Based on the parameters below, we project this business would break even in 2.8 years with a net present value of $73,819.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$12,155||$18,232||$24,310||$25,441||$26,625|
|Net Cash Flow||-$34,016||$12,155||$18,232||$24,310||$25,441||$106,499|
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 Baton Rouge.
- median income
- gross rent
- population density
- July temperature
- November temperature
- land area
- household size
- 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.
Oliver H Van Horn
6301 Choctaw Dr Baton Rouge, LA 70805
2930 Ruby St Gonzales, LA 70737
2728 Ruby St Gonzales, LA 70737
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Baton Rouge and its Consumers
Baton Rouge is the capital city of the American State of Louisiana. Located on the banks of the mighty Mississippi River in East Baton Rouge Parish, it is a city full of history, sophistication, and spirit. As the "Capital City," Baton Rouge is the political hub for Louisiana,and is the second largest metropolitan city in the state with a growing population of 230,058 people as of 2012.The metropolitan area surrounding the city, known as Greater Baton Rouge, has a population of 815,298 people as of 2012. Baton Rouge is a major industrial, petrochemical, medical, research, motion picture, and growing technology center of the American South. The Port of Baton Rouge is the ninth largest in the United States in terms of tonnage shipped, and is the farthest upstream Mississippi River port capable of handling Panamax ships. The Baton Rouge area owes its historical importance to its site upon the Istrouma Bluff, the first natural bluff upriver from the Mississippi River Delta, that provided the citys residents a safe business quarter from flooding. In addition, the city built a levee system stretching from the bluff southward to protect the riverfront and low-lying agricultural areas.
Baton Rouge is the capital city of the American State of Louisiana. Located on the banks of the mighty Mississippi River in East Baton Rouge Parish, it is a city full of history, sophistication, and spirit. As the "Capital City," Baton Rouge is the political hub for Louisiana,and is the second largest metropolitan city in the state with a growing population of 230,058 people as of 2012.The...description source
Population Population (2012) 230,058 Population Density 2,989 ppl/sq mi Population Growth Rate 0.2% Median Income $36,894 Median Age 30.5 Unemployment 8.0% Family Household Percent 56.2% Avg. Household Size 2.4 Avg. House Price $151,500 Foreign Born 4.2% Married 48.2% Cost of Living 48.3%
Demographics White 37.8% Hispanic / Latino 3.3% Black / African American 54.3% Asian 3.3% Native American 0.2%
Market & Regulatory Conditions For Louisiana
Third parties rate Louisiana'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 D 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 A Publicity of networking programs A+ Current economic health of small business 5th/50 Change in revenue over past 12 months 14th/50 Forecast of small business's future economic health 16th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 40th/50 Cost of Doing Business 3th/50 Economy 44th/50 Infrastructure 36th/50 Workforce 26th/50 Quality of life 47th/50 Technology and innovation 36th/50 Business friendliness 39th/50 Education 44th/50 Cost of living 4th/50 Access to capital 47th/50Source: CNBC (2014)
Tax Friendliness Louisiana Corporate Tax Rate 4.0% Avg Local Corporate Tax Rate in Louisiana 4.9% Avg Combined Corporate Tax Rate 8.9% Overall tax friendliness 35th/50 Corporate tax rank 23th/50 Individual income tax rank 27th/50 Sales tax rank 50th/50 Unemployment insurance tax rank 6th/50 Property tax rank 24th/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.