Market Research Report
Based on the parameters below, we project this business would break even in 7.5 years with a net present value of $5,188.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$3,432||$5,148||$6,863||$7,276||$7,714|
|Net Cash Flow||-$25,703||$3,432||$5,148||$6,863||$7,276||$30,857|
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 Brownsville.
- median income
- gross rent
- population density
- household size
- July temperature
- November temperature
- land area
- 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.
Serving the Brownsville Area.
Gosco Equipment Inc
Serving the Brownsville Area.
1505 Morningside Rd Brownsville, TX 78521
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About Brownsville and its Consumers
The city of Brownsville, located directly on the Mexican border, is Texas' southernmost city. An international bridge connects the city to Matamoros, Mexico. Brownsville is the county seat of Cameron County and is the major manufacturing center of the Rio Grande Valley. The city is serviced by U.S. Routes 77, 83, and 281; and has its own general aviation airport, the Brownsville/South Padre Island International Airport. Brownsville is situated about 275 miles southeast of San Antonio and 165 miles south of Corpus Christi. Brownsville offers many cultural and recreational opportunities for its visitors and residents. Museums and historic sites in the city include the Historic Brownsville Museum, housed in the restored Southern Pacific Railroad Depot; and the Brownsville Heritage Complex, which contains the restored former home of the city's founder, local businessman Charles Stillman. Also in the city is the Children's Museum of Brownsville and right next door, the Americas Museum, featuring costumes and indigenous dress from throughout all of the Americas. The Commemorative Air Force Museum showcases vintage military aircraft and presents an annual Air Fiesta every March. The Gladys Porter Zoo has more than 1500 animal species housed in natural settings.
The city of Brownsville, located directly on the Mexican border, is Texas' southernmost city. An international bridge connects the city to Matamoros, Mexico. Brownsville is the county seat of Cameron County and is the major manufacturing center of the Rio Grande Valley. The city is serviced by U.S. Routes 77, 83, and 281; and has its own general aviation airport, the Brownsville/South Padre...description source
Population Population (2012) 180,097 Population Density 1,360 ppl/sq mi Population Growth Rate 2.9% Median Income $31,850 Median Age 29.3 Unemployment 10.9% Family Household Percent 82.3% Avg. Household Size 3.5 Avg. House Price $86,100 Foreign Born 30.1% Married 31.4% Cost of Living 42.3%
Demographics White 5.2% Hispanic / Latino 93.3% Black / African American 0.1% Asian 1.0% Native American 0.1%
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.