Market Research Report
Based on the parameters below, we project this business would break even in 1.9 years with a net present value of $458,115.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$65,252||$97,878||$130,504||$136,645||$143,076|
|Net Cash Flow||-$121,108||$65,252||$97,878||$130,504||$136,645||$572,303|
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 Chandler.
- median income
- gross rent
- population density
- July temperature
- November temperature
- household size
- 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.
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P.O.Box 26254 Scottsdale, AZ 85255
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About Chandler and its Consumers
Chandler is a city in Maricopa County, Arizona, United States, and is a prominent suburb of the Phoenix, Arizona, Metropolitan Statistical Area (MSA). It is bordered to the north and west by Tempe, to the north by Mesa, to the west byPhoenix, to the south by the Gila River Indian Community, and to the east by Gilbert. As of July 2012, the population was 240,101 according to the United States Census Bureau, however, according to the city's official website, Chandler's Planning Division estimated the population as of September 2012 being 239,610. It also has satellite locations for many technology companies, including Intel and Orbital Sciences Corporation. Computer chip manufacturer Intel has an influential role in city growth strategies with four locations in the municipal area, including its first factory to be designated "environmentally sustainable" under current Leadership in Energy and Environmental Design (LEED) criteria. Other high-technology manufacturing firms have partnerships with the local government, their operations employing approximately twenty-five percent of non-government workers in 2007
Chandler is a city in Maricopa County, Arizona, United States, and is a prominent suburb of the Phoenix, Arizona, Metropolitan Statistical Area (MSA). It is bordered to the north and west by Tempe, to the north by Mesa, to the west byPhoenix, to the south by the Gila River Indian Community, and to the east by Gilbert. As of July 2012, the population was 240,101 according to the United States...description source
Population Population (2012) 245,628 Population Density 3,813 ppl/sq mi Population Growth Rate 4.0% Median Income $69,260 Median Age 33.9 Unemployment 5.6% Family Household Percent 69.3% Avg. Household Size 2.7 Avg. House Price $189,300 Foreign Born 13.3% Married 32.9% Cost of Living 48.7%
Demographics White 60.4% Hispanic / Latino 23.3% Black / African American 5.6% Asian 6.2% Native American 1.0%
Market & Regulatory Conditions For Arizona
Third parties rate Arizona's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness C Ease of starting a small business B- Cost of hiring a new employee B- Overall regulatory friendliness C+ Friendliness of health and safety regulations B- Friendliness of employment, labor, and hiring regulations B Friendliness of tax code C+ Friendliness of licensing regulations C Friendliness of environmental regulations C+ Friendliness of zoning regulations C Publicity of training programs D Publicity of networking programs B+ Current economic health of small business 22th/50 Change in revenue over past 12 months 20th/50 Forecast of small business's future economic health 26th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 13th/50 Cost of Doing Business 28th/50 Economy 15th/50 Infrastructure 8th/50 Workforce 2th/50 Quality of life 27th/50 Technology and innovation 19th/50 Business friendliness 16th/50 Education 50th/50 Cost of living 27th/50 Access to capital 5th/50Source: CNBC (2014)
Tax Friendliness Arizona Corporate Tax Rate 5.6% Avg Local Corporate Tax Rate in Arizona 2.6% Avg Combined Corporate Tax Rate 8.2% Overall tax friendliness 23th/50 Corporate tax rank 24th/50 Individual income tax rank 19th/50 Sales tax rank 49th/50 Unemployment insurance tax rank 4th/50 Property tax rank 6th/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.