Market Research Report
Based on the parameters below, we project this business would break even in 2.1 years with a net present value of $179,142.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$27,124||$40,686||$54,248||$56,051||$57,914|
|Net Cash Flow||-$58,100||$27,124||$40,686||$54,248||$56,051||$231,657|
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 Chicago.
- median income
- gross rent
- population density
- land area
- July temperature
- household size
- November temperature
- 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.
Blast Cleaning Co
5882 Betty Gloyd Dr Hoffman Estates, IL 60192
Suppliers & Service Providers Contact List
Access angel investors around the U.S.
Get Angels to invest in your business.
Access angel investment today!
Get business insurance for your venture
Find great rates on business insurance.
Free help for entrepreneurs
Our experienced entrepreneurs can help you reach your goals.
We provide free business mentoring for entrepreneurs.
About Chicago and its Consumers
The City of Chicago covers an area of 60,000 hectares and sits 176 meters (578 feet) above sea level on the southwestern shore of Lake Michigan. At 190 km wide and 495 km long, its the 5th largest body of fresh water in the world. The city is traversed by the Chicago and Calumet rivers. Chicago's extensive parklands, including 3,000 hectares of city parks attract an estimated 86 million visitors annually. Chicago has the third largest gross metropolitan product in the United States The city has also been rated as having the most balanced economy in the United States, due to its high level of diversification.Chicago was named the fourth most important business center in the world in the MasterCard Worldwide Centers of Commerce Index. Chicago was named the "Best Sports City" in the United States. Chicago is a major transportation hub in the United States. It is an important component in global distribution, as it is the third largest inter-modal port in the world after Hong Kong and Singapore.
The City of Chicago covers an area of 60,000 hectares and sits 176 meters (578 feet) above sea level on the southwestern shore of Lake Michigan. At 190 km wide and 495 km long, its the 5th largest body of fresh water in the world. The city is traversed by the Chicago and Calumet rivers. Chicago's extensive parklands, including 3,000 hectares of city parks attract an estimated 86 million...description source
Population Population (2012) 2,714,860 Population Density 11,926 ppl/sq mi Population Growth Rate 0.7% Median Income $43,628 Median Age 33.1 Unemployment 11.2% Family Household Percent 55.2% Avg. Household Size 2.5 Avg. House Price $228,300 Foreign Born 21.4% Married 47.3% Cost of Living 56.2%
Demographics White 31.9% Hispanic / Latino 29.2% Black / African American 31.9% Asian 5.2% Native American 0.1%
Market & Regulatory Conditions For Illinois
Third parties rate Illinois's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness D+ Ease of starting a small business C Cost of hiring a new employee B Overall regulatory friendliness C- Friendliness of health and safety regulations C- Friendliness of employment, labor, and hiring regulations C Friendliness of tax code D+ Friendliness of licensing regulations D 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 36th/50 Change in revenue over past 12 months 23th/50 Forecast of small business's future economic health 28th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 27th/50 Cost of Doing Business 40th/50 Economy 36th/50 Infrastructure 3th/50 Workforce 32th/50 Quality of life 30th/50 Technology and innovation 5th/50 Business friendliness 41th/50 Education 15th/50 Cost of living 29th/50 Access to capital 14th/50Source: CNBC (2014)
Tax Friendliness Illinois Corporate Tax Rate 6.3% Avg Local Corporate Tax Rate in Illinois 1.9% Avg Combined Corporate Tax Rate 8.2% Overall tax friendliness 31th/50 Corporate tax rank 47th/50 Individual income tax rank 11th/50 Sales tax rank 34th/50 Unemployment insurance tax rank 38th/50 Property tax rank 44th/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.