Market Research Report

Abrasive Blast Cleaning Service opportunities in Chicago, IL
$54,248 Potential Yearly Earnings What's this number?
$179,142 Net Present Value What's this number?

  Financial Projections

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 Revenues $271,242 $406,863 $542,484 $560,514 $579,142
Net Costs $244,118 $366,177 $488,236 $504,462 $521,228
Net Operating Profits $27,124 $40,686 $54,248 $56,051 $57,914
Capital
      Startup Cost -$58,100
      Terminal Value $173,743
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.

Financial Parameters

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  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 Chicago.

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

  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.

Blast Cleaning Co Regional Competitor
5882 Betty Gloyd Dr Hoffman Estates, IL 60192

  Suppliers & Service Providers Contact List

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  About Chicago and its Consumers

Chicago Chicago

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%
  • Average Temperature
    January 23.5°F -4.7°C
    February 27.9°F -2.3°C
    March 38.1°F 3.4°C
    April 49.3°F 9.6°C
    May 59.5°F 15.3°C
    June 69.8°F 21.0°C
    July 73.9°F 23.3°C
    August 72.0°F 22.2°C
    September 64.2°F 17.9°C
    October 52.5°F 11.4°C
    November 40.2°F 4.6°C
    December 27.2°F -2.7°C
  • 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/50
    Source: 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/50
    Source: 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/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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