Market Research Report
Based on the parameters below, we project this business would break even in 2.5 years with a net present value of $355,141.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$56,170||$84,254||$112,339||$117,507||$122,912|
|Net Cash Flow||-$142,895||$56,170||$84,254||$112,339||$117,507||$491,648|
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 Chula Vista.
- median income
- gross rent
- population density
- household size
- November temperature
- July temperature
- land area
- family households
- May temperature
- February 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.
Mission Janitorial & Abrasive Supplies
9292 Activity Rd San Diego, CA 92126
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About Chula Vista and its Consumers
Chula Vista is the second largest city in the San Diego metropolitan area, the seventh largest city in Southern California, the fourteenth largest city in the state of California, and the 76th-largest city in the United States. The population was 243,916 as of the 2010 census. Located just 7.5 miles (12.1 km) from downtown San Diego and 7.5 miles (12.1 km) from the Mexican border in the South Bay region of the metropolitan area, the city is at the center of one of the richest economic and culturally diverse zones in the United States. Chula Vista is so named because of its scenic location between the San Diego Bay and coastal mountain foothills. Founded in the early 19th century, fast population growth has recently been observed in the city. Located in the city is one of America's few year-round United States Olympic Training centers and popular tourist destinations include Cricket Wireless Amphitheater, the Chula Vista marina, and the Living Coast Discovery Center, formerly known as the Chula Vista Nature Center°.
Chula Vista is the second largest city in the San Diego metropolitan area, the seventh largest city in Southern California, the fourteenth largest city in the state of California, and the 76th-largest city in the United States. The population was 243,916 as of the 2010 census. Located just 7.5 miles (12.1 km) from downtown San Diego and 7.5 miles (12.1 km) from the Mexican border in the South...description source
Population Population (2012) 252,422 Population Density 5,085 ppl/sq mi Population Growth Rate 3.5% Median Income $59,585 Median Age 33.8 Unemployment 9.1% Family Household Percent 78.7% Avg. Household Size 3.2 Avg. House Price $339,800 Foreign Born 26.8% Married 33.1% Cost of Living 66.7%
Demographics White 19.8% Hispanic / Latino 57.5% Black / African American 3.6% Asian 15.4% Native American 0.3%
Market & Regulatory Conditions For California
Third parties rate California's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness F Ease of starting a small business D Cost of hiring a new employee C- Overall regulatory friendliness F Friendliness of health and safety regulations F Friendliness of employment, labor, and hiring regulations F Friendliness of tax code F Friendliness of licensing regulations F Friendliness of environmental regulations D Friendliness of zoning regulations D Publicity of training programs C- Publicity of networking programs D+ Current economic health of small business 40th/50 Change in revenue over past 12 months 40th/50 Forecast of small business's future economic health 35th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 32th/50 Cost of Doing Business 48th/50 Economy 9th/50 Infrastructure 24th/50 Workforce 36th/50 Quality of life 23th/50 Technology and innovation 1th/50 Business friendliness 48th/50 Education 26th/50 Cost of living 47th/50 Access to capital 1th/50Source: CNBC (2014)
Tax Friendliness California Corporate Tax Rate 7.5% Avg Local Corporate Tax Rate in California 0.9% Avg Combined Corporate Tax Rate 8.4% Overall tax friendliness 48th/50 Corporate tax rank 34th/50 Individual income tax rank 50th/50 Sales tax rank 42th/50 Unemployment insurance tax rank 14th/50 Property tax rank 14th/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.