Market Research Report
Based on the parameters below, we project this business would break even in 3.8 years with a net present value of $68,133.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$13,298||$19,948||$26,597||$27,905||$29,277|
|Net Cash Flow||-$50,181||$13,298||$19,948||$26,597||$27,905||$117,108|
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 Colorado Springs.
- median income
- gross rent
- population density
- land area
- July temperature
- household size
- family households
- November temperature
- May 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.
Blast To The Past
405 Juanita St Colorado Springs, CO 80909
3524 N Prospect St Colorado Springs, CO 80907
All Custom Design Solutions
305 E Woodmen Rd Colorado Springs, CO 80919
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Colorado Springs and its Consumers
Colorado Springs is a Home Rule Municipality that is the county seat and most populous city of El Paso County, Colorado, United States. Colorado Springs is located in the east central portion of the state. It is situated on Fountain Creek and is located 60 miles (97 km) south of the Colorado State Capitol in Denver. At 6,035 feet (1,839 m) the city stands over one mile (1.6 km) above sea level, though some areas of the city are significantly higher and lower. Colorado Springs is situated near the base of one of the most famous American mountains, Pikes Peak, rising over 8,000 feet above the city on the eastern edge of the Southern Rocky Mountains. The United States Air Force Academy is located in Colorado Springs. The city is often referred to as "The Springs." The city had an estimated population of 439,886 in 2013.,making it the second most populous city in the state of Colorado, behind Denver, and the 41st most populous city in the United States, while the Colorado Springs Metropolitan Statistical Area had an estimated population of 678,319 in 2013.
Colorado Springs is a Home Rule Municipality that is the county seat and most populous city of El Paso County, Colorado, United States. Colorado Springs is located in the east central portion of the state. It is situated on Fountain Creek and is located 60 miles (97 km) south of the Colorado State Capitol in Denver. At 6,035 feet (1,839 m) the city stands over one mile (1.6 km) above sea level,...description source
Population Population (2012) 431,834 Population Density 2,219 ppl/sq mi Population Growth Rate 3.7% Median Income $50,945 Median Age 34.9 Unemployment 8.3% Family Household Percent 63.6% Avg. Household Size 2.4 Avg. House Price $207,300 Foreign Born 7.7% Married 29.9% Cost of Living 51.7%
Demographics White 71.1% Hispanic / Latino 16.7% Black / African American 6.0% Asian 2.4% Native American 0.4%
Market & Regulatory Conditions For Colorado
Third parties rate Colorado's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness B+ Ease of starting a small business B+ Cost of hiring a new employee B+ Overall regulatory friendliness B+ Friendliness of health and safety regulations B Friendliness of employment, labor, and hiring regulations B+ Friendliness of tax code B+ Friendliness of licensing regulations B+ Friendliness of environmental regulations B- Friendliness of zoning regulations B- Publicity of training programs D+ Publicity of networking programs C Current economic health of small business 33th/50 Change in revenue over past 12 months 33th/50 Forecast of small business's future economic health 9th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 8th/50 Cost of Doing Business 35th/50 Economy 8th/50 Infrastructure 29th/50 Workforce 5th/50 Quality of life 12th/50 Technology and innovation 9th/50 Business friendliness 16th/50 Education 28th/50 Cost of living 34th/50 Access to capital 1th/50Source: CNBC (2014)
Tax Friendliness Colorado Corporate Tax Rate 2.9% Avg Local Corporate Tax Rate in Colorado 4.5% Avg Combined Corporate Tax Rate 7.4% Overall tax friendliness 20th/50 Corporate tax rank 12th/50 Individual income tax rank 16th/50 Sales tax rank 43th/50 Unemployment insurance tax rank 35th/50 Property tax rank 22th/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.