Market Research Report
Based on the parameters below, we project this business would break even in 2.6 years with a net present value of $93,252.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$14,629||$21,944||$29,258||$31,019||$32,885|
|Net Cash Flow||-$38,434||$14,629||$21,944||$29,258||$31,019||$131,542|
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 Dallas.
- median income
- gross rent
- population density
- land area
- July temperature
- November temperature
- household size
- May temperature
- family households
- 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.
610 James Dr Richardson, TX 75080
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About Dallas and its Consumers
Dallas is a major city in Texas and along with Fort Worth, is one of the two urban centers of a metropolitan area that ranks fourth in the United States. The city proper ranks ninth in the U.S. and third in Texas. Dallas was founded in 1841 and formally incorporated as a city in February 1856. The city's economy is primarily based on banking, commerce, telecommunications, computer technology, energy, healthcare and medical research, transportation and logistics. It was developed because of construction of major railroad lines here; it became a hub in 1873. It was connected to Houston and other major cities that were railroad cities. It was booming by the late 19th and early 20th century, and was the world center of leather manufacture and harness making. The interstate highway system in the 1950s and 1960s reinforced and consolidated Dallas' prominence. As with the railroads, east/west and north/south highways converged here. Four major interstate highways converge in the city, and a fifth interstate loops around it. Dallas developed a strong industrial and financial sector, and a major inland port, due largely to the presence of Dallas/Fort Worth International Airport, one of the largest and busiest airports in the world.
Dallas is a major city in Texas and along with Fort Worth, is one of the two urban centers of a metropolitan area that ranks fourth in the United States. The city proper ranks ninth in the U.S. and third in Texas. Dallas was founded in 1841 and formally incorporated as a city in February 1856. The city's economy is primarily based on banking, commerce, telecommunications, computer technology,...description source
Population Population (2012) 1,241,160 Population Density 3,644 ppl/sq mi Population Growth Rate 3.6% Median Income $40,585 Median Age 31.8 Unemployment 6.9% Family Household Percent 58.0% Avg. Household Size 2.6 Avg. House Price $122,800 Foreign Born 27.0% Married 39.6% Cost of Living 49.7%
Demographics White 28.6% Hispanic / Latino 43.9% Black / African American 23.4% Asian 2.5% Native American 0.2%
Market & Regulatory Conditions For Texas
Third parties rate Texas's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness A+ Ease of starting a small business A Cost of hiring a new employee B+ Overall regulatory friendliness A Friendliness of health and safety regulations A- Friendliness of employment, labor, and hiring regulations A Friendliness of tax code A Friendliness of licensing regulations A Friendliness of environmental regulations A- Friendliness of zoning regulations A Publicity of training programs C+ Publicity of networking programs C Current economic health of small business 13th/50 Change in revenue over past 12 months 29th/50 Forecast of small business's future economic health 17th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 2th/50 Cost of Doing Business 23th/50 Economy 1th/50 Infrastructure 1th/50 Workforce 11th/50 Quality of life 37th/50 Technology and innovation 2th/50 Business friendliness 20th/50 Education 27th/50 Cost of living 18th/50 Access to capital 5th/50Source: CNBC (2014)
Tax Friendliness Texas Corporate Tax Rate 6.3% Avg Local Corporate Tax Rate in Texas 1.9% Avg Combined Corporate Tax Rate 8.2% Overall tax friendliness 10th/50 Corporate tax rank 39th/50 Individual income tax rank 6th/50 Sales tax rank 36th/50 Unemployment insurance tax rank 15th/50 Property tax rank 36th/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.