Market Research Report
Based on the parameters below, we project this business would break even in 2.2 years with a net present value of $266,822.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$39,642||$59,463||$79,284||$83,183||$87,274|
|Net Cash Flow||-$85,865||$39,642||$59,463||$79,284||$83,183||$349,095|
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 Denver.
- median income
- gross rent
- population density
- July temperature
- land area
- household size
- November temperature
- May temperature
- median resident age
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.
Master Blaster Plumbing & Drain LLC
6385 W 52nd Ave Arvada, CO 80002
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About Denver and its Consumers
Denver, the Mile High City is capital of Colorado and the unofficial capital of the Rocky Mountain West. It is a vibrant metropolis with 300 days of sunny skies annually and a youthful, happy feel. Maybe that's because Colorado is considered the healthiest state in the nation. The city's moniker comes from it's official height, 5,280 feet above sea level. It's also the exact height of the Capitol building's west steps, from which visitors have an expansive view of the oft-snow-capped Rockies. Denver's downtown district reveals a city that's looking to the future. It's a clean and lovely business district with modern skyscrapers entwined with yesteryear buildings that stay true to the city's heritage as the western gold-mining camp it once was. Explore downtown via the walkable 16th Street Mall and explore the mile-long shopping district with local stores and some of your favorites. Or hop on the 16th Street Mall shuttle for free and be whisked to your destination, it stops on every block. Basically, no matter what you want to do, there's a lot of it in and around Denver. From shopping to hiking, to biking and more, you can find it in the Mile High City.
Denver, the Mile High City is capital of Colorado and the unofficial capital of the Rocky Mountain West. It is a vibrant metropolis with 300 days of sunny skies annually and a youthful, happy feel. Maybe that's because Colorado is considered the healthiest state in the nation. The city's moniker comes from it's official height, 5,280 feet above sea level. It's also the exact height of the...description source
Population Population (2012) 634,265 Population Density 4,145 ppl/sq mi Population Growth Rate 5.7% Median Income $47,371 Median Age 33.7 Unemployment 7.2% Family Household Percent 47.5% Avg. Household Size 2.2 Avg. House Price $247,800 Foreign Born 16.4% Married 40.7% Cost of Living 56.8%
Demographics White 52.5% Hispanic / Latino 31.8% Black / African American 9.4% Asian 3.7% Native American 0.6%
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.