Market Research Report

Abrasive Blast Cleaning Service opportunities in Elgin, IL
$106,312 Potential Yearly Earnings What's this number?
$355,854 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 $355,854.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $531,560 $797,340 $1,063,120 $1,098,453 $1,134,961
Net Costs $478,404 $717,606 $956,808 $988,608 $1,021,464
Net Operating Profits $53,156 $79,734 $106,312 $109,845 $113,496
Capital
      Startup Cost -$109,076
      Terminal Value $340,488
Net Cash Flow -$109,076 $53,156 $79,734 $106,312 $109,845 $453,984

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

Change these parameters to customize your financial model

  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 Elgin.

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

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  About Elgin and its Consumers

Elgin is a city in Cook and Kane counties in the northern part of the U.S. state of Illinois. Located roughly 35 mi (56 km) northwest of Chicago, it lies along the Fox River. As of 2012, the city had a total population of 109,927, making it the eighth-largest city in Illinois. Elgin ranks as one of the fastest growing cities in Illinois. In June 2005, the Chicago Tribune quoted Elgin Mayor Ed Schock saying that Elgin will in 40 years be the second largest city in Illinois. The city's Far West Development Strategy calls for the construction of 14,000 homes on agricultural land west of Randall Road, which has become a major retail corridor connecting the Fox Valley. Elgin's downtown area has also attracted developer interest. Three large residential projects were to be completed in the downtown by 2007, at a total cost of more than $100 million. The Gail Borden Public Library moved into a new $30 million 460,000 volume-capacity building in October 2003. Other recent projects include the city's $41 million recreational center, the Centre of Elgin.

Elgin is a city in Cook and Kane counties in the northern part of the U.S. state of Illinois. Located roughly 35 mi (56 km) northwest of Chicago, it lies along the Fox River. As of 2012, the city had a total population of 109,927, making it the eighth-largest city in Illinois. Elgin ranks as one of the fastest growing cities in Illinois. In June 2005, the Chicago Tribune quoted Elgin Mayor Ed...

description source
  • Population
    Population (2012) 109,927
    Population Density 2,957 ppl/sq mi
    Population Growth Rate 1.6%
    Median Income $56,337
    Median Age 32.5
    Unemployment 9.6%
    Family Household Percent 72.0%
    Avg. Household Size 3.0
    Avg. House Price $170,700
    Foreign Born 24.3%
    Married 32.6%
    Cost of Living 53.8%
  • Average Temperature
    January 21.6°F -5.8°C
    February 25.6°F -3.6°C
    March 36.1°F 2.3°C
    April 48.2°F 9.0°C
    May 58.8°F 14.9°C
    June 68.8°F 20.4°C
    July 73.3°F 22.9°C
    August 71.5°F 21.9°C
    September 63.6°F 17.6°C
    October 51.3°F 10.7°C
    November 39.0°F 3.9°C
    December 25.8°F -3.4°C
  • Demographics
    White 42.6%
    Hispanic / Latino 43.6%
    Black / African American 6.9%
    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 Elgin based on a number of market characteristics. See More Results

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