Market Research Report

Abrasive Blast Cleaning Service opportunities in Erie, PA
$59,915 Potential Yearly Earnings What's this number?
$207,599 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 1.9 years with a net present value of $207,599.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $299,573 $449,359 $599,146 $621,314 $644,303
Net Costs $269,616 $404,424 $539,231 $559,183 $579,873
Net Operating Profits $29,957 $44,936 $59,915 $62,131 $64,430
Capital
      Startup Cost -$55,481
      Terminal Value $193,291
Net Cash Flow -$55,481 $29,957 $44,936 $59,915 $62,131 $257,721

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 Erie.

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

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  About Erie and its Consumers

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Erie is a city located in northwestern Pennsylvania, United States. Named for the lake and the Native American tribe that resided along its southern shore, Erie is the state's fourth-largest city (after Philadelphia, Pittsburgh and Allentown), with a population of 102,000. Erie's Metropolitan Area consists of approximately 280,000 residents and an Urbanized Area population of approximately 195,000. The city is the seat of government for Erie County. Erie is the principal city of the Erie, PA Metropolitan Statistical Area. Erie is near Buffalo, New York, Cleveland, Ohio, and Pittsburgh, Pennsylvania. Once teeming with heavy industry, Erie's manufacturing sector remains prominent in the local economy, though service industries, healthcare, higher education, and tourism are emerging as greater economic drivers. Millions visit Erie for recreation at Presque Isle State Park, as well as attractions like casino and horse racetrack named for the state park. Erie is known as the Flagship City because of its status as the home port of Oliver Hazard Perry's flagship Niagara.The city has also been called the Gem City because of the "sparkling" lake. Erie won the All-America City Award in 1972.

Erie is a city located in northwestern Pennsylvania, United States. Named for the lake and the Native American tribe that resided along its southern shore, Erie is the state's fourth-largest city (after Philadelphia, Pittsburgh and Allentown), with a population of 102,000. Erie's Metropolitan Area consists of approximately 280,000 residents and an Urbanized Area population of approximately...

description source
  • Population
    Population (2012) 101,047
    Population Density 5,295 ppl/sq mi
    Population Growth Rate -0.7%
    Median Income $31,901
    Median Age 33.6
    Unemployment 8.5%
    Family Household Percent 56.0%
    Avg. Household Size 2.4
    Avg. House Price $83,100
    Foreign Born 6.1%
    Married 42.7%
    Cost of Living 48.6%
  • Average Temperature
    January 27.2°F -2.7°C
    February 28.3°F -2.1°C
    March 35.7°F 2.1°C
    April 47.1°F 8.4°C
    May 57.4°F 14.1°C
    June 67.1°F 19.5°C
    July 71.7°F 22.1°C
    August 70.5°F 21.4°C
    September 63.8°F 17.7°C
    October 53.0°F 11.7°C
    November 43.3°F 6.3°C
    December 32.4°F 0.2°C
  • Demographics
    White 72.6%
    Hispanic / Latino 7.3%
    Black / African American 15.0%
    Asian 2.0%
    Native American 0.2%

  Market & Regulatory Conditions For Pennsylvania

Third parties rate Pennsylvania's business and regulatory conditions according to their own methods. We report them here for informational purposes.

  • Small-Business Friendliness
    Overall small business friendliness C
    Ease of starting a small business C+
    Cost of hiring a new employee C
    Overall regulatory friendliness C
    Friendliness of health and safety regulations C+
    Friendliness of employment, labor, and hiring regulations C-
    Friendliness of tax code C+
    Friendliness of licensing regulations C
    Friendliness of environmental regulations C
    Friendliness of zoning regulations C
    Publicity of training programs D
    Publicity of networking programs C
    Current economic health of small business 26th/50
    Change in revenue over past 12 months 34th/50
    Forecast of small business's future economic health 39th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 44th/50
    Cost of Doing Business 42th/50
    Economy 37th/50
    Infrastructure 37th/50
    Workforce 48th/50
    Quality of life 35th/50
    Technology and innovation 8th/50
    Business friendliness 39th/50
    Education 6th/50
    Cost of living 35th/50
    Access to capital 17th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Pennsylvania Corporate Tax Rate 6.0%
    Avg Local Corporate Tax Rate in Pennsylvania 0.3%
    Avg Combined Corporate Tax Rate 6.3%
    Overall tax friendliness 34th/50
    Corporate tax rank 46th/50
    Individual income tax rank 17th/50
    Sales tax rank 24th/50
    Unemployment insurance tax rank 50th/50
    Property tax rank 42th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

The following cities have the highest PYE for Abrasive Blast Cleaning Service within 500 miles of Erie based on a number of market characteristics. See More Results

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