Market Research Report
Based on the parameters below, we project this business would break even in 1.6 years with a net present value of $85,193.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$12,080||$18,120||$24,160||$24,740||$25,334|
|Net Cash Flow||-$19,425||$12,080||$18,120||$24,160||$24,740||$101,334|
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 Flint.
- median income
- gross rent
- population density
- July temperature
- household size
- land area
- November temperature
- May temperature
- family households
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.
Serving the Flint Area.
421 Nairn Cir Highland, MI 48357
1559 N Lapeer Rd Oxford, MI 48371
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About Flint and its Consumers
The city of Flint is located along Michigan's Flint River, about 68 miles northwest of Detroit. It is one of Michigan's largest cities and the county seat of Genesee County. Nearby large cities include the state capital of Lansing (47 miles to the southwest), Saginaw (36 miles to the north), and Ann Arbor (54 miles to the south). The city is serviced by Interstates I-69, I-75, and I-475; U.S. Route 23; and Michigan State Highways 13, 54, and 57. Flint was founded in 1819 by Jacob Smith, a prominent Detroit fur trader. Due largely to its ideal location as a stopover on the overland route between Saginaw and Detroit, Flint began to prosper as a small but significant village. In 1855 the settlement became incorporated as the city of Flint. During the latter half of the nineteenth century, Flint established itself as a lumber center, and by the end of the century was able to leverage its lumbering infrastructure into a burgeoning carriage-manufacturing industry. As the world's largest carriage-making center, Flint soon became known as "Vehicle City". When horse-drawn carriages gave way to the advent of automobiles, Flint was in the forefront of the newly-formed auto industry.
The city of Flint is located along Michigan's Flint River, about 68 miles northwest of Detroit. It is one of Michigan's largest cities and the county seat of Genesee County. Nearby large cities include the state capital of Lansing (47 miles to the southwest), Saginaw (36 miles to the north), and Ann Arbor (54 miles to the south). The city is serviced by Interstates I-69, I-75, and I-475; U.S....description source
Population Population (2012) 100,515 Population Density 3,007 ppl/sq mi Population Growth Rate -1.9% Median Income $23,830 Median Age 33.8 Unemployment 19.3% Family Household Percent 59.2% Avg. Household Size 2.5 Avg. House Price $46,100 Foreign Born 2.1% Married 47.4% Cost of Living 42.2%
Demographics White 35.7% Hispanic / Latino 3.9% Black / African American 56.1% Asian 0.4% Native American 0.4%
Market & Regulatory Conditions For Michigan
Third parties rate Michigan'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 D+ Cost of hiring a new employee C- Overall regulatory friendliness D+ Friendliness of health and safety regulations C- Friendliness of employment, labor, and hiring regulations D+ Friendliness of tax code C- Friendliness of licensing regulations D+ Friendliness of environmental regulations D+ Friendliness of zoning regulations D+ Publicity of training programs C+ Publicity of networking programs B- Current economic health of small business 28th/50 Change in revenue over past 12 months 15th/50 Forecast of small business's future economic health 25th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 26th/50 Cost of Doing Business 31th/50 Economy 28th/50 Infrastructure 16th/50 Workforce 15th/50 Quality of life 45th/50 Technology and innovation 14th/50 Business friendliness 32th/50 Education 34th/50 Cost of living 17th/50 Access to capital 23th/50Source: CNBC (2014)
Tax Friendliness Michigan Corporate Tax Rate 6.0% Avg Local Corporate Tax Rate in Michigan 0.0% Avg Combined Corporate Tax Rate 6.0% Overall tax friendliness 13th/50 Corporate tax rank 10th/50 Individual income tax rank 14th/50 Sales tax rank 7th/50 Unemployment insurance tax rank 47th/50 Property tax rank 27th/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.