Market Research Report
Based on the parameters below, we project this business would break even in 4.3 years with a net present value of $73,939.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$16,196||$24,293||$32,391||$33,881||$35,440|
|Net Cash Flow||-$69,663||$16,196||$24,293||$32,391||$33,881||$141,759|
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 Garden Grove.
- median income
- gross rent
- population density
- household size
- July temperature
- November temperature
- family households
- May temperature
- land area
- 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.
Media Blast & Abrasives
591 Apollo St Brea, CA 92821
Media Blast & Abrasives Inc
5126 Chakemco St South Gate, CA 90280
A-1 Abrasive Blasting
115 Nevada St El Segundo, CA 90245
Surface Preparation Solutions, LLC
13900 Orange Ave Paramount, CA 90723
Abrasive Blast Finishing Co.
9625 Rush St South El Monte, CA 91733
TIP: Your market is dominated by regional chains. Consider entering the market with an independant business or a national franchise.
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About Garden Grove and its Consumers
Incorporated in 1956, Garden Grove is the 21st largest city in California. It is home to approximately 170,000 inhabitants. The city is within the combined Los Angeles-Long Beach-Riverside metropolitan area which has a population of about 17 million people. Located in the southern part of the state, Garden Grove lies 35 miles southeast of the city of Los Angeles. Eight miles to the southwest is the Pacific Ocean. In 1874, an attorney and physician named Alonzo Cook moved here. At the time there was a small farming community numbering in the hundreds. Before he left in 1881 he had provided the village with several community institutions and the name Garden Grove, donating much land and time in the effort. A railroad in 1905 provided transportation for agricultural crops such as oranges, walnuts, and chili peppers. It also brought more people. Further growth occurred as a result of World War II. An influx of Vietnamese and Koreans occurred in the 1970's.
Incorporated in 1956, Garden Grove is the 21st largest city in California. It is home to approximately 170,000 inhabitants. The city is within the combined Los Angeles-Long Beach-Riverside metropolitan area which has a population of about 17 million people. Located in the southern part of the state, Garden Grove lies 35 miles southeast of the city of Los Angeles. Eight miles to the southwest is...description source
Population Population (2012) 174,389 Population Density 9,720 ppl/sq mi Population Growth Rate 2.1% Median Income $55,508 Median Age 35.4 Unemployment 8.1% Family Household Percent 80.6% Avg. Household Size 3.7 Avg. House Price $383,900 Foreign Born 42.4% Married 35.2% Cost of Living 65.8%
Demographics White 20.3% Hispanic / Latino 35.2% Black / African American 1.6% Asian 40.5% Native American 0.2%
Market & Regulatory Conditions For California
Third parties rate California's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness F Ease of starting a small business D Cost of hiring a new employee C- Overall regulatory friendliness F Friendliness of health and safety regulations F Friendliness of employment, labor, and hiring regulations F Friendliness of tax code F Friendliness of licensing regulations F Friendliness of environmental regulations D Friendliness of zoning regulations D Publicity of training programs C- Publicity of networking programs D+ Current economic health of small business 40th/50 Change in revenue over past 12 months 40th/50 Forecast of small business's future economic health 35th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 32th/50 Cost of Doing Business 48th/50 Economy 9th/50 Infrastructure 24th/50 Workforce 36th/50 Quality of life 23th/50 Technology and innovation 1th/50 Business friendliness 48th/50 Education 26th/50 Cost of living 47th/50 Access to capital 1th/50Source: CNBC (2014)
Tax Friendliness California Corporate Tax Rate 7.5% Avg Local Corporate Tax Rate in California 0.9% Avg Combined Corporate Tax Rate 8.4% Overall tax friendliness 48th/50 Corporate tax rank 34th/50 Individual income tax rank 50th/50 Sales tax rank 42th/50 Unemployment insurance tax rank 14th/50 Property tax rank 14th/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.