Market Research Report
Based on the parameters below, we project this business would break even in 1.9 years with a net present value of $467,456.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$66,602||$99,902||$133,203||$139,471||$146,035|
|Net Cash Flow||-$123,746||$66,602||$99,902||$133,203||$139,471||$584,139|
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 Gilbert.
- median income
- gross rent
- population density
- July temperature
- household size
- November temperature
- land area
- 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.
Blast Master Tile
P.O.Box 26254 Scottsdale, AZ 85255
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About Gilbert and its Consumers
Incorporated in 1920, Gilbert is a large town in central Arizona, located approximately 24 miles southeast of Phoenix. Other nearby cities include Mesa (approximately 15 minutes to the north) and Tempe (approximately 20 minutes to the northwest). The town's population has skyrocketed from under 2,000 in 1970 to over 156,000 according to a 2004 census estimate. Known during much of the early 20th century as the 'Hay Capital of the World', Gilbert was primarily an agricultural community until recent years. Concurrent with the town's population growth, Gilbert has developed and transitioned rapidly to its present status as a modern suburb of the Phoenix Metropolitan Area. Gilbert is home to an annual 'Gilbert Days' celebration in late November, a three-day festival in observance of the full paving of Gilbert Road through the town. Included among the recreational facilities in Gilbert are two municipal swimming pools, two community centers, a recreation center, and 14 parks, one of which is a dedicated skateboard park.
Incorporated in 1920, Gilbert is a large town in central Arizona, located approximately 24 miles southeast of Phoenix. Other nearby cities include Mesa (approximately 15 minutes to the north) and Tempe (approximately 20 minutes to the northwest). The town's population has skyrocketed from under 2,000 in 1970 to over 156,000 according to a 2004 census estimate. Known during much of the early...description source
Population Population (2012) 221,140 Population Density 3,253 ppl/sq mi Population Growth Rate 6.1% Median Income $71,207 Median Age 32.2 Unemployment 5.4% Family Household Percent 77.7% Avg. Household Size 3.0 Avg. House Price $193,900 Foreign Born 7.8% Married 27.3% Cost of Living 48.7%
Demographics White 72.9% Hispanic / Latino 14.9% Black / African American 3.2% Asian 5.7% Native American 0.7%
Market & Regulatory Conditions For Arizona
Third parties rate Arizona'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 B- Cost of hiring a new employee B- Overall regulatory friendliness C+ Friendliness of health and safety regulations B- Friendliness of employment, labor, and hiring regulations B 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 B+ Current economic health of small business 22th/50 Change in revenue over past 12 months 20th/50 Forecast of small business's future economic health 26th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 13th/50 Cost of Doing Business 28th/50 Economy 15th/50 Infrastructure 8th/50 Workforce 2th/50 Quality of life 27th/50 Technology and innovation 19th/50 Business friendliness 16th/50 Education 50th/50 Cost of living 27th/50 Access to capital 5th/50Source: CNBC (2014)
Tax Friendliness Arizona Corporate Tax Rate 5.6% Avg Local Corporate Tax Rate in Arizona 2.6% Avg Combined Corporate Tax Rate 8.2% Overall tax friendliness 23th/50 Corporate tax rank 24th/50 Individual income tax rank 19th/50 Sales tax rank 49th/50 Unemployment insurance tax rank 4th/50 Property tax rank 6th/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.