Market Research Report

Abrasive Blast Cleaning Service opportunities in Hampton, VA
$87,686 Potential Yearly Earnings What's this number?
$302,341 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 2.0 years with a net present value of $302,341.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $438,430 $657,645 $876,860 $916,577 $958,092
Net Costs $394,587 $591,881 $789,174 $824,919 $862,283
Net Operating Profits $43,843 $65,765 $87,686 $91,658 $95,809
Capital
      Startup Cost -$86,108
      Terminal Value $287,428
Net Cash Flow -$86,108 $43,843 $65,765 $87,686 $91,658 $383,237

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 Hampton.

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

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  About Hampton and its Consumers

Hampton is an independent city in Virginia. As of the 2010 census, the population was 137,436.As one of the seven major cities that compose the Hampton Roads metropolitan area, it is on the southeastern end of the Virginia Peninsula. Hampton traces its history to 1607. The city's Old Point Comfort, home of Fort Monroe for almost 400 years, was named by the voyagers of 1607 led by Captain Christopher Newport on the mission which first established Jamestown as a British colony. Since consolidation in 1952, Hampton has included the former Elizabeth City County and the incorporated town of Phoebus, consolidating by mutual agreement. After the end of the American Civil War, historic Hampton University was established opposite from the town on the Hampton River, providing an education for many newly freed former slaves and Native Americans. In the 20th century, the area became the location of Langley Air Force Base, NASA Langley Research Center, and the Virginia Air and Space Center. Hampton features many miles of waterfront and beaches.

Hampton is an independent city in Virginia. As of the 2010 census, the population was 137,436.As one of the seven major cities that compose the Hampton Roads metropolitan area, it is on the southeastern end of the Virginia Peninsula. Hampton traces its history to 1607. The city's Old Point Comfort, home of Fort Monroe for almost 400 years, was named by the voyagers of 1607 led by Captain...

description source
  • Population
    Population (2012) 136,836
    Population Density 2,661 ppl/sq mi
    Population Growth Rate -0.4%
    Median Income $49,848
    Median Age 35.5
    Unemployment 7.1%
    Family Household Percent 63.7%
    Avg. Household Size 2.4
    Avg. House Price $199,000
    Foreign Born 5.5%
    Married 35.6%
    Cost of Living 51.5%
  • Average Temperature
    January 42.1°F 5.6°C
    February 44.5°F 6.9°C
    March 51.5°F 10.8°C
    April 60.9°F 16.1°C
    May 68.5°F 20.3°C
    June 77.1°F 25.1°C
    July 80.9°F 27.2°C
    August 79.3°F 26.3°C
    September 73.9°F 23.3°C
    October 63.3°F 17.4°C
    November 54.9°F 12.7°C
    December 45.4°F 7.4°C
  • Demographics
    White 41.0%
    Hispanic / Latino 4.5%
    Black / African American 48.7%
    Asian 2.1%
    Native American 0.4%

  Market & Regulatory Conditions For Virginia

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

  • Small-Business Friendliness
    Overall small business friendliness A
    Ease of starting a small business A-
    Cost of hiring a new employee A
    Overall regulatory friendliness B+
    Friendliness of health and safety regulations A-
    Friendliness of employment, labor, and hiring regulations A-
    Friendliness of tax code A-
    Friendliness of licensing regulations A
    Friendliness of environmental regulations A-
    Friendliness of zoning regulations B
    Publicity of training programs A-
    Publicity of networking programs A-
    Current economic health of small business 39th/50
    Change in revenue over past 12 months 26th/50
    Forecast of small business's future economic health 12th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 8th/50
    Cost of Doing Business 30th/50
    Economy 29th/50
    Infrastructure 19th/50
    Workforce 10th/50
    Quality of life 22th/50
    Technology and innovation 10th/50
    Business friendliness 5th/50
    Education 9th/50
    Cost of living 32th/50
    Access to capital 19th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Virginia Corporate Tax Rate 5.3%
    Avg Local Corporate Tax Rate in Virginia 0.3%
    Avg Combined Corporate Tax Rate 5.6%
    Overall tax friendliness 27th/50
    Corporate tax rank 6th/50
    Individual income tax rank 39th/50
    Sales tax rank 6th/50
    Unemployment insurance tax rank 37th/50
    Property tax rank 26th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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