Market Research Report
Based on the parameters below, we project this business would break even in 2.2 years with a net present value of $177,892.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$27,000||$40,499||$53,999||$55,899||$57,865|
|Net Cash Flow||-$58,751||$27,000||$40,499||$53,999||$55,899||$231,460|
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 Hartford.
- median income
- gross rent
- population density
- July temperature
- household size
- November temperature
- May temperature
- family households
- land area
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About Hartford and its Consumers
Hartford is the capital of the U.S. state of Connecticut and the historic seat of Hartford County until Connecticut disbanded county government in 1960. As of the 2010 Census, Hartford's population was 124,775,making it Connecticut's fourth-largest city after the coastal cities of Bridgeport, New Haven, and Stamford. Nicknamed the "Insurance Capital of the World", Hartford houses many insurance company headquarters, and insurance remains the region's major industry. Almost 400 years old, Hartford is among the oldest cities in the United States. Following theAmerican Civil War, Hartford was the wealthiest city in the United States for several decades.In 1868, resident Mark Twain wrote before he died, "Of all the beautiful towns it has been my fortune to see this is the chief."Today, Hartford is one of the poorest cities in the nation with 3 out of every 10 families living below the poverty line.
Hartford is the capital of the U.S. state of Connecticut and the historic seat of Hartford County until Connecticut disbanded county government in 1960. As of the 2010 Census, Hartford's population was 124,775,making it Connecticut's fourth-largest city after the coastal cities of Bridgeport, New Haven, and Stamford. Nicknamed the "Insurance Capital of the World", Hartford houses many...description source
Population Population (2012) 124,893 Population Density 7,185 ppl/sq mi Population Growth Rate 0.1% Median Income $29,169 Median Age 29.8 Unemployment 16.1% Family Household Percent 59.3% Avg. Household Size 2.6 Avg. House Price $171,300 Foreign Born 21.1% Married 54.8% Cost of Living 57.1%
Demographics White 46.1% Hispanic / Latino 16.5% Black / African American 33.4% Asian 1.9% Native American 0.1%
Market & Regulatory Conditions For Connecticut
Third parties rate Connecticut'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 C 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 D Friendliness of licensing regulations D+ Friendliness of environmental regulations D Friendliness of zoning regulations C+ Publicity of training programs C- Publicity of networking programs D Current economic health of small business 45th/50 Change in revenue over past 12 months 44th/50 Forecast of small business's future economic health 37th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 46th/50 Cost of Doing Business 47th/50 Economy 49th/50 Infrastructure 42th/50 Workforce 32th/50 Quality of life 14th/50 Technology and innovation 21th/50 Business friendliness 24th/50 Education 5th/50 Cost of living 48th/50 Access to capital 7th/50Source: CNBC (2014)
Tax Friendliness Connecticut Corporate Tax Rate 6.4% Avg Local Corporate Tax Rate in Connecticut 0.0% Avg Combined Corporate Tax Rate 6.4% Overall tax friendliness 42th/50 Corporate tax rank 32th/50 Individual income tax rank 34th/50 Sales tax rank 31th/50 Unemployment insurance tax rank 20th/50 Property tax rank 49th/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.