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 $78,087.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$17,155||$25,732||$34,310||$35,888||$37,539|
|Net Cash Flow||-$74,020||$17,155||$25,732||$34,310||$35,888||$150,156|
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 Hayward.
- median income
- gross rent
- population density
- household size
- July temperature
- November temperature
- land area
- family households
- May temperature
- 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.
50 Oak Ct # 210 Danville, CA 94526
150 N Wiget Ln Ste 103 Walnut Creek, CA 94598
Abrasive Supply Corp
1203 Dell Ave Campbell, CA 95008
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 Hayward and its Consumers
Hayward is a city located in Alameda County, California in the East Bay subregion of the San Francisco Bay Area. With a population in 2014 of 149,392 Hayward is the sixth largest city in the Bay Area and the third largest in Alameda County. Hayward was ranked as the 37th most populous municipality in California. It is included in the San Francisco-Oakland-Fremont Metropolitan Statistical Area by the US Census. It is located primarily between Castro Valley and Union City, and lies at the eastern terminus of the San Mateo-Hayward Bridge. The city was devastated early in its history by the namesake 1868 Hayward earthquake. From the early 20th century until the beginning of the 1980s, Hayward's economy was dominated by its now defunct food canning and salt production industries. According to the United States Census Bureau, the city has a total area of 63.7 square miles (165 km2). 45.3 square miles (117 km2) of it is land and 18.4 square miles (48 km2) of it (28.90%) is water. The Hayward Fault Zone runs through much of Hayward, including the downtown area.
Hayward is a city located in Alameda County, California in the East Bay subregion of the San Francisco Bay Area. With a population in 2014 of 149,392 Hayward is the sixth largest city in the Bay Area and the third largest in Alameda County. Hayward was ranked as the 37th most populous municipality in California. It is included in the San Francisco-Oakland-Fremont Metropolitan Statistical Area...description source
Population Population (2012) 149,392 Population Density 3,296 ppl/sq mi Population Growth Rate 3.6% Median Income $56,332 Median Age 33.5 Unemployment 8.7% Family Household Percent 71.8% Avg. Household Size 3.1 Avg. House Price $303,400 Foreign Born 35.4% Married 37.1% Cost of Living 68.9%
Demographics White 18.4% Hispanic / Latino 40.2% Black / African American 10.7% Asian 22.6% Native American 0.1%
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.