Market Research Report
Based on the parameters below, we project this business would break even in 2.5 years with a net present value of $95,041.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$15,136||$22,703||$30,271||$31,464||$32,704|
|Net Cash Flow||-$38,220||$15,136||$22,703||$30,271||$31,464||$130,818|
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 Huntsville.
- median income
- gross rent
- population density
- July temperature
- land area
- November temperature
- household size
- May 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.
Marks Joe H & Associates
2302 Washington Cir NW Huntsville, AL 35811
61 Fawn Ridge Dr Decatur, AL 35603
Jean Wood Studio & Gallery
9525 Hemlock Dr SE Huntsville, AL 35803
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Huntsville and its Consumers
Huntsville is a city located primarily in Madison County in the central part of the far northern region of the State of Alabama. Huntsville is the county seat of Madison County. The city extends west into neighboring Limestone County. Huntsville's population was 180,105 as of the 2010 census. The Huntsville Metropolitan Area's population was 417,593.Huntsville is the fourth-largest city in Alabama and the largest city in the five-county Huntsville-Decatur Combined Statistical Area, which at the 2013 census estimate had a total population of 683,871.In 2013, the Huntsville metropolitan area became the 2nd largest in Alabama with a population of 435,737. It grew across nearby hills north of the Tennessee River, adding textile mills, then munitions factories, NASA's Marshall Space Flight Center and the United States Army Aviation and Missile Command nearby at the Redstone Arsenal. The National Trust for Historic Preservation named Huntsville to its "America's Dozen Distinctive Destinations for 2010" list.
Huntsville is a city located primarily in Madison County in the central part of the far northern region of the State of Alabama. Huntsville is the county seat of Madison County. The city extends west into neighboring Limestone County. Huntsville's population was 180,105 as of the 2010 census. The Huntsville Metropolitan Area's population was 417,593.Huntsville is the fourth-largest city in...description source
Population Population (2012) 183,739 Population Density 878 ppl/sq mi Population Growth Rate 2.0% Median Income $45,018 Median Age 36.6 Unemployment 5.9% Family Household Percent 59.0% Avg. Household Size 2.3 Avg. House Price $156,100 Foreign Born 5.3% Married 35.7% Cost of Living 44.5%
Demographics White 59.2% Hispanic / Latino 6.4% Black / African American 29.9% Asian 1.7% Native American 0.6%
Market & Regulatory Conditions For Alabama
Third parties rate Alabama'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 B+ Cost of hiring a new employee C+ Overall regulatory friendliness A Friendliness of health and safety regulations A Friendliness of employment, labor, and hiring regulations B+ Friendliness of tax code A Friendliness of licensing regulations A+ Friendliness of environmental regulations A- Friendliness of zoning regulations A Publicity of training programs A Publicity of networking programs A Current economic health of small business 23thth/50 Change in revenue over past 12 months 5th/50 Forecast of small business's future economic health 10th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 34th/50 Cost of Doing Business 4th/50 Economy 40th/50 Infrastructure 21th/50 Workforce 20th/50 Quality of life 46th/50 Technology and innovation 31th/50 Business friendliness 38th/50 Education 47th/50 Cost of living 7th/50 Access to capital 45th/50Source: CNBC (2014)
Tax Friendliness Alabama Corporate Tax Rate 4.0% Avg Local Corporate Tax Rate in Alabama 4.5% Avg Combined Corporate Tax Rate 8.5% Overall tax friendliness 28th/50 Corporate tax rank 27th/50 Individual income tax rank 23th/50 Sales tax rank 41th/50 Unemployment insurance tax rank 25th/50 Property tax rank 10th/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.