Market Research Report
Based on the parameters below, we project this business would break even in 9.3 years with a net present value of -$3,458.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$6,225||$9,337||$12,450||$12,864||$13,291|
|Net Cash Flow||-$57,905||$6,225||$9,337||$12,450||$12,864||$53,165|
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 Joliet.
- median income
- gross rent
- population density
- household size
- July temperature
- land area
- family households
- November temperature
- 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.
Grier Abrasive Co Inc
123 W Taft Dr South Holland, IL 60473
Marvel Abrasive Products
6230 S Oak Park Ave Chicago, IL 60638
Anchor Abrasives Co
7651 185th St Tinley Park, IL 60477
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Joliet and its Consumers
Joliet is an Illinois city which lies about 45 miles from Chicago on the southwest edge of the Chicago metropolitan area. Situated on the banks of the Des Plaines River, Joliet is the county seat of Will County. The city is serviced by several major thoroughfares, including U.S. Routes 6 and 52, and Illinois State Highways 53 and 171. Interstates I-55 and I-80 run nearby, intersecting just west of the city limits. Joliet is home to Joliet Junior College, the oldest public community college in the nation. The Joliet area is replete with a wide range of arts and cultural venues as well as many parks and recreational facilities. The Joliet Historical Museum chronicles the experiences of the people who settled the Joliet area and includes a Route 66 Welcome Center. The Rialto Square Theatre, also known as the "Jewel of Joliet", has been called one of the world's ten most beautiful theatres.
Joliet is an Illinois city which lies about 45 miles from Chicago on the southwest edge of the Chicago metropolitan area. Situated on the banks of the Des Plaines River, Joliet is the county seat of Will County. The city is serviced by several major thoroughfares, including U.S. Routes 6 and 52, and Illinois State Highways 53 and 171. Interstates I-55 and I-80 run nearby, intersecting just west...description source
Population Population (2012) 148,268 Population Density 2,387 ppl/sq mi Population Growth Rate 0.6% Median Income $56,993 Median Age 31.6 Unemployment 12.3% Family Household Percent 72.7% Avg. Household Size 3.0 Avg. House Price $170,800 Foreign Born 14.7% Married 34.9% Cost of Living 53.3%
Demographics White 53.0% Hispanic / Latino 27.8% Black / African American 15.6% Asian 1.9% Native American 0.1%
Market & Regulatory Conditions For Illinois
Third parties rate Illinois'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 B Overall regulatory friendliness C- Friendliness of health and safety regulations C- Friendliness of employment, labor, and hiring regulations C Friendliness of tax code D+ Friendliness of licensing regulations D 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 36th/50 Change in revenue over past 12 months 23th/50 Forecast of small business's future economic health 28th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 27th/50 Cost of Doing Business 40th/50 Economy 36th/50 Infrastructure 3th/50 Workforce 32th/50 Quality of life 30th/50 Technology and innovation 5th/50 Business friendliness 41th/50 Education 15th/50 Cost of living 29th/50 Access to capital 14th/50Source: CNBC (2014)
Tax Friendliness Illinois Corporate Tax Rate 6.3% Avg Local Corporate Tax Rate in Illinois 1.9% Avg Combined Corporate Tax Rate 8.2% Overall tax friendliness 31th/50 Corporate tax rank 47th/50 Individual income tax rank 11th/50 Sales tax rank 34th/50 Unemployment insurance tax rank 38th/50 Property tax rank 44th/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.