Market Research Report

Abrasive Blast Cleaning Service opportunities in Kansas City, KS
$65,860 Potential Yearly Earnings What's this number?
$232,550 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 1.7 years with a net present value of $232,550.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $329,300 $493,950 $658,600 $684,518 $711,456
Net Costs $296,370 $444,555 $592,740 $616,066 $640,310
Net Operating Profits $32,930 $49,395 $65,860 $68,452 $71,146
Capital
      Startup Cost -$57,364
      Terminal Value $213,437
Net Cash Flow -$57,364 $32,930 $49,395 $65,860 $68,452 $284,582

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 Kansas City.

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

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  About Kansas City and its Consumers

Kansas City is the third-largest city in the state of Kansas, the county seat of Wyandotte County, and the third-largest city of the Kansas City metropolitan area. It is part of a consolidated city-county government known as the "Unified Government". Wyandotte County also includes the independent cities of Bonner Springs and Edwardsville. As of the 2010 census, the city population was 145,786, It is situated at Kaw Point, which is the junction of the Missouri and Kansas rivers. It is often abbreviated as "KCK" to differentiate it from its namesake Kansas City, Missouri. According to the United States Census Bureau, the city has a total area of 128.38 square miles (332.50 km2), of which, 124.81 square miles (323.26 km2) is land and 3.57 square miles (9.25 km2) is water. Federal Bureau of Labor Statistics shows employment in Wyandotte County, Kansas increased 4% from March 2011 to March 2012. The sharp rise in the number of people going to work puts Wyandotte County number 19th in the nation and 1st in the Kansas City metro for job growth as of September 28, 2012.

Kansas City is the third-largest city in the state of Kansas, the county seat of Wyandotte County, and the third-largest city of the Kansas City metropolitan area. It is part of a consolidated city-county government known as the "Unified Government". Wyandotte County also includes the independent cities of Bonner Springs and Edwardsville. As of the 2010 census, the city population was 145,786,...

description source
  • Population
    Population (2012) 147,268
    Population Density 1,179 ppl/sq mi
    Population Growth Rate 1.0%
    Median Income $37,036
    Median Age 32.9
    Unemployment 9.6%
    Family Household Percent 65.1%
    Avg. Household Size 2.7
    Avg. House Price $86,700
    Foreign Born 12.4%
    Married 34.3%
    Cost of Living 45.7%
  • Average Temperature
    January 31.0°F -0.6°C
    February 35.5°F 1.9°C
    March 46.0°F 7.8°C
    April 56.6°F 13.7°C
    May 66.5°F 19.2°C
    June 75.8°F 24.3°C
    July 81.0°F 27.2°C
    August 79.4°F 26.3°C
    September 70.2°F 21.2°C
    October 58.3°F 14.6°C
    November 45.4°F 7.4°C
    December 33.7°F 0.9°C
  • Demographics
    White 40.6%
    Hispanic / Latino 28.2%
    Black / African American 25.9%
    Asian 3.0%
    Native American 0.4%

  Market & Regulatory Conditions For Kansas

Third parties rate Kansas'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 D+
    Overall regulatory friendliness C+
    Friendliness of health and safety regulations D+
    Friendliness of employment, labor, and hiring regulations C
    Friendliness of tax code B-
    Friendliness of licensing regulations C+
    Friendliness of environmental regulations D
    Friendliness of zoning regulations A-
    Publicity of training programs B
    Publicity of networking programs A
    Current economic health of small business 16th/50
    Change in revenue over past 12 months 8th/50
    Forecast of small business's future economic health 34th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 15th/50
    Cost of Doing Business 26th/50
    Economy 31th/50
    Infrastructure 8th/50
    Workforce 13th/50
    Quality of life 25th/50
    Technology and innovation 27th/50
    Business friendliness 11th/50
    Education 14th/50
    Cost of living 24th/50
    Access to capital 41th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Kansas Corporate Tax Rate 6.2%
    Avg Local Corporate Tax Rate in Kansas 2.0%
    Avg Combined Corporate Tax Rate 8.2%
    Overall tax friendliness 22th/50
    Corporate tax rank 38th/50
    Individual income tax rank 18th/50
    Sales tax rank 30th/50
    Unemployment insurance tax rank 9th/50
    Property tax rank 28th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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