Market Research Report

Abrasive Blast Cleaning Service opportunities in Kansas City, MO
$63,874 Potential Yearly Earnings What's this number?
$222,694 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 1.8 years with a net present value of $222,694.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $319,368 $479,053 $638,737 $659,177 $680,270
Net Costs $287,432 $431,147 $574,863 $593,259 $612,243
Net Operating Profits $31,937 $47,905 $63,874 $65,918 $68,027
Capital
      Startup Cost -$56,273
      Terminal Value $204,081
Net Cash Flow -$56,273 $31,937 $47,905 $63,874 $65,918 $272,108

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. land area
  5. July temperature
  6. household size
  7. November temperature
  8. white
  9. May temperature
  10. family households

  Competitors

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.

Blast-it-Clean Regional Competitor
7800 E 12th St Ste 7 Kansas City, MO 64126

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  About Kansas City and its Consumers

Kansas City is the largest city in Missouri. It is located in the western part of the state, at the junction of the Missouri and Kansas rivers. Kansas City is located in Jackson, Clay, Platte, and Cass counties. The Kansas City metropolitan area, once known primarily for agriculture and manufacturing, has expanded its economic base to include strong growth in areas of telecommunications, banking and finance, and the service industry. A transportation hub since the 1800s, the area enjoys a national and regional prominence as a distribution and manufacturing center. Kansas City ranks nationally as first in greeting-card publishing (Hallmark Cards is located there), frozen food storage and distribution, and hard winter-wheat marketing; second in wheat flour production; and third in auto and truck assembly. The area is one of ten federal regional centers, and the federal, state, and local governments are among the top employers. The city is also a regional center for health care.

Kansas City is the largest city in Missouri. It is located in the western part of the state, at the junction of the Missouri and Kansas rivers. Kansas City is located in Jackson, Clay, Platte, and Cass counties. The Kansas City metropolitan area, once known primarily for agriculture and manufacturing, has expanded its economic base to include strong growth in areas of telecommunications,...

description source
  • Population
    Population (2012) 464,310
    Population Density 1,474 ppl/sq mi
    Population Growth Rate 1.0%
    Median Income $43,810
    Median Age 35.0
    Unemployment 8.3%
    Family Household Percent 56.7%
    Avg. Household Size 2.3
    Avg. House Price $133,800
    Foreign Born 7.5%
    Married 38.1%
    Cost of Living 46.2%
  • Average Temperature
    January 28.8°F -1.8°C
    February 33.5°F 0.8°C
    March 44.2°F 6.8°C
    April 54.8°F 12.7°C
    May 64.5°F 18.1°C
    June 73.5°F 23.1°C
    July 78.3°F 25.7°C
    August 77.1°F 25.1°C
    September 68.2°F 20.1°C
    October 56.4°F 13.6°C
    November 43.6°F 6.4°C
    December 31.5°F -0.3°C
  • Demographics
    White 55.8%
    Hispanic / Latino 10.1%
    Black / African American 27.6%
    Asian 2.8%
    Native American 0.3%

  Market & Regulatory Conditions For Missouri

Third parties rate Missouri's business and regulatory conditions according to their own methods. We report them here for informational purposes.

  • Small-Business Friendliness
    Overall small business friendliness B-
    Ease of starting a small business B
    Cost of hiring a new employee C+
    Overall regulatory friendliness C+
    Friendliness of health and safety regulations C-
    Friendliness of employment, labor, and hiring regulations C+
    Friendliness of tax code B-
    Friendliness of licensing regulations C+
    Friendliness of environmental regulations C-
    Friendliness of zoning regulations C-
    Publicity of training programs C-
    Publicity of networking programs C-
    Current economic health of small business 37th/50
    Change in revenue over past 12 months 38th/50
    Forecast of small business's future economic health 13th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 23th/50
    Cost of Doing Business 11th/50
    Economy 15th/50
    Infrastructure 13th/50
    Workforce 44th/50
    Quality of life 48th/50
    Technology and innovation 24th/50
    Business friendliness 29th/50
    Education 20th/50
    Cost of living 18th/50
    Access to capital 39th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Missouri Corporate Tax Rate 4.2%
    Avg Local Corporate Tax Rate in Missouri 3.4%
    Avg Combined Corporate Tax Rate 7.6%
    Overall tax friendliness 17th/50
    Corporate tax rank 4th/50
    Individual income tax rank 29th/50
    Sales tax rank 29th/50
    Unemployment insurance tax rank 12th/50
    Property tax rank 7th/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