Market Research Report
Based on the parameters below, we project this business would break even in 2.7 years with a net present value of $152,349.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$24,724||$37,086||$49,448||$51,769||$54,199|
|Net Cash Flow||-$67,091||$24,724||$37,086||$49,448||$51,769||$216,797|
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 Kent.
- median income
- gross rent
- population density
- household size
- July temperature
- November temperature
- land area
- family households
- 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.
345 Tukwila Pkwy Tukwila, WA 98188
Qci Global Inc
4044 Auburn Way N # 12 Auburn, WA 98002
Black Diamond Blasting - CLOSED
19718 International Blvd. H310 Seattle, WA 98188
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About Kent and its Consumers
Kent is located in the Green River Valley in King County and is recognized as an outlying suburb of the city of Seattle. Kent includes three distinctive areas, the East Hill, the Valley and the West Hill. A Boeing facility and the headquarters of REI and Oberto Sausage are situated in the city along with a large number of warehouses. Whirlpool and General Electric Appliances have distribution facilities in Kent. In 2003 the city was recognized by Sports Illustrated as "Sportstown of the year" for the state of Washington. The impressive Mt. Ranier along with the Cascade and Olympic Mountains can be seen from the city. The Green River runs through the municipality and Lake Meridian is situated on the East Hill. The average annual rainfall is 39 inches. Kent was incorporated in 1890 and was earlier known as Titusville. In 1906 the "Great Flood" temporarily changed the valley into an enormous lake. The Howard Hanson Dam was constructed at Eagle Gorge to prevent serious flooding in the future. The dam allowed extensive commercial development to take place in the valley which led to Kent becoming a primary distribution center.
Kent is located in the Green River Valley in King County and is recognized as an outlying suburb of the city of Seattle. Kent includes three distinctive areas, the East Hill, the Valley and the West Hill. A Boeing facility and the headquarters of REI and Oberto Sausage are situated in the city along with a large number of warehouses. Whirlpool and General Electric Appliances have distribution...description source
Population Population (2012) 122,999 Population Density 4,296 ppl/sq mi Population Growth Rate 33.1% Median Income $56,857 Median Age 33.1 Unemployment 5.0% Family Household Percent 64.1% Avg. Household Size 2.7 Avg. House Price $253,900 Foreign Born 18.5% Married 33.1% Cost of Living 61.9%
Demographics White 47.8% Hispanic / Latino 17.0% Black / African American 9.0% Asian 17.5% Native American 0.4%
Market & Regulatory Conditions For Washington
Third parties rate Washington's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness C- Ease of starting a small business B- Cost of hiring a new employee D+ Overall regulatory friendliness D+ Friendliness of health and safety regulations C Friendliness of employment, labor, and hiring regulations D+ Friendliness of tax code D Friendliness of licensing regulations D+ Friendliness of environmental regulations C- Friendliness of zoning regulations D+ Publicity of training programs A- Publicity of networking programs D+ Current economic health of small business 42th/50 Change in revenue over past 12 months 41th/50 Forecast of small business's future economic health 21th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 7th/50 Cost of Doing Business 34th/50 Economy 2th/50 Infrastructure 17th/50 Workforce 24th/50 Quality of life 6th/50 Technology and innovation 4th/50 Business friendliness 23th/50 Education 25th/50 Cost of living 38th/50 Access to capital 9th/50Source: CNBC (2014)
Tax Friendliness Washington Corporate Tax Rate 6.5% Avg Local Corporate Tax Rate in Washington 2.4% Avg Combined Corporate Tax Rate 8.9% Overall tax friendliness 11th/50 Corporate tax rank 28th/50 Individual income tax rank 6th/50 Sales tax rank 46th/50 Unemployment insurance tax rank 19th/50 Property tax rank 23th/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.
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