Market Research Report
Based on the parameters below, we project this business would break even in 3.2 years with a net present value of $67,398.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$11,519||$17,279||$23,038||$24,425||$25,894|
|Net Cash Flow||-$36,294||$11,519||$17,279||$23,038||$24,425||$103,578|
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 Killeen.
- median income
- gross rent
- population density
- July temperature
- household size
- November temperature
- land area
- May temperature
- family households
- February temperature
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About Killeen and its Consumers
Killeen is a city in Bell County, Texas, United States. According to the 2010 United States Census, the city's population was 127,921,making it the 21st most populous city in Texas. It is the "principal city" of the KilleenTempleFort Hood Metropolitan Statistical Area. Killeen is directly adjacent to the main cantonment of Fort Hood, and as such its economy heavily depends on the post and the soldiers (and their families) stationed there. As of the census of 2010, there were 127,921 people, 48,052 households, and 33,276 families residing in the city. The population density was 2,458.9 people per square mile (949.3/km²). There were 53,913 housing units at an average density of 999.9 per square mile (386.0/km²). The racial makeup of the city was 45.1% White, 34.1% Black, 0.8% Native American, 4% Asian, 1.4% Pacific Islander, 7.9% from other races, and 6.7% from two or more races. Hispanic or Latino of any race were 22.9% of the population.
Killeen is a city in Bell County, Texas, United States. According to the 2010 United States Census, the city's population was 127,921,making it the 21st most populous city in Texas. It is the "principal city" of the KilleenTempleFort Hood Metropolitan Statistical Area. Killeen is directly adjacent to the main cantonment of Fort Hood, and as such its economy heavily depends on the post and...description source
Population Population (2012) 134,654 Population Density 2,513 ppl/sq mi Population Growth Rate 5.3% Median Income $42,104 Median Age 27.2 Unemployment 8.0% Family Household Percent 69.2% Avg. Household Size 2.7 Avg. House Price $114,600 Foreign Born 8.3% Married 26.9% Cost of Living 45.2%
Demographics White 37.3% Hispanic / Latino 22.7% Black / African American 28.0% Asian 2.9% Native American 1.2%
Market & Regulatory Conditions For Texas
Third parties rate Texas'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 B+ Overall regulatory friendliness A Friendliness of health and safety regulations A- Friendliness of employment, labor, and hiring regulations A Friendliness of tax code A Friendliness of licensing regulations A Friendliness of environmental regulations A- Friendliness of zoning regulations A Publicity of training programs C+ Publicity of networking programs C Current economic health of small business 13th/50 Change in revenue over past 12 months 29th/50 Forecast of small business's future economic health 17th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 2th/50 Cost of Doing Business 23th/50 Economy 1th/50 Infrastructure 1th/50 Workforce 11th/50 Quality of life 37th/50 Technology and innovation 2th/50 Business friendliness 20th/50 Education 27th/50 Cost of living 18th/50 Access to capital 5th/50Source: CNBC (2014)
Tax Friendliness Texas Corporate Tax Rate 6.3% Avg Local Corporate Tax Rate in Texas 1.9% Avg Combined Corporate Tax Rate 8.2% Overall tax friendliness 10th/50 Corporate tax rank 39th/50 Individual income tax rank 6th/50 Sales tax rank 36th/50 Unemployment insurance tax rank 15th/50 Property tax rank 36th/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.