Market Research Report
Based on the parameters below, we project this business would break even in 6.1 years with a net present value of $14,825.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$5,097||$7,645||$10,194||$10,807||$11,458|
|Net Cash Flow||-$31,055||$5,097||$7,645||$10,194||$10,807||$45,830|
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 Laredo.
- median income
- gross rent
- population density
- household size
- July temperature
- November temperature
- land area
- May temperature
- family households
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.
Serving the Laredo Area.
Gosco Equipment Inc
Serving the Laredo Area.
Laredo Concrete Cutting & Sand Blasting LLC
7404 Mines Road Laredo, TX 78045
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About Laredo and its Consumers
Laredo is the county seat of Webb County, Texas, United States, located on the north bank of the Rio Grande in South Texas, across from Nuevo Laredo, Tamaulipas, Mexico. According to the 2010 census, the city population was 236,191 making it the tenth most populous city in the state of Texas and 3rd most populated on the United States-Mexican border, after San Diego and El Paso.Its metropolitan area is the 178th-largest United States metropolitan area and covers all of Webb county, with a population of 250,304.Laredo is part of the Laredo-Nuevo Laredo Metropolitan Area with an estimate population of 636,516. Laredo's economy is based on international trade with Mexico. Most major transportation companies have a facility in Laredo. The city's location on the southern end of I-35 close to the manufacturers in northern Mexico promotes its vital role in trade between the two nations. Laredo International Airport is within the Laredo city limits, while the Quetzalcoatl International Airport is nearby in Nuevo Laredo on the Mexican side.
Laredo is the county seat of Webb County, Texas, United States, located on the north bank of the Rio Grande in South Texas, across from Nuevo Laredo, Tamaulipas, Mexico. According to the 2010 census, the city population was 236,191 making it the tenth most populous city in the state of Texas and 3rd most populated on the United States-Mexican border, after San Diego and El Paso.Its metropolitan...description source
Population Population (2012) 244,731 Population Density 2,752 ppl/sq mi Population Growth Rate 3.7% Median Income $36,665 Median Age 28.0 Unemployment 6.8% Family Household Percent 83.8% Avg. Household Size 3.7 Avg. House Price $109,900 Foreign Born 26.1% Married 32.5% Cost of Living 44.4%
Demographics White 3.4% Hispanic / Latino 95.6% Black / African American 0.2% Asian 0.6% Native American 0.04%
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.