Market Research Report
Based on the parameters below, we project this business would break even in 21.0 years with a net present value of -$39,975.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$3,301||$4,951||$6,601||$6,905||$7,223|
|Net Cash Flow||-$69,241||$3,301||$4,951||$6,601||$6,905||$28,891|
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 Long Beach.
- median income
- gross rent
- population density
- July temperature
- November temperature
- household size
- land area
- May temperature
- family households
- February 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.
Media Blast & Abrasives
591 Apollo St Brea, CA 92821
Media Blast & Abrasives Inc
5126 Chakemco St South Gate, CA 90280
A-1 Abrasive Blasting
115 Nevada St El Segundo, CA 90245
Surface Preparation Solutions, LLC
13900 Orange Ave Paramount, CA 90723
Abrasive Blast Finishing Co.
9625 Rush St South El Monte, CA 91733
TIP: Your market is dominated by regional chains. Consider entering the market with an independant business or a national franchise.
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About Long Beach and its Consumers
Long Beach is a city in Los Angeles County in Southern California, on the Pacific coast of the United States. The city is the 36th-largest city in the United States and the seventh-largest in California. As of 2010, its population was 462,257.In addition, Long Beach is the second largest city within Greater Los Angeles Area, after Los Angeles, and a principal city of the Los Angeles-Long Beach-Santa Ana metropolitan area. The city is a dominant maritime center of the United States. The Port of Long Beach is the United States' second busiest container port and one of the world's largest shipping ports.The city also maintains a large oil industry with wells located both underground and offshore. Manufacturing sectors include those in aircraft, car parts, electronic and audiovisual equipment, and home furnishings. It is also home to headquarters for corporations including Epson America, Molina Healthcare, and SCAN Health Plan. Downtown Long Beach is located approximately 22 miles (35 km) south of Downtown Los Angeles, though the two cities border each other for several miles on Long Beach's southwestern portion. Long Beach borders Orange County on its southeast edge.
Long Beach is a city in Los Angeles County in Southern California, on the Pacific coast of the United States. The city is the 36th-largest city in the United States and the seventh-largest in California. As of 2010, its population was 462,257.In addition, Long Beach is the second largest city within Greater Los Angeles Area, after Los Angeles, and a principal city of the Los Angeles-Long...description source
Population Population (2012) 467,892 Population Density 9,303 ppl/sq mi Population Growth Rate 1.2% Median Income $51,214 Median Age 33.2 Unemployment 11.9% Family Household Percent 60.7% Avg. Household Size 2.8 Avg. House Price $420,700 Foreign Born 27.8% Married 42.9% Cost of Living 70.9%
Demographics White 29.0% Hispanic / Latino 40.7% Black / African American 13.9% Asian 11.5% Native American 0.2%
Market & Regulatory Conditions For California
Third parties rate California's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness F Ease of starting a small business D Cost of hiring a new employee C- Overall regulatory friendliness F Friendliness of health and safety regulations F Friendliness of employment, labor, and hiring regulations F Friendliness of tax code F Friendliness of licensing regulations F Friendliness of environmental regulations D Friendliness of zoning regulations D Publicity of training programs C- Publicity of networking programs D+ Current economic health of small business 40th/50 Change in revenue over past 12 months 40th/50 Forecast of small business's future economic health 35th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 32th/50 Cost of Doing Business 48th/50 Economy 9th/50 Infrastructure 24th/50 Workforce 36th/50 Quality of life 23th/50 Technology and innovation 1th/50 Business friendliness 48th/50 Education 26th/50 Cost of living 47th/50 Access to capital 1th/50Source: CNBC (2014)
Tax Friendliness California Corporate Tax Rate 7.5% Avg Local Corporate Tax Rate in California 0.9% Avg Combined Corporate Tax Rate 8.4% Overall tax friendliness 48th/50 Corporate tax rank 34th/50 Individual income tax rank 50th/50 Sales tax rank 42th/50 Unemployment insurance tax rank 14th/50 Property tax rank 14th/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.