Market Research Report
Based on the parameters below, we project this business would break even in 163.6 years with a net present value of -$58,880.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$380||$571||$761||$796||$833|
|Net Cash Flow||-$62,254||$380||$571||$761||$796||$3,330|
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 Los Angeles.
- median income
- gross rent
- population density
- land area
- November temperature
- household size
- July temperature
- 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 Los Angeles and its Consumers
The Los Angeles is divided into over 80 districts and neighborhoods, many of which were incorporated places or communities that were annexed by the city. Greater Los Angeles includes a number of enclaves and nearby communities. Important landmarks in Los Angeles include Walt Disney Concert Hall, the Cathedral of Our Lady of the Angels, Angels Flight, the Kodak Theatre, the Griffith Observatory, the Getty Center, the Getty Villa, the Los Angeles Memorial Coliseum, the Los Angeles County Museum of Art, Grauman's Chinese Theatre, the Hollywood Sign, the Bradbury Building, Hollywood Boulevard, the Capitol Records Building, Los Angeles City Hall, the Hollywood Bowl, the Theme Building, Battleship USS Iowa, the Watts Towers, the Staples Center, Dodger Stadium, La Placita Olvera/Olvera Street and the Children's Hospital Los Angeles Sunset Bridge.Los Angeles is irregularly shaped and covers a total area of 502.7 square miles (1,302 km2), comprising 468.7 square miles (1,214 km2) of land and 34.0 square miles (88 km2) of water. The city extends for 44 miles (71 km) longitudinally and for 29 miles (47 km) latitudinally. The perimeter of the city is 342 miles (550 km).
The Los Angeles is divided into over 80 districts and neighborhoods, many of which were incorporated places or communities that were annexed by the city. Greater Los Angeles includes a number of enclaves and nearby communities. Important landmarks in Los Angeles include Walt Disney Concert Hall, the Cathedral of Our Lady of the Angels, Angels Flight, the Kodak Theatre, the Griffith Observatory,...description source
Population Population (2012) 3,857,800 Population Density 8,231 ppl/sq mi Population Growth Rate 1.7% Median Income $46,148 Median Age 34.1 Unemployment 11.9% Family Household Percent 61.2% Avg. Household Size 2.8 Avg. House Price $438,300 Foreign Born 38.6% Married 43.9% Cost of Living 70.7%
Demographics White 28.5% Hispanic / Latino 48.5% Black / African American 9.0% 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.