Market Research Report
Based on the parameters below, we project this business would break even in 3.3 years with a net present value of $136,861.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$25,076||$37,613||$50,151||$51,900||$53,711|
|Net Cash Flow||-$82,849||$25,076||$37,613||$50,151||$51,900||$214,843|
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 Louisville.
- median income
- gross rent
- population density
- land area
- July temperature
- household size
- November temperature
- 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.
ASB Hydro-blasting Services Inc.
3613 Sun Rise Cir Jeffersonville, IN 47130
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About Louisville and its Consumers
Louisville is the largest city in the Commonwealth of Kentucky and the 28th most populous city in the United States. On the basis of population it is rated the state's only 1st-class city. Louisville is the historical seat and, since 2003, the nominal seat ofJefferson County. Sited beside the Falls of the Ohio, the only major obstruction to river traffic between the upper Ohio River and the Gulf of Mexico, Louisville first grew as a portage site. It was the founding city of the Louisville and Nashville Railroad, which grew into a 6,000-mile (9,700 km) system across 13 states. Today the city is best known as the location of the Kentucky Derby, the first of the three annual races that make up the Triple Crown of Thoroughbred Racing. It is the home of the University of Louisville and three of Kentucky's six Fortune 500 companies. Its airport is also the site of UPS's worldwide air hub.
Louisville is the largest city in the Commonwealth of Kentucky and the 28th most populous city in the United States. On the basis of population it is rated the state's only 1st-class city. Louisville is the historical seat and, since 2003, the nominal seat ofJefferson County. Sited beside the Falls of the Ohio, the only major obstruction to river traffic between the upper Ohio River and the...description source
Population Population (2012) 605,110 Population Density 1,860 ppl/sq mi Population Growth Rate 1.3% Median Income $33,175 Median Age 35.8 Unemployment 8.6% Family Household Percent 55.1% Avg. Household Size 2.2 Avg. House Price $119,763 Foreign Born 1.6% Married 35.2% Cost of Living 86.6%
Demographics White 61.9% Hispanic / Latino 1.9% Black / African American 32.9% Asian 1.4% Native American 0.2%
Market & Regulatory Conditions For Kentucky
Third parties rate Kentucky's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness B- Ease of starting a small business C+ Cost of hiring a new employee C- Overall regulatory friendliness C Friendliness of health and safety regulations D+ Friendliness of employment, labor, and hiring regulations B Friendliness of tax code C- Friendliness of licensing regulations C Friendliness of environmental regulations C Friendliness of zoning regulations C- Publicity of training programs F Publicity of networking programs D+ Current economic health of small business 6th/50 Change in revenue over past 12 months 31th/50 Forecast of small business's future economic health 18th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 39th/50 Cost of Doing Business 14th/50 Economy 46th/50 Infrastructure 29th/50 Workforce 29th/50 Quality of life 42th/50 Technology and innovation 37th/50 Business friendliness 36th/50 Education 35th/50 Cost of living 1th/50 Access to capital 47th/50Source: CNBC (2014)
Tax Friendliness Kentucky Corporate Tax Rate 6.0% Avg Local Corporate Tax Rate in Kentucky 0.0% Avg Combined Corporate Tax Rate 6.0% Overall tax friendliness 26th/50 Corporate tax rank 29th/50 Individual income tax rank 30th/50 Sales tax rank 11th/50 Unemployment insurance tax rank 45th/50 Property tax rank 17th/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.