Market Research Report
Based on the parameters below, we project this business would break even in 7.6 years with a net present value of $6,894.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$4,904||$7,356||$9,808||$10,398||$11,024|
|Net Cash Flow||-$37,250||$4,904||$7,356||$9,808||$10,398||$44,095|
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 Lubbock.
- median income
- gross rent
- population density
- July temperature
- land area
- household size
- November temperature
- 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 Lubbock Area.
Gosco Equipment Inc
Serving the Lubbock Area.
M&M Sales & Equipment
514 32nd St Lubbock, TX 79404
Adams Paint Co
1416 N University Ave Lubbock, TX 79415
Mid Con Incorporated INDSTRL EQP
514 32nd St Lubbock, TX 79404
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Lubbock and its Consumers
Lubbock is a city in and the county seat of Lubbock County, Texas, United States.The city is located in thenorthwestern part of the state, a region known historically and geographically as the Llano Estacado and ecologically is part of the southern end of the Western High Plains. The city is home to three universities: Lubbock Christian University, Texas Tech University, and Texas Tech University Health Sciences Center. According to a 2013 Census estimate, Lubbock had a population of 239,538, making it the 84th most populous city in the United States of America and the 11th most populous city in the state ofTexas. Lubbock's nickname is the "Hub City", which derives from it being the economic, education, and health care hub of a multicounty region, north of the Permian Basin and south of the Texas Panhandle, commonly called the South Plains.The area is the largest contiguous cotton-growing region in the world and is heavily dependent on irrigation water drawn from the Ogallala Aquifer. Lubbock was selected as the 12th best place to start a small business by CNNMoney.com.
Lubbock is a city in and the county seat of Lubbock County, Texas, United States.The city is located in thenorthwestern part of the state, a region known historically and geographically as the Llano Estacado and ecologically is part of the southern end of the Western High Plains. The city is home to three universities: Lubbock Christian University, Texas Tech University, and Texas Tech...description source
Population Population (2012) 236,065 Population Density 1,928 ppl/sq mi Population Growth Rate 2.8% Median Income $43,364 Median Age 29.5 Unemployment 5.7% Family Household Percent 59.9% Avg. Household Size 2.5 Avg. House Price $113,500 Foreign Born 4.9% Married 38.7% Cost of Living 45.0%
Demographics White 54.7% Hispanic / Latino 33.1% Black / African American 7.4% Asian 2.4% Native American 0.4%
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.