Market Research Report

Abrasive Blast Cleaning Service opportunities in Madison, WI
$76,365 Potential Yearly Earnings What's this number?
$259,801 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 2.0 years with a net present value of $259,801.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $381,823 $572,734 $763,645 $792,259 $821,946
Net Costs $343,640 $515,460 $687,281 $713,033 $739,751
Net Operating Profits $38,182 $57,273 $76,365 $79,226 $82,195
Capital
      Startup Cost -$75,677
      Terminal Value $246,584
Net Cash Flow -$75,677 $38,182 $57,273 $76,365 $79,226 $328,778

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.

Financial Parameters

Change these parameters to customize your financial model

  Statistical Analysis
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 Madison.

  1. median income
  2. gross rent
  3. population density
  4. July temperature
  5. white
  6. land area
  7. household size
  8. May temperature
  9. November temperature
  10. median resident age

  Competitors

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.

Badger Welding Supplies Inc Regional Competitor
101 S Dickinson St Madison, WI 53703

Midwest Finishing Systems Inc Regional Competitor
Hartland, WI 53029

  Suppliers & Service Providers Contact List

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    Fundera

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  • Free help for entrepreneurs
    Sbdc

    Our professionals can help you get your business going.

    We can help with your business plan! We have expertise and datasets.

       

  About Madison and its Consumers

Madison is the capital of the U.S. state of Wisconsin and the county seat of Dane County. As of July 1, 2012, Madison had an estimated population of 240,323, making it the second largest city in Wisconsin, after Milwaukee, and the 83rd largest in the United States. The city forms the core of the United States Census Bureau's Madison Metropolitan Statistical Area, which includes all of Dane County and neighboring Iowa and Columbia counties. The Madison Metropolitan Statistical Area had a 2010 population of 568,593. Wisconsin state government and the University of Wisconsin–Madison remain the two largest Madison employers. However, Madison's economy today is evolving from a government-based economy to a consumer services and high-tech base, particularly in the health, biotech and advertising sectors.Much of the expansion has occurred on the city's south and west sides, but it has also affected the east side near the Interstate 39-90-94 interchange and along the northern shore of Lake Mendota. Underpinning the boom is the development of high-tech companies, many fostered by UW–Madison working with local businesses and entrepreneurs to transfer the results of academic research into real-world applications, especially bio-tech applications.

Madison is the capital of the U.S. state of Wisconsin and the county seat of Dane County. As of July 1, 2012, Madison had an estimated population of 240,323, making it the second largest city in Wisconsin, after Milwaukee, and the 83rd largest in the United States. The city forms the core of the United States Census Bureau's Madison Metropolitan Statistical Area, which includes all of Dane...

description source
  • Population
    Population (2012) 240,323
    Population Density 3,129 ppl/sq mi
    Population Growth Rate 3.1%
    Median Income $53,363
    Median Age 30.7
    Unemployment 5.0%
    Family Household Percent 46.7%
    Avg. Household Size 2.2
    Avg. House Price $213,900
    Foreign Born 9.4%
    Married 47.7%
    Cost of Living 52.0%
  • Average Temperature
    January 18.8°F -7.3°C
    February 23.1°F -4.9°C
    March 34.0°F 1.1°C
    April 46.6°F 8.1°C
    May 57.3°F 14.1°C
    June 67.0°F 19.4°C
    July 71.3°F 21.8°C
    August 69.2°F 20.7°C
    September 61.0°F 16.1°C
    October 48.9°F 9.4°C
    November 36.2°F 2.3°C
    December 23.0°F -5.0°C
  • Demographics
    White 74.7%
    Hispanic / Latino 7.7%
    Black / African American 6.2%
    Asian 8.0%
    Native American 0.4%

  Market & Regulatory Conditions For Wisconsin

Third parties rate Wisconsin's business and regulatory conditions according to their own methods. We report them here for informational purposes.

  • Small-Business Friendliness
    Overall small business friendliness C+
    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 C-
    Friendliness of tax code C
    Friendliness of licensing regulations B-
    Friendliness of environmental regulations C
    Friendliness of zoning regulations D+
    Publicity of training programs C
    Publicity of networking programs D+
    Current economic health of small business 14th/50
    Change in revenue over past 12 months 22th/50
    Forecast of small business's future economic health 41th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 17th/50
    Cost of Doing Business 26th/50
    Economy 22th/50
    Infrastructure 10th/50
    Workforce 40th/50
    Quality of life 24th/50
    Technology and innovation 20th/50
    Business friendliness 25th/50
    Education 10th/50
    Cost of living 23th/50
    Access to capital 37th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Wisconsin Corporate Tax Rate 5.0%
    Avg Local Corporate Tax Rate in Wisconsin 0.4%
    Avg Combined Corporate Tax Rate 5.4%
    Overall tax friendliness 43th/50
    Corporate tax rank 33th/50
    Individual income tax rank 43th/50
    Sales tax rank 14th/50
    Unemployment insurance tax rank 27th/50
    Property tax rank 31th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

The following cities have the highest PYE for Abrasive Blast Cleaning Service within 500 miles of Madison based on a number of market characteristics. See More Results

The following businesse types have the highest PYE in Madison. See More Results