Market Research Report

Abrasive Blast Cleaning Service opportunities in McKinney, TX
$130,172 Potential Yearly Earnings What's this number?
$462,738 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 1.9 years with a net present value of $462,738.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $650,860 $976,290 $1,301,720 $1,380,053 $1,463,100
Net Costs $585,774 $878,661 $1,171,548 $1,242,048 $1,316,790
Net Operating Profits $65,086 $97,629 $130,172 $138,005 $146,310
Capital
      Startup Cost -$123,143
      Terminal Value $438,930
Net Cash Flow -$123,143 $65,086 $97,629 $130,172 $138,005 $585,240

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 McKinney.

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

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  About McKinney and its Consumers

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McKinney is a city in and the county seat of Collin County, Texas, United States, and the second in population to Plano. According to the U.S. Census Bureau, the city's 2010 population was 131,117 making it the nineteenth most populous city in the state of Texas. It is part of the Dallas-Fort Worth metroplex, and is located about 31 mi (50 km) north of Dallas. The Census Bureau listed McKinney as the nation's fastest growing city from 2000 to 2003 and again in 2006, among cities with more than 50,000 people. In 2007 it was ranked second-fastest growing among cities with more than 100,000 people and in 2008 as third-fastest. The most recent population estimate, as of January 1, 2014, is 149,082. Between 1970 and 1990, McKinney experienced moderate population growth, from 15,193 in the 1970 census, to 21,283 in the 1990 census. Since then, McKinney's rate of increase has been much more dramatic. In the 2000 census, McKinney had grown to 54,369 and to 131,117 in the 2010 census

McKinney is a city in and the county seat of Collin County, Texas, United States, and the second in population to Plano. According to the U.S. Census Bureau, the city's 2010 population was 131,117 making it the nineteenth most populous city in the state of Texas. It is part of the Dallas-Fort Worth metroplex, and is located about 31 mi (50 km) north of Dallas. The Census Bureau listed McKinney...

description source
  • Population
    Population (2012) 143,223
    Population Density 2,302 ppl/sq mi
    Population Growth Rate 9.2%
    Median Income $81,256
    Median Age 32.7
    Unemployment 6.4%
    Family Household Percent 76.6%
    Avg. Household Size 2.9
    Avg. House Price $183,600
    Foreign Born 10.4%
    Married 25.8%
    Cost of Living 49.6%
  • Average Temperature
    January 41.0°F 5.0°C
    February 44.8°F 7.1°C
    March 52.4°F 11.3°C
    April 61.1°F 16.2°C
    May 69.7°F 20.9°C
    June 76.9°F 24.9°C
    July 81.2°F 27.3°C
    August 81.1°F 27.3°C
    September 73.6°F 23.1°C
    October 62.9°F 17.2°C
    November 52.2°F 11.2°C
    December 42.9°F 6.1°C
  • Demographics
    White 64.5%
    Hispanic / Latino 18.6%
    Black / African American 10.2%
    Asian 4.0%
    Native American 0.5%

  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/50
    Source: 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/50
    Source: 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/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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