Market Research Report

Abrasive Blast Cleaning Service opportunities in Memphis, TN
$32,598 Potential Yearly Earnings What's this number?
$113,166 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 $113,166.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $162,988 $244,481 $325,975 $338,841 $352,216
Net Costs $146,689 $220,033 $293,378 $304,957 $316,994
Net Operating Profits $16,299 $24,448 $32,598 $33,884 $35,222
Capital
      Startup Cost -$30,345
      Terminal Value $105,665
Net Cash Flow -$30,345 $16,299 $24,448 $32,598 $33,884 $140,886

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 Memphis.

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

  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.

FullBlast Heating & Air Conditioning Services Local Competitor
Serving the Memphis Area.

  Suppliers & Service Providers Contact List

  • Get a great business loan today!
    Fundera

    Get a business loan that suits your needs.

    Get the business loan you need and want.

       

  • Thousands of commercial properties for sale!
    Loopnet

    Find the right commercial property for your business here.

    Thousands of properties to choose from.

       

  • Business for sale listing from around the U.S.
    Bizbuysell

    Find great businesses for sale.

    Find businesses for sale now!

       

  About Memphis and its Consumers

20 20

Memphis, the largest city in Tennessee and the seat of Shelby County, is located in the southwest corner of the state, on the Mississippi River near the borders of Arkansas and Mississippi. The first settlers of Memphis were the Chickasaw Indians, who had a village named Chisca there on the bluffs overlooking the Mississippi River. Hernando de Soto, in 1541, is said to have had his first glimpse of the Mississippi from the site of Memphis; in the next century, Louis Joliet and Jacques Marquette stopped there to trade with the Indians. The French explorer Robert Cavelier, Sieur de La Salle, tried to claim the region for France in 1682 and built Fort Prudhomme on the site. Memphis is known as “America's Distribution Center,” serving the northeast, southeast, and southwest regions of the country. The city has one of the country's largest inland ports and is the national headquarters for the Fed Ex air-courier company. Many of the city's tourist attractions are landmarks associated with the great Memphis music legends, such as Graceland, Elvis Presley's home.

Memphis, the largest city in Tennessee and the seat of Shelby County, is located in the southwest corner of the state, on the Mississippi River near the borders of Arkansas and Mississippi. The first settlers of Memphis were the Chickasaw Indians, who had a village named Chisca there on the bluffs overlooking the Mississippi River. Hernando de Soto, in 1541, is said to have had his first...

description source
  • Population
    Population (2012) 655,155
    Population Density 2,079 ppl/sq mi
    Population Growth Rate 1.3%
    Median Income $34,960
    Median Age 33.1
    Unemployment 11.0%
    Family Household Percent 61.1%
    Avg. Household Size 2.5
    Avg. House Price $96,000
    Foreign Born 6.0%
    Married 43.2%
    Cost of Living 45.5%
  • Average Temperature
    January 38.9°F 3.8°C
    February 43.1°F 6.2°C
    March 52.5°F 11.4°C
    April 62.0°F 16.7°C
    May 70.6°F 21.4°C
    June 78.0°F 25.6°C
    July 81.5°F 27.5°C
    August 80.6°F 27.0°C
    September 73.0°F 22.8°C
    October 62.3°F 16.8°C
    November 51.8°F 11.0°C
    December 41.6°F 5.3°C
  • Demographics
    White 27.1%
    Hispanic / Latino 7.3%
    Black / African American 62.1%
    Asian 2.0%
    Native American 0.07%

  Market & Regulatory Conditions For Tennessee

Third parties rate Tennessee'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 B
    Cost of hiring a new employee A
    Overall regulatory friendliness A-
    Friendliness of health and safety regulations B+
    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 A-
    Publicity of networking programs B+
    Current economic health of small business 17th/50
    Change in revenue over past 12 months 16th/50
    Forecast of small business's future economic health 30th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 14th/50
    Cost of Doing Business 13th/50
    Economy 14th/50
    Infrastructure 4th/50
    Workforce 6th/50
    Quality of life 50th/50
    Technology and innovation 28th/50
    Business friendliness 18th/50
    Education 39th/50
    Cost of living 9th/50
    Access to capital 33th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Tennessee Corporate Tax Rate 7.0%
    Avg Local Corporate Tax Rate in Tennessee 2.5%
    Avg Combined Corporate Tax Rate 9.5%
    Overall tax friendliness 15th/50
    Corporate tax rank 15th/50
    Individual income tax rank 8th/50
    Sales tax rank 47th/50
    Unemployment insurance tax rank 26th/50
    Property tax rank 37th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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