Market Research Report
Based on the parameters below, we project this business would break even in 15.7 years with a net present value of -$14,559.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$2,113||$3,169||$4,226||$4,384||$4,548|
|Net Cash Flow||-$33,122||$2,113||$3,169||$4,226||$4,384||$18,193|
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 Milwaukee.
- 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.
Rockler Woodworking and Hardware
1725 S 108th St Milwaukee, WI 53214
Midwest Grinding Co
7725 W Tower Ave Milwaukee, WI 53223
The Abrasive Group
11037 W Derby Ave Milwaukee, WI 53225
Garnet Abrasives & Water Filtration Inc
1719 W Saint Paul Ave Milwaukee, WI 53233
Tool Service Corporation
2942 N 117th St Milwaukee, WI 53222
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Milwaukee and its Consumers
Milwaukee, the largest city in Wisconsin and seat of Milwaukee County, is located in the southeast part of the state on Lake Michigan. The origins of the word Milwaukee are disputed; it may come from the Potawatomi Mahn-ah-wauk, meaning council grounds of the Potawatomi; Mah-an-wauk-seepe, meaning gathering place of rivers; or the Algonquian Milo-aki, meaning beautiful land. Milwaukee is one of the great industrial centers in the country and one of the largest Great Lakes ports. Manufacturing remains strong, and Milwaukee manufacturers are national leaders in lithographic commercial printing and the production of medical diagnostic instruments, small gasoline engines, malt beverages, iron and steel forgings, mining machinery, and robotics. Milwaukee's high-tech manufacturing community is one of the largest among the nation's major metropolitan areas. Though Milwaukee was once known as a beer town, only a small percentage of its workforce is now involved in beer production. However, beer still plays an important role, and almost 11% of the nation's malt beverage is produced there.
Milwaukee, the largest city in Wisconsin and seat of Milwaukee County, is located in the southeast part of the state on Lake Michigan. The origins of the word Milwaukee are disputed; it may come from the Potawatomi Mahn-ah-wauk, meaning council grounds of the Potawatomi; Mah-an-wauk-seepe, meaning gathering place of rivers; or the Algonquian Milo-aki, meaning beautiful land. Milwaukee...description source
Population Population (2012) 598,916 Population Density 6,230 ppl/sq mi Population Growth Rate 0.7% Median Income $33,122 Median Age 30.5 Unemployment 10.6% Family Household Percent 56.6% Avg. Household Size 2.5 Avg. House Price $131,300 Foreign Born 10.0% Married 49.3% Cost of Living 52.4%
Demographics White 37.0% Hispanic / Latino 17.5% Black / African American 38.7% Asian 3.4% Native American 0.5%
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/50Source: 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/50Source: 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/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.