Market Research Report
Based on the parameters below, we project this business would break even in 2.3 years with a net present value of $321,840.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$49,011||$73,517||$98,022||$102,531||$107,248|
|Net Cash Flow||-$112,726||$49,011||$73,517||$98,022||$102,531||$428,991|
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 Murrieta.
- median income
- gross rent
- population density
- household size
- July temperature
- November temperature
- family households
- land area
- May temperature
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.
North County Tool & Abrasive
955 Rancheros Dr Ste A San Marcos, CA 92069
S & S Soda Blasting
6320 W Oak Tree Lane Banning, CA 92220
875 W 4th St Beaumont, CA 92223
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About Murrieta and its Consumers
Murrieta is a city in southwestern Riverside County, California, United States. The population of Murrieta was 103,466 at the 2010 census. Murrieta experienced a 233.7% population increase between 2000 and 2010, according to the most recent census, making Murrieta one of the fastest growing cities in the state. This population boom in 2010 surpassed the population of the historically larger and more commercial city of Temecula to the south for the first time since the incorporation of either city. Temecula and Murrieta together form the southwestern anchor of the Inland Empire region. The Murrieta-Temecula-Menifee Urban Area had a population of 441,546 at the 2010 Census. Largely residential in character, Murrieta is typically characterized as acommuter town, with many of its residents commuting to jobs in San Diego County, Orange County, Los Angeles County,Temecula, and Camp Pendleton. Murrieta is bordered by Temecula to the south and the newly incorporated cities of Menifee and Wildomar to the north.
Murrieta is a city in southwestern Riverside County, California, United States. The population of Murrieta was 103,466 at the 2010 census. Murrieta experienced a 233.7% population increase between 2000 and 2010, according to the most recent census, making Murrieta one of the fastest growing cities in the state. This population boom in 2010 surpassed the population of the historically larger and...description source
Population Population (2012) 106,810 Population Density 3,181 ppl/sq mi Population Growth Rate 3.2% Median Income $72,496 Median Age 32.4 Unemployment 7.3% Family Household Percent 79.5% Avg. Household Size 3.1 Avg. House Price $266,800 Foreign Born 12.5% Married 28.9% Cost of Living 60.3%
Demographics White 53.8% Hispanic / Latino 29.3% Black / African American 11.0% Asian 3.4% Native American 0.7%
Market & Regulatory Conditions For California
Third parties rate California's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness F Ease of starting a small business D Cost of hiring a new employee C- Overall regulatory friendliness F Friendliness of health and safety regulations F Friendliness of employment, labor, and hiring regulations F Friendliness of tax code F Friendliness of licensing regulations F Friendliness of environmental regulations D Friendliness of zoning regulations D Publicity of training programs C- Publicity of networking programs D+ Current economic health of small business 40th/50 Change in revenue over past 12 months 40th/50 Forecast of small business's future economic health 35th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 32th/50 Cost of Doing Business 48th/50 Economy 9th/50 Infrastructure 24th/50 Workforce 36th/50 Quality of life 23th/50 Technology and innovation 1th/50 Business friendliness 48th/50 Education 26th/50 Cost of living 47th/50 Access to capital 1th/50Source: CNBC (2014)
Tax Friendliness California Corporate Tax Rate 7.5% Avg Local Corporate Tax Rate in California 0.9% Avg Combined Corporate Tax Rate 8.4% Overall tax friendliness 48th/50 Corporate tax rank 34th/50 Individual income tax rank 50th/50 Sales tax rank 42th/50 Unemployment insurance tax rank 14th/50 Property tax rank 14th/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.