Market Research Report
Based on the parameters below, we project this business would break even in 2.0 years with a net present value of $197,676.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$28,742||$43,112||$57,483||$60,158||$62,957|
|Net Cash Flow||-$57,311||$28,742||$43,112||$57,483||$60,158||$251,828|
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 New Orleans.
- median income
- gross rent
- population density
- July temperature
- land area
- November temperature
- May temperature
- household size
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.
Industrial Blasting Services
961 Industry Rd Kenner, LA 70062
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About New Orleans and its Consumers
New Orleans is a major United States port and the largest city and metropolitan area in the state of Louisiana. The Central Business District of New Orleans is located immediately north and west of the Mississippi River, and was historically called the "American Quarter" or "American Sector." It was developed after the heart of French and Spanish settlement. It includes Lafayette Square. Most streets in this area fan out from a central point in the city. Major streets of the area include Canal Street, Poydras Street, Tulane Avenue and Loyola Avenue. Canal Street functions as the street which divides the traditional "downtown" area from the "uptown" area. New Orleans has one of the largest and busiest ports in the world, and metropolitan New Orleans is a center of maritime industry. The New Orleans region also accounts for a significant portion of the nation's oil refining and petrochemical production, and serves as a white-collar corporate base for onshore and offshore petroleum and natural gas production.
New Orleans is a major United States port and the largest city and metropolitan area in the state of Louisiana. The Central Business District of New Orleans is located immediately north and west of the Mississippi River, and was historically called the "American Quarter" or "American Sector." It was developed after the heart of French and Spanish settlement. It includes Lafayette Square. Most...description source
Population Population (2012) 369,250 Population Density 2,179 ppl/sq mi Population Growth Rate 7.4% Median Income $35,041 Median Age 35.4 Unemployment 6.5% Family Household Percent 53.9% Avg. Household Size 2.3 Avg. House Price $185,400 Foreign Born 5.9% Married 32.5% Cost of Living 52.3%
Demographics White 31.0% Hispanic / Latino 5.2% Black / African American 59.5% Asian 2.9% Native American 0.2%
Market & Regulatory Conditions For Louisiana
Third parties rate Louisiana'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 D 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 A Publicity of networking programs A+ Current economic health of small business 5th/50 Change in revenue over past 12 months 14th/50 Forecast of small business's future economic health 16th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 40th/50 Cost of Doing Business 3th/50 Economy 44th/50 Infrastructure 36th/50 Workforce 26th/50 Quality of life 47th/50 Technology and innovation 36th/50 Business friendliness 39th/50 Education 44th/50 Cost of living 4th/50 Access to capital 47th/50Source: CNBC (2014)
Tax Friendliness Louisiana Corporate Tax Rate 4.0% Avg Local Corporate Tax Rate in Louisiana 4.9% Avg Combined Corporate Tax Rate 8.9% Overall tax friendliness 35th/50 Corporate tax rank 23th/50 Individual income tax rank 27th/50 Sales tax rank 50th/50 Unemployment insurance tax rank 6th/50 Property tax rank 24th/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.