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 $212,991.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$30,940||$46,410||$61,880||$64,683||$67,613|
|Net Cash Flow||-$61,137||$30,940||$46,410||$61,880||$64,683||$270,450|
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 Norfolk.
- median income
- gross rent
- population density
- July temperature
- November temperature
- household size
- land area
- 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.
Blast Off Pressure Washing
28 Research Dr Hampton, VA 23666
A-Blast-Of Clean Powerwash
685 Lucas Creek Rd Newport News, VA 23602
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About Norfolk and its Consumers
Norfolk is an independent city in the Commonwealth of Virginia, United States of America. At the 2010 census, the population was 242,803; in 2013, the population was estimated to be 246,392 making it the second-most populous city in Virginia, behind neighboring Virginia Beach. Norfolk is located at the core of the Hampton Roads metropolitan area, named for the large natural harbor of the same name located at the mouth of Chesapeake Bay. It is one of nine cities and seven counties that constitute the Hampton Roads metro area, officially known as the Virginia Beach-Norfolk-Newport News, VA-NC MSA. The city is bordered to the west by the Elizabeth River and to the north by the Chesapeake Bay. It also shares land borders with the independent cities of Chesapeake to its south and Virginia Beach to its east. One of the oldest of the cities in Hampton Roads, Norfolk is considered to be the historic, urban, financial, and cultural center of the region.
Norfolk is an independent city in the Commonwealth of Virginia, United States of America. At the 2010 census, the population was 242,803; in 2013, the population was estimated to be 246,392 making it the second-most populous city in Virginia, behind neighboring Virginia Beach. Norfolk is located at the core of the Hampton Roads metropolitan area, named for the large natural harbor of the...description source
Population Population (2012) 245,782 Population Density 4,541 ppl/sq mi Population Growth Rate 1.2% Median Income $43,108 Median Age 29.6 Unemployment 7.5% Family Household Percent 58.7% Avg. Household Size 2.4 Avg. House Price $195,300 Foreign Born 6.2% Married 42.3% Cost of Living 51.8%
Demographics White 44.4% Hispanic / Latino 6.9% Black / African American 41.1% Asian 3.4% Native American 0.2%
Market & Regulatory Conditions For Virginia
Third parties rate Virginia'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 A Overall regulatory friendliness B+ 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 B Publicity of training programs A- Publicity of networking programs A- Current economic health of small business 39th/50 Change in revenue over past 12 months 26th/50 Forecast of small business's future economic health 12th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 8th/50 Cost of Doing Business 30th/50 Economy 29th/50 Infrastructure 19th/50 Workforce 10th/50 Quality of life 22th/50 Technology and innovation 10th/50 Business friendliness 5th/50 Education 9th/50 Cost of living 32th/50 Access to capital 19th/50Source: CNBC (2014)
Tax Friendliness Virginia Corporate Tax Rate 5.3% Avg Local Corporate Tax Rate in Virginia 0.3% Avg Combined Corporate Tax Rate 5.6% Overall tax friendliness 27th/50 Corporate tax rank 6th/50 Individual income tax rank 39th/50 Sales tax rank 6th/50 Unemployment insurance tax rank 37th/50 Property tax rank 26th/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.