Market Research Report
Based on the parameters below, we project this business would break even in 1.9 years with a net present value of $259,000.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$36,930||$55,395||$73,860||$77,605||$81,540|
|Net Cash Flow||-$70,093||$36,930||$55,395||$73,860||$77,605||$326,160|
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 North Las Vegas.
- median income
- gross rent
- population density
- July temperature
- household size
- land area
- November temperature
- May temperature
- family households
- February 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.
Clean Works Mobile Media Blasting
512 E Windmill Lane Suite #305 Las Vegas, NV 89123
Clean Works Blasting Services
5851 Fannine Way Las Vegas, NV 89130
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About North Las Vegas and its Consumers
North Las Vegas is a city in Clark County, Nevada, United States, located in the Las Vegas Valley. As of the 2010 census it had a population of 216,961, with an estimated population of 226,877 in 2013. The city was incorporated on May 16, 1946. It is located in the Las Vegas metropolitan area and is the third largest city in the state of Nevada. Located in the southwestern United States in the Mojave Desert, North Las Vegas sits north and east of Las Vegas. According to the United States Census Bureau, North Las Vegas has a total area of 101.4 square miles (262.6 km2), of which 0.04 square miles (0.1 km2), or 0.04%, is water. In the Las Vegas Valley, several mountain ranges are nearby.
North Las Vegas is a city in Clark County, Nevada, United States, located in the Las Vegas Valley. As of the 2010 census it had a population of 216,961, with an estimated population of 226,877 in 2013. The city was incorporated on May 16, 1946. It is located in the Las Vegas metropolitan area and is the third largest city in the state of Nevada. Located in the southwestern United States in the...description source
Population Population (2012) 223,491 Population Density 2,205 ppl/sq mi Population Growth Rate 3.0% Median Income $50,006 Median Age 30.4 Unemployment 11.3% Family Household Percent 76.2% Avg. Household Size 3.2 Avg. House Price $124,200 Foreign Born 23.0% Married 34.7% Cost of Living 49.8%
Demographics White 31.4% Hispanic / Latino 42.6% Black / African American 17.3% Asian 3.5% Native American 0.04%
Market & Regulatory Conditions For Nevada
Third parties rate Nevada'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 D+ Overall regulatory friendliness A- Friendliness of health and safety regulations B+ Friendliness of employment, labor, and hiring regulations B+ Friendliness of tax code A+ Friendliness of licensing regulations B Friendliness of environmental regulations A Friendliness of zoning regulations A- Publicity of training programs D+ Publicity of networking programs A Current economic health of small business 43th/50 Change in revenue over past 12 months 42th/50 Forecast of small business's future economic health 11th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 29th/50 Cost of Doing Business 25th/50 Economy 21th/50 Infrastructure 19th/50 Workforce 14th/50 Quality of life 35th/50 Technology and innovation 35th/50 Business friendliness 22th/50 Education 49th/50 Cost of living 30th/50 Access to capital 15th/50Source: CNBC (2014)
Tax Friendliness Nevada Corporate Tax Rate 6.9% Avg Local Corporate Tax Rate in Nevada 1.1% Avg Combined Corporate Tax Rate 7.9% Overall tax friendliness 3th/50 Corporate tax rank 1th/50 Individual income tax rank 1th/50 Sales tax rank 39th/50 Unemployment insurance tax rank 43th/50 Property tax rank 9th/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.