Market Research Report
Based on the parameters below, we project this business would break even in 7.6 years with a net present value of $11,733.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$9,221||$13,832||$18,442||$19,290||$20,178|
|Net Cash Flow||-$70,027||$9,221||$13,832||$18,442||$19,290||$80,711|
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 Norwalk.
- median income
- gross rent
- population density
- household size
- July temperature
- November temperature
- family households
- May temperature
- February temperature
- median resident age
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.
Media Blast & Abrasives
591 Apollo St Brea, CA 92821
A-1 Abrasive Blasting
115 Nevada St El Segundo, CA 90245
Abrasive Blast Finishing Co.
9625 Rush St South El Monte, CA 91733
TIP: Your market is dominated by regional chains. Consider entering the market with an independant business or a national franchise.
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About Norwalk and its Consumers
Norwalk is a suburban city in Los Angeles County, California, United States. The population was 105,549 at the 2010 census, up from 103,298 at the 2000 census, making it the 58th most populous city in California and the 255th nationally. Founded in the late 19th century, Norwalk was incorporated as a city in 1957. It is located 17 miles (27 km) southeast ofdowntown Los Angeles and is part of the Greater Los Angeles area. Norwalk operates under a Council/Manager form of government, established by the Charter of the City of Norwalk which was drafted in 1957. The five-member City Council acts as the city's chief policy-making body. Every two years, Council members are elected by the citizens of Norwalk to serve four-year, overlapping terms. Council members are not limited to the number of terms they may serve. The Mayor is selected by the Council and serves a one-year term. Norwalk is a member of the Gateway Cities Council of Governments. Norwalk's sister cities are Morelia, Michoacán, andHermosillo, Sonora, in Mexico.
Norwalk is a suburban city in Los Angeles County, California, United States. The population was 105,549 at the 2010 census, up from 103,298 at the 2000 census, making it the 58th most populous city in California and the 255th nationally. Founded in the late 19th century, Norwalk was incorporated as a city in 1957. It is located 17 miles (27 km) southeast ofdowntown Los Angeles and is part of...description source
Population Population (2012) 106,278 Population Density 10,948 ppl/sq mi Population Growth Rate 0.7% Median Income $54,411 Median Age 33.5 Unemployment 11.4% Family Household Percent 83.2% Avg. Household Size 3.8 Avg. House Price $303,400 Foreign Born 35.0% Married 38.9% Cost of Living 67.5%
Demographics White 12.7% Hispanic / Latino 68.3% Black / African American 5.3% Asian 12.9% Native American 0.2%
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.