Market Research Report
Based on the parameters below, we project this business would break even in 3.6 years with a net present value of $54,626.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$10,318||$15,476||$20,635||$21,691||$22,801|
|Net Cash Flow||-$37,363||$10,318||$15,476||$20,635||$21,691||$91,204|
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 Oklahoma City.
- median income
- gross rent
- land area
- population density
- July temperature
- household size
- November temperature
- 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.
BlastOff Pressure Washing
12108 SW 25th St Yukon, OK 73099
Blast-Off Media Blasting Services
5715 Quail Ridge Rd Blanchard, OK 73010
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About Oklahoma City and its Consumers
Oklahoma City is the capital of the U.S. state of Oklahoma and its largest city. Oklahoma City features one of the largest livestock markets in the world. Oil, natural gas, petroleum products and related industries are the largest sector of the local economy. The city is situated in the middle of an active oil field and oil derricks dot the capitol grounds. The federal government employs large numbers of workers at Tinker Air Force Base and the United States Department of Transportation's Mike Monroney Aeronautical Center (these two sites house several offices of the Federal Aviation Administration and the Transportation Department's Enterprise Service Center, respectively). Since the time weather records have been kept, Oklahoma City has been struck by nine strong tornadoes, eight F/EF4s and one F5. On May 3, 1999, parts of southern Oklahoma City and nearby communities experienced one of the most powerful tornadoes on record, registering as an F5. On May 20, 2013, southern Oklahoma City, Moore, and other surrounding areas and suburbs were struck by another devastating EF5 tornado.
Oklahoma City is the capital of the U.S. state of Oklahoma and its largest city. Oklahoma City features one of the largest livestock markets in the world. Oil, natural gas, petroleum products and related industries are the largest sector of the local economy. The city is situated in the middle of an active oil field and oil derricks dot the capitol grounds. The federal government employs large...description source
Population Population (2012) 599,199 Population Density 988 ppl/sq mi Population Growth Rate 3.3% Median Income $42,995 Median Age 33.9 Unemployment 4.7% Family Household Percent 62.6% Avg. Household Size 2.5 Avg. House Price $135,200 Foreign Born 9.9% Married 30.6% Cost of Living 45.6%
Demographics White 56.0% Hispanic / Latino 17.5% Black / African American 14.5% Asian 4.1% Native American 3.0%
Market & Regulatory Conditions For Oklahoma
Third parties rate Oklahoma'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 A Friendliness of health and safety regulations A Friendliness of employment, labor, and hiring regulations A Friendliness of tax code B Friendliness of licensing regulations A Friendliness of environmental regulations A Friendliness of zoning regulations A Publicity of training programs A- Publicity of networking programs B+ Current economic health of small business 10th/50 Change in revenue over past 12 months 17th/50 Forecast of small business's future economic health 6th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 28th/50 Cost of Doing Business 1th/50 Economy 26th/50 Infrastructure 33th/50 Workforce 35th/50 Quality of life 49th/50 Technology and innovation 39th/50 Business friendliness 27th/50 Education 41th/50 Cost of living 3th/50 Access to capital 41th/50Source: CNBC (2014)
Tax Friendliness Oklahoma Corporate Tax Rate 4.5% Avg Local Corporate Tax Rate in Oklahoma 4.2% Avg Combined Corporate Tax Rate 8.7% Overall tax friendliness 32th/50 Corporate tax rank 7th/50 Individual income tax rank 40th/50 Sales tax rank 38th/50 Unemployment insurance tax rank 1th/50 Property tax rank 11th/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.