Market Research Report

Abrasive Blast Cleaning Service opportunities in Palmdale, CA
$31,845 Potential Yearly Earnings What's this number?
$79,851 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 3.9 years with a net present value of $79,851.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $159,225 $238,838 $318,451 $333,100 $348,422
Net Costs $143,303 $214,954 $286,606 $299,790 $313,580
Net Operating Profits $15,923 $23,884 $31,845 $33,310 $34,842
Capital
      Startup Cost -$61,330
      Terminal Value $104,527
Net Cash Flow -$61,330 $15,923 $23,884 $31,845 $33,310 $139,369

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.

Financial Parameters

Change these parameters to customize your financial model

  Statistical Analysis
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 Palmdale.

  1. median income
  2. gross rent
  3. population density
  4. household size
  5. July temperature
  6. land area
  7. November temperature
  8. family households
  9. May temperature
  10. February temperature

  Competitors

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.

Alco Sales Corp Local Competitor
9957 Amestoy Ave Northridge, CA 91325

Leather Abbrasive Corp. Local Competitor
701 Ivy St Glendale, CA 91204

Comco Inc Local Competitor
2151 N Lincoln St Burbank, CA 91504

TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.

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  About Palmdale and its Consumers

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Palmdale is a city in the center of northern Los Angeles County in the U.S. state of California. The San Gabriel Mountains separate Palmdale from the City of Los Angeles. On August 24, 1962, Palmdale became the first community in the Antelope Valley to incorporate. 47 years later, in November 2009, voters approved making it a charter city. Its population was 152,750 at the 2010 census, up from 116,670 at the 2000 census. Palmdale is the 33rd most populous city in California. In 2013, the Palmdale / Lancaster urban area had an estimated population of 513,547.

Palmdale is a city in the center of northern Los Angeles County in the U.S. state of California. The San Gabriel Mountains separate Palmdale from the City of Los Angeles. On August 24, 1962, Palmdale became the first community in the Antelope Valley to incorporate. 47 years later, in November 2009, voters approved making it a charter city. Its population was 152,750 at the 2010 census, up from...

description source
  • Population
    Population (2012) 155,650
    Population Density 1,468 ppl/sq mi
    Population Growth Rate 1.9%
    Median Income $50,394
    Median Age 28.7
    Unemployment 13.4%
    Family Household Percent 82.3%
    Avg. Household Size 3.5
    Avg. House Price $166,800
    Foreign Born 22.3%
    Married 41.2%
    Cost of Living 63.8%
  • Average Temperature
    January 46.9°F 8.3°C
    February 50.2°F 10.1°C
    March 55.0°F 12.8°C
    April 60.5°F 15.8°C
    May 68.3°F 20.2°C
    June 75.8°F 24.3°C
    July 82.2°F 27.9°C
    August 81.4°F 27.4°C
    September 75.6°F 24.2°C
    October 65.1°F 18.4°C
    November 53.5°F 11.9°C
    December 46.1°F 7.8°C
  • Demographics
    White 24.6%
    Hispanic / Latino 54.3%
    Black / African American 13.7%
    Asian 5.1%
    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/50
    Source: 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/50
    Source: 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/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

The following cities have the highest PYE for Abrasive Blast Cleaning Service within 500 miles of Palmdale based on a number of market characteristics. See More Results

The following businesse types have the highest PYE in Palmdale. See More Results