Market Research Report
Based on the parameters below, we project this business would break even in 11.7 years with a net present value of -$24,216.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$8,524||$12,786||$17,049||$17,833||$18,653|
|Net Cash Flow||-$99,798||$8,524||$12,786||$17,049||$17,833||$74,613|
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 Pasadena.
- median income
- gross rent
- population density
- July temperature
- November temperature
- household size
- May temperature
- land area
- 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
Media Blast & Abrasives Inc
5126 Chakemco St South Gate, CA 90280
A-1 Abrasive Blasting
115 Nevada St El Segundo, CA 90245
TIP: Your market is dominated by regional chains. Consider entering the market with an independant business or a national franchise.
Suppliers & Service Providers Contact List
Free help for entrepreneurs
Our professionals can help you get your business going.
We can help with your business plan! We have expertise and datasets.
Get a great business loan today!
Get a business loan that suits your needs.
Get the business loan you need and want.
Free help for entrepreneurs
Our experienced entrepreneurs can help you reach your goals.
We provide free business mentoring for entrepreneurs.
About Pasadena and its Consumers
Pasadena, California is a city of nearly 145,000 people. It is located in Los Angeles County, approximately fifteen minutes northeast of Los Angeles. Pasadena is in the Los Angeles Long Beach Santa Ana metropolitan area, which at 12.9 million people is the second largest metropolitan area in the United States. Pasadena is near Los Angeles, which was ranked among the thirty "Most Fun U.S. Cities" in a study conducted by Cranium, Inc. in 2004. Pasadena is also a past finalist community for the National Civic Leagues coveted "All-America City Award". Pasadena is home to three Fortune 1000 companies. It is also home to the California Institute of Technology. In the heart of Southern California, Pasadena receives the weather for which Southern California is famous. Temperatures are pleasant in the winter with average daily temperatures in the high sixties and low seventies (degrees Fahrenheit), and summer temperatures average in the high eighties and low nineties (degrees Fahrenheit).
Pasadena, California is a city of nearly 145,000 people. It is located in Los Angeles County, approximately fifteen minutes northeast of Los Angeles. Pasadena is in the Los Angeles Long Beach Santa Ana metropolitan area, which at 12.9 million people is the second largest metropolitan area in the United States. Pasadena is near Los Angeles, which was ranked among the thirty "Most Fun U.S....description source
Population Population (2012) 138,547 Population Density 6,031 ppl/sq mi Population Growth Rate 1.0% Median Income $72,265 Median Age 37.1 Unemployment 8.3% Family Household Percent 55.9% Avg. Household Size 2.4 Avg. House Price $601,000 Foreign Born 29.3% Married 40.4% Cost of Living 72.4%
Demographics White 36.9% Hispanic / Latino 32.0% Black / African American 9.9% Asian 17.8% Native American 0.1%
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.