Market Research Report
Based on the parameters below, we project this business would break even in 23.4 years with a net present value of -$22,372.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$1,527||$2,290||$3,054||$3,167||$3,284|
|Net Cash Flow||-$35,781||$1,527||$2,290||$3,054||$3,167||$13,136|
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 Philadelphia.
- median income
- gross rent
- population density
- July temperature
- land area
- 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.
Chamberlain's Vacu-Blast Sales
1200 Bannard St Cinnaminson, NJ 08077
Philadelphia Abrasive Supply Co
3611 Salmon St Philadelphia, PA 19134
BK Concrete Prep LLC
PO Box 997 Mullica Hill, NJ 08062
A A Abrasives Inc
121 N 3rd St Philadelphia, PA 19106
320 W Hunting Park Ave Philadelphia, PA 19140
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Philadelphia and its Consumers
Philadelphia, the largest city in Pennsylvania, is located in the southeast part of the state at the junction of the Schuylkill and Delaware Rivers. It is coextensive with Philadelphia County. Within a half-century of the founding of the nation at Independence Hall, Philadelphia had emerged as a leader in America's Industrial Revolution. Today the steam locomotives and hat factories of the 19th century have been replaced by diverse manufacturing specialties such as chemicals (including pharmaceuticals), medical devices, transportation equipment, and printing and publishing. In the services sector, Philadelphia leads in subsectors such as health services, insurance carriers, legal services, and architecture and engineering services. Philadelphia is also home to branches of the U.S. Mint, the Federal Reserve System, and the Internal Revenue Service. The city's harbor, one of the largest freshwater ports in the world, is the centerpiece of the AmeriPort facility in south Philadelphia, a major shipping center with rail links to the Midwest and Canada.
Philadelphia, the largest city in Pennsylvania, is located in the southeast part of the state at the junction of the Schuylkill and Delaware Rivers. It is coextensive with Philadelphia County. Within a half-century of the founding of the nation at Independence Hall, Philadelphia had emerged as a leader in America's Industrial Revolution. Today the steam locomotives and hat factories of the 19th...description source
Population Population (2012) 1,547,610 Population Density 11,540 ppl/sq mi Population Growth Rate 1.4% Median Income $34,207 Median Age 33.5 Unemployment 10.8% Family Household Percent 56.8% Avg. Household Size 2.5 Avg. House Price $142,000 Foreign Born 12.0% Married 50.1% Cost of Living 54.9%
Demographics White 36.9% Hispanic / Latino 12.6% Black / African American 41.6% Asian 6.4% Native American 0.1%
Market & Regulatory Conditions For Pennsylvania
Third parties rate Pennsylvania's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness C Ease of starting a small business C+ Cost of hiring a new employee C Overall regulatory friendliness C Friendliness of health and safety regulations C+ Friendliness of employment, labor, and hiring regulations C- Friendliness of tax code C+ Friendliness of licensing regulations C Friendliness of environmental regulations C Friendliness of zoning regulations C Publicity of training programs D Publicity of networking programs C Current economic health of small business 26th/50 Change in revenue over past 12 months 34th/50 Forecast of small business's future economic health 39th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 44th/50 Cost of Doing Business 42th/50 Economy 37th/50 Infrastructure 37th/50 Workforce 48th/50 Quality of life 35th/50 Technology and innovation 8th/50 Business friendliness 39th/50 Education 6th/50 Cost of living 35th/50 Access to capital 17th/50Source: CNBC (2014)
Tax Friendliness Pennsylvania Corporate Tax Rate 6.0% Avg Local Corporate Tax Rate in Pennsylvania 0.3% Avg Combined Corporate Tax Rate 6.3% Overall tax friendliness 34th/50 Corporate tax rank 46th/50 Individual income tax rank 17th/50 Sales tax rank 24th/50 Unemployment insurance tax rank 50th/50 Property tax rank 42th/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.