Market Research Report
Based on the parameters below, we project this business would break even in 2.0 years with a net present value of $205,383.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$30,048||$45,073||$60,097||$62,405||$64,802|
|Net Cash Flow||-$58,895||$30,048||$45,073||$60,097||$62,405||$259,209|
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 Providence.
- median income
- gross rent
- population density
- July temperature
- household size
- November temperature
- May temperature
- land area
- 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.
Dirty Lew's Media Blasting - CLOSED
10 Gardner Street Fairhaven, MA 02719
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About Providence and its Consumers
Providence is the capital and most populous city in Rhode Island. Founded in 1636, it is one of the oldest cities in the United States. It is located in Providence County, and is the second-largest city in the New England region after Boston. Providence has a city population of 182,911 and is part of the 37th-largest metropolitan population in the country, with an estimated population of 1,600,856, exceeding that of Rhode Island by about 60%, as it extends into southern Massachusetts. This can be considered in turn to be part of the Greater Boston commuting area, which contains 7.6 million people. The city is situated at the mouth of the Providence River, at the head of Narragansett Bay. Providence was one of the first cities to industrialize in the United States. By 1830, the city had manufacturing industries in metals, machinery, textiles, jewelry, and silverware. Though manufacturing has declined, the city is still one of the largest centers for jewelry and silverware design and manufacturing. Services, in particular education, healthcare, and finance, also make up a large portion of the city's economy.
Providence is the capital and most populous city in Rhode Island. Founded in 1636, it is one of the oldest cities in the United States. It is located in Providence County, and is the second-largest city in the New England region after Boston. Providence has a city population of 182,911 and is part of the 37th-largest metropolitan population in the country, with an estimated population of...description source
Population Population (2012) 178,432 Population Density 9,697 ppl/sq mi Population Growth Rate 0.2% Median Income $37,856 Median Age 28.7 Unemployment 11.7% Family Household Percent 56.2% Avg. Household Size 2.6 Avg. House Price $186,800 Foreign Born 28.1% Married 52.6% Cost of Living 51.4%
Demographics White 38.5% Hispanic / Latino 38.8% Black / African American 12.8% Asian 6.0% Native American 0.6%
Market & Regulatory Conditions For Rhode Island
Third parties rate Rhode Island'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 F Cost of hiring a new employee A+ Overall regulatory friendliness F Friendliness of health and safety regulations F Friendliness of employment, labor, and hiring regulations D+ Friendliness of tax code F Friendliness of licensing regulations F Friendliness of environmental regulations F Friendliness of zoning regulations F Publicity of training programs A+ Publicity of networking programs A+ Current economic health of small business 11th/50 Change in revenue over past 12 months 27th/50 Forecast of small business's future economic health 42th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 50th/50 Cost of Doing Business 43th/50 Economy 44th/50 Infrastructure 50th/50 Workforce 38th/50 Quality of life 19th/50 Technology and innovation 34th/50 Business friendliness 45th/50 Education 18th/50 Cost of living 42th/50 Access to capital 23th/50Source: CNBC (2014)
Tax Friendliness Rhode Island Corporate Tax Rate 7.0% Avg Local Corporate Tax Rate in Rhode Island 0.0% Avg Combined Corporate Tax Rate 7.0% Overall tax friendliness 45th/50 Corporate tax rank 43th/50 Individual income tax rank 38th/50 Sales tax rank 26th/50 Unemployment insurance tax rank 49th/50 Property tax rank 47th/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.