Market Research Report
Based on the parameters below, we project this business would break even in 2.3 years with a net present value of $139,547.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$21,407||$32,110||$42,813||$44,697||$46,664|
|Net Cash Flow||-$49,854||$21,407||$32,110||$42,813||$44,697||$186,655|
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 Raleigh.
- median income
- gross rent
- population density
- July temperature
- land area
- November temperature
- household size
- May temperature
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.
I.S. Tax Service Ltd
4109 Wake Forest Rd Ste 204 Raleigh, NC 27609
Plum Purple Inc
202 Tibbetts Rock Dr Cary, NC 27513
Take A Break - CLOSED
1105 Walnut St Ste 7704 Cary, NC 27511
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Raleigh and its Consumers
Raleigh is the capital of the state of North Carolina as well as the seat of Wake County. Raleigh is known as the "City of Oaks" for its many oak trees, which line the streets in the heart of the city.The city covers a land area of 142.8 square miles (370 km2). Raleigh is home to numerous cultural, educational, and historic sites. The Progress Energy Center for the Performing Arts in Downtown Raleigh features three theater venues and serves as the home for the North Carolina Symphony. Walnut Creek Amphitheatre is a large music amphitheater located in Southeast Raleigh. Museums in Raleigh include the North Carolina Museum of Art in West Raleigh, as well as the North Carolina Museum of History and North Carolina Museum of Natural Sciences located next to each other near the State Capitol in Downtown Raleigh. Several major universities and colleges call Raleigh home, including North Carolina State University, the largest public university in the state, and Shaw University, the first historically black university in the American South and site of the foundation of the Student Nonviolent Coordinating Committee, an important civil rights organization of the 1960s. One U.S. president, Andrew Johnson, was born in Raleigh.
Raleigh is the capital of the state of North Carolina as well as the seat of Wake County. Raleigh is known as the "City of Oaks" for its many oak trees, which line the streets in the heart of the city.The city covers a land area of 142.8 square miles (370 km2). Raleigh is home to numerous cultural, educational, and historic sites. The Progress Energy Center for the Performing Arts in Downtown...description source
Population Population (2012) 423,179 Population Density 2,961 ppl/sq mi Population Growth Rate 4.8% Median Income $52,040 Median Age 32.0 Unemployment 6.7% Family Household Percent 55.9% Avg. Household Size 2.4 Avg. House Price $194,200 Foreign Born 12.9% Married 40.8% Cost of Living 50.2%
Demographics White 52.8% Hispanic / Latino 11.2% Black / African American 30.7% Asian 3.3% Native American 0.1%
Market & Regulatory Conditions For North Carolina
Third parties rate North Carolina'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 A- Overall regulatory friendliness C- Friendliness of health and safety regulations C Friendliness of employment, labor, and hiring regulations D Friendliness of tax code D+ 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 27th/50 Change in revenue over past 12 months 25th/50 Forecast of small business's future economic health 22th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 5th/50 Cost of Doing Business 23th/50 Economy 4th/50 Infrastructure 21th/50 Workforce 4th/50 Quality of life 34th/50 Technology and innovation 12th/50 Business friendliness 19th/50 Education 33th/50 Cost of living 14th/50 Access to capital 17th/50Source: CNBC (2014)
Tax Friendliness North Carolina Corporate Tax Rate 4.8% Avg Local Corporate Tax Rate in North Carolina 2.2% Avg Combined Corporate Tax Rate 6.9% Overall tax friendliness 16th/50 Corporate tax rank 25th/50 Individual income tax rank 15th/50 Sales tax rank 33th/50 Unemployment insurance tax rank 11th/50 Property tax rank 29th/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.