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 $421,663.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$64,488||$96,731||$128,975||$134,908||$141,114|
|Net Cash Flow||-$150,127||$64,488||$96,731||$128,975||$134,908||$564,454|
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 Rancho Cucamonga.
- median income
- gross rent
- population density
- July temperature
- household size
- November temperature
- land area
- family households
- May 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.
Abrasive Blasting Service
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Johnny Veela's Aqua Blasting Services A Pool Tile Cleaning Service - CLOSED
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About Rancho Cucamonga and its Consumers
Rancho Cucamonga is a suburban city in San Bernardino County, California. As of the 2010 census, the city had a population of 165,269, up from 127,743 at the 2000 census. L. Dennis Michael was elected as the city's mayor on November 2, 2010. John Gillison is the City Manager. The city was incorporated in 1977, as a result of a vote among the residents of theunincorporated communities of Alta Loma, Cucamonga, and Etiwanda. In 2006, Money magazine ranked the city 42nd on its "Best Places to Live" list. While most of the city's land area is devoted to residential areas, Rancho Cucamonga, like its neighbors Ontario and Fontana, is a major center for the Logistics industry in Southern California. This is due to its proximity to two Interstate Highways and Ontario International Airport, and the space afforded by the large tracts of former agricultural land in the southern section of the city.
Rancho Cucamonga is a suburban city in San Bernardino County, California. As of the 2010 census, the city had a population of 165,269, up from 127,743 at the 2000 census. L. Dennis Michael was elected as the city's mayor on November 2, 2010. John Gillison is the City Manager. The city was incorporated in 1977, as a result of a vote among the residents of theunincorporated communities of Alta...description source
Population Population (2012) 170,746 Population Density 4,284 ppl/sq mi Population Growth Rate 3.3% Median Income $70,836 Median Age 35.1 Unemployment 7.0% Family Household Percent 76.0% Avg. Household Size 3.0 Avg. House Price $347,900 Foreign Born 16.8% Married 33.4% Cost of Living 61.0%
Demographics White 42.7% Hispanic / Latino 34.9% Black / African American 8.8% Asian 10.1% 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/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.