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 $251,559.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$36,515||$54,772||$73,029||$76,732||$80,623|
|Net Cash Flow||-$73,832||$36,515||$54,772||$73,029||$76,732||$322,491|
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 Reno.
- 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.
Copper State Bolt & Nut
911 Linda Way Sparks, NV 89431
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About Reno and its Consumers
Reno, Nevada is known as the "Biggest Little City in the World" and is famous for its casinos and for being the birthplace of Harrahs Entertainment, one of the largest gaming corporations in the world. It is also the headquarters for International Game Technology, which is responsible for manufacturing a majority of the worlds slot machines. Reno has a population of 180,000, making it the third largest city in Nevada. Reno has a large number of gyms and fitness facilities where members can enjoy basketball, racquetball, swimming, or consulting with a personal trainer. Golf is huge here, and Reno has world-class courses like PGA Tour host Montreux Golf and Country Club. Reno has the National Bowling Stadium, which is a destination for any bowling enthusiast. The Stadium was the site of the final bowling showdown scenes in the movie "Kingpin". Ballooning is a popular sport in Reno, and the Great Balloon Race is held here every September. Recreational vehicles are also popular in the area, allowing people to explore northern Nevada.
Reno, Nevada is known as the "Biggest Little City in the World" and is famous for its casinos and for being the birthplace of Harrahs Entertainment, one of the largest gaming corporations in the world. It is also the headquarters for International Game Technology, which is responsible for manufacturing a majority of the worlds slot machines. Reno has a population of 180,000, making it the...description source
Population Population (2012) 231,027 Population Density 2,242 ppl/sq mi Population Growth Rate 2.6% Median Income $44,846 Median Age 34.3 Unemployment 9.4% Family Household Percent 56.2% Avg. Household Size 2.4 Avg. House Price $178,200 Foreign Born 17.4% Married 35.9% Cost of Living 53.0%
Demographics White 61.9% Hispanic / Latino 25.3% Black / African American 3.3% Asian 5.8% Native American 0.7%
Market & Regulatory Conditions For Nevada
Third parties rate Nevada's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness B+ Ease of starting a small business B Cost of hiring a new employee D+ Overall regulatory friendliness A- Friendliness of health and safety regulations B+ Friendliness of employment, labor, and hiring regulations B+ Friendliness of tax code A+ Friendliness of licensing regulations B Friendliness of environmental regulations A Friendliness of zoning regulations A- Publicity of training programs D+ Publicity of networking programs A Current economic health of small business 43th/50 Change in revenue over past 12 months 42th/50 Forecast of small business's future economic health 11th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 29th/50 Cost of Doing Business 25th/50 Economy 21th/50 Infrastructure 19th/50 Workforce 14th/50 Quality of life 35th/50 Technology and innovation 35th/50 Business friendliness 22th/50 Education 49th/50 Cost of living 30th/50 Access to capital 15th/50Source: CNBC (2014)
Tax Friendliness Nevada Corporate Tax Rate 6.9% Avg Local Corporate Tax Rate in Nevada 1.1% Avg Combined Corporate Tax Rate 7.9% Overall tax friendliness 3th/50 Corporate tax rank 1th/50 Individual income tax rank 1th/50 Sales tax rank 39th/50 Unemployment insurance tax rank 43th/50 Property tax rank 9th/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.