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 $199,133.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$30,169||$45,253||$60,337||$63,113||$66,016|
|Net Cash Flow||-$68,362||$30,169||$45,253||$60,337||$63,113||$264,064|
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 Rialto.
- median income
- gross rent
- population density
- household size
- July temperature
- November temperature
- family households
- May temperature
- land area
- February temperature
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About Rialto and its Consumers
Located in San Bernardino County, California, and situated below the San Bernardino mountains is the city of Rialto. Sixty miles to the west is the city of Los Angeles and 103 miles to the south is San Diego. Rialto was incorporated as a city in 1911, but its roots trace back to well before the year 1500, which is when archaeologists believe the first Indian settlements took place. Much later, around the late 1800's, the area began to be settled by families whose primary pursuits were agriculture and ranching, with vineyards and citrus groves abundant in the region. Rialto continued to grow steadily, culminated by a huge population spike occurring between 1950-1980, when the population increased more than ten-fold. It is not completely clear how Rialto got its name. One theory is that the name was formed by a contraction of the Spanish words Rio (river) and Alto (high). Another story is that the city was named after the Rialto Bridge (a landmark of Venice, Italy). Regardless, the bridge has been retained as a community symbol known as the "Bridge of Progress".
Located in San Bernardino County, California, and situated below the San Bernardino mountains is the city of Rialto. Sixty miles to the west is the city of Los Angeles and 103 miles to the south is San Diego. Rialto was incorporated as a city in 1911, but its roots trace back to well before the year 1500, which is when archaeologists believe the first Indian settlements took place. Much later,...description source
Population Population (2012) 101,740 Population Density 4,551 ppl/sq mi Population Growth Rate 2.6% Median Income $45,415 Median Age 27.4 Unemployment 13.8% Family Household Percent 84.0% Avg. Household Size 3.9 Avg. House Price $159,600 Foreign Born 27.4% Married 40.5% Cost of Living 59.4%
Demographics White 12.6% Hispanic / Latino 67.6% Black / African American 15.6% Asian 2.1% 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.