Market Research Report

Abrasive Blast Cleaning Service opportunities in Richmond, CA
$39,613 Potential Yearly Earnings What's this number?
$108,675 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 3.4 years with a net present value of $108,675.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $198,063 $297,095 $396,127 $414,349 $433,409
Net Costs $178,257 $267,386 $356,514 $372,914 $390,068
Net Operating Profits $19,806 $29,710 $39,613 $41,435 $43,341
Capital
      Startup Cost -$66,941
      Terminal Value $130,023
Net Cash Flow -$66,941 $19,806 $29,710 $39,613 $41,435 $173,364

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.

Financial Parameters

Change these parameters to customize your financial model

  Statistical Analysis
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 Richmond.

  1. median income
  2. gross rent
  3. population density
  4. household size
  5. November temperature
  6. July temperature
  7. land area
  8. family households
  9. May temperature
  10. February temperature

  Competitors

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.

Kleen Blast Regional Competitor
30028 Industrial Pkwy SW Hayward, CA 94544

Pinnacle Abrasives Regional Competitor
150 N Wiget Ln Ste 103 Walnut Creek, CA 94598

National Abrasives - CLOSED Regional Competitor
1655 Abram Ct San Leandro, CA 94577

TIP: Your market is dominated by regional chains. Consider entering the market with an independant business or a national franchise.

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  About Richmond and its Consumers

Richmond is a city in western Contra Costa County, California, United States. The city was incorporated on August 7, 1905.Located in the eastern region of the San Francisco Bay Area, Richmond borders the cities of San Pablo,Albany, El Cerrito and Pinole in addition to the unincorporated communities of North Richmond, Hasford Heights, Kensington, El Sobrante, Bayview-Montalvin Manor, Tara Hills, and East Richmond Heights, and briefly San Francisco on Red Rock Island. Under the McLaughlin Administration, Richmond is the largest city in the United States served by a Green Party Mayor.As of the 2010 U.S. Census, the city's population is at 103,701. According to the United States Census Bureau, the city has a total area of 52.5 square miles (136 km2), of which 30.1 square miles (78 km2) is land and 22.4 square miles (58 km2) (42.71%) is water. The city sits on 32 miles (51 km) of waterfront, more than any other city in the Bay Area.[25]The city borders San Francisco Bay to the southwest and San Pablo Bay to the northwest, and includes Brooks Island and the Brother Islandsentirely, and half of Red Rock Island.

Richmond is a city in western Contra Costa County, California, United States. The city was incorporated on August 7, 1905.Located in the eastern region of the San Francisco Bay Area, Richmond borders the cities of San Pablo,Albany, El Cerrito and Pinole in addition to the unincorporated communities of North Richmond, Hasford Heights, Kensington, El Sobrante, Bayview-Montalvin Manor, Tara Hills,...

description source
  • Population
    Population (2012) 106,516
    Population Density 3,542 ppl/sq mi
    Population Growth Rate 2.7%
    Median Income $51,652
    Median Age 34.1
    Unemployment 12.5%
    Family Household Percent 66.5%
    Avg. Household Size 2.8
    Avg. House Price $244,700
    Foreign Born 31.1%
    Married 40.4%
    Cost of Living 68.0%
  • Average Temperature
    January 50.2°F 10.1°C
    February 53.2°F 11.8°C
    March 55.7°F 13.2°C
    April 57.8°F 14.3°C
    May 60.4°F 15.8°C
    June 63.1°F 17.3°C
    July 63.2°F 17.3°C
    August 64.0°F 17.8°C
    September 65.1°F 18.4°C
    October 62.7°F 17.1°C
    November 56.1°F 13.4°C
    December 50.7°F 10.4°C
  • Demographics
    White 18.4%
    Hispanic / Latino 41.5%
    Black / African American 23.7%
    Asian 11.8%
    Native American 0.3%

  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/50
    Source: 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/50
    Source: 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/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

The following cities have the highest PYE for Abrasive Blast Cleaning Service within 500 miles of Richmond based on a number of market characteristics. See More Results

The following businesse types have the highest PYE in Richmond. See More Results