Market Research Report
Based on the parameters below, we project this business would break even in 2.1 years with a net present value of $217,567.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$31,496||$47,243||$62,991||$66,782||$70,800|
|Net Cash Flow||-$65,946||$31,496||$47,243||$62,991||$66,782||$283,202|
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 Round Rock.
- median income
- gross rent
- population density
- July temperature
- household size
- November temperature
- May temperature
- family households
- land area
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.
Serving the Round Rock Area.
Gosco Equipment Inc
Serving the Round Rock Area.
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About Round Rock and its Consumers
Round Rock is situated in the Central Texas hill country in Williamson County and is part of the Austin-Round Rock Metropolitan region. It's the worldwide headquarters of Dell Inc. The city received the prestigious Comprehensive Planning Award given by the Texas Chapter of the American Planning Association. In 2008 the Austin-Round Rock area ranked number six on Kiplinger's Personal Finance "Best Place to Work and Play" list. The Senior Associate Editor stated that Round Rock was a family oriented suburb which provides top-notch public schools, an economy featuring Dell and a thriving sports tourism industry. The "Best Cities for Relocating Families" conducted by Primacy and Worldwide ERC placed the Austin-Round Rock area at number five in the nationwide study. In 1851 a small town was established along the banks of the Brushy Creek. In 1854 it was given the name Round Rock in tribute to the large round rock situated in the creek which marked a low-water crossing area for wagons and cattle. After the Civil War ended, Jesse Chisholm included Brushy Creek as part of his cattle trail. The route became the well known Chisholm Trail.
Round Rock is situated in the Central Texas hill country in Williamson County and is part of the Austin-Round Rock Metropolitan region. It's the worldwide headquarters of Dell Inc. The city received the prestigious Comprehensive Planning Award given by the Texas Chapter of the American Planning Association. In 2008 the Austin-Round Rock area ranked number six on Kiplinger's Personal Finance...description source
Population Population (2012) 106,573 Population Density 3,124 ppl/sq mi Population Growth Rate 6.7% Median Income $70,530 Median Age 31.7 Unemployment 5.2% Family Household Percent 73.0% Avg. Household Size 2.8 Avg. House Price $170,200 Foreign Born 12.0% Married 31.2% Cost of Living 49.0%
Demographics White 54.0% Hispanic / Latino 29.0% Black / African American 9.3% Asian 5.1% Native American 0.3%
Market & Regulatory Conditions For Texas
Third parties rate Texas's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness A+ Ease of starting a small business A Cost of hiring a new employee B+ Overall regulatory friendliness A Friendliness of health and safety regulations A- Friendliness of employment, labor, and hiring regulations A Friendliness of tax code A Friendliness of licensing regulations A Friendliness of environmental regulations A- Friendliness of zoning regulations A Publicity of training programs C+ Publicity of networking programs C Current economic health of small business 13th/50 Change in revenue over past 12 months 29th/50 Forecast of small business's future economic health 17th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 2th/50 Cost of Doing Business 23th/50 Economy 1th/50 Infrastructure 1th/50 Workforce 11th/50 Quality of life 37th/50 Technology and innovation 2th/50 Business friendliness 20th/50 Education 27th/50 Cost of living 18th/50 Access to capital 5th/50Source: CNBC (2014)
Tax Friendliness Texas Corporate Tax Rate 6.3% Avg Local Corporate Tax Rate in Texas 1.9% Avg Combined Corporate Tax Rate 8.2% Overall tax friendliness 10th/50 Corporate tax rank 39th/50 Individual income tax rank 6th/50 Sales tax rank 36th/50 Unemployment insurance tax rank 15th/50 Property tax rank 36th/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.