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 $287,325.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$41,601||$62,402||$83,202||$87,029||$91,033|
|Net Cash Flow||-$81,538||$41,601||$62,402||$83,202||$87,029||$364,131|
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 Sacramento.
- median income
- gross rent
- population density
- July temperature
- land area
- household size
- November temperature
- May temperature
- family households
- 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.
Turbo Blast Pressure Washing
Serving the Sacramento Area.
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About Sacramento and its Consumers
Sacramento is the capital of California and the seat of Sacramento County. It is located in the north-central part of the state at the confluence of the Sacramento and American rivers.In 1839, German-born Swiss citizen John Augustus Sutter obtained a grant from the Mexican governor to establish a colony for fellow Swiss emigrants on a large tract of land that he named New Helvetia (New Switzerland). He established Fort Sutter there as a trading post. The city has always been a hub of river transportation and is a major deep-water port connected to the Pacific Ocean. Sacramento's economy is highly diversified and, along with state government and military installations, its industries include aerospace, high technology, furniture, chemicals, pharmaceuticals, meat packing, and food processing of crops from the Central Valley. Elected in 2008 and reelected in 2012, Kevin Maurice Johnson is the first African American and Sacramento native to serve as mayor.
Sacramento is the capital of California and the seat of Sacramento County. It is located in the north-central part of the state at the confluence of the Sacramento and American rivers.In 1839, German-born Swiss citizen John Augustus Sutter obtained a grant from the Mexican governor to establish a colony for fellow Swiss emigrants on a large tract of land that he named New Helvetia (New...description source
Population Population (2012) 475,516 Population Density 4,856 ppl/sq mi Population Growth Rate 1.9% Median Income $47,908 Median Age 33.4 Unemployment 10.9% Family Household Percent 59.4% Avg. Household Size 2.6 Avg. House Price $208,500 Foreign Born 21.9% Married 38.9% Cost of Living 51.4%
Demographics White 31.9% Hispanic / Latino 27.0% Black / African American 12.8% Asian 20.9% Native American 0.7%
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.