Market Research Report

Abrasive Blast Cleaning Service opportunities in Saint Paul, MN
$11,690 Potential Yearly Earnings What's this number?
$3,920 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 8.2 years with a net present value of $3,920.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $58,452 $87,678 $116,904 $121,855 $127,016
Net Costs $52,607 $78,910 $105,214 $109,670 $114,315
Net Operating Profits $5,845 $8,768 $11,690 $12,186 $12,702
Capital
      Startup Cost -$47,706
      Terminal Value $38,105
Net Cash Flow -$47,706 $5,845 $8,768 $11,690 $12,186 $50,806

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 Saint Paul.

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

  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.

Rockler National Competitor
1872 Beam Ave Saint Paul, MN 55109

Rockler National Competitor
1935 Beam Ave Saint Paul, MN 55109

Abrasives of St. Paul Regional Competitor
1000 Labore Industrial Ct Saint Paul, MN 55110

Cutting Edge Abbrasives Local Competitor
429 Wabasha St S Saint Paul, MN 55107

Star Fab Local Competitor
1156 7th St E Saint Paul, MN 55106

  Suppliers & Service Providers Contact List

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  About Saint Paul and its Consumers

Saint Paul is the capital and second-most populous city of the State of Minnesota. As of 2013, the city's estimated population was 294,873.Saint Paul is the county seat of Ramsey County, the smallest and most densely populated county in Minnesota .The city lies mostly on the east bank of the Mississippi River in the area surrounding its point of confluence with the Minnesota River, and adjoins Minneapolis, the state's largest city. Known as the "Twin Cities," the two form the core of Minneapolis–Saint Paul, the 16th-largest metropolitan area in the United States, with about 3.46 million residents. The Minneapolis–Saint Paul–Bloomington area employs 1,570,700 people in the private sector as of July 2008, 82.43 percent of which work in private service providing-related jobs. Major corporations headquartered in Saint Paul include Ecolab, a chemical and cleaning product company, which was named in 2008 by the Minneapolis / St. Paul Business Journal as the eighth best place to work in the Twin Cites for companies with 1,000 full-time Minnesota employees, Securian Financial Group Inc. and Gander Mountain, a retailer of sporting goods which operates 115 stores in 23 states.

Saint Paul is the capital and second-most populous city of the State of Minnesota. As of 2013, the city's estimated population was 294,873.Saint Paul is the county seat of Ramsey County, the smallest and most densely populated county in Minnesota .The city lies mostly on the east bank of the Mississippi River in the area surrounding its point of confluence with the Minnesota River, and adjoins...

description source
  • Population
    Population (2012) 290,770
    Population Density 5,593 ppl/sq mi
    Population Growth Rate 2.0%
    Median Income $42,069
    Median Age 30.8
    Unemployment 5.7%
    Family Household Percent 53.8%
    Avg. Household Size 2.5
    Avg. House Price $173,600
    Foreign Born 15.3%
    Married 43.5%
    Cost of Living 59.5%
  • Average Temperature
    January 17.0°F -8.3°C
    February 22.0°F -5.6°C
    March 33.7°F 0.9°C
    April 48.8°F 9.3°C
    May 60.0°F 15.6°C
    June 69.2°F 20.7°C
    July 73.9°F 23.3°C
    August 71.6°F 22.0°C
    September 62.5°F 16.9°C
    October 49.6°F 9.8°C
    November 34.8°F 1.6°C
    December 20.7°F -6.3°C
  • Demographics
    White 56.6%
    Hispanic / Latino 9.9%
    Black / African American 14.5%
    Asian 14.6%
    Native American 0.7%

  Market & Regulatory Conditions For Minnesota

Third parties rate Minnesota'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 B
    Overall regulatory friendliness C+
    Friendliness of health and safety regulations B-
    Friendliness of employment, labor, and hiring regulations C+
    Friendliness of tax code C
    Friendliness of licensing regulations C
    Friendliness of environmental regulations B
    Friendliness of zoning regulations B
    Publicity of training programs B-
    Publicity of networking programs C-
    Current economic health of small business 12th/50
    Change in revenue over past 12 months 4th/50
    Forecast of small business's future economic health 24th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 6th/50
    Cost of Doing Business 38th/50
    Economy 5th/50
    Infrastructure 5th/50
    Workforce 30th/50
    Quality of life 4th/50
    Technology and innovation 11th/50
    Business friendliness 15th/50
    Education 12th/50
    Cost of living 28th/50
    Access to capital 11th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Minnesota Corporate Tax Rate 6.9%
    Avg Local Corporate Tax Rate in Minnesota 0.3%
    Avg Combined Corporate Tax Rate 7.2%
    Overall tax friendliness 47th/50
    Corporate tax rank 44th/50
    Individual income tax rank 46th/50
    Sales tax rank 37th/50
    Unemployment insurance tax rank 29th/50
    Property tax rank 34th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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