Market Research Report
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 Operating Profits||$5,845||$8,768||$11,690||$12,186||$12,702|
|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.
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.
- median income
- gross rent
- population density
- July temperature
- household size
- land area
- May temperature
- November temperature
- family households
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.
1872 Beam Ave Saint Paul, MN 55109
1935 Beam Ave Saint Paul, MN 55109
Abrasives of St. Paul
1000 Labore Industrial Ct Saint Paul, MN 55110
Cutting Edge Abbrasives
429 Wabasha St S Saint Paul, MN 55107
1156 7th St E Saint Paul, MN 55106
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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 MinneapolisSaint Paul, the 16th-largest metropolitan area in the United States, with about 3.46 million residents. The MinneapolisSaint PaulBloomington 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%
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/50Source: 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/50Source: 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/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.