Market Research Report
Based on the parameters below, we project this business would break even in 1.9 years with a net present value of $227,083.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$32,531||$48,796||$65,062||$68,012||$71,097|
|Net Cash Flow||-$61,158||$32,531||$48,796||$65,062||$68,012||$284,387|
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 Salem.
- median income
- gross rent
- population density
- July temperature
- household size
- land area
- November temperature
- family households
- May temperature
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.
Blast Cleaning Services
21720 SW Oregon St Sherwood, OR 97140
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About Salem and its Consumers
Salem is the capital of the U.S. state of Oregon, and the county seat of Marion County. It is located in the center of theWillamette Valley alongside the Willamette River, which runs north through the city. The river forms the boundary between Marion and Polk counties, and the city neighborhood of West Salem is in Polk County. Salem was founded in 1842, became the capital of the Oregon Territory in 1851, and was incorporated in 1857. Salem had a population of 154,637 at the 2010 census, making it the second largest city in the state after Portland. Salem is less than an hour driving distance away from Portland. Salem is the principal city of the Salem Metropolitan Statistical Area. The city is home to Willamette University and Corban University. The State of Oregon is the largest public employer in the city, and Salem Health is the largest private employer. Transportation includes public transit from Salem-Keizer Transit, Amtrak service, and non-commercial air travel at McNary Field. Major roads include Interstate 5, Oregon Route 99E, and Oregon Route 22 which connects West Salem across the Willamette River via the Marion Street and Center Street bridges.
Salem is the capital of the U.S. state of Oregon, and the county seat of Marion County. It is located in the center of theWillamette Valley alongside the Willamette River, which runs north through the city. The river forms the boundary between Marion and Polk counties, and the city neighborhood of West Salem is in Polk County. Salem was founded in 1842, became the capital of the Oregon...description source
Population Population (2012) 157,429 Population Density 3,286 ppl/sq mi Population Growth Rate 1.8% Median Income $43,880 Median Age 34.8 Unemployment 8.9% Family Household Percent 63.3% Avg. Household Size 2.5 Avg. House Price $187,200 Foreign Born 13.2% Married 31.8% Cost of Living 49.3%
Demographics White 70.1% Hispanic / Latino 19.2% Black / African American 1.7% Asian 3.0% Native American 0.9%
Market & Regulatory Conditions For Oregon
Third parties rate Oregon'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 A- Cost of hiring a new employee F Overall regulatory friendliness B- 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 B Current economic health of small business 19th/50 Change in revenue over past 12 months 12th/50 Forecast of small business's future economic health 27th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 22th/50 Cost of Doing Business 33th/50 Economy 10th/50 Infrastructure 23th/50 Workforce 39th/50 Quality of life 13th/50 Technology and innovation 22th/50 Business friendliness 26th/50 Education 39th/50 Cost of living 37th/50 Access to capital 15th/50Source: CNBC (2014)
Tax Friendliness Oregon Corporate Tax Rate 0.0% Avg Local Corporate Tax Rate in Oregon 0.0% Avg Combined Corporate Tax Rate 0.0% Overall tax friendliness 12th/50 Corporate tax rank 36th/50 Individual income tax rank 31th/50 Sales tax rank 4th/50 Unemployment insurance tax rank 30th/50 Property tax rank 15th/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.