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 $255,575.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$36,020||$54,030||$72,040||$75,981||$80,138|
|Net Cash Flow||-$66,781||$36,020||$54,030||$72,040||$75,981||$320,550|
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 Salt Lake City.
- median income
- gross rent
- population density
- July temperature
- land area
- household size
- November temperature
- May 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.
8901 South 700 West Sandy, UT 84070
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About Salt Lake City and its Consumers
Salt Lake City, often shortened to Salt Lake, or SLC is the capital and the most populous city in the state of Utah. With an estimated population of 191,180 in 2013, the city lies in the core of the Salt Lake City metropolitan area, which has a total population of 1,140,483 as of the 2013 estimate. Salt Lake City is further situated in a larger urban area known as the Salt Lake City-Provo-Orem, UT Combined Statistical Area. This region is a corridor of contiguous urban and suburban development stretched along an approximate 120-mile segment of the Wasatch Front, comprising a total population of 2,389,225 as of 2013. It is one of only two major urban areas in the Great Basin (the other being Reno, Nevada), and the largest in the Intermountain West. The city was founded in 1847 by Brigham Young, Isaac Morley, George Washington Bradley and several other Mormon followers, who extensively irrigated and cultivated the arid valley. Due to its proximity to the Great Salt Lake, the city was originally named "Great Salt Lake City"the word "great" was dropped from the official name in 1868 by the 17th Utah Territorial Legislature.
Salt Lake City, often shortened to Salt Lake, or SLC is the capital and the most populous city in the state of Utah. With an estimated population of 191,180 in 2013, the city lies in the core of the Salt Lake City metropolitan area, which has a total population of 1,140,483 as of the 2013 estimate. Salt Lake City is further situated in a larger urban area known as the Salt Lake City-Provo-Orem,...description source
Population Population (2012) 189,314 Population Density 1,703 ppl/sq mi Population Growth Rate 1.5% Median Income $41,588 Median Age 31.2 Unemployment 4.2% Family Household Percent 52.5% Avg. Household Size 2.4 Avg. House Price $225,600 Foreign Born 16.9% Married 41.9% Cost of Living 48.6%
Demographics White 66.5% Hispanic / Latino 19.0% Black / African American 2.6% Asian 4.9% Native American 1.4%
Market & Regulatory Conditions For Utah
Third parties rate Utah'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 A- Overall regulatory friendliness A- Friendliness of health and safety regulations A Friendliness of employment, labor, and hiring regulations B 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 B+ Current economic health of small business 8th/50 Change in revenue over past 12 months 7th/50 Forecast of small business's future economic health 3th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 3th/50 Cost of Doing Business 16th/50 Economy 6th/50 Infrastructure 28th/50 Workforce 12th/50 Quality of life 15th/50 Technology and innovation 18th/50 Business friendliness 4th/50 Education 46th/50 Cost of living 20th/50 Access to capital 1th/50Source: CNBC (2014)
Tax Friendliness Utah Corporate Tax Rate 5.9% Avg Local Corporate Tax Rate in Utah 0.7% Avg Combined Corporate Tax Rate 6.7% Overall tax friendliness 9th/50 Corporate tax rank 5th/50 Individual income tax rank 12th/50 Sales tax rank 19th/50 Unemployment insurance tax rank 22th/50 Property tax rank 4th/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.