Market Research Report
Based on the parameters below, we project this business would break even in 2.6 years with a net present value of $240,585.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$38,440||$57,660||$76,881||$80,417||$84,116|
|Net Cash Flow||-$100,252||$38,440||$57,660||$76,881||$80,417||$336,465|
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 San Buenaventura.
- median income
- gross rent
- population density
- July temperature
- November temperature
- household size
- May temperature
- family households
- land area
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.
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About San Buenaventura and its Consumers
Ventura (officially the City of San Buenaventura; commonly called San Buenaventura before 1891), or Shisholop in Chumash is the county seat of Ventura County, California, United States, incorporated in 1866. The population was 106,433 at the 2010 census, up from 100,916 at the 2000 census. Ventura is accessible via U.S. Route 101, State Route 33, and State Route 126. Ventura is located northwest of Los Angeles on the California coast. The western portion of the City stretches north along the Ventura River and is characterized by a narrow valley with steeply sloped areas along both sides. The steep slopes of the Ventura foothills abut the northern portion of the community. Much of the eastern portion is on relatively flat alluvial coastal plain lying along the western edge of the Oxnard Plain. The Santa Clara River forms the city's southerly boundary with the city limits reaching up to the beginning of the Santa Clara River Valley at the historic community of Saticoy. According to the United States Census Bureau, Ventura has a total area of 32.1 square miles (83 km2), of which 21.7 square miles (56 km2) is land and 10.4 square miles (27 km2) (32.53%) is water.
Ventura (officially the City of San Buenaventura; commonly called San Buenaventura before 1891), or Shisholop in Chumash is the county seat of Ventura County, California, United States, incorporated in 1866. The population was 106,433 at the 2010 census, up from 100,916 at the 2000 census. Ventura is accessible via U.S. Route 101, State Route 33, and State Route 126. Ventura is located...description source
Population Population (2012) 107,734 Population Density 4,975 ppl/sq mi Population Growth Rate 1.2% Median Income $62,410 Median Age 36.8 Unemployment 9.6% Family Household Percent 65.5% Avg. Household Size 2.6 Avg. House Price $465,500 Foreign Born 12.2% Married 25.8% Cost of Living 68.4%
Demographics White 60.5% Hispanic / Latino 31.6% Black / African American 1.9% Asian 3.1% Native American 0.4%
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.