Market Research Report
Based on the parameters below, we project this business would break even in 5.1 years with a net present value of $83,396.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$21,971||$32,956||$43,941||$45,963||$48,077|
|Net Cash Flow||-$111,411||$21,971||$32,956||$43,941||$45,963||$192,308|
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 Francisco.
- median income
- gross rent
- population density
- November temperature
- July temperature
- household size
- land area
- May temperature
- median resident age
- February 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.
50 Oak Ct # 210 Danville, CA 94526
30028 Industrial Pkwy SW Hayward, CA 94544
150 N Wiget Ln Ste 103 Walnut Creek, CA 94598
Environmental Abrasive Blasting Inc.
876 Howe Rd Martinez, CA 94553
San Francisco, CA 94107
TIP: Your market is dominated by regional chains. Consider entering the market with an independant business or a national franchise.
Suppliers & Service Providers Contact List
Free help for entrepreneurs
Our professionals can help you get your business going.
We can help with your business plan! We have expertise and datasets.
Get a great business loan today!
Get a business loan that suits your needs.
Get the business loan you need and want.
Free help for entrepreneurs
Our experienced entrepreneurs can help you reach your goals.
We provide free business mentoring for entrepreneurs.
About San Francisco and its Consumers
San Francisco is the cultural center and a leading financial hub of the San Francisco Bay Area and Northern California. The only consolidated city-county in California, San Francisco encompasses a land area of about 46.9 square miles (121 km2) on the northern end of the San Francisco Peninsula, giving it a density of about 17,867 people per square mile (6,898 people per km2). It is the most densely settled large city in the state of California and the second-most densely populated major city in the United States after New York City. San Francisco is the fourth-most populous city in California, after Los Angeles, San Diego and San Jose, and the 14th-most populous city in the United Stateswith a Census-estimated 2013 population of 837,442. The city is also the financial and cultural hub of the larger San Jose-San Francisco-Oakland combined statistical area. San Francisco is a popular tourist destination, known for its cool summers, fog, steep rolling hills, eclectic mix of architecture, and landmarks including the Golden Gate Bridge, cable cars, the former prison on Alcatraz Island, and its Chinatown district. San Francisco is also the headquarters of five major banking institutions and various other companies.
San Francisco is the cultural center and a leading financial hub of the San Francisco Bay Area and Northern California. The only consolidated city-county in California, San Francisco encompasses a land area of about 46.9 square miles (121 km2) on the northern end of the San Francisco Peninsula, giving it a density of about 17,867 people per square mile (6,898 people per km2). It is the most...description source
Population Population (2012) 825,863 Population Density 17,619 ppl/sq mi Population Growth Rate 2.6% Median Income $69,894 Median Age 38.5 Unemployment 5.9% Family Household Percent 43.7% Avg. Household Size 2.3 Avg. House Price $719,800 Foreign Born 35.9% Married 46.2% Cost of Living 83.6%
Demographics White 41.6% Hispanic / Latino 15.4% Black / African American 5.6% Asian 33.2% Native American 0.3%
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.