Market Research Report

Abrasive Blast Cleaning Service opportunities in San Jose, CA
$24,106 Potential Yearly Earnings What's this number?
$328 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 8.8 years with a net present value of $328.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $120,529 $180,793 $241,058 $252,147 $263,745
Net Costs $108,476 $162,714 $216,952 $226,932 $237,371
Net Operating Profits $12,053 $18,079 $24,106 $25,215 $26,375
Capital
      Startup Cost -$106,541
      Terminal Value $79,124
Net Cash Flow -$106,541 $12,053 $18,079 $24,106 $25,215 $105,498

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.

Financial Parameters

Change these parameters to customize your financial model

  Statistical Analysis
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 Jose.

  1. median income
  2. gross rent
  3. population density
  4. household size
  5. land area
  6. July temperature
  7. November temperature
  8. family households
  9. May temperature
  10. median resident age

  Competitors

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.

Kleen Blast Regional Competitor
30028 Industrial Pkwy SW Hayward, CA 94544

Madco Welding Supply Regional Competitor
1988 Old Middlefield Way Mountain View, CA 94043

National Abrasives - CLOSED Regional Competitor
1655 Abram Ct San Leandro, CA 94577

Abrasive Supply Corp Regional Competitor
1203 Dell Ave Campbell, CA 95008

Fas'n'go Local Competitor
539 E Brokaw Rd San Jose, CA 95112

TIP: Your market is dominated by regional chains. Consider entering the market with an independant business or a national franchise.

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  About San Jose and its Consumers

San Jose, the third-largest city in California and seat of Santa Clara County, is located in the northern part of the state in the Santa Clara Valley, 50 mi south of downtown San Francisco. San Jose was founded on Nov. 29, 1777, by Spanish colonizers who named the settlement Pueblo de San José de Guadalupe in honor of Saint Joseph and after the Guadalupe River on which the pueblo (town) was situated. San Jose was the first city to be established in California. Today, the city continues to be the distribution and food-processing center for the surrounding rich agricultural region, which produces seasonal fruits and grapes. More than 50 wineries grace the valley. San Jose is the capital of Silicon (Santa Clara) Valley, where many high-tech companies are located. The area is also one of the world's leading centers for medical treatment and research. Heart transplants, gene splicing, and transportable baby incubators were developed there. San Jose has healthy retail, transportation, and tourism industries and is the primary center for real estate and industrial development in the area. Also, in a ranking of America's safest cities in 2011, San Jose came in at number six.

San Jose, the third-largest city in California and seat of Santa Clara County, is located in the northern part of the state in the Santa Clara Valley, 50 mi south of downtown San Francisco. San Jose was founded on Nov. 29, 1777, by Spanish colonizers who named the settlement Pueblo de San José de Guadalupe in honor of Saint Joseph and after the Guadalupe River on which the pueblo (town) was...

description source
  • Population
    Population (2012) 982,765
    Population Density 5,567 ppl/sq mi
    Population Growth Rate 3.9%
    Median Income $76,593
    Median Age 35.2
    Unemployment 7.9%
    Family Household Percent 72.8%
    Avg. Household Size 3.1
    Avg. House Price $540,800
    Foreign Born 37.0%
    Married 33.8%
    Cost of Living 72.9%
  • Average Temperature
    January 50.1°F 10.1°C
    February 53.3°F 11.8°C
    March 56.2°F 13.4°C
    April 58.9°F 14.9°C
    May 63.4°F 17.4°C
    June 67.5°F 19.7°C
    July 70.0°F 21.1°C
    August 70.1°F 21.2°C
    September 68.5°F 20.3°C
    October 63.2°F 17.3°C
    November 55.1°F 12.8°C
    December 50.0°F 10.0°C
  • Demographics
    White 27.5%
    Hispanic / Latino 33.2%
    Black / African American 2.7%
    Asian 32.7%
    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/50
    Source: 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/50
    Source: 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/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

The following cities have the highest PYE for Abrasive Blast Cleaning Service within 500 miles of San Jose based on a number of market characteristics. See More Results

The following businesse types have the highest PYE in San Jose. See More Results