Market Research Report
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 Operating Profits||$12,053||$18,079||$24,106||$25,215||$26,375|
|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.
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.
- median income
- gross rent
- population density
- household size
- land area
- July temperature
- November temperature
- family households
- May temperature
- median resident age
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.
30028 Industrial Pkwy SW Hayward, CA 94544
Madco Welding Supply
1988 Old Middlefield Way Mountain View, CA 94043
National Abrasives - CLOSED
1655 Abram Ct San Leandro, CA 94577
Abrasive Supply Corp
1203 Dell Ave Campbell, CA 95008
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%
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/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.