Market Research Report
Based on the parameters below, we project this business would break even in 2.3 years with a net present value of $374,872.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$57,289||$85,933||$114,577||$119,955||$125,586|
|Net Cash Flow||-$133,597||$57,289||$85,933||$114,577||$119,955||$502,345|
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 Seattle.
- median income
- gross rent
- population density
- July temperature
- land area
- November temperature
- household size
- 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.
13124 Admiralty Way Everett, WA 98204
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About Seattle and its Consumers
Seattle is a coastal seaport city and the seat of King County, in the U.S. state of Washington. With an estimated 652,405 residents as of 2013, Seattle is the largest city in both the State of Washington and the Pacific Northwest region of North America and, as of July 2013, the fastest-growing major city in the United States. The Seattle metropolitan area of around 3.6 million inhabitants is the 15th largest metropolitan area in the United States. The city is situated on a narrow isthmus between Puget Sound (an inlet of the Pacific Ocean) and Lake Washington, about 100 miles (160 km) south of the Canada–United States border. A major gateway for trade with Asia, Seattle is the 8th largest port in the United States and 9th largest in North America in terms of container handling
Seattle is a coastal seaport city and the seat of King County, in the U.S. state of Washington. With an estimated 652,405 residents as of 2013, Seattle is the largest city in both the State of Washington and the Pacific Northwest region of North America and, as of July 2013, the fastest-growing major city in the United States. The Seattle metropolitan area of around 3.6 million inhabitants is...description source
Population Population (2012) 634,535 Population Density 7,559 ppl/sq mi Population Growth Rate 4.3% Median Income $61,037 Median Age 36.1 Unemployment 4.7% Family Household Percent 42.9% Avg. Household Size 2.1 Avg. House Price $420,400 Foreign Born 17.0% Married 44.3% Cost of Living 61.1%
Demographics White 65.9% Hispanic / Latino 6.1% Black / African American 7.3% Asian 15.4% Native American 0.7%
Market & Regulatory Conditions For Washington
Third parties rate Washington's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness C- Ease of starting a small business B- Cost of hiring a new employee D+ Overall regulatory friendliness D+ Friendliness of health and safety regulations C Friendliness of employment, labor, and hiring regulations D+ Friendliness of tax code D Friendliness of licensing regulations D+ Friendliness of environmental regulations C- Friendliness of zoning regulations D+ Publicity of training programs A- Publicity of networking programs D+ Current economic health of small business 42th/50 Change in revenue over past 12 months 41th/50 Forecast of small business's future economic health 21th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 7th/50 Cost of Doing Business 34th/50 Economy 2th/50 Infrastructure 17th/50 Workforce 24th/50 Quality of life 6th/50 Technology and innovation 4th/50 Business friendliness 23th/50 Education 25th/50 Cost of living 38th/50 Access to capital 9th/50Source: CNBC (2014)
Tax Friendliness Washington Corporate Tax Rate 6.5% Avg Local Corporate Tax Rate in Washington 2.4% Avg Combined Corporate Tax Rate 8.9% Overall tax friendliness 11th/50 Corporate tax rank 28th/50 Individual income tax rank 6th/50 Sales tax rank 46th/50 Unemployment insurance tax rank 19th/50 Property tax rank 23th/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.
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