Market Research Report
Based on the parameters below, we project this business would break even in 3.4 years with a net present value of $50,335.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$9,237||$13,856||$18,475||$19,334||$20,234|
|Net Cash Flow||-$31,616||$9,237||$13,856||$18,475||$19,334||$80,936|
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 Shreveport.
- median income
- gross rent
- population density
- July temperature
- land area
- November temperature
- household size
- May 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.
Generation Blasting and Restoration
710 Chinquapin Shreveport, LA 71106
Msc Industrial Inc
668 Bert Kouns Industrial Loop Shreveport, LA 71118
Msc Industrial Inc
1617 N Market St Shreveport, LA 71107
Pelican Industrial Equipment
933 Grimmett Dr Shreveport, LA 71107
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Shreveport and its Consumers
The Louisiana city of Shreveport is one of the state's largest cities and also the seat of Caddo Parish. Seated on the banks of the Red River, Shreveport is linked in many ways with its sister city on the other side of the river, Bossier City. Many refer to the two cities as "Shreveport-Bossier". Situated in the northwest corner of the state near the borders of Texas and Arkansas, Shreveport serves as the commercial and cultural center of the tri-state region, a region which is widely considered to be the border between the West and the South. Shreveport was founded in 1836 by the Shreve Town Company, a corporation established to develop a town located at the junction of the Red River and the Texas Trail. The Trail had long established itself as a prime overland route into the newly independent Republic of Texas and, before that, into Mexico. The River had recently been cleared of 180 miles of debris clogging its channel, thanks to the efforts of Captain Henry Miller Shreve, commander of the US Army Corps of Engineers.
The Louisiana city of Shreveport is one of the state's largest cities and also the seat of Caddo Parish. Seated on the banks of the Red River, Shreveport is linked in many ways with its sister city on the other side of the river, Bossier City. Many refer to the two cities as "Shreveport-Bossier". Situated in the northwest corner of the state near the borders of Texas and Arkansas, Shreveport...description source
Population Population (2012) 201,867 Population Density 1,915 ppl/sq mi Population Growth Rate 1.3% Median Income $36,593 Median Age 34.6 Unemployment 8.2% Family Household Percent 61.5% Avg. Household Size 2.4 Avg. House Price $125,400 Foreign Born 2.1% Married 39.4% Cost of Living 45.3%
Demographics White 38.3% Hispanic / Latino 2.6% Black / African American 55.9% Asian 0.6% Native American 0.4%
Market & Regulatory Conditions For Louisiana
Third parties rate Louisiana's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness A Ease of starting a small business A Cost of hiring a new employee D Overall regulatory friendliness A+ Friendliness of health and safety regulations A- Friendliness of employment, labor, and hiring regulations A Friendliness of tax code A- Friendliness of licensing regulations A+ Friendliness of environmental regulations A Friendliness of zoning regulations A+ Publicity of training programs A Publicity of networking programs A+ Current economic health of small business 5th/50 Change in revenue over past 12 months 14th/50 Forecast of small business's future economic health 16th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 40th/50 Cost of Doing Business 3th/50 Economy 44th/50 Infrastructure 36th/50 Workforce 26th/50 Quality of life 47th/50 Technology and innovation 36th/50 Business friendliness 39th/50 Education 44th/50 Cost of living 4th/50 Access to capital 47th/50Source: CNBC (2014)
Tax Friendliness Louisiana Corporate Tax Rate 4.0% Avg Local Corporate Tax Rate in Louisiana 4.9% Avg Combined Corporate Tax Rate 8.9% Overall tax friendliness 35th/50 Corporate tax rank 23th/50 Individual income tax rank 27th/50 Sales tax rank 50th/50 Unemployment insurance tax rank 6th/50 Property tax rank 24th/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.