Market Research Report
Based on the parameters below, we project this business would break even in 2.6 years with a net present value of $372,005.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$58,893||$88,339||$117,785||$123,203||$128,870|
|Net Cash Flow||-$150,176||$58,893||$88,339||$117,785||$123,203||$515,482|
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 Simi Valley.
- median income
- gross rent
- population density
- household size
- November temperature
- July temperature
- land area
- family households
- 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.
Standard Abrasives Inc
4201 Guardian St Simi Valley, CA 93063
American FreezeBlast - CLOSED
PO Box 9236 Canoga Park, CA 91309
Master Blaster Pressure Wshng
4426 W 64th St Inglewood, CA 90302
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About Simi Valley and its Consumers
Simi Valley is a town located in the valley of the same name, Simi Valley, in the southeast corner of Ventura County, California, United States. Situated 30 miles from Downtown Los Angeles, Simi Valley is part of the Greater Los Angeles Area. The city is adjacent to Thousand Oaks, Moorpark, and the Los Angeles neighborhood of Chatsworth. According to the United States Bureau of the Census, the city had a population of 126,874 in 2012, up from 111,351 in 2000. The Ronald Reagan Presidential Library, where the former president was buried following his death in 2004, is in Simi Valley. The city of Simi Valley is surrounded by the Santa Susana Mountain range and the Simi Hills, west of the San Fernando Valley, and northeast of the Conejo Valley. It is largely a commuter bedroom community feeding the larger cities in Ventura County to the west and the Los Angeles area and the San Fernando Valley to the east. A study done by the University of Vermont ranked Simi Valley as the fifth-happiest city in the United States.
Simi Valley is a town located in the valley of the same name, Simi Valley, in the southeast corner of Ventura County, California, United States. Situated 30 miles from Downtown Los Angeles, Simi Valley is part of the Greater Los Angeles Area. The city is adjacent to Thousand Oaks, Moorpark, and the Los Angeles neighborhood of Chatsworth. According to the United States Bureau of the Census, the...description source
Population Population (2012) 125,793 Population Density 3,032 ppl/sq mi Population Growth Rate 1.3% Median Income $88,654 Median Age 37.6 Unemployment 6.6% Family Household Percent 76.9% Avg. Household Size 3.0 Avg. House Price $419,500 Foreign Born 17.3% Married 27.2% Cost of Living 66.9%
Demographics White 59.4% Hispanic / Latino 25.5% Black / African American 1.0% Asian 9.4% Native American 0.2%
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.