Market Research Report
Based on the parameters below, we project this business would break even in 2.4 years with a net present value of $172,084.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$26,941||$40,412||$53,883||$56,000||$58,200|
|Net Cash Flow||-$65,090||$26,941||$40,412||$53,883||$56,000||$232,801|
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 Springfield.
- median income
- gross rent
- population density
- July temperature
- household size
- land area
- November temperature
- May temperature
- family households
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.
Blast Off Carpet & Upholstery
46 Yale Dr Enfield, CT 06082
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About Springfield and its Consumers
Springfield is a city in Western New England, and the seat of Hampden County, Massachusetts, United States. Springfield sits on the eastern bank of the Connecticut River near its confluence with three rivers; the western Westfield River, the eastern Chicopee River, and the eastern Mill River. As of the 2010 Census, the city's population was 153,060. Metropolitan Springfield, as one of two metropolitan areas in Massachusetts (the other being Greater Boston), had an estimated population of 698,903 as of 2009. The first Springfield in the New World, it is the largest city in Western New England, and the urban, economic, and cultural capital of Massachusetts' Connecticut River Valley (colloquially known as the Pioneer Valley). It is the third-largest city in Massachusetts and fourth-largest in New England, after Boston, Worcester, and Providence, Rhode Island. Springfield has several nicknames The City of Firsts, because of its many innovations (see below for a partial list); The City of Homes, due to its Victorian residential architecture; and Hoop City, because basketball - one of the world's most popular sports - was invented in Springfield.
Springfield is a city in Western New England, and the seat of Hampden County, Massachusetts, United States. Springfield sits on the eastern bank of the Connecticut River near its confluence with three rivers; the western Westfield River, the eastern Chicopee River, and the eastern Mill River. As of the 2010 Census, the city's population was 153,060. Metropolitan Springfield, as one of two...description source
Population Population (2012) 153,552 Population Density 4,818 ppl/sq mi Population Growth Rate 0.3% Median Income $32,124 Median Age 31.8 Unemployment 11.8% Family Household Percent 63.5% Avg. Household Size 2.6 Avg. House Price $149,400 Foreign Born 10.1% Married 44.2% Cost of Living 63.3%
Demographics White 36.3% Hispanic / Latino 40.8% Black / African American 18.5% Asian 1.9% Native American 0.2%
Market & Regulatory Conditions For Massachusetts
Third parties rate Massachusetts's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness D Ease of starting a small business D+ Cost of hiring a new employee C+ Overall regulatory friendliness D Friendliness of health and safety regulations D Friendliness of employment, labor, and hiring regulations D Friendliness of tax code D+ Friendliness of licensing regulations D Friendliness of environmental regulations D+ Friendliness of zoning regulations D+ Publicity of training programs C Publicity of networking programs A- Current economic health of small business 24th/50 Change in revenue over past 12 months 10th/50 Forecast of small business's future economic health 37th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 25th/50 Cost of Doing Business 46th/50 Economy 19th/50 Infrastructure 45th/50 Workforce 20th/50 Quality of life 7th/50 Technology and innovation 5th/50 Business friendliness 21th/50 Education 3th/50 Cost of living 45th/50 Access to capital 9th/50Source: CNBC (2014)
Tax Friendliness Massachusetts Corporate Tax Rate 6.3% Avg Local Corporate Tax Rate in Massachusetts 0.0% Avg Combined Corporate Tax Rate 6.3% Overall tax friendliness 24th/50 Corporate tax rank 37th/50 Individual income tax rank 13th/50 Sales tax rank 21th/50 Unemployment insurance tax rank 48th/50 Property tax rank 45th/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.