Market Research Report

Abrasive Blast Cleaning Service opportunities in St. Louis, MO
$62,155 Potential Yearly Earnings What's this number?
$215,645 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 1.8 years with a net present value of $215,645.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $310,774 $466,161 $621,548 $641,438 $661,964
Net Costs $279,697 $419,545 $559,393 $577,294 $595,767
Net Operating Profits $31,077 $46,616 $62,155 $64,144 $66,196
Capital
      Startup Cost -$55,815
      Terminal Value $198,589
Net Cash Flow -$55,815 $31,077 $46,616 $62,155 $64,144 $264,785

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.

Financial Parameters

Change these parameters to customize your financial model

  Statistical Analysis
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 St. Louis.

  1. median income
  2. gross rent
  3. population density
  4. July temperature
  5. land area
  6. black
  7. November temperature
  8. May temperature
  9. household size
  10. white

  Competitors

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.

Starr Restoration Services, Inc. Regional Competitor
8816 Manchester Rd. Brentwood, MO 63144

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  About St. Louis and its Consumers

St. Louis is an independent city and a major United States port on the eastern line of the state of Missouri. At the2010 census, the population was 319,294, and a 2013 estimate put the population at 318,416, making it the 58th-largest U.S. city in 2013. The metropolitan St. Louis area, known as Greater St. Louis (CSA), is among the 20 largest metropolitan areas in the United States with a population of 2,900,605. The economy of St. Louis relies on service, manufacturing, trade, transportation of goods, and tourism. The city is home to several major corporations, including Express Scripts, Peabody Energy, Ameren, Ralcorp and Sigma-Aldrich. St. Louis is home to three professional sports teams: the St. Louis Cardinals, one of the most successful Major League Baseball clubs, the St. Louis Blues of the National Hockey League, and the St. Louis Rams of the National Football League. The city is commonly identified with the Gateway Arch, which is part of the Jefferson National Expansion Memorial in downtown St. Louis.

St. Louis is an independent city and a major United States port on the eastern line of the state of Missouri. At the2010 census, the population was 319,294, and a 2013 estimate put the population at 318,416, making it the 58th-largest U.S. city in 2013. The metropolitan St. Louis area, known as Greater St. Louis (CSA), is among the 20 largest metropolitan areas in the United States with a...

description source
  • Population
    Population (2012) 318,172
    Population Density 5,139 ppl/sq mi
    Population Growth Rate -0.4%
    Median Income $32,570
    Median Age 34.7
    Unemployment 6.8%
    Family Household Percent 47.5%
    Avg. Household Size 2.0
    Avg. House Price $120,500
    Foreign Born 6.7%
    Married 29.0%
    Cost of Living 47.1%
  • Average Temperature
    January 31.8°F -0.1°C
    February 36.3°F 2.4°C
    March 46.3°F 7.9°C
    April 57.3°F 14.1°C
    May 66.8°F 19.3°C
    June 75.9°F 24.4°C
    July 80.0°F 26.7°C
    August 78.6°F 25.9°C
    September 70.4°F 21.3°C
    October 58.7°F 14.8°C
    November 46.8°F 8.2°C
    December 34.7°F 1.5°C
  • Demographics
    White 43.3%
    Hispanic / Latino 3.6%
    Black / African American 47.8%
    Asian 2.3%
    Native American 0.1%

  Market & Regulatory Conditions For Missouri

Third parties rate Missouri's business and regulatory conditions according to their own methods. We report them here for informational purposes.

  • Small-Business Friendliness
    Overall small business friendliness B-
    Ease of starting a small business B
    Cost of hiring a new employee C+
    Overall regulatory friendliness C+
    Friendliness of health and safety regulations C-
    Friendliness of employment, labor, and hiring regulations C+
    Friendliness of tax code B-
    Friendliness of licensing regulations C+
    Friendliness of environmental regulations C-
    Friendliness of zoning regulations C-
    Publicity of training programs C-
    Publicity of networking programs C-
    Current economic health of small business 37th/50
    Change in revenue over past 12 months 38th/50
    Forecast of small business's future economic health 13th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 23th/50
    Cost of Doing Business 11th/50
    Economy 15th/50
    Infrastructure 13th/50
    Workforce 44th/50
    Quality of life 48th/50
    Technology and innovation 24th/50
    Business friendliness 29th/50
    Education 20th/50
    Cost of living 18th/50
    Access to capital 39th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Missouri Corporate Tax Rate 4.2%
    Avg Local Corporate Tax Rate in Missouri 3.4%
    Avg Combined Corporate Tax Rate 7.6%
    Overall tax friendliness 17th/50
    Corporate tax rank 4th/50
    Individual income tax rank 29th/50
    Sales tax rank 29th/50
    Unemployment insurance tax rank 12th/50
    Property tax rank 7th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

The following cities have the highest PYE for Abrasive Blast Cleaning Service within 500 miles of St. Louis based on a number of market characteristics. See More Results

The following businesse types have the highest PYE in St. Louis. See More Results