Market Research Report
Based on the parameters below, we project this business would break even in 1.8 years with a net present value of $335,635.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$48,909||$73,364||$97,819||$100,167||$102,571|
|Net Cash Flow||-$87,939||$48,909||$73,364||$97,819||$100,167||$410,282|
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 Sterling Heights.
- median income
- gross rent
- population density
- July temperature
- household size
- land area
- family households
- November temperature
- May temperature
Suppliers & Service Providers Contact List
Free help for entrepreneurs
Our experienced entrepreneurs can help you reach your goals.
We provide free business mentoring for entrepreneurs.
Connect with audiences in a whole new way
The easiest way to access consumer data and survey communities in real time.
Get a great business loan today!
Get a business loan that suits your needs.
Get the business loan you need and want.
About Sterling Heights and its Consumers
The city of Sterling Heights, situated along the banks of the Clinton River, is not only one of Michigan's largest in terms of population but also one of its largest in area. It is also one of the state's fastest growing large cities. Located in Macomb County, the city lies about 25 miles northeast of Detroit. Nearby communities include Warren (to the south), Troy (to the west), and Mt. Clemens (to the east). Sterling Heights is serviced by Michigan State Highways 53 and 59; and is close to Interstates I-75, I-94, and I-696. Settlement in the area now made up by Sterling Heights began shortly after the Revolutionary War. Farmers soon took advantage of the area's rich soil and built large homesteads, and by 1880, Sterling Township was a prosperous rural area consisting of farm homes and fields of wheat, corn and other crops. When the railroad era arrived, passenger trains from the Detroit and Bay City Railroad passed through Sterling Township four times a day.
The city of Sterling Heights, situated along the banks of the Clinton River, is not only one of Michigan's largest in terms of population but also one of its largest in area. It is also one of the state's fastest growing large cities. Located in Macomb County, the city lies about 25 miles northeast of Detroit. Nearby communities include Warren (to the south), Troy (to the west), and Mt. Clemens...description source
Population Population (2012) 130,410 Population Density 3,572 ppl/sq mi Population Growth Rate 0.5% Median Income $49,865 Median Age 40.3 Unemployment 8.0% Family Household Percent 69.8% Avg. Household Size 2.6 Avg. House Price $140,900 Foreign Born 21.5% Married 29.9% Cost of Living 47.1%
Demographics White 83.8% Hispanic / Latino 1.9% Black / African American 5.1% Asian 6.7% Native American 0.2%
Market & Regulatory Conditions For Michigan
Third parties rate Michigan'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 C- Friendliness of employment, labor, and hiring regulations D+ Friendliness of tax code C- Friendliness of licensing regulations D+ Friendliness of environmental regulations D+ Friendliness of zoning regulations D+ Publicity of training programs C+ Publicity of networking programs B- Current economic health of small business 28th/50 Change in revenue over past 12 months 15th/50 Forecast of small business's future economic health 25th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 26th/50 Cost of Doing Business 31th/50 Economy 28th/50 Infrastructure 16th/50 Workforce 15th/50 Quality of life 45th/50 Technology and innovation 14th/50 Business friendliness 32th/50 Education 34th/50 Cost of living 17th/50 Access to capital 23th/50Source: CNBC (2014)
Tax Friendliness Michigan Corporate Tax Rate 6.0% Avg Local Corporate Tax Rate in Michigan 0.0% Avg Combined Corporate Tax Rate 6.0% Overall tax friendliness 13th/50 Corporate tax rank 10th/50 Individual income tax rank 14th/50 Sales tax rank 7th/50 Unemployment insurance tax rank 47th/50 Property tax rank 27th/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.