Market Research Report
Based on the parameters below, we project this business would break even in 2.1 years with a net present value of $413,048.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$60,987||$91,480||$121,973||$127,971||$134,264|
|Net Cash Flow||-$129,535||$60,987||$91,480||$121,973||$127,971||$537,058|
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 Thornton.
- median income
- gross rent
- population density
- July temperature
- household size
- land area
- family households
- November temperature
- May temperature
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About Thornton and its Consumers
The city of Thornton is a Home Rule Municipality in Adams and Weld counties in the U.S. state of Colorado and a suburb of theDenver-Aurora-Broomfield, CO Metropolitan Statistical Area. Thornton is 10 miles (16 km) northeast of the state's capital, Denver. The United States Census Bureau that the city population was 118,772 on April 1, 2010, a 44.2% increase from the 2000 Census population of 82,384. Thornton is the sixth most populous city in the state of Colorado and the 213th most populous city in the United States. According to the United States Census Bureau, the city has a total area of 27.2 square miles (70 km2), of which, 26.9 square miles (70 km2) of it is land and 0.3 square miles (0.78 km2) of it (1.25%) is water. As of the census of 2000, there were 82,384 people, 28,882 households, and 21,517 families residing in the city. The population density was 3,066.7 people per square mile (1,184.2/km²). There were 29,573 housing units at an average density of 1,100.9 per square mile (425.1/km²).
The city of Thornton is a Home Rule Municipality in Adams and Weld counties in the U.S. state of Colorado and a suburb of theDenver-Aurora-Broomfield, CO Metropolitan Statistical Area. Thornton is 10 miles (16 km) northeast of the state's capital, Denver. The United States Census Bureau that the city population was 118,772 on April 1, 2010, a 44.2% increase from the 2000 Census population of...description source
Population Population (2012) 124,140 Population Density 3,562 ppl/sq mi Population Growth Rate 4.5% Median Income $62,144 Median Age 31.9 Unemployment 7.0% Family Household Percent 73.1% Avg. Household Size 2.9 Avg. House Price $206,300 Foreign Born 9.7% Married 31.7% Cost of Living 55.7%
Demographics White 64.8% Hispanic / Latino 28.9% Black / African American 1.4% Asian 2.8% Native American 0.3%
Market & Regulatory Conditions For Colorado
Third parties rate Colorado'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 B+ Overall regulatory friendliness B+ Friendliness of health and safety regulations B Friendliness of employment, labor, and hiring regulations B+ Friendliness of tax code B+ Friendliness of licensing regulations B+ Friendliness of environmental regulations B- Friendliness of zoning regulations B- Publicity of training programs D+ Publicity of networking programs C Current economic health of small business 33th/50 Change in revenue over past 12 months 33th/50 Forecast of small business's future economic health 9th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 8th/50 Cost of Doing Business 35th/50 Economy 8th/50 Infrastructure 29th/50 Workforce 5th/50 Quality of life 12th/50 Technology and innovation 9th/50 Business friendliness 16th/50 Education 28th/50 Cost of living 34th/50 Access to capital 1th/50Source: CNBC (2014)
Tax Friendliness Colorado Corporate Tax Rate 2.9% Avg Local Corporate Tax Rate in Colorado 4.5% Avg Combined Corporate Tax Rate 7.4% Overall tax friendliness 20th/50 Corporate tax rank 12th/50 Individual income tax rank 16th/50 Sales tax rank 43th/50 Unemployment insurance tax rank 35th/50 Property tax rank 22th/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.