Market Research Report
Based on the parameters below, we project this business would break even in 3.1 years with a net present value of $51,339.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$9,202||$13,802||$18,403||$18,979||$19,573|
|Net Cash Flow||-$28,976||$9,202||$13,802||$18,403||$18,979||$78,292|
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 Toledo.
- median income
- gross rent
- population density
- July temperature
- land area
- household size
- 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.
Performance Tool & Abrasives Inc
2112 Monroe St Toledo, OH 43604
22202 Candace Dr Rockwood, MI 48173
Ervin Amasteel Div of Ervin Industries
915 Tabor St Adrian, MI 49221
Ervin Industries Product Development Center
200 Industrial Dr Tecumseh, MI 49286
Dlubak Fabrication Inc
400 Cedar St Gibsonburg, OH 43431
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Toledo and its Consumers
Toledo is the fourth most populous city in the U.S. state of Ohio and is the county seat of Lucas County.Toledo is in northwest Ohio, on the western end of Lake Erie, and borders the State of Michigan. The city was founded in 1833 on the west bank of the Maumee River, originally incorporated as part of Monroe County, Michigan Territory, then re-founded in 1837, after conclusion of the Toledo War, when it was incorporated in Ohio. Toledo grew quickly as a result of the Miami and Erie Canal and its position on the railway line between New York and Chicago. It has since become a city well known for its industry, particularly in glass and auto assembly, as well as for its art community, education, healthcare, and local sports teams. The population of Toledo as of the 2010 Census was 287,208, while the Toledo metropolitan area had a population of 651,429.
Toledo is the fourth most populous city in the U.S. state of Ohio and is the county seat of Lucas County.Toledo is in northwest Ohio, on the western end of Lake Erie, and borders the State of Michigan. The city was founded in 1833 on the west bank of the Maumee River, originally incorporated as part of Monroe County, Michigan Territory, then re-founded in 1837, after conclusion of the Toledo...description source
Population Population (2012) 284,012 Population Density 3,519 ppl/sq mi Population Growth Rate -1.1% Median Income $31,090 Median Age 34.3 Unemployment 9.2% Family Household Percent 57.1% Avg. Household Size 2.3 Avg. House Price $81,900 Foreign Born 3.9% Married 40.5% Cost of Living 48.9%
Demographics White 61.2% Hispanic / Latino 7.3% Black / African American 26.1% Asian 1.0% Native American 0.3%
Market & Regulatory Conditions For Ohio
Third parties rate Ohio'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 C Friendliness of health and safety regulations C- Friendliness of employment, labor, and hiring regulations C Friendliness of tax code C- Friendliness of licensing regulations C Friendliness of environmental regulations C+ Friendliness of zoning regulations B- Publicity of training programs D+ Publicity of networking programs D Current economic health of small business 41th/50 Change in revenue over past 12 months 24th/50 Forecast of small business's future economic health 40th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 18th/50 Cost of Doing Business 15th/50 Economy 15th/50 Infrastructure 6th/50 Workforce 46th/50 Quality of life 43th/50 Technology and innovation 17th/50 Business friendliness 33th/50 Education 15th/50 Cost of living 15th/50 Access to capital 29th/50Source: CNBC (2014)
Tax Friendliness Ohio Corporate Tax Rate 5.8% Avg Local Corporate Tax Rate in Ohio 1.4% Avg Combined Corporate Tax Rate 7.1% Overall tax friendliness 44th/50 Corporate tax rank 26th/50 Individual income tax rank 47th/50 Sales tax rank 32th/50 Unemployment insurance tax rank 5th/50 Property tax rank 20th/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.