Market Research Report

Abrasive Blast Cleaning Service opportunities in Waco, TX
$17,847 Potential Yearly Earnings What's this number?
$52,594 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 3.1 years with a net present value of $52,594.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $89,234 $133,851 $178,468 $189,208 $200,593
Net Costs $80,311 $120,466 $160,621 $170,287 $180,534
Net Operating Profits $8,923 $13,385 $17,847 $18,921 $20,059
Capital
      Startup Cost -$27,732
      Terminal Value $60,178
Net Cash Flow -$27,732 $8,923 $13,385 $17,847 $18,921 $80,237

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 Waco.

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

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  About Waco and its Consumers

Waco is a city which is the county seat of McLennan County, Texas, United States.It is situated along the Brazos River and I-35, halfway between Dallas and Austin. The city had a 2010 population of 124,805, making it the twenty-second most populous city in the state. The Waco Metropolitan Statistical Area consists of McLennan County, which had a 2010 population of 234,906. As of the census of 2010, there were 124,805 people in the city, organized into 51,452 households and 27,115 families. The population density was recorded as 1,350.6 people per square mile (521.5/km2), with 45,819 housing units at an average density of 544.2 per square mile (210.1/km2). The 2000 racial makeup of the city was 60.78% White, 22.65% African American, 1.38% Asian, 0.51% Native American, 0.05% Pacific Islander, 12.38% from other races, and 2.26% from two or more races. 23.64% of the population was Hispanicor Latino of any race. Non-Hispanic Whites were 45.8% of the population in 2010, down from 66.6% in 1980 .

Waco is a city which is the county seat of McLennan County, Texas, United States.It is situated along the Brazos River and I-35, halfway between Dallas and Austin. The city had a 2010 population of 124,805, making it the twenty-second most populous city in the state. The Waco Metropolitan Statistical Area consists of McLennan County, which had a 2010 population of 234,906. As of the census of...

description source
  • Population
    Population (2012) 127,018
    Population Density 1,427 ppl/sq mi
    Population Growth Rate 1.8%
    Median Income $32,246
    Median Age 28.1
    Unemployment 7.5%
    Family Household Percent 58.4%
    Avg. Household Size 2.5
    Avg. House Price $100,400
    Foreign Born 10.8%
    Married 40.0%
    Cost of Living 45.1%
  • Average Temperature
    January 47.2°F 8.4°C
    February 50.8°F 10.4°C
    March 58.2°F 14.6°C
    April 66.1°F 18.9°C
    May 74.4°F 23.6°C
    June 81.2°F 27.3°C
    July 85.2°F 29.6°C
    August 85.3°F 29.6°C
    September 78.1°F 25.6°C
    October 68.3°F 20.2°C
    November 57.5°F 14.2°C
    December 48.3°F 9.1°C
  • Demographics
    White 44.2%
    Hispanic / Latino 30.6%
    Black / African American 22.0%
    Asian 1.7%
    Native American 0.08%

  Market & Regulatory Conditions For Texas

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

  • Small-Business Friendliness
    Overall small business friendliness A+
    Ease of starting a small business A
    Cost of hiring a new employee B+
    Overall regulatory friendliness A
    Friendliness of health and safety regulations A-
    Friendliness of employment, labor, and hiring regulations A
    Friendliness of tax code A
    Friendliness of licensing regulations A
    Friendliness of environmental regulations A-
    Friendliness of zoning regulations A
    Publicity of training programs C+
    Publicity of networking programs C
    Current economic health of small business 13th/50
    Change in revenue over past 12 months 29th/50
    Forecast of small business's future economic health 17th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 2th/50
    Cost of Doing Business 23th/50
    Economy 1th/50
    Infrastructure 1th/50
    Workforce 11th/50
    Quality of life 37th/50
    Technology and innovation 2th/50
    Business friendliness 20th/50
    Education 27th/50
    Cost of living 18th/50
    Access to capital 5th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Texas Corporate Tax Rate 6.3%
    Avg Local Corporate Tax Rate in Texas 1.9%
    Avg Combined Corporate Tax Rate 8.2%
    Overall tax friendliness 10th/50
    Corporate tax rank 39th/50
    Individual income tax rank 6th/50
    Sales tax rank 36th/50
    Unemployment insurance tax rank 15th/50
    Property tax rank 36th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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