Market Research Report

Abrasive Blast Cleaning Service opportunities in Warren, MI
$83,638 Potential Yearly Earnings What's this number?
$287,228 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 $287,228.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $418,189 $627,284 $836,378 $856,451 $877,006
Net Costs $376,370 $564,555 $752,740 $770,806 $789,305
Net Operating Profits $41,819 $62,728 $83,638 $85,645 $87,701
Capital
      Startup Cost -$74,939
      Terminal Value $263,102
Net Cash Flow -$74,939 $41,819 $62,728 $83,638 $85,645 $350,802

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 Warren.

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

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  About Warren and its Consumers

The Michigan city of Warren is located in Macomb County, about 15 miles north of Detroit. One of the largest suburbs in the Detroit metropolitan area, Warren is often referred to as the City of Progress. Other surrounding cities include Sterling Heights (to the north), Hazel Park (to the west), and Roseville (to the east). Interstate I-696 and Michigan State Highway 53 service the city, which is also close to Interstate I-75. First settled in 1835, the area which now comprises Warren was principally farming territory throughout much of its history. In 1909 a village emerged and this village would eventually become incorporated as the city of Warren in 1957. Between 1940 and 1970, the city experienced a very significant era of large population growth although since that time this trend has reversed itself. Warren today is home to a wide variety of businesses and serves as the headquarters of Big Boy Restaurants International

The Michigan city of Warren is located in Macomb County, about 15 miles north of Detroit. One of the largest suburbs in the Detroit metropolitan area, Warren is often referred to as the City of Progress. Other surrounding cities include Sterling Heights (to the north), Hazel Park (to the west), and Roseville (to the east). Interstate I-696 and Michigan State Highway 53 service the city, which...

description source
  • Population
    Population (2012) 134,141
    Population Density 3,901 ppl/sq mi
    Population Growth Rate 0.1%
    Median Income $41,658
    Median Age 39.7
    Unemployment 12.1%
    Family Household Percent 64.0%
    Avg. Household Size 2.5
    Avg. House Price $84,500
    Foreign Born 9.7%
    Married 35.0%
    Cost of Living 47.0%
  • Average Temperature
    January 25.5°F -3.6°C
    February 27.3°F -2.6°C
    March 35.0°F 1.7°C
    April 47.2°F 8.4°C
    May 58.6°F 14.8°C
    June 68.9°F 20.5°C
    July 73.3°F 22.9°C
    August 71.3°F 21.8°C
    September 63.9°F 17.7°C
    October 52.1°F 11.2°C
    November 40.8°F 4.9°C
    December 29.7°F -1.3°C
  • Demographics
    White 77.1%
    Hispanic / Latino 2.1%
    Black / African American 13.4%
    Asian 4.6%
    Native American 0.4%

  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/50
    Source: 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/50
    Source: 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/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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