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 $446,296.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$62,495||$93,742||$124,989||$131,827||$139,038|
|Net Cash Flow||-$112,990||$62,495||$93,742||$124,989||$131,827||$556,153|
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 West Jordan.
- median income
- gross rent
- population density
- household size
- July temperature
- family households
- land area
- November temperature
- May temperature
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About West Jordan and its Consumers
West Jordan is located in Salt Lake Valley, bordered by mountains that reach a height of over 11,000 feet. The city is recognized as a suburb of Salt Lake City. The municipality takes its name from the close by Jordan River. Bingham Canyon Mine, one of the biggest man-made excavations in the entire world is nearby. The Jordan Landing development is one of the largest shopping locations in the state. The city includes a significant industrial base. In 1847 Mormon settlers along with their leader Brigham Young arrived in the Salt Lake Valley. The Mormons noticed the similarities of the western desert and the biblical lands and considered the region to be their Holy Land. They named the nearby river after the River Jordan, located in Palestine. The city was established in approximately 1849. The saw mill industry began in 1850. During the early stages, the city's economy was based on agriculture, mills as well as mining. Jordan was home to one of the first leather tanneries located west of the Mississippi River and to some of the earliest air flights emanating in the west. It was also a major center for sugar beet prodcution.
West Jordan is located in Salt Lake Valley, bordered by mountains that reach a height of over 11,000 feet. The city is recognized as a suburb of Salt Lake City. The municipality takes its name from the close by Jordan River. Bingham Canyon Mine, one of the biggest man-made excavations in the entire world is nearby. The Jordan Landing development is one of the largest shopping locations in the...description source
Population Population (2012) 108,383 Population Density 3,339 ppl/sq mi Population Growth Rate 4.5% Median Income $64,899 Median Age 28.2 Unemployment 4.1% Family Household Percent 83.0% Avg. Household Size 3.5 Avg. House Price $221,000 Foreign Born 8.7% Married 30.1% Cost of Living 47.4%
Demographics White 77.3% Hispanic / Latino 16.0% Black / African American 0.9% Asian 2.5% Native American 0.3%
Market & Regulatory Conditions For Utah
Third parties rate Utah'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 A- Overall regulatory friendliness A- Friendliness of health and safety regulations A Friendliness of employment, labor, and hiring regulations B 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 B+ Current economic health of small business 8th/50 Change in revenue over past 12 months 7th/50 Forecast of small business's future economic health 3th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 3th/50 Cost of Doing Business 16th/50 Economy 6th/50 Infrastructure 28th/50 Workforce 12th/50 Quality of life 15th/50 Technology and innovation 18th/50 Business friendliness 4th/50 Education 46th/50 Cost of living 20th/50 Access to capital 1th/50Source: CNBC (2014)
Tax Friendliness Utah Corporate Tax Rate 5.9% Avg Local Corporate Tax Rate in Utah 0.7% Avg Combined Corporate Tax Rate 6.7% Overall tax friendliness 9th/50 Corporate tax rank 5th/50 Individual income tax rank 12th/50 Sales tax rank 19th/50 Unemployment insurance tax rank 22th/50 Property tax rank 4th/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.