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 $103,652.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$15,094||$22,641||$30,188||$32,005||$33,931|
|Net Cash Flow||-$32,220||$15,094||$22,641||$30,188||$32,005||$135,723|
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 Abilene.
- July temperature
- median income
- August temperature
- gross rent
- land area
- population density
- house price
- business activity
- February temperature
- April temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
283 N Judge Ely Blvd Abilene, TX 79601
1236 Grape St Abilene, TX 79601
3103 S 14th St Abilene, TX 79605
TIP: Your market is dominated by national chains. Consider entering the market with an independant business or a regional franchise.
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About Abilene and its Consumers
Abilene is a city in Taylor and Jones counties in west central Texas. The population was 117,063 according to the 2010 census making it the twenty-seventh most populous city in the state of Texas. It is the principal city of theAbilene Metropolitan Statistical Area, which had a 2011 estimated population of 166,416. It is the county seat of Taylor County. Abilene is located off Interstate 20, between exits 279 on its western edge and 292 on the east. Abilene is 150 miles (240 km) west of Fort Worth, Texas. The city is looped by I-20 to the north, US 83/84 on the west, and Loop 322 to the east. A railroad divides the city down the center into north and south. The historic downtown area is on the north side of the railroad. The fastest-growing sections of the city are growing to the southwest, along Southwest Drive, the Winters Freeway, and the Buffalo Gap Road corridor; the southeast, along Loop 322, Oldham Lane, Industrial Drive, and Maple Street; and in the northeast near the intersection of SH 351 and I-20. Many developments have begun in these three areas within the last few years.
Abilene is a city in Taylor and Jones counties in west central Texas. The population was 117,063 according to the 2010 census making it the twenty-seventh most populous city in the state of Texas. It is the principal city of theAbilene Metropolitan Statistical Area, which had a 2011 estimated population of 166,416. It is the county seat of Taylor County. Abilene is located off Interstate 20,...description source
Population Population (2012) 118,887 Population Density 1,113 ppl/sq mi Population Growth Rate 1.6% Median Income $38,403 Median Age 31.6 Unemployment 5.6% Family Household Percent 64.0% Avg. Household Size 2.5 Avg. House Price $85,300 Foreign Born 4.8% Married 33.5% Cost of Living 44.0%
Demographics White 62.1% Hispanic / Latino 23.3% Black / African American 10.2% Asian 2.0% Native American 0.3%
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/50Source: 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/50Source: 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/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.