Market Research Report
Based on the parameters below, we project this business would break even in 2.0 years with a net present value of $161,954.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$23,987||$35,980||$47,974||$49,749||$51,589|
|Net Cash Flow||-$48,693||$23,987||$35,980||$47,974||$49,749||$206,357|
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 Allentown.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- business activity
- nearby population
- land area
- April temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
Serving the Allentown Area.
Serving the Allentown Area.
Silver Tax Group
Serving the Allentown Area.
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About Allentown and its Consumers
Allentown, located in eastern Pennsylvania on the Lehigh River, is the third-largest city in the state. Founded in 1762 by William Allen, the city was named after him in 1838. It has traditionally been an industrial city, with its economy depending on iron and mining. As chronicled on the famous 1982 Billy Joel song, Allentown has seen the fall of these industries in recent years. Today, Allentown's economy is diversified among a wide range of products and services, including printing and publishing, food processing, chemicals, electrical and medical equipment, and furniture. Its 110,000 residents already know that Allentown is a great place to live. Located just 35 miles northwest of Philadelphia and a short drive from the Poconos, Allentown offers the comfort and amenities of a small city, with big city attractions and rural splendor both just minutes away. Allentown's cultural attractions include the Allentown Art Museum, the Museum of Indian Culture, Haines Mill Museum and the Civic Theater of Allentown. Mayfair, a five-day multicultural arts festival held each May, is one of the largest of its kind in the country, attracting hundreds of thousands of visitor.
Allentown, located in eastern Pennsylvania on the Lehigh River, is the third-largest city in the state. Founded in 1762 by William Allen, the city was named after him in 1838. It has traditionally been an industrial city, with its economy depending on iron and mining. As chronicled on the famous 1982 Billy Joel song, Allentown has seen the fall of these industries in recent years. Today,...description source
Population Population (2012) 118,974 Population Density 6,780 ppl/sq mi Population Growth Rate 0.8% Median Income $30,784 Median Age 32.6 Unemployment 10.2% Family Household Percent 62.3% Avg. Household Size 2.6 Avg. House Price $128,500 Foreign Born 12.5% Married 42.2% Cost of Living 53.2%
Demographics White 43.2% Hispanic / Latino 42.8% Black / African American 9.6% Asian 2.1% Native American 0.2%
Market & Regulatory Conditions For Pennsylvania
Third parties rate Pennsylvania's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness C Ease of starting a small business C+ 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 C Publicity of training programs D Publicity of networking programs C Current economic health of small business 26th/50 Change in revenue over past 12 months 34th/50 Forecast of small business's future economic health 39th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 44th/50 Cost of Doing Business 42th/50 Economy 37th/50 Infrastructure 37th/50 Workforce 48th/50 Quality of life 35th/50 Technology and innovation 8th/50 Business friendliness 39th/50 Education 6th/50 Cost of living 35th/50 Access to capital 17th/50Source: CNBC (2014)
Tax Friendliness Pennsylvania Corporate Tax Rate 6.0% Avg Local Corporate Tax Rate in Pennsylvania 0.3% Avg Combined Corporate Tax Rate 6.3% Overall tax friendliness 34th/50 Corporate tax rank 46th/50 Individual income tax rank 17th/50 Sales tax rank 24th/50 Unemployment insurance tax rank 50th/50 Property tax rank 42th/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.