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 $137,016.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$19,434||$29,151||$38,868||$41,207||$43,687|
|Net Cash Flow||-$37,923||$19,434||$29,151||$38,868||$41,207||$174,748|
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 Amarillo.
- median income
- July temperature
- August temperature
- gross rent
- population density
- land area
- house price
- business activity
- February temperature
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
1819 E Amarillo Blvd Amarillo, TX 79107
602 SE 10th Ave Amarillo, TX 79101
3420 S Western St Amarillo, TX 79109
5807 SW 45th Ave Ste 350 Amarillo, TX 79109
214 S McMasters St Amarillo, TX 79106
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 Amarillo and its Consumers
The Texas city of Amarillo, located near the middle of the Texas Panhandle in the northern part of the state, is the county seat of Potter County. The city is almost equidistant from Albuquerque, New Mexico (285 miles to the west) and Oklahoma City, Oklahoma (245 miles to the east),Rick Husband Amarillo International Airport, named after the NASA astronaut and Amarillo native who commanded the Space Shuttle Columbia, provides air transportation by several major air carriers. Amarillo has a wide variety of attractions in and around the city. The English Field Air & Space Museum offers visitors a unique perspective on our aerospace past and features the only Mars Lander on Earth (the other two are on the surface of Mars). The American Quarter Horse Association Hall of Fame & Museum showcases the history of the worlds most popular breed of horse. The Don Harrington Discovery Center & Space Theater features interactive exhibits, educational programs, and the only planetarium in the Texas Panhandle. The Harrington House Historic Home, built in 1914, was acquired in 1940 by Don and Sybil Harrington, local philanthropists who were leaders in the oil and gas industry.
The Texas city of Amarillo, located near the middle of the Texas Panhandle in the northern part of the state, is the county seat of Potter County. The city is almost equidistant from Albuquerque, New Mexico (285 miles to the west) and Oklahoma City, Oklahoma (245 miles to the east),Rick Husband Amarillo International Airport, named after the NASA astronaut and Amarillo native who commanded the...description source
Population Population (2012) 195,250 Population Density 1,962 ppl/sq mi Population Growth Rate 2.4% Median Income $44,563 Median Age 33.6 Unemployment 5.1% Family Household Percent 66.5% Avg. Household Size 2.5 Avg. House Price $113,700 Foreign Born 9.4% Married 29.8% Cost of Living 44.6%
Demographics White 58.4% Hispanic / Latino 30.1% Black / African American 6.2% Asian 2.9% 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.