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 $389,815.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$58,229||$87,344||$116,458||$120,329||$124,328|
|Net Cash Flow||-$119,486||$58,229||$87,344||$116,458||$120,329||$497,311|
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 Aurora.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- business activity
- land area
- nearby population
- April temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
954 E New York St Aurora, IL 60505
Alana Tax Group
Serving the Aurora Area.
May & Associates CPA's PC
2003 Montgomery Rd Aurora, IL 60504
Mooney & Thomas P.C.
2111 Plum St Aurora, IL 60506
Ver Halen Stephen F CPA PC
1444 N Farnsworth Ave Aurora, IL 60505
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About Aurora and its Consumers
The Illinois city of Aurora is located about 42 miles west of Chicago along the Illinois East/West Tollway Corridor. Although traditionally considered as belonging to Kane County, the city limits of Aurora actually span portions of four counties (the others being DuPage, Kendall, and Will Counties). Nearby communities include Geneva (to the north), De Kalb (to the west), Oswega (to the south), and Woodridge (to the east). Aurora is replete with attractions, including several museums and theaters, a casino, water parks, and trails for many types of outdoor recreation. The Hollywood Casino, which features over 53,000 square feet of gaming space and includes two restaurants and a robust collection of movie memorabilia, is located in downtown Aurora. Also in the city's downtown area is the Paramount Arts Centre, a large live performance theater built in 1931 in a unique hybrid of Art Deco and French Renaissance. Other year-round theater venues in the city include the First Street Playhouse and the Riverfront Playhouse.
The Illinois city of Aurora is located about 42 miles west of Chicago along the Illinois East/West Tollway Corridor. Although traditionally considered as belonging to Kane County, the city limits of Aurora actually span portions of four counties (the others being DuPage, Kendall, and Will Counties). Nearby communities include Geneva (to the north), De Kalb (to the west), Oswega (to the south),...description source
Population Population (2012) 199,932 Population Density 4,449 ppl/sq mi Population Growth Rate 1.0% Median Income $62,461 Median Age 31.0 Unemployment 9.5% Family Household Percent 74.2% Avg. Household Size 3.1 Avg. House Price $186,500 Foreign Born 21.3% Married 34.2% Cost of Living 53.8%
Demographics White 41.9% Hispanic / Latino 40.1% Black / African American 8.0% Asian 6.1% Native American 0.1%
Market & Regulatory Conditions For Illinois
Third parties rate Illinois'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 C Cost of hiring a new employee B Overall regulatory friendliness C- Friendliness of health and safety regulations C- Friendliness of employment, labor, and hiring regulations C Friendliness of tax code D+ Friendliness of licensing regulations D Friendliness of environmental regulations C Friendliness of zoning regulations C+ Publicity of training programs D+ Publicity of networking programs B- Current economic health of small business 36th/50 Change in revenue over past 12 months 23th/50 Forecast of small business's future economic health 28th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 27th/50 Cost of Doing Business 40th/50 Economy 36th/50 Infrastructure 3th/50 Workforce 32th/50 Quality of life 30th/50 Technology and innovation 5th/50 Business friendliness 41th/50 Education 15th/50 Cost of living 29th/50 Access to capital 14th/50Source: CNBC (2014)
Tax Friendliness Illinois Corporate Tax Rate 6.3% Avg Local Corporate Tax Rate in Illinois 1.9% Avg Combined Corporate Tax Rate 8.2% Overall tax friendliness 31th/50 Corporate tax rank 47th/50 Individual income tax rank 11th/50 Sales tax rank 34th/50 Unemployment insurance tax rank 38th/50 Property tax rank 44th/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.