Market Research Report

Accounting Firm opportunities in Bakersfield, CA
$51,614 Potential Yearly Earnings What's this number?
$182,787 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 1.8 years with a net present value of $182,787.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $258,070 $387,106 $516,141 $539,883 $564,718
Net Costs $232,263 $348,395 $464,527 $485,895 $508,246
Net Operating Profits $25,807 $38,711 $51,614 $53,988 $56,472
Capital
      Startup Cost -$46,035
      Terminal Value $169,415
Net Cash Flow -$46,035 $25,807 $38,711 $51,614 $53,988 $225,887

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.

Financial Parameters

Change these parameters to customize your financial model

  Statistical Analysis
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 Bakersfield.

  1. July temperature
  2. median income
  3. August temperature
  4. gross rent
  5. population density
  6. land area
  7. house price
  8. February temperature
  9. business activity
  10. nearby population

  Competitors

Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.

Numbercrunchers Regional Competitor
4800 Easton Dr Bakersfield, CA 93309

Daniells Phillips Vaughan & Bock Regional Competitor
300 New Stine Rd Bakersfield, CA 93309

Hardaway Axume Weir CPAS LLP Local Competitor
5001 California Ave Suite 121 Bakersfield, CA 93309

Wayne Long & Co. CPA's Local Competitor
1502 Mill Rock Way Bakersfield, CA 93311

Orahood Larry EA Local Competitor
6201 Valley Crest Dr Bakersfield, CA 93308

TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.

  Suppliers & Service Providers Contact List

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  About Bakersfield and its Consumers

Bakersfield lies near the southern "horseshoe" end of the San Joaquin Valley, with the southern tip of the Sierra Nevada just to the east. The city limits extend to the Sequoia National Forest, at the foot of the Greenhorn Mountain Range and at the entrance to the Kern Canyon. To the south, the Tehachapi Mountains feature the historic Tejon Ranch. To the west is the Temblor Range, behind which is the Carrizo Plain National Monument and the San Andreas Fault. The Temblor Range is about 35 mi (56 km) from Bakersfield across the valley floor. Bakersfield’s historic and primary industries have related to Kern County’s two main industries, oil and agriculture. Kern County is the most oil productive county in America, with around 10% of the nation’s domestic production. Kern County is a part of the highly productive San Joaquin Valley, and ranks in the top five most productive agricultural counties in the nation. Major crops for Kern County include: grapes, citrus, almonds, carrots, alfalfa, cotton, and roses. The city serves as the home for both corporate and regional headquarters of companies engaged in these industries.

Bakersfield lies near the southern "horseshoe" end of the San Joaquin Valley, with the southern tip of the Sierra Nevada just to the east. The city limits extend to the Sequoia National Forest, at the foot of the Greenhorn Mountain Range and at the entrance to the Kern Canyon. To the south, the Tehachapi Mountains feature the historic Tejon Ranch. To the west is the Temblor Range, behind which...

description source
  • Population
    Population (2012) 358,597
    Population Density 2,522 ppl/sq mi
    Population Growth Rate 3.2%
    Median Income $51,667
    Median Age 30.2
    Unemployment 9.2%
    Family Household Percent 74.8%
    Avg. Household Size 3.1
    Avg. House Price $170,400
    Foreign Born 18.7%
    Married 46.5%
    Cost of Living 46.7%
  • Average Temperature
    January 47.8°F 8.8°C
    February 52.6°F 11.4°C
    March 57.6°F 14.2°C
    April 62.6°F 17.0°C
    May 70.5°F 21.4°C
    June 77.5°F 25.3°C
    July 83.8°F 28.8°C
    August 82.4°F 28.0°C
    September 77.0°F 25.0°C
    October 67.2°F 19.6°C
    November 55.1°F 12.8°C
    December 47.8°F 8.8°C
  • Demographics
    White 36.3%
    Hispanic / Latino 46.1%
    Black / African American 7.9%
    Asian 6.8%
    Native American 0.6%

  Market & Regulatory Conditions For California

Third parties rate California's business and regulatory conditions according to their own methods. We report them here for informational purposes.

  • Small-Business Friendliness
    Overall small business friendliness F
    Ease of starting a small business D
    Cost of hiring a new employee C-
    Overall regulatory friendliness F
    Friendliness of health and safety regulations F
    Friendliness of employment, labor, and hiring regulations F
    Friendliness of tax code F
    Friendliness of licensing regulations F
    Friendliness of environmental regulations D
    Friendliness of zoning regulations D
    Publicity of training programs C-
    Publicity of networking programs D+
    Current economic health of small business 40th/50
    Change in revenue over past 12 months 40th/50
    Forecast of small business's future economic health 35th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 32th/50
    Cost of Doing Business 48th/50
    Economy 9th/50
    Infrastructure 24th/50
    Workforce 36th/50
    Quality of life 23th/50
    Technology and innovation 1th/50
    Business friendliness 48th/50
    Education 26th/50
    Cost of living 47th/50
    Access to capital 1th/50
    Source: CNBC (2014)
  • Tax Friendliness
    California Corporate Tax Rate 7.5%
    Avg Local Corporate Tax Rate in California 0.9%
    Avg Combined Corporate Tax Rate 8.4%
    Overall tax friendliness 48th/50
    Corporate tax rank 34th/50
    Individual income tax rank 50th/50
    Sales tax rank 42th/50
    Unemployment insurance tax rank 14th/50
    Property tax rank 14th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

The following cities have the highest PYE for Accounting Firm within 500 miles of Bakersfield based on a number of market characteristics. See More Results

The following businesse types have the highest PYE in Bakersfield. See More Results