Market Research Report

Accounting Firm opportunities in Baltimore, MD
$37,659 Potential Yearly Earnings What's this number?
$126,023 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 2.2 years with a net present value of $126,023.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $188,295 $282,443 $376,590 $394,068 $412,358
Net Costs $169,466 $254,198 $338,931 $354,661 $371,122
Net Operating Profits $18,830 $28,244 $37,659 $39,407 $41,236
Capital
      Startup Cost -$41,006
      Terminal Value $123,707
Net Cash Flow -$41,006 $18,830 $28,244 $37,659 $39,407 $164,943

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 Baltimore.

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

  Competitors

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

H&R Block National Competitor
226 N Paca St Baltimore, MD 21201

H&R Block National Competitor
891 E Fort Ave Baltimore, MD 21230

J Rice & Associates Local Competitor
5501 Reisterstown Rd Baltimore, MD 21215

Compro Tax-Balto Local Competitor
23 E North Ave Baltimore, MD 21202

Oasis Tax Company Local Competitor
46 S Franklintown Rd Baltimore, MD 21223

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

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  About Baltimore and its Consumers

26 26

Baltimore is the largest city in the U.S. state of Maryland and the 26th-most populous cityin the country. It is located in the central area of the state along the tidal portion of the Patapsco River, an arm of the Chesapeake Bay. The independent city is often referred to as Baltimore City to distinguish it from surrounding Baltimore County According to the Brookings Institution, almost a quarter of the jobs in the Baltimore region are science, technology, engineering and math positions. The Baltimore Area is known for health and science, which is in part attributed to the prestigious Johns Hopkins University school system, the University of Maryland-Baltimore, and other smaller schools such as University of Baltimore, University of Maryland-Baltimore County, Loyola University and Notre Dame of Maryland University. According to the 2010 Census, the city has a total area of 92.052 square miles (238.41 km2), of which 80.944 sq mi (209.64 km2) is land and 11.108 sq mi (28.77 km2) is water.The total area is 12.07 percent water. Baltimore borders with Baltimore County in most directions. It is bordered by Anne Arundel County to the south.

Baltimore is the largest city in the U.S. state of Maryland and the 26th-most populous cityin the country. It is located in the central area of the state along the tidal portion of the Patapsco River, an arm of the Chesapeake Bay. The independent city is often referred to as Baltimore City to distinguish it from surrounding Baltimore County According to the Brookings Institution, almost a...

description source
  • Population
    Population (2012) 621,342
    Population Density 7,676 ppl/sq mi
    Population Growth Rate 0.1%
    Median Income $38,721
    Median Age 34.4
    Unemployment 10.8%
    Family Household Percent 53.6%
    Avg. Household Size 2.4
    Avg. House Price $154,400
    Foreign Born 6.7%
    Married 50.3%
    Cost of Living 55.5%
  • Average Temperature
    January 35.8°F 2.1°C
    February 38.6°F 3.7°C
    March 46.3°F 7.9°C
    April 56.6°F 13.7°C
    May 66.1°F 18.9°C
    June 76.1°F 24.5°C
    July 80.7°F 27.1°C
    August 79.0°F 26.1°C
    September 72.0°F 22.2°C
    October 60.1°F 15.6°C
    November 50.3°F 10.2°C
    December 39.4°F 4.1°C
  • Demographics
    White 28.3%
    Hispanic / Latino 4.3%
    Black / African American 62.5%
    Asian 2.4%
    Native American 0.2%

  Market & Regulatory Conditions For Maryland

Third parties rate Maryland'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 B-
    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 D+
    Friendliness of environmental regulations C-
    Friendliness of zoning regulations C-
    Publicity of training programs B+
    Publicity of networking programs C+
    Current economic health of small business 18th/50
    Change in revenue over past 12 months 18th/50
    Forecast of small business's future economic health 15th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 35th/50
    Cost of Doing Business 45th/50
    Economy 24th/50
    Infrastructure 39th/50
    Workforce 20th/50
    Quality of life 26th/50
    Technology and innovation 7th/50
    Business friendliness 42th/50
    Education 7th/50
    Cost of living 41th/50
    Access to capital 27th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Maryland Corporate Tax Rate 6.0%
    Avg Local Corporate Tax Rate in Maryland 0.0%
    Avg Combined Corporate Tax Rate 6.0%
    Overall tax friendliness 40th/50
    Corporate tax rank 16th/50
    Individual income tax rank 45th/50
    Sales tax rank 8th/50
    Unemployment insurance tax rank 21th/50
    Property tax rank 41th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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