Market Research Report
Based on the parameters below, we project this business would break even in 2.4 years with a net present value of $266,439.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$40,878||$61,317||$81,757||$85,594||$89,612|
|Net Cash Flow||-$96,380||$40,878||$61,317||$81,757||$85,594||$358,449|
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 Bellevue.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- business activity
- February temperature
- land area
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
1299 156th Ave NE Bellevue, WA 98007
15015 Main St Ste 111B Bellevue, WA 98007
3900 Factoria Blvd SE Bellevue, WA 98006
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 Bellevue and its Consumers
Bellevue is a city located in King County in the state of Washington. Situated only 10 miles east of Seattle across Lake Washington, the city is considered a Seattle suburb. Bellevue is surrounded by vast wilderness areas, including the rugged Cascade mountains to its east and the Olympic mountains further to the west, which helps explain the city's name, a derivation of a French term for "beautiful view". Interstate I-405 bisects the city, which is also serviced by I-90 and Washington State Highway 520. Bellevue is home to several high-tech companies and is adjacent to Redmond, home of software giant Microsoft Corporation. First settled in the late 1860s or early 1870s, Bellevue soon became a popular location for the summer homes of residents of nearby Seattle. The region's towering evergreens eventually gave way to agriculture, and throughout the first half of the 20th century Bellevue was dominated by an abundance of farms best known for strawberries and blueberries. When the first floating bridge across Lake Washington was completed in 1940, Seattle suddenly became much more accessible and a suburban era which would influence the area for several decades was ushered in. Bellevue was incorporated as a city in 1953.
Bellevue is a city located in King County in the state of Washington. Situated only 10 miles east of Seattle across Lake Washington, the city is considered a Seattle suburb. Bellevue is surrounded by vast wilderness areas, including the rugged Cascade mountains to its east and the Olympic mountains further to the west, which helps explain the city's name, a derivation of a French term for...description source
Population Population (2012) 126,439 Population Density 3,955 ppl/sq mi Population Growth Rate 3.3% Median Income $83,518 Median Age 37.8 Unemployment 4.4% Family Household Percent 63.8% Avg. Household Size 2.4 Avg. House Price $521,300 Foreign Born 30.8% Married 29.2% Cost of Living 60.5%
Demographics White 59.2% Hispanic / Latino 7.0% Black / African American 2.2% Asian 27.5% Native American 0.3%
Market & Regulatory Conditions For Washington
Third parties rate Washington'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 B- Cost of hiring a new employee D+ Overall regulatory friendliness D+ Friendliness of health and safety regulations C Friendliness of employment, labor, and hiring regulations D+ Friendliness of tax code D Friendliness of licensing regulations D+ Friendliness of environmental regulations C- Friendliness of zoning regulations D+ Publicity of training programs A- Publicity of networking programs D+ Current economic health of small business 42th/50 Change in revenue over past 12 months 41th/50 Forecast of small business's future economic health 21th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 7th/50 Cost of Doing Business 34th/50 Economy 2th/50 Infrastructure 17th/50 Workforce 24th/50 Quality of life 6th/50 Technology and innovation 4th/50 Business friendliness 23th/50 Education 25th/50 Cost of living 38th/50 Access to capital 9th/50Source: CNBC (2014)
Tax Friendliness Washington Corporate Tax Rate 6.5% Avg Local Corporate Tax Rate in Washington 2.4% Avg Combined Corporate Tax Rate 8.9% Overall tax friendliness 11th/50 Corporate tax rank 28th/50 Individual income tax rank 6th/50 Sales tax rank 46th/50 Unemployment insurance tax rank 19th/50 Property tax rank 23th/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.