Market Research Report

Accounting Firm opportunities in Berkeley, CA
$51,274 Potential Yearly Earnings What's this number?
$138,540 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 3.5 years with a net present value of $138,540.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $256,370 $384,556 $512,741 $536,327 $560,998
Net Costs $230,733 $346,100 $461,467 $482,694 $504,898
Net Operating Profits $25,637 $38,456 $51,274 $53,633 $56,100
Capital
      Startup Cost -$88,775
      Terminal Value $168,299
Net Cash Flow -$88,775 $25,637 $38,456 $51,274 $53,633 $224,399

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 Berkeley.

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

  Competitors

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

H&R Block National Competitor
Serving the Berkeley Area.

Accuchex Payroll Management Services Regional Competitor
Serving the Berkeley Area.

Williams, Adley & Company- CA LLP Regional Competitor
7677 Oakport St Suite 1000 Oakland, CA 94621

  Suppliers & Service Providers Contact List

  • Thousands of commercial properties for sale!
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    Cint

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  • Get business insurance for your venture
    Hiscox

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    Get insured!

       

  About Berkeley and its Consumers

Berkeley is a city on the east shore of San Francisco Bay in northern Alameda County, California, that is named after the eighteenth-century bishop and philosopher George Berkeley. It is bordered by the cities of Oakland andEmeryville to the south and by the city of Albany and unincorporated community of Kensington to the north, while its eastern limit is the border with Contra Costa County that generally follows the ridge of the Berkeley Hills. Its population at the 2010 census was determined to be 112,580 and it is one of the most politically liberal cities in the United States. Berkeley is the site of the oldest campus in the University of California system – the University of California, Berkeley – and of the Lawrence Berkeley National Laboratory that the university manages and operates. It is also home to the Graduate Theological Union. According to the United States Census Bureau the city's 17.7 square miles (46 km2) area includes 10.5 square miles (27 km2) of land and 7.2 square miles (19 km2) (40.83%) water, most of it part of San Francisco Bay

Berkeley is a city on the east shore of San Francisco Bay in northern Alameda County, California, that is named after the eighteenth-century bishop and philosopher George Berkeley. It is bordered by the cities of Oakland andEmeryville to the south and by the city of Albany and unincorporated community of Kensington to the north, while its eastern limit is the border with Contra Costa County...

description source
  • Population
    Population (2012) 115,403
    Population Density 11,022 ppl/sq mi
    Population Growth Rate 2.5%
    Median Income $61,351
    Median Age 31.7
    Unemployment 7.4%
    Family Household Percent 40.8%
    Avg. Household Size 2.2
    Avg. House Price $677,700
    Foreign Born 18.3%
    Married 53.8%
    Cost of Living 75.9%
  • Average Temperature
    January 50.2°F 10.1°C
    February 52.9°F 11.6°C
    March 55.0°F 12.8°C
    April 56.6°F 13.7°C
    May 59.6°F 15.3°C
    June 62.4°F 16.9°C
    July 63.4°F 17.4°C
    August 64.1°F 17.8°C
    September 64.1°F 17.8°C
    October 62.0°F 16.7°C
    November 55.7°F 13.2°C
    December 50.6°F 10.3°C
  • Demographics
    White 57.5%
    Hispanic / Latino 9.8%
    Black / African American 8.4%
    Asian 19.3%
    Native American 0.08%

  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 Berkeley based on a number of market characteristics. See More Results

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