Market Research Report
Based on the parameters below, we project this business would break even in 2.2 years with a net present value of $88,844.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$13,460||$20,190||$26,920||$28,010||$29,143|
|Net Cash Flow||-$29,799||$13,460||$20,190||$26,920||$28,010||$116,573|
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 Buffalo.
- median income
- July temperature
- August temperature
- gross rent
- population density
- business activity
- house price
- land area
- nearby population
- April temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
2400 Seneca St Buffalo, NY 14210
250 Elmwood Ave Buffalo, NY 14222
1049 Broadway St Buffalo, NY 14212
31 Lafayette Sq Buffalo, NY 14203
1832 Main St Ste 4 Buffalo, NY 14208
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 Buffalo and its Consumers
The second-largest city in New York State and situated in the Niagara Frontier,Buffalo is a city full of surprises. Though Buffalo is often the butt of jokes about chicken wings, its long-suffering sports teams, and the mountains of snow under which it is buried each winter, local residents and others who are in the know tell another story: one of great nightlife, good museums and cultural attractions, and tight-knit neighborhoods with community spirit and a real sense of place. A great part of Buffalo's appeal to many visitors is the still-palpable sense of its history as an important industrial center. Historic buildings and sites around town tell the story of a city that was great once and has all the tools in place to be great again. Buffalo has a population (as of 2010) of 261,310 in the city, and 1,135,509 in the Buffalo-Niagara Falls Metropolitan Area. Buffalo is the economic and cultural center of the Western New York region.
The second-largest city in New York State and situated in the Niagara Frontier,Buffalo is a city full of surprises. Though Buffalo is often the butt of jokes about chicken wings, its long-suffering sports teams, and the mountains of snow under which it is buried each winter, local residents and others who are in the know tell another story: one of great nightlife, good museums and cultural...description source
Population Population (2012) 259,384 Population Density 6,422 ppl/sq mi Population Growth Rate -0.7% Median Income $29,158 Median Age 33.3 Unemployment 10.2% Family Household Percent 50.8% Avg. Household Size 2.2 Avg. House Price $67,000 Foreign Born 6.5% Married 51.1% Cost of Living 53.6%
Demographics White 45.8% Hispanic / Latino 10.1% Black / African American 36.5% Asian 3.2% Native American 0.5%
Market & Regulatory Conditions For New York
Third parties rate New York'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 D Cost of hiring a new employee B- Overall regulatory friendliness F Friendliness of health and safety regulations D 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 F Publicity of training programs B- Publicity of networking programs C- Current economic health of small business 35th/50 Change in revenue over past 12 months 37th/50 Forecast of small business's future economic health 29th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 40th/50 Cost of Doing Business 50th/50 Economy 34th/50 Infrastructure 38th/50 Workforce 43th/50 Quality of life 21th/50 Technology and innovation 3th/50 Business friendliness 29th/50 Education 1th/50 Cost of living 50th/50 Access to capital 4th/50Source: CNBC (2014)
Tax Friendliness New York Corporate Tax Rate 4.0% Avg Local Corporate Tax Rate in New York 4.5% Avg Combined Corporate Tax Rate 8.5% Overall tax friendliness 49th/50 Corporate tax rank 20th/50 Individual income tax rank 49th/50 Sales tax rank 40th/50 Unemployment insurance tax rank 31th/50 Property tax rank 46th/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.