Market Research Report
Based on the parameters below, we project this business would break even in 2.0 years with a net present value of $161,179.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$23,651||$35,476||$47,301||$49,168||$51,109|
|Net Cash Flow||-$47,066||$23,651||$35,476||$47,301||$49,168||$204,436|
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 Charleston.
- median income
- July temperature
- August temperature
- gross rent
- land area
- population density
- house price
- business activity
- February temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
Richard B. Homes, CPA, LLC
102 Wappoo Creek Dr., Ste. 11 Charleston, SC 29412
Streetman Jones And Powers LLC
171 Church St Charleston, SC 29401
40 Calhoun St Charleston, SC 29401
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Charleston and its Consumers
The second-largest city in the state of South Carolina is the city of Charleston, which serves as the county seat of Charleston County. Founded in 1670 by English settlers, the city was originally named Charles Towne after King Charles II of England. The original capital of the Carolina colony, Charleston marked the southernmost point of English settlement during the late 1600s. Although its earliest settlers primarily came from England, colonial Charleston also became home to a combination of ethnic and religious groups, owing to its prominence as a developing seaport town. Incorporated as a city in 1783, Charleston was to play an active role in the Civil War almost a century later, when it was more or less under siege by Union naval and land forces for three years. Twenty years after the war, Charleston was nearly destroyed by an 1886 earthquake measuring 7.5 on the Richter scale. Despite these setbacks, Charleston survived and prospered and many of Charleston's historic buildings remain intact to this day. Present-day Charleston has become the largest business and financial center for the southeastern section of South Carolina and an important South Atlantic seaport.
The second-largest city in the state of South Carolina is the city of Charleston, which serves as the county seat of Charleston County. Founded in 1670 by English settlers, the city was originally named Charles Towne after King Charles II of England. The original capital of the Carolina colony, Charleston marked the southernmost point of English settlement during the late 1600s. Although its...description source
Population Population (2012) 125,583 Population Density 1,152 ppl/sq mi Population Growth Rate 4.6% Median Income $49,284 Median Age 32.3 Unemployment 6.2% Family Household Percent 51.4% Avg. Household Size 2.2 Avg. House Price $232,100 Foreign Born 4.0% Married 43.0% Cost of Living 50.1%
Demographics White 68.6% Hispanic / Latino 2.9% Black / African American 25.2% Asian 1.6% Native American 0.2%
Market & Regulatory Conditions For South Carolina
Third parties rate South Carolina's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness B+ Ease of starting a small business A- Cost of hiring a new employee A+ Overall regulatory friendliness A Friendliness of health and safety regulations A+ Friendliness of employment, labor, and hiring regulations A Friendliness of tax code B Friendliness of licensing regulations B+ Friendliness of environmental regulations A+ Friendliness of zoning regulations A- Publicity of training programs C+ Publicity of networking programs C+ Current economic health of small business 7th/50 Change in revenue over past 12 months 19th/50 Forecast of small business's future economic health 31th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 24th/50 Cost of Doing Business 9th/50 Economy 13th/50 Infrastructure 14th/50 Workforce 25th/50 Quality of life 40th/50 Technology and innovation 30th/50 Business friendliness 34th/50 Education 43th/50 Cost of living 10th/50 Access to capital 41th/50Source: CNBC (2014)
Tax Friendliness South Carolina Corporate Tax Rate 6.0% Avg Local Corporate Tax Rate in South Carolina 1.2% Avg Combined Corporate Tax Rate 7.2% Overall tax friendliness 37th/50 Corporate tax rank 13th/50 Individual income tax rank 41th/50 Sales tax rank 18th/50 Unemployment insurance tax rank 40th/50 Property tax rank 21th/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.