Market Research Report

Accounting Firm opportunities in Cincinnati, OH
$28,641 Potential Yearly Earnings What's this number?
$96,884 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 2.0 years with a net present value of $96,884.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $143,203 $214,804 $286,405 $295,368 $304,611
Net Costs $128,882 $193,323 $257,765 $265,831 $274,150
Net Operating Profits $14,320 $21,480 $28,641 $29,537 $30,461
Capital
      Startup Cost -$28,108
      Terminal Value $91,383
Net Cash Flow -$28,108 $14,320 $21,480 $28,641 $29,537 $121,844

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 Cincinnati.

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

  Competitors

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

H&R Block National Competitor
3055 Madison Rd Cincinnati, OH 45209

H&R Block National Competitor
3766 Paxton Ave Ste 6A Cincinnati, OH 45209

H&R Block National Competitor
4582 Montgomery Rd Cincinnati, OH 45212

Ohio Tax Serv Inc Local Competitor
7162 Reading Rd Cincinnati, OH 45237

Elliott Davis Decosimo LLC Local Competitor
201 E 5th St Cincinnati, OH 45202

TIP: Your market is dominated by national chains. Consider entering the market with an independant business or a regional franchise.

  Suppliers & Service Providers Contact List

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  About Cincinnati and its Consumers

65 65

Cincinnati is the third largest city in Ohio and the 28th largest city in the United States by metropolitan population and the county seat of Hamilton County, Ohio, United States. Cincinnati is home to two major sports teams, the Cincinnati Reds and the Cincinnati Bengals, an important tennis tournament, the Cincinnati Masters, and home to large events such as the Flying Pig Marathon, the Macy's Music Festival, and the WEBN Labor Day Fireworks/ Riverfest. The University of Cincinnati traces its foundation to the Medical College of Ohio, which was founded in 1819. Altogether, nine Fortune 500 companies and fifteen Fortune 1000 companies have headquarters in the Cincinnati area. With nine Fortune 500 company headquarters in Cincinnati, the region ranks in the United States Top 10 markets for number of Fortune 500 headquarters per million residents, higher than New York, Boston, Chicago or Los Angeles. In addition to Fortune 500 headquarters, 400 Fortune 500 companies have a presence in Cincinnati. Cincinnati has three Fortune Global 500 companies; three of the five Global 500 companies in the state of Ohio.

Cincinnati is the third largest city in Ohio and the 28th largest city in the United States by metropolitan population and the county seat of Hamilton County, Ohio, United States. Cincinnati is home to two major sports teams, the Cincinnati Reds and the Cincinnati Bengals, an important tennis tournament, the Cincinnati Masters, and home to large events such as the Flying Pig Marathon, the...

description source
  • Population
    Population (2012) 296,550
    Population Density 3,804 ppl/sq mi
    Population Growth Rate -0.1%
    Median Income $31,301
    Median Age 32.5
    Unemployment 4.5%
    Family Household Percent 46.7%
    Avg. Household Size 2.1
    Avg. House Price $122,500
    Foreign Born 5.2%
    Married 36.1%
    Cost of Living 47.1%
  • Average Temperature
    January 28.8°F -1.8°C
    February 32.0°F 0.0°C
    March 40.9°F 4.9°C
    April 52.1°F 11.2°C
    May 61.8°F 16.6°C
    June 70.5°F 21.4°C
    July 73.2°F 22.9°C
    August 72.1°F 22.3°C
    September 65.0°F 18.3°C
    October 53.9°F 12.2°C
    November 43.4°F 6.3°C
    December 32.3°F 0.2°C
  • Demographics
    White 48.2%
    Hispanic / Latino 2.8%
    Black / African American 44.4%
    Asian 2.2%
    Native American 0.1%

  Market & Regulatory Conditions For Ohio

Third parties rate Ohio'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 C+
    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 C
    Friendliness of environmental regulations C+
    Friendliness of zoning regulations B-
    Publicity of training programs D+
    Publicity of networking programs D
    Current economic health of small business 41th/50
    Change in revenue over past 12 months 24th/50
    Forecast of small business's future economic health 40th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 18th/50
    Cost of Doing Business 15th/50
    Economy 15th/50
    Infrastructure 6th/50
    Workforce 46th/50
    Quality of life 43th/50
    Technology and innovation 17th/50
    Business friendliness 33th/50
    Education 15th/50
    Cost of living 15th/50
    Access to capital 29th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Ohio Corporate Tax Rate 5.8%
    Avg Local Corporate Tax Rate in Ohio 1.4%
    Avg Combined Corporate Tax Rate 7.1%
    Overall tax friendliness 44th/50
    Corporate tax rank 26th/50
    Individual income tax rank 47th/50
    Sales tax rank 32th/50
    Unemployment insurance tax rank 5th/50
    Property tax rank 20th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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