Market Research Report
Based on the parameters below, we project this business would break even in 1.8 years with a net present value of $199,371.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$28,641||$42,962||$57,283||$59,116||$61,007|
|Net Cash Flow||-$50,810||$28,641||$42,962||$57,283||$59,116||$244,030|
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 Columbia.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- land area
- business activity
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
2703 E Broadway Ste 234 Columbia, MO 65201
Miller Bales & Cunningham
1603 Chapel Hill Rd Ste 203 Columbia, MO 65203
Gerding Korte & Chitwood
20 S 5th St Columbia, MO 65201
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About Columbia and its Consumers
Columbia is a city of 115,276 people in Missouri, a state of the American Midwest. Founded in 1818 as the county seatof Boone County and home to the University of Missouri, it is the principal municipality of the Columbia Metropolitan Area, the fourth most populous urban area in Missouri. A college town, the city has a reputation for progressive politics, powerful journalism, and public art. The tripartite establishment of Stephens College (1833), "Mizzou" (1839), and Columbia College (1851), has long made the city a center of education, culture, and athletic competition. These three schools surround Downtown Columbia on the east, south, and north; at its center is the Avenue of the Columns, which connects Francis Quadrangle and Jesse Hall to theBoone County Courthouse and City Hall. Originally agricultural, the cultivation of the mind is modern Columbia's chief economic concern. Never a major center of manufacturing, it also depends on healthcare, insurance, and technology businesses. Several companiesShelter Insurance, Carfax, and Slackers CDs and Games among themwere founded in the city. Cultural institutions include the State Historical Society of Missouri, the Museum of Art and Archaeology, and the annual True/False Film Festival.
Columbia is a city of 115,276 people in Missouri, a state of the American Midwest. Founded in 1818 as the county seatof Boone County and home to the University of Missouri, it is the principal municipality of the Columbia Metropolitan Area, the fourth most populous urban area in Missouri. A college town, the city has a reputation for progressive politics, powerful journalism, and public art....description source
Population Population (2012) 113,225 Population Density 1,795 ppl/sq mi Population Growth Rate 4.4% Median Income $45,427 Median Age 26.9 Unemployment 5.3% Family Household Percent 49.7% Avg. Household Size 2.3 Avg. House Price $172,100 Foreign Born 6.4% Married 51.9% Cost of Living 46.5%
Demographics White 75.7% Hispanic / Latino 4.1% Black / African American 11.4% Asian 5.3% Native American 0.2%
Market & Regulatory Conditions For Missouri
Third parties rate Missouri'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 B 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 B- Friendliness of licensing regulations C+ Friendliness of environmental regulations C- Friendliness of zoning regulations C- Publicity of training programs C- Publicity of networking programs C- Current economic health of small business 37th/50 Change in revenue over past 12 months 38th/50 Forecast of small business's future economic health 13th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 23th/50 Cost of Doing Business 11th/50 Economy 15th/50 Infrastructure 13th/50 Workforce 44th/50 Quality of life 48th/50 Technology and innovation 24th/50 Business friendliness 29th/50 Education 20th/50 Cost of living 18th/50 Access to capital 39th/50Source: CNBC (2014)
Tax Friendliness Missouri Corporate Tax Rate 4.2% Avg Local Corporate Tax Rate in Missouri 3.4% Avg Combined Corporate Tax Rate 7.6% Overall tax friendliness 17th/50 Corporate tax rank 4th/50 Individual income tax rank 29th/50 Sales tax rank 29th/50 Unemployment insurance tax rank 12th/50 Property tax rank 7th/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.