Market Research Report
Based on the parameters below, we project this business would break even in 3.7 years with a net present value of $112,809.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$21,680||$32,519||$43,359||$45,354||$47,440|
|Net Cash Flow||-$79,416||$21,680||$32,519||$43,359||$45,354||$189,759|
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 Costa Mesa.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- business activity
- February temperature
- nearby population
- December temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
2200 Harbor Blvd Ste D-110 Costa Mesa, CA 92627
779 W 19th St Ste A Costa Mesa, CA 92627
2750 Harbor Blvd Costa Mesa, CA 92626
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 Costa Mesa and its Consumers
Incorporated in 1953, Costa Mesa is a city located in Orange County, in Southern California. Costa Mesa is approximately forty-five minutes southeast of Los Angeles, twenty minutes south of Anaheim, five minutes east of Newport Beach, and an hour and a half northwest of San Diego. Costa Mesa's southernmost border is only 1 mile from the Pacific Ocean. Costa Mesa is also only 10 minutes from the John Wayne Orange County Airport. The area that is now Costa Mesa was originally used as grazing land by Mission San Juan Capistrano. Early attempts to settle the area in the 1880s failed. Costa Mesa started as the Town of Harper, which changed its name to Costa Mesa in 1920. Costa Mesa means coastal tableland in Spanish . Orange County, California was ranked as one of the "Top 25 Cities for Doing Business in America" by Inc. Magazine in the "Large Cities" category in a 2004 study. Costa Mesa received a "League of California Cities Helen Putnam Awards of Excellence" in 2005 for "Internal Administration".
Incorporated in 1953, Costa Mesa is a city located in Orange County, in Southern California. Costa Mesa is approximately forty-five minutes southeast of Los Angeles, twenty minutes south of Anaheim, five minutes east of Newport Beach, and an hour and a half northwest of San Diego. Costa Mesa's southernmost border is only 1 mile from the Pacific Ocean. Costa Mesa is also only 10 minutes from the...description source
Population Population (2012) 111,918 Population Density 7,149 ppl/sq mi Population Growth Rate 1.8% Median Income $61,136 Median Age 33.7 Unemployment 5.8% Family Household Percent 58.2% Avg. Household Size 2.7 Avg. House Price $552,700 Foreign Born 28.5% Married 39.3% Cost of Living 68.1%
Demographics White 51.8% Hispanic / Latino 35.8% Black / African American 1.2% Asian 7.7% Native American 0.2%
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/50Source: 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/50Source: 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/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.