Market Research Report

Accounting Firm opportunities in Durham, NC
$68,896 Potential Yearly Earnings What's this number?
$239,749 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 1.9 years with a net present value of $239,749.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $344,479 $516,719 $688,959 $719,273 $750,921
Net Costs $310,032 $465,047 $620,063 $647,346 $675,829
Net Operating Profits $34,448 $51,672 $68,896 $71,927 $75,092
Capital
      Startup Cost -$65,038
      Terminal Value $225,276
Net Cash Flow -$65,038 $34,448 $51,672 $68,896 $71,927 $300,368

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 Durham.

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

  Competitors

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

H&R Block National Competitor
3823G Guess Rd Durham, NC 27705

H&R Block National Competitor
202 W Nc Highway 54 Unit 405 Durham, NC 27713

H&R Block National Competitor
4215 University Dr Ste 9 Durham, NC 27707

H&R Block National Competitor
1100 N Miami Blvd Ste 611 Durham, NC 27703

H&R Block National Competitor
3500 N Roxboro St Unit 48 Durham, NC 27704

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 Durham and its Consumers

Durham is a city in the U.S. state of North Carolina. It is the county seat of Durham County, though portions also extend intoWake County in the east and Orange County in the west.It is the fourth-largest city in the state, and the 85th-largest in the United States by population, with 233,252 residents as of the 2011 United States census.[2] It is the home of Duke University andNorth Carolina Central University, and is also one of the vertices of the Research Triangle area (home of the Research Triangle Park). Durham is the core of the four-county Durham-Chapel Hill Metropolitan Area. which has a population of 534,578 as of U.S. Census 2013 Population Estimates. The US Office of Management and Budget also includes Durham as a part of the Raleigh-Durham-Chapel Hill Combined Statistical Area, which has a population of 2,037,430 as of U.S. Census 2013 Population Estimates. Events include jazz festivals, plays, blues festivals, symphony concerts, art exhibitions, and a multitude of cultural expositions, including the American Dance Festival and the Full Frame Documentary Film Festival.

Durham is a city in the U.S. state of North Carolina. It is the county seat of Durham County, though portions also extend intoWake County in the east and Orange County in the west.It is the fourth-largest city in the state, and the 85th-largest in the United States by population, with 233,252 residents as of the 2011 United States census.[2] It is the home of Duke University andNorth Carolina...

description source
  • Population
    Population (2012) 239,358
    Population Density 2,229 ppl/sq mi
    Population Growth Rate 4.8%
    Median Income $43,654
    Median Age 32.1
    Unemployment 7.1%
    Family Household Percent 56.1%
    Avg. Household Size 2.3
    Avg. House Price $183,500
    Foreign Born 13.9%
    Married 39.6%
    Cost of Living 49.5%
  • Average Temperature
    January 37.8°F 3.2°C
    February 41.0°F 5.0°C
    March 48.3°F 9.1°C
    April 57.1°F 13.9°C
    May 65.5°F 18.6°C
    June 73.8°F 23.2°C
    July 77.6°F 25.3°C
    August 76.0°F 24.4°C
    September 69.1°F 20.6°C
    October 58.0°F 14.4°C
    November 49.1°F 9.5°C
    December 40.6°F 4.8°C
  • Demographics
    White 37.5%
    Hispanic / Latino 14.0%
    Black / African American 40.4%
    Asian 4.7%
    Native American 0.4%

  Market & Regulatory Conditions For North Carolina

Third parties rate North 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 C+
    Ease of starting a small business C
    Cost of hiring a new employee A-
    Overall regulatory friendliness C-
    Friendliness of health and safety regulations C
    Friendliness of employment, labor, and hiring regulations D
    Friendliness of tax code D+
    Friendliness of licensing regulations C
    Friendliness of environmental regulations C+
    Friendliness of zoning regulations C+
    Publicity of training programs D
    Publicity of networking programs C+
    Current economic health of small business 27th/50
    Change in revenue over past 12 months 25th/50
    Forecast of small business's future economic health 22th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 5th/50
    Cost of Doing Business 23th/50
    Economy 4th/50
    Infrastructure 21th/50
    Workforce 4th/50
    Quality of life 34th/50
    Technology and innovation 12th/50
    Business friendliness 19th/50
    Education 33th/50
    Cost of living 14th/50
    Access to capital 17th/50
    Source: CNBC (2014)
  • Tax Friendliness
    North Carolina Corporate Tax Rate 4.8%
    Avg Local Corporate Tax Rate in North Carolina 2.2%
    Avg Combined Corporate Tax Rate 6.9%
    Overall tax friendliness 16th/50
    Corporate tax rank 25th/50
    Individual income tax rank 15th/50
    Sales tax rank 33th/50
    Unemployment insurance tax rank 11th/50
    Property tax rank 29th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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