Market Research Report
Based on the parameters below, we project this business would break even in 2.4 years with a net present value of $251,926.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$39,620||$59,431||$79,241||$82,010||$84,875|
|Net Cash Flow||-$95,247||$39,620||$59,431||$79,241||$82,010||$339,500|
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 Elizabeth.
- median income
- July temperature
- August temperature
- gross rent
- population density
- business activity
- house price
- nearby population
- April temperature
- February temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
780 Newark Ave Elizabeth, NJ 07208
Serving the Elizabeth Area.
Wyman Resources Inc
Linden, NJ 07036
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About Elizabeth and its Consumers
Elizabeth is a city in Union County, New Jersey, United States. As of the 2010 United States Census, the city had a total population of 124,969,retaining its ranking as New Jersey's fourth largest city (by population).The population increased by 4,401 (+3.7%) from the 120,568 counted in the 2000 Census, which had in turn increased by 10,566 (+9.6%) from the 110,002 counted in the 1990 Census.It is the county seat of Union County. In 2008, Elizabeth was named one of "America's 50 Greenest Cities" by Popular Science magazine, the only city in New Jersey selected. Since World War II, Elizabeth has seen its transportation facilities grow; the Port Newark-Elizabeth Marine Terminal is one of the busiest ports in the world, as is Newark Liberty International Airport, parts of which are actually in Elizabeth. Elizabeth also features Little Jimmy's Italian Ices (since 1932), the popular Jersey Gardens outlet mall, Loews Theater, and the Elizabeth Center, which generate millions of dollars in revenue. Companies based in Elizabeth include New England Motor Freight.
Elizabeth is a city in Union County, New Jersey, United States. As of the 2010 United States Census, the city had a total population of 124,969,retaining its ranking as New Jersey's fourth largest city (by population).The population increased by 4,401 (+3.7%) from the 120,568 counted in the 2000 Census, which had in turn increased by 10,566 (+9.6%) from the 110,002 counted in the 1990 Census.It...description source
Population Population (2012) 126,458 Population Density 10,265 ppl/sq mi Population Growth Rate 1.2% Median Income $41,986 Median Age 32.4 Unemployment 11.5% Family Household Percent 70.5% Avg. Household Size 2.9 Avg. House Price $270,400 Foreign Born 45.7% Married 41.5% Cost of Living 63.0%
Demographics White 14.5% Hispanic / Latino 63.0% Black / African American 17.3% Asian 2.5% Native American 0.0%
Market & Regulatory Conditions For New Jersey
Third parties rate New Jersey'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 C- Cost of hiring a new employee B+ Overall regulatory friendliness C Friendliness of health and safety regulations C+ Friendliness of employment, labor, and hiring regulations B- Friendliness of tax code C+ Friendliness of licensing regulations C Friendliness of environmental regulations D+ Friendliness of zoning regulations D Publicity of training programs B+ Publicity of networking programs C Current economic health of small business 38th/50 Change in revenue over past 12 months 43th/50 Forecast of small business's future economic health 43th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 43th/50 Cost of Doing Business 43th/50 Economy 47th/50 Infrastructure 47th/50 Workforce 23th/50 Quality of life 18th/50 Technology and innovation 15th/50 Business friendliness 37th/50 Education 4th/50 Cost of living 44th/50 Access to capital 11th/50Source: CNBC (2014)
Tax Friendliness New Jersey Corporate Tax Rate 7.0% Avg Local Corporate Tax Rate in New Jersey 0.0% Avg Combined Corporate Tax Rate 7.0% Overall tax friendliness 50th/50 Corporate tax rank 41th/50 Individual income tax rank 48th/50 Sales tax rank 48th/50 Unemployment insurance tax rank 32th/50 Property tax rank 50th/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.