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 $128,911.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$18,322||$27,483||$36,644||$38,280||$39,989|
|Net Cash Flow||-$33,309||$18,322||$27,483||$36,644||$38,280||$159,956|
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 Gainesville.
- July temperature
- median income
- August temperature
- gross rent
- population density
- February temperature
- house price
- land area
- business activity
- April temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
1150 N Main St Gainesville, FL 32601
Carolyn Goddard CPA
3520 NW 43rd St Gainesville, FL 32606
American Accounting & Tax Co Pa
3463 NW 13th St Gainesville, FL 32609
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About Gainesville and its Consumers
The Florida city of Gainesville is the county seat of Alachua County, and also the county's largest city. It is situated 37 miles north of Ocala, 71 miles southwest of Jacksonville, and 114 miles northwest of Orlando. The city is served by an extensive road system, including Interstate 75, US Route 301, US Route 441, and Florida State Highways 20, 24, and 26. Gainesville is noteworthy for being the home of the University of Florida, Florida's principal state university and the fourth-largest university in the nation. Gainesville is also home to Santa Fe Community College, one of the largest community colleges in the U.S. Considered Gainesville's cultural hub, the Thomas Center is the site of a variety of art exhibits and musical programs. Listed on the National Register of Historic Places, the Center contains art galleries, local history exhibits, performance space and meeting rooms, as well as the surrounding Thomas Center Gardens and the adjacent Grace and Sidney Knight Children's Theatre.
The Florida city of Gainesville is the county seat of Alachua County, and also the county's largest city. It is situated 37 miles north of Ocala, 71 miles southwest of Jacksonville, and 114 miles northwest of Orlando. The city is served by an extensive road system, including Interstate 75, US Route 301, US Route 441, and Florida State Highways 20, 24, and 26. Gainesville is noteworthy for being...description source
Population Population (2012) 126,047 Population Density 2,056 ppl/sq mi Population Growth Rate 1.4% Median Income $30,143 Median Age 24.5 Unemployment 6.4% Family Household Percent 40.0% Avg. Household Size 2.2 Avg. House Price $141,200 Foreign Born 9.7% Married 63.4% Cost of Living 47.7%
Demographics White 57.8% Hispanic / Latino 10.0% Black / African American 22.8% Asian 6.8% Native American 0.2%
Market & Regulatory Conditions For Florida
Third parties rate Florida'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 C Overall regulatory friendliness B- Friendliness of health and safety regulations C+ Friendliness of employment, labor, and hiring regulations B- 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 34th/50 Change in revenue over past 12 months 35th/50 Forecast of small business's future economic health 23th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 20th/50 Cost of Doing Business 37th/50 Economy 11th/50 Infrastructure 27th/50 Workforce 3th/50 Quality of life 28th/50 Technology and innovation 12th/50 Business friendliness 35th/50 Education 38th/50 Cost of living 31th/50 Access to capital 7th/50Source: CNBC (2014)
Tax Friendliness Florida Corporate Tax Rate 6.0% Avg Local Corporate Tax Rate in Florida 0.6% Avg Combined Corporate Tax Rate 6.6% Overall tax friendliness 5th/50 Corporate tax rank 14th/50 Individual income tax rank 1th/50 Sales tax rank 12th/50 Unemployment insurance tax rank 3th/50 Property tax rank 16th/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.