Market Research Report

Accounting Firm opportunities in Garden Grove, CA
$35,157 Potential Yearly Earnings What's this number?
$86,199 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 4.0 years with a net present value of $86,199.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $175,783 $263,674 $351,566 $367,738 $384,654
Net Costs $158,205 $237,307 $316,409 $330,964 $346,189
Net Operating Profits $17,578 $26,367 $35,157 $36,774 $38,465
Capital
      Startup Cost -$69,663
      Terminal Value $115,396
Net Cash Flow -$69,663 $17,578 $26,367 $35,157 $36,774 $153,862

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 Garden Grove.

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

  Competitors

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

H&R Block National Competitor
13111 Century Blvd Garden Grove, CA 92843

H&R Block National Competitor
12839 Harbor Blvd Ste E4 Garden Grove, CA 92840

H&R Block National Competitor
Serving the Garden Grove Area.

H&R Block National Competitor
9971 Chapman Ave Ste B Garden Grove, CA 92841

Lakeside Tax & Business Services Inc. Local Competitor
1940 N Tustin St Ste 106 Orange, CA 92865

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 Garden Grove and its Consumers

Incorporated in 1956, Garden Grove is the 21st largest city in California. It is home to approximately 170,000 inhabitants. The city is within the combined Los Angeles-Long Beach-Riverside metropolitan area which has a population of about 17 million people. Located in the southern part of the state, Garden Grove lies 35 miles southeast of the city of Los Angeles. Eight miles to the southwest is the Pacific Ocean. In 1874, an attorney and physician named Alonzo Cook moved here. At the time there was a small farming community numbering in the hundreds. Before he left in 1881 he had provided the village with several community institutions and the name Garden Grove, donating much land and time in the effort. A railroad in 1905 provided transportation for agricultural crops such as oranges, walnuts, and chili peppers. It also brought more people. Further growth occurred as a result of World War II. An influx of Vietnamese and Koreans occurred in the 1970's.

Incorporated in 1956, Garden Grove is the 21st largest city in California. It is home to approximately 170,000 inhabitants. The city is within the combined Los Angeles-Long Beach-Riverside metropolitan area which has a population of about 17 million people. Located in the southern part of the state, Garden Grove lies 35 miles southeast of the city of Los Angeles. Eight miles to the southwest is...

description source
  • Population
    Population (2012) 174,389
    Population Density 9,720 ppl/sq mi
    Population Growth Rate 2.1%
    Median Income $55,508
    Median Age 35.4
    Unemployment 8.1%
    Family Household Percent 80.6%
    Avg. Household Size 3.7
    Avg. House Price $383,900
    Foreign Born 42.4%
    Married 35.2%
    Cost of Living 65.8%
  • Average Temperature
    January 55.7°F 13.2°C
    February 56.9°F 13.8°C
    March 58.6°F 14.8°C
    April 61.5°F 16.4°C
    May 64.6°F 18.1°C
    June 68.0°F 20.0°C
    July 72.2°F 22.3°C
    August 73.1°F 22.8°C
    September 71.5°F 21.9°C
    October 66.9°F 19.4°C
    November 60.8°F 16.0°C
    December 56.2°F 13.4°C
  • Demographics
    White 20.3%
    Hispanic / Latino 35.2%
    Black / African American 1.6%
    Asian 40.5%
    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/50
    Source: 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/50
    Source: 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/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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