Market Research Report
Based on the parameters below, we project this business would break even in 1.7 years with a net present value of $138,362.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$19,959||$29,938||$39,918||$40,876||$41,857|
|Net Cash Flow||-$34,489||$19,959||$29,938||$39,918||$40,876||$167,427|
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 Grand Rapids.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- business activity
- land area
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
2147 Wealthy St SE Grand Rapids, MI 49506
2023 Eastern Ave SE Grand Rapids, MI 49507
1612 Leonard St NW Grand Rapids, MI 49504
Culver CPA Group
1419 Coit Ave NE Grand Rapids, MI 49505
Prangley Marks LLP
333 Bridge St NW Grand Rapids, MI 49504
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
Thousands of commercial properties for sale!
Find the right commercial property for your business here.
Thousands of properties to choose from.
Free help for entrepreneurs
Our experienced entrepreneurs can help you reach your goals.
We provide free business mentoring for entrepreneurs.
Get a great business loan today!
Get a business loan that suits your needs.
Get the business loan you need and want.
About Grand Rapids and its Consumers
Grand Rapids is a city in the U.S. state of Michigan. It is located on the Grand River about 25 miles east of Lake Michigan. As of the 2010 census, the city population was 188,040. In 2010, the Grand Rapids metropolitan area had a population of 1,005,648, and the combined statistical area of Grand Rapids-Muskegon-Holland had a population of 1,321,557. Grand Rapids is the county seat of Kent County, Michigan, second largest city in Michigan (after Detroit), and the largest city in West Michigan. A historic furniture-manufacturing center, Grand Rapids is still home to five of the world's leading office furniture companies, and is nicknamed "Furniture City". Its more common modern nickname of "River City" refers to the landmark river for which it was named. The city and surrounding communities are economically diverse, and contribute heavily to the health care, information technology, automotive, aviation, and consumer goods manufacturing industries, among others.
Grand Rapids is a city in the U.S. state of Michigan. It is located on the Grand River about 25 miles east of Lake Michigan. As of the 2010 census, the city population was 188,040. In 2010, the Grand Rapids metropolitan area had a population of 1,005,648, and the combined statistical area of Grand Rapids-Muskegon-Holland had a population of 1,321,557. Grand Rapids is the county seat of Kent...description source
Population Population (2012) 190,411 Population Density 4,289 ppl/sq mi Population Growth Rate 1.3% Median Income $36,408 Median Age 30.9 Unemployment 10.0% Family Household Percent 56.9% Avg. Household Size 2.5 Avg. House Price $108,100 Foreign Born 12.4% Married 45.4% Cost of Living 45.3%
Demographics White 57.9% Hispanic / Latino 14.5% Black / African American 21.6% Asian 1.6% Native American 0.3%
Market & Regulatory Conditions For Michigan
Third parties rate Michigan'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 D+ Cost of hiring a new employee C- Overall regulatory friendliness D+ Friendliness of health and safety regulations C- Friendliness of employment, labor, and hiring regulations D+ Friendliness of tax code C- Friendliness of licensing regulations D+ Friendliness of environmental regulations D+ Friendliness of zoning regulations D+ Publicity of training programs C+ Publicity of networking programs B- Current economic health of small business 28th/50 Change in revenue over past 12 months 15th/50 Forecast of small business's future economic health 25th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 26th/50 Cost of Doing Business 31th/50 Economy 28th/50 Infrastructure 16th/50 Workforce 15th/50 Quality of life 45th/50 Technology and innovation 14th/50 Business friendliness 32th/50 Education 34th/50 Cost of living 17th/50 Access to capital 23th/50Source: CNBC (2014)
Tax Friendliness Michigan Corporate Tax Rate 6.0% Avg Local Corporate Tax Rate in Michigan 0.0% Avg Combined Corporate Tax Rate 6.0% Overall tax friendliness 13th/50 Corporate tax rank 10th/50 Individual income tax rank 14th/50 Sales tax rank 7th/50 Unemployment insurance tax rank 47th/50 Property tax rank 27th/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.