Market Research Report

Accounting Firm opportunities in Grand Rapids, MI
$39,918 Potential Yearly Earnings What's this number?
$138,362 Net Present Value What's this number?

  Financial Projections

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 Revenues $199,588 $299,382 $399,176 $408,756 $418,566
Net Costs $179,629 $269,444 $359,258 $367,881 $376,710
Net Operating Profits $19,959 $29,938 $39,918 $40,876 $41,857
Capital
      Startup Cost -$34,489
      Terminal Value $125,570
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.

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 Grand Rapids.

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

  Competitors

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

H&R Block National Competitor
2147 Wealthy St SE Grand Rapids, MI 49506

H&R Block National Competitor
2023 Eastern Ave SE Grand Rapids, MI 49507

H&R Block National Competitor
1612 Leonard St NW Grand Rapids, MI 49504

Culver CPA Group Regional Competitor
1419 Coit Ave NE Grand Rapids, MI 49505

Prangley Marks LLP Local Competitor
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

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  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%
  • Average Temperature
    January 24.4°F -4.2°C
    February 26.8°F -2.9°C
    March 35.6°F 2.0°C
    April 48.0°F 8.9°C
    May 58.7°F 14.8°C
    June 68.4°F 20.2°C
    July 72.5°F 22.5°C
    August 70.8°F 21.6°C
    September 62.8°F 17.1°C
    October 51.0°F 10.6°C
    November 40.1°F 4.5°C
    December 29.2°F -1.6°C
  • 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/50
    Source: 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/50
    Source: 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/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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