Market Research Report

Accounting Firm opportunities in Houston, TX
$90,960 Potential Yearly Earnings What's this number?
$325,164 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 1.9 years with a net present value of $325,164.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $454,798 $682,197 $909,596 $964,332 $1,022,362
Net Costs $409,318 $613,977 $818,636 $867,899 $920,126
Net Operating Profits $45,480 $68,220 $90,960 $96,433 $102,236
Capital
      Startup Cost -$84,229
      Terminal Value $306,709
Net Cash Flow -$84,229 $45,480 $68,220 $90,960 $96,433 $408,945

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 Houston.

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

  Competitors

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

Evolution Accounting Regional Competitor
11211 Katy Fwy Suite 550 Houston, TX 77079

Blair Inman & Co. CPAS Local Competitor
1155 Dairy Ashford Rd Ste 103 Houston, TX 77079

Jay Allen Finn CPA PC Local Competitor
11500 Northwest Fwy #581 Houston, TX 77092

Blummer, William E CPA Local Competitor
4900 Woodway Dr Suite 885 Houston, TX 77056

Frierson,Sola,Simonton & Kutac, PLLC Local Competitor
TRAVIS St Ste 1900 Houston, TX 77002

TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.

  Suppliers & Service Providers Contact List

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  About Houston and its Consumers

Houston is the most populous city in Texas and the fourth most populous city in the United States. The city has a population from various ethnic and religious backgrounds and a large and growing international community. Houston's economy has a broad industrial base in energy, manufacturing, aeronautics, and transportation. It is also leading in health care sectors and building oilfield equipment; only New York City is home to more Fortune 500 headquarters The Port ranks first in the United States in international waterborne tonnage handled and second in total cargo tonnage handled. The city has a population from various ethnic and religious backgrounds and a large and growing international community. It is home to many cultural institutions and exhibits, which attract more than 7 million visitors a year to the Museum District. Houston has an active visual and performing arts scene in the Theater District and offers year-round resident companies in all major performing arts.

Houston is the most populous city in Texas and the fourth most populous city in the United States. The city has a population from various ethnic and religious backgrounds and a large and growing international community. Houston's economy has a broad industrial base in energy, manufacturing, aeronautics, and transportation. It is also leading in health care sectors and building oilfield...

description source
  • Population
    Population (2012) 2,160,820
    Population Density 3,603 ppl/sq mi
    Population Growth Rate 2.9%
    Median Income $42,877
    Median Age 32.3
    Unemployment 6.6%
    Family Household Percent 61.5%
    Avg. Household Size 2.6
    Avg. House Price $122,100
    Foreign Born 27.9%
    Married 38.5%
    Cost of Living 48.6%
  • Average Temperature
    January 51.4°F 10.8°C
    February 54.8°F 12.7°C
    March 61.1°F 16.2°C
    April 67.6°F 19.8°C
    May 75.7°F 24.3°C
    June 80.9°F 27.2°C
    July 82.9°F 28.3°C
    August 82.8°F 28.2°C
    September 77.9°F 25.5°C
    October 70.0°F 21.1°C
    November 60.9°F 16.1°C
    December 52.8°F 11.6°C
  • Demographics
    White 25.9%
    Hispanic / Latino 44.4%
    Black / African American 22.7%
    Asian 5.5%
    Native American 0.2%

  Market & Regulatory Conditions For Texas

Third parties rate Texas's business and regulatory conditions according to their own methods. We report them here for informational purposes.

  • Small-Business Friendliness
    Overall small business friendliness A+
    Ease of starting a small business A
    Cost of hiring a new employee B+
    Overall regulatory friendliness A
    Friendliness of health and safety regulations A-
    Friendliness of employment, labor, and hiring regulations A
    Friendliness of tax code A
    Friendliness of licensing regulations A
    Friendliness of environmental regulations A-
    Friendliness of zoning regulations A
    Publicity of training programs C+
    Publicity of networking programs C
    Current economic health of small business 13th/50
    Change in revenue over past 12 months 29th/50
    Forecast of small business's future economic health 17th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 2th/50
    Cost of Doing Business 23th/50
    Economy 1th/50
    Infrastructure 1th/50
    Workforce 11th/50
    Quality of life 37th/50
    Technology and innovation 2th/50
    Business friendliness 20th/50
    Education 27th/50
    Cost of living 18th/50
    Access to capital 5th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Texas Corporate Tax Rate 6.3%
    Avg Local Corporate Tax Rate in Texas 1.9%
    Avg Combined Corporate Tax Rate 8.2%
    Overall tax friendliness 10th/50
    Corporate tax rank 39th/50
    Individual income tax rank 6th/50
    Sales tax rank 36th/50
    Unemployment insurance tax rank 15th/50
    Property tax rank 36th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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