Market Research Report
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 Operating Profits||$45,480||$68,220||$90,960||$96,433||$102,236|
|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.
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.
- July temperature
- median income
- August temperature
- gross rent
- land area
- population density
- business activity
- February temperature
- house price
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
11211 Katy Fwy Suite 550 Houston, TX 77079
Blair Inman & Co. CPAS
1155 Dairy Ashford Rd Ste 103 Houston, TX 77079
Jay Allen Finn CPA PC
11500 Northwest Fwy #581 Houston, TX 77092
Blummer, William E CPA
4900 Woodway Dr Suite 885 Houston, TX 77056
Frierson,Sola,Simonton & Kutac, PLLC
TRAVIS St Ste 1900 Houston, TX 77002
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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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%
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/50Source: 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/50Source: 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/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.