Market Research Report
Based on the parameters below, we project this business would break even in 1.8 years with a net present value of $204,661.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$29,245||$43,867||$58,490||$60,644||$62,877|
|Net Cash Flow||-$52,115||$29,245||$43,867||$58,490||$60,644||$251,507|
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 Indianapolis.
- median income
- July temperature
- August temperature
- gross rent
- land area
- population density
- business activity
- house price
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
WCG, LLP/Walker Carvey & Associates
1 Indiana Sq Indianapolis, IN 46204
VonLehman CPA & Advisory Firm
8250 Woodfield Crossing Blvd Indianapolis, IN 46240
London, Witte & Company LLP
111 Monument Cir Indianapolis, IN 46204
Fitzgerald Isaac LLC
9245 N Meridian St Suite 302 Indianapolis, IN 46260
Schneider & Company Inc CPA
10321 N Pennsylvania St Indianapolis, IN 46280
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Indianapolis and its Consumers
Indianapolis, the Crossroads of America and the capitol city of the State of Indiana is conveniently located in the Midwest, one days driving distance from half the nations population. Indianapolis, affectionately referred to as Indy offers a vast array of arts, attractions, historical sites and eclectic cultural districts located in and near the downtown center. Indy's reputation as a sporting capitol is well deserved whether its professional sports or motorsports events. Indy is home to the Indiana Pacers NBA basketball team, the NFL Indianapolis Colts team, the NCAA(National Collegiate Athletic Association), the WNBA Indiana Fever, the International Leagues Indianapolis Indians, Indiana Ice hockey team and the USA Rugby team, the Indianapolis Indians. Indy isnt just about sports - the Childrens Museum of Indianapolis (the world's largest) is here, North Americas largest water clock (over 17 feet tall) is located on the north side of the Indiana State Museum. Dont miss the Canal Walk, the Zoo, the 284-foot Soldiers' & Sailors' Monument at Monument Circle, the White River State Park (the only urban state park in Indiana) downtown and the many other attractions in this great city.
Indianapolis, the Crossroads of America and the capitol city of the State of Indiana is conveniently located in the Midwest, one days driving distance from half the nations population. Indianapolis, affectionately referred to as Indy offers a vast array of arts, attractions, historical sites and eclectic cultural districts located in and near the downtown center. Indy's reputation as a...description source
Population Population (2012) 834,852 Population Density 2,309 ppl/sq mi Population Growth Rate 1.8% Median Income $39,015 Median Age 33.8 Unemployment 8.5% Family Household Percent 59.3% Avg. Household Size 2.4 Avg. House Price $116,300 Foreign Born 7.0% Married 38.1% Cost of Living 46.7%
Demographics White 58.0% Hispanic / Latino 9.4% Black / African American 27.5% Asian 1.9% Native American 0.05%
Market & Regulatory Conditions For Indiana
Third parties rate Indiana's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness B+ Ease of starting a small business B+ Cost of hiring a new employee A Overall regulatory friendliness A- Friendliness of health and safety regulations A- Friendliness of employment, labor, and hiring regulations A+ Friendliness of tax code B+ Friendliness of licensing regulations B+ Friendliness of environmental regulations B+ Friendliness of zoning regulations B+ Publicity of training programs C Publicity of networking programs D Current economic health of small business 29th/50 Change in revenue over past 12 months 13th/50 Forecast of small business's future economic health 14th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 19th/50 Cost of Doing Business 21th/50 Economy 30th/50 Infrastructure 7th/50 Workforce 27th/50 Quality of life 44th/50 Technology and innovation 25th/50 Business friendliness 11th/50 Education 15th/50 Cost of living 7th/50 Access to capital 37th/50Source: CNBC (2014)
Tax Friendliness Indiana Corporate Tax Rate 7.0% Avg Local Corporate Tax Rate in Indiana 0.0% Avg Combined Corporate Tax Rate 7.0% Overall tax friendliness 8th/50 Corporate tax rank 22th/50 Individual income tax rank 10th/50 Sales tax rank 10th/50 Unemployment insurance tax rank 7th/50 Property tax rank 5th/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.