Market Research Report
Based on the parameters below, we project this business would break even in 2.6 years with a net present value of $270,739.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$43,065||$64,598||$86,130||$90,092||$94,236|
|Net Cash Flow||-$111,105||$43,065||$64,598||$86,130||$90,092||$376,945|
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 Irvine.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- February temperature
- business activity
- land area
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
3971 Irvine Blvd Ste 100 C1 Irvine, CA 92602
4255 Campus Dr Ste B-142 C1 Irvine, CA 92612
4330 Barranca Pkwy Ste 150A C1 Irvine, CA 92604
14220 Culver Dr Ste C C1 Irvine, CA 92604
Tice Gardner & Fujimoto LLP - Certified Public Accountants
8845 Research Dr Suite 100 Irvine, CA 92618
TIP: Your market is dominated by national chains. Consider entering the market with an independant business or a regional franchise.
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About Irvine and its Consumers
Irvine is an affluent suburban city in Orange County, California, United States. It is a planned city, mainly developed by the Irvine Company since the 1960s. Formally incorporated on December 28, 1971, the 66 square miles (170 km2) city has a population of 212,375 as of the 2010 census; the California Department of Finance estimates its 2013 population to be 223,729.The city's mission statement is "to create and maintain a community where people can live, work, and play in an environment that is safe, vibrant, and aesthetically pleasing". Businessweek listed Irvine as the 5th best city in the US.In June 2010, the Federal Bureau of Investigation reported that Irvine had the lowest violent crime rate among cities in the United States with populations of more than 100,000,and in August 2008 the Census Bureau ranked Irvine as having the seventh highest median income among cities in the United States with populations of more than 65,000.In 2014, Irvine was named the best-run city in the U.S. by 24/7 Wall Street.
Irvine is an affluent suburban city in Orange County, California, United States. It is a planned city, mainly developed by the Irvine Company since the 1960s. Formally incorporated on December 28, 1971, the 66 square miles (170 km2) city has a population of 212,375 as of the 2010 census; the California Department of Finance estimates its 2013 population to be 223,729.The city's mission...description source
Population Population (2012) 229,985 Population Density 3,479 ppl/sq mi Population Growth Rate 8.3% Median Income $87,484 Median Age 33.6 Unemployment 4.9% Family Household Percent 65.1% Avg. Household Size 2.6 Avg. House Price $656,800 Foreign Born 30.0% Married 37.2% Cost of Living 66.6%
Demographics White 46.2% Hispanic / Latino 10.4% Black / African American 1.7% Asian 36.7% Native American 0.3%
Market & Regulatory Conditions For California
Third parties rate California's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness F Ease of starting a small business D Cost of hiring a new employee C- Overall regulatory friendliness F Friendliness of health and safety regulations F Friendliness of employment, labor, and hiring regulations F Friendliness of tax code F Friendliness of licensing regulations F Friendliness of environmental regulations D Friendliness of zoning regulations D Publicity of training programs C- Publicity of networking programs D+ Current economic health of small business 40th/50 Change in revenue over past 12 months 40th/50 Forecast of small business's future economic health 35th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 32th/50 Cost of Doing Business 48th/50 Economy 9th/50 Infrastructure 24th/50 Workforce 36th/50 Quality of life 23th/50 Technology and innovation 1th/50 Business friendliness 48th/50 Education 26th/50 Cost of living 47th/50 Access to capital 1th/50Source: CNBC (2014)
Tax Friendliness California Corporate Tax Rate 7.5% Avg Local Corporate Tax Rate in California 0.9% Avg Combined Corporate Tax Rate 8.4% Overall tax friendliness 48th/50 Corporate tax rank 34th/50 Individual income tax rank 50th/50 Sales tax rank 42th/50 Unemployment insurance tax rank 14th/50 Property tax rank 14th/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.