Market Research Report
Based on the parameters below, we project this business would break even in 3.3 years with a net present value of $114,738.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$21,158||$31,736||$42,315||$43,794||$45,324|
|Net Cash Flow||-$70,656||$21,158||$31,736||$42,315||$43,794||$181,296|
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 Jersey City.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- business activity
- nearby population
- land area
- April temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
407 Central Ave Jersey City, NJ 07307
735 W Side Ave Jersey City, NJ 07306
701 State Rt 440 Jersey City, NJ 07304
394 Martin Luther King Jr Dr Jersey City, NJ 07305
30 Journal Sq Jersey City, NJ 07306
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 Jersey City and its Consumers
Jersey City is the second-largest city in New Jersey, trailing Newark in population, but far surpassing Trenton, the state capital. It is located on a peninsula that includes Hoboken to the north, the Hudson River and Manhattan to the east, Bayonne to the south, and the Hackensack River to the west. Once a humming center of industry, Jersey City housed the booming factories of Colgate and Dixon-Ticonderoga. Once a railroad hub, the rail lines of the country's great railroads, including the famed Pennsylvania Railroad, criss-crossed the city, bringing new immigrants into the American hinterland. Today, Jersey City is neither of these things. Decades of government mismanagement and disappointments had a profound effect on this once booming town. A fear of urban areas caused significant "white flight" to the suburbs in the middle of the 20th century; once affluent areas became centers of poverty and crime. Jersey City was a mirror of what was happening in New York City itself, although perhaps to a more significant and depressing degree.
Jersey City is the second-largest city in New Jersey, trailing Newark in population, but far surpassing Trenton, the state capital. It is located on a peninsula that includes Hoboken to the north, the Hudson River and Manhattan to the east, Bayonne to the south, and the Hackensack River to the west. Once a humming center of industry, Jersey City housed the booming factories of Colgate and...description source
Population Population (2012) 254,441 Population Density 17,198 ppl/sq mi Population Growth Rate 2.8% Median Income $56,843 Median Age 33.1 Unemployment 10.0% Family Household Percent 59.5% Avg. Household Size 2.5 Avg. House Price $312,800 Foreign Born 35.3% Married 40.6% Cost of Living 65.2%
Demographics White 20.6% Hispanic / Latino 27.2% Black / African American 23.2% Asian 25.0% Native American 0.3%
Market & Regulatory Conditions For New Jersey
Third parties rate New Jersey'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 C- Cost of hiring a new employee B+ Overall regulatory friendliness C Friendliness of health and safety regulations C+ Friendliness of employment, labor, and hiring regulations B- Friendliness of tax code C+ Friendliness of licensing regulations C Friendliness of environmental regulations D+ Friendliness of zoning regulations D Publicity of training programs B+ Publicity of networking programs C Current economic health of small business 38th/50 Change in revenue over past 12 months 43th/50 Forecast of small business's future economic health 43th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 43th/50 Cost of Doing Business 43th/50 Economy 47th/50 Infrastructure 47th/50 Workforce 23th/50 Quality of life 18th/50 Technology and innovation 15th/50 Business friendliness 37th/50 Education 4th/50 Cost of living 44th/50 Access to capital 11th/50Source: CNBC (2014)
Tax Friendliness New Jersey Corporate Tax Rate 7.0% Avg Local Corporate Tax Rate in New Jersey 0.0% Avg Combined Corporate Tax Rate 7.0% Overall tax friendliness 50th/50 Corporate tax rank 41th/50 Individual income tax rank 48th/50 Sales tax rank 48th/50 Unemployment insurance tax rank 32th/50 Property tax rank 50th/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.