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 $143,655.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$20,374||$30,560||$40,747||$42,356||$44,027|
|Net Cash Flow||-$35,735||$20,374||$30,560||$40,747||$42,356||$176,109|
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 Knoxville.
- median income
- July temperature
- August temperature
- gross rent
- population density
- land area
- house price
- business activity
- February temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
Brown Jake McDaniel PC
2607 Kingston Pike Knoxville, TN 37919
Conry -Taylor & Morrow CPA's PC
10107 Sherrill Blvd Knoxville, TN 37932
202 W Woodland Ave Knoxville, TN 37917
Harold Ward Jr CPA PC
4504 Central Avenue Pike Pke Knoxville, TN 37912
DeFord, Virgil L CPA
3810 N Broadway St Knoxville, TN 37917
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Knoxville and its Consumers
Knoxville is a city in the U.S. state of Tennessee, and the county seat of Knox County. The city had a population of 178,874 as of the 2010 census, and an estimated population of 182,200 in 2012, making it the state's third largest city. Knoxville is the principal city of the Knoxville Metropolitan Statistical Area, which in 2012 had an estimated population of 848,350. The KMSA is in turn the central component of the Knoxville-Sevierville-La Follette Combined Statistical Area, which in 2000 had a population of 1,029,155. Knoxville is the home of the flagship campus of the University of Tennessee, whose sports teams, called the "Volunteers" or "Vols," are extremely popular in the surrounding area. Knoxville is also home to the headquarters of the Tennessee Valley Authority, as well as the Tennessee Supreme Court's courthouse for East Tennessee and corporate headquarters of several national and regional companies. As one of the largest cities in the Appalachian region, Knoxville has positioned itself in recent years as a repository of Appalachian culture, and is one of the gateways to the Great Smoky Mountains National Park.
Knoxville is a city in the U.S. state of Tennessee, and the county seat of Knox County. The city had a population of 178,874 as of the 2010 census, and an estimated population of 182,200 in 2012, making it the state's third largest city. Knoxville is the principal city of the Knoxville Metropolitan Statistical Area, which in 2012 had an estimated population of 848,350. The KMSA is in turn the...description source
Population Population (2012) 182,200 Population Density 1,849 ppl/sq mi Population Growth Rate 1.9% Median Income $33,726 Median Age 34.0 Unemployment 8.2% Family Household Percent 50.0% Avg. Household Size 2.2 Avg. House Price $115,000 Foreign Born 4.1% Married 38.3% Cost of Living 46.0%
Demographics White 74.2% Hispanic / Latino 4.6% Black / African American 16.9% Asian 1.6% Native American 0.3%
Market & Regulatory Conditions For Tennessee
Third parties rate Tennessee'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 B+ 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 A- Publicity of networking programs B+ Current economic health of small business 17th/50 Change in revenue over past 12 months 16th/50 Forecast of small business's future economic health 30th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 14th/50 Cost of Doing Business 13th/50 Economy 14th/50 Infrastructure 4th/50 Workforce 6th/50 Quality of life 50th/50 Technology and innovation 28th/50 Business friendliness 18th/50 Education 39th/50 Cost of living 9th/50 Access to capital 33th/50Source: CNBC (2014)
Tax Friendliness Tennessee Corporate Tax Rate 7.0% Avg Local Corporate Tax Rate in Tennessee 2.5% Avg Combined Corporate Tax Rate 9.5% Overall tax friendliness 15th/50 Corporate tax rank 15th/50 Individual income tax rank 8th/50 Sales tax rank 47th/50 Unemployment insurance tax rank 26th/50 Property tax rank 37th/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.