Market Research Report

Accounting Firm opportunities in Lexington, KY
$47,963 Potential Yearly Earnings What's this number?
$166,526 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 1.8 years with a net present value of $166,526.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $239,815 $359,723 $479,630 $496,361 $513,675
Net Costs $215,834 $323,750 $431,667 $446,725 $462,307
Net Operating Profits $23,982 $35,972 $47,963 $49,636 $51,367
Capital
      Startup Cost -$43,598
      Terminal Value $154,102
Net Cash Flow -$43,598 $23,982 $35,972 $47,963 $49,636 $205,470

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.

Financial Parameters

Change these parameters to customize your financial model

  Statistical Analysis
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 Lexington.

  1. median income
  2. July temperature
  3. August temperature
  4. gross rent
  5. land area
  6. population density
  7. house price
  8. business activity
  9. white
  10. nearby population

  Competitors

Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.

H&R Block National Competitor
4101 Tates Creek Centre Dr Ste 102 Lexington, KY 40517

H&R Block National Competitor
2020 Liberty Rd Ste 100 Lexington, KY 40505

H&R Block National Competitor
3090 Todds Rd Ste 140 Lexington, KY 40509

H&R Block National Competitor
2358 Nicholasville Rd Ste 135 Lexington, KY 40503

H&R Block National Competitor
3134 Richmond Rd Lexington, KY 40509

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 Lexington and its Consumers

Lexkt Lexkt

Lexington, consolidated with Fayette County, is the second-largest city in Kentucky and the 62nd largest in the United States. Known as the "Horse Capital of the World", it is located in the heart of Kentucky's Bluegrass region. In the 2013 US Census Estimate, the city's population was 308,428, anchoring a metropolitan area of 489,435 people and a combined statistical area of 708,677 people. Lexington ranks tenth among US cities in college education rate, with 39.5% of residents having at least a bachelor's degree.It is the location of the Kentucky Horse Park, The Red Mile and Keeneland race courses, Rupp Arena, the world's largest basketball-specific arena, Transylvania University, the University of Kentucky and Bluegrass Community & Technical College. With its abundance of government and technology jobs, Lexington has one of the nation's most stable economies. Lexington has been described as having "a fortified economy, strong in manufacturing, technology and entrepreneurial support, benefiting from a diverse, balanced business base".

Lexington, consolidated with Fayette County, is the second-largest city in Kentucky and the 62nd largest in the United States. Known as the "Horse Capital of the World", it is located in the heart of Kentucky's Bluegrass region. In the 2013 US Census Estimate, the city's population was 308,428, anchoring a metropolitan area of 489,435 people and a combined statistical area of 708,677...

description source
  • Population
    Population (2012) 305,489
    Population Density 1,077 ppl/sq mi
    Population Growth Rate 3.3%
    Median Income $47,207
    Median Age 34.2
    Unemployment 3.6%
    Family Household Percent 56.6%
    Avg. Household Size 2.3
    Avg. House Price $163,400
    Foreign Born 3.3%
    Married 35.0%
    Cost of Living 47.7%
  • Average Temperature
    January 32.9°F 0.5°C
    February 36.9°F 2.7°C
    March 45.5°F 7.5°C
    April 55.3°F 12.9°C
    May 64.2°F 17.9°C
    June 72.7°F 22.6°C
    July 76.2°F 24.6°C
    August 75.3°F 24.1°C
    September 68.1°F 20.1°C
    October 57.0°F 13.9°C
    November 46.3°F 7.9°C
    December 36.0°F 2.2°C
  • Demographics
    White 72.9%
    Hispanic / Latino 7.0%
    Black / African American 14.4%
    Asian 3.5%
    Native American 0.1%

  Market & Regulatory Conditions For Kentucky

Third parties rate Kentucky'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 C+
    Cost of hiring a new employee C-
    Overall regulatory friendliness C
    Friendliness of health and safety regulations D+
    Friendliness of employment, labor, and hiring regulations B
    Friendliness of tax code C-
    Friendliness of licensing regulations C
    Friendliness of environmental regulations C
    Friendliness of zoning regulations C-
    Publicity of training programs F
    Publicity of networking programs D+
    Current economic health of small business 6th/50
    Change in revenue over past 12 months 31th/50
    Forecast of small business's future economic health 18th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 39th/50
    Cost of Doing Business 14th/50
    Economy 46th/50
    Infrastructure 29th/50
    Workforce 29th/50
    Quality of life 42th/50
    Technology and innovation 37th/50
    Business friendliness 36th/50
    Education 35th/50
    Cost of living 1th/50
    Access to capital 47th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Kentucky Corporate Tax Rate 6.0%
    Avg Local Corporate Tax Rate in Kentucky 0.0%
    Avg Combined Corporate Tax Rate 6.0%
    Overall tax friendliness 26th/50
    Corporate tax rank 29th/50
    Individual income tax rank 30th/50
    Sales tax rank 11th/50
    Unemployment insurance tax rank 45th/50
    Property tax rank 17th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

The following cities have the highest PYE for Accounting Firm within 500 miles of Lexington based on a number of market characteristics. See More Results

The following businesse types have the highest PYE in Lexington. See More Results