Market Research Report
Based on the parameters below, we project this business would break even in 2.1 years with a net present value of $131,445.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$19,323||$28,985||$38,647||$40,477||$42,393|
|Net Cash Flow||-$40,136||$19,323||$28,985||$38,647||$40,477||$169,573|
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 Lincoln.
- median income
- July temperature
- August temperature
- gross rent
- population density
- land area
- house price
- business activity
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
Balanced Bookkeeping & Tax Services
1919 S 40th St Suite 100 Ste 100 Lincoln, NE 68506
Demma Cpa Perry L
207 S 9th St Lincoln, NE 68508
Grafton & Associates PC
Lincoln, NE 68516
Comprehensive Accounting Services
5000 Starling Dr Lincoln, NE 68516
1405 N 66th St Ste 301 Lincoln, NE 68505
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
Suppliers & Service Providers Contact List
Access angel investors around the U.S.
Get Angels to invest in your business.
Access angel investment today!
Connect with audiences in a whole new way
The easiest way to access consumer data and survey communities in real time.
Free help for entrepreneurs
Our professionals can help you get your business going.
We can help with your business plan! We have expertise and datasets.
About Lincoln and its Consumers
Lincoln, located in the southeastern part of the State of Nebraska, is the capital and the second-most populous city of Nebraska. Lincoln is also the county seat of Lancaster County and makes up part of the Lincoln metropolitan (statistical) area. Lincoln's population in 2013 was estimated at 268,738. Lincoln was founded as the village of Lancaster on the salt flats of what was to become Lancaster County. A short time later, Lancaster was renamed Lincoln and became Nebraska's capital. Sometimes referred to as the "Star City", many of Lincoln's primary employers fall within the service and manufacturing industries, including a growing high tech sector. The city is the home of the University of Nebraska, has an unemployment rate of 2.3% (February 2015, preliminary) and has the second tallest capitol building in the United States.
Lincoln, located in the southeastern part of the State of Nebraska, is the capital and the second-most populous city of Nebraska. Lincoln is also the county seat of Lancaster County and makes up part of the Lincoln metropolitan (statistical) area. Lincoln's population in 2013 was estimated at 268,738. Lincoln was founded as the village of Lancaster on the salt flats of what was to become...description source
Population Population (2012) 265,404 Population Density 2,978 ppl/sq mi Population Growth Rate 2.7% Median Income $46,670 Median Age 31.9 Unemployment 3.9% Family Household Percent 58.2% Avg. Household Size 2.4 Avg. House Price $144,000 Foreign Born 6.2% Married 36.1% Cost of Living 45.1%
Demographics White 83.0% Hispanic / Latino 6.4% Black / African American 3.5% Asian 4.0% Native American 0.7%
Market & Regulatory Conditions For Nebraska
Third parties rate Nebraska's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness A- Ease of starting a small business B+ Cost of hiring a new employee A+ Overall regulatory friendliness B- Friendliness of health and safety regulations D+ Friendliness of employment, labor, and hiring regulations B- Friendliness of tax code B- Friendliness of licensing regulations B Friendliness of environmental regulations C- Friendliness of zoning regulations B+ Publicity of training programs B Publicity of networking programs F Current economic health of small business 1th/50 Change in revenue over past 12 months 1th/50 Forecast of small business's future economic health 1th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 4th/50 Cost of Doing Business 10th/50 Economy 11th/50 Infrastructure 18th/50 Workforce 16th/50 Quality of life 8th/50 Technology and innovation 40th/50 Business friendliness 3th/50 Education 19th/50 Cost of living 21th/50 Access to capital 35th/50Source: CNBC (2014)
Tax Friendliness Nebraska Corporate Tax Rate 5.5% Avg Local Corporate Tax Rate in Nebraska 1.3% Avg Combined Corporate Tax Rate 6.8% Overall tax friendliness 29th/50 Corporate tax rank 31th/50 Individual income tax rank 25th/50 Sales tax rank 27th/50 Unemployment insurance tax rank 13th/50 Property tax rank 39th/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.
Suggested Cities & Businesses
Woodbury, Minnesota (PYE: $171,160)
Eden Prairie, Minnesota (PYE: $146,293)
Maple Grove, Minnesota (PYE: $143,066)