Market Research Report

Accounting Firm opportunities in Lubbock, TX
$43,167 Potential Yearly Earnings What's this number?
$157,035 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 1.7 years with a net present value of $157,035.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $215,833 $323,749 $431,666 $457,642 $485,181
Net Costs $194,250 $291,375 $388,499 $411,878 $436,663
Net Operating Profits $21,583 $32,375 $43,167 $45,764 $48,518
Capital
      Startup Cost -$37,250
      Terminal Value $145,554
Net Cash Flow -$37,250 $21,583 $32,375 $43,167 $45,764 $194,073

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 Lubbock.

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

  Competitors

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

Robinson Burdette Martin Seright Regional Competitor
9816 Slide Rd Lubbock, TX 79424

Johnson Income Tax Regional Competitor
4200 Boston Ave Suite 22 Lubbock, TX 79413

Mason Warner & Co PC Local Competitor
5202 Indiana Ave Lubbock, TX 79413

Gary Bowers & Miller Local Competitor
5235 79th St Lubbock, TX 79424

Williams D & Co PC Local Competitor
1500 Broadway Lubbock, TX 79401

TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.

  Suppliers & Service Providers Contact List

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  About Lubbock and its Consumers

84 84

Lubbock is a city in and the county seat of Lubbock County, Texas, United States.The city is located in thenorthwestern part of the state, a region known historically and geographically as the Llano Estacado and ecologically is part of the southern end of the Western High Plains. The city is home to three universities: Lubbock Christian University, Texas Tech University, and Texas Tech University Health Sciences Center. According to a 2013 Census estimate, Lubbock had a population of 239,538, making it the 84th most populous city in the United States of America and the 11th most populous city in the state ofTexas. Lubbock's nickname is the "Hub City", which derives from it being the economic, education, and health care hub of a multicounty region, north of the Permian Basin and south of the Texas Panhandle, commonly called the South Plains.The area is the largest contiguous cotton-growing region in the world and is heavily dependent on irrigation water drawn from the Ogallala Aquifer. Lubbock was selected as the 12th best place to start a small business by CNNMoney.com.

Lubbock is a city in and the county seat of Lubbock County, Texas, United States.The city is located in thenorthwestern part of the state, a region known historically and geographically as the Llano Estacado and ecologically is part of the southern end of the Western High Plains. The city is home to three universities: Lubbock Christian University, Texas Tech University, and Texas Tech...

description source
  • Population
    Population (2012) 236,065
    Population Density 1,928 ppl/sq mi
    Population Growth Rate 2.8%
    Median Income $43,364
    Median Age 29.5
    Unemployment 5.7%
    Family Household Percent 59.9%
    Avg. Household Size 2.5
    Avg. House Price $113,500
    Foreign Born 4.9%
    Married 38.7%
    Cost of Living 45.0%
  • Average Temperature
    January 40.2°F 4.6°C
    February 44.5°F 6.9°C
    March 51.9°F 11.1°C
    April 60.5°F 15.8°C
    May 69.8°F 21.0°C
    June 77.4°F 25.2°C
    July 80.3°F 26.8°C
    August 79.0°F 26.1°C
    September 71.7°F 22.1°C
    October 61.5°F 16.4°C
    November 49.8°F 9.9°C
    December 40.6°F 4.8°C
  • Demographics
    White 54.7%
    Hispanic / Latino 33.1%
    Black / African American 7.4%
    Asian 2.4%
    Native American 0.4%

  Market & Regulatory Conditions For Texas

Third parties rate Texas'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 A
    Cost of hiring a new employee B+
    Overall regulatory friendliness A
    Friendliness of health and safety regulations A-
    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 C+
    Publicity of networking programs C
    Current economic health of small business 13th/50
    Change in revenue over past 12 months 29th/50
    Forecast of small business's future economic health 17th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 2th/50
    Cost of Doing Business 23th/50
    Economy 1th/50
    Infrastructure 1th/50
    Workforce 11th/50
    Quality of life 37th/50
    Technology and innovation 2th/50
    Business friendliness 20th/50
    Education 27th/50
    Cost of living 18th/50
    Access to capital 5th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Texas Corporate Tax Rate 6.3%
    Avg Local Corporate Tax Rate in Texas 1.9%
    Avg Combined Corporate Tax Rate 8.2%
    Overall tax friendliness 10th/50
    Corporate tax rank 39th/50
    Individual income tax rank 6th/50
    Sales tax rank 36th/50
    Unemployment insurance tax rank 15th/50
    Property tax rank 36th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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