Market Research Report

Accounting Firm opportunities in Madison, WI
$60,296 Potential Yearly Earnings What's this number?
$205,133 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 2.0 years with a net present value of $205,133.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $301,479 $452,219 $602,958 $625,551 $648,991
Net Costs $271,331 $406,997 $542,662 $562,996 $584,092
Net Operating Profits $30,148 $45,222 $60,296 $62,555 $64,899
Capital
      Startup Cost -$59,753
      Terminal Value $194,697
Net Cash Flow -$59,753 $30,148 $45,222 $60,296 $62,555 $259,596

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 Madison.

  1. median income
  2. July temperature
  3. August temperature
  4. gross rent
  5. population density
  6. house price
  7. land area
  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
1240 S Park St Madison, WI 53715

H&R Block National Competitor
1860 E Washington Ave Madison, WI 53704

KMA Bodilly CPAs & Consultants SC Regional Competitor
1200 John Q Hammons Dr Madison, WI 53717

Villard & Associates CPA Local Competitor
2453 Atwood Ave #210 Madison, WI 53704

Porter & Sack CPAs SC Local Competitor
6515 Watts Rd Suite 200 Madison, WI 53719

  Suppliers & Service Providers Contact List

  • Get business insurance for your venture
    Hiscox

    Find great rates on business insurance.

    Get insured!

       

  • Free help for entrepreneurs
    Score

    Our experienced entrepreneurs can help you reach your goals.

    We provide free business mentoring for entrepreneurs.

       

  • Get a great business loan today!
    Fundera

    Get a business loan that suits your needs.

    Get the business loan you need and want.

       

  About Madison and its Consumers

Madison is the capital of the U.S. state of Wisconsin and the county seat of Dane County. As of July 1, 2012, Madison had an estimated population of 240,323, making it the second largest city in Wisconsin, after Milwaukee, and the 83rd largest in the United States. The city forms the core of the United States Census Bureau's Madison Metropolitan Statistical Area, which includes all of Dane County and neighboring Iowa and Columbia counties. The Madison Metropolitan Statistical Area had a 2010 population of 568,593. Wisconsin state government and the University of Wisconsin–Madison remain the two largest Madison employers. However, Madison's economy today is evolving from a government-based economy to a consumer services and high-tech base, particularly in the health, biotech and advertising sectors.Much of the expansion has occurred on the city's south and west sides, but it has also affected the east side near the Interstate 39-90-94 interchange and along the northern shore of Lake Mendota. Underpinning the boom is the development of high-tech companies, many fostered by UW–Madison working with local businesses and entrepreneurs to transfer the results of academic research into real-world applications, especially bio-tech applications.

Madison is the capital of the U.S. state of Wisconsin and the county seat of Dane County. As of July 1, 2012, Madison had an estimated population of 240,323, making it the second largest city in Wisconsin, after Milwaukee, and the 83rd largest in the United States. The city forms the core of the United States Census Bureau's Madison Metropolitan Statistical Area, which includes all of Dane...

description source
  • Population
    Population (2012) 240,323
    Population Density 3,129 ppl/sq mi
    Population Growth Rate 3.1%
    Median Income $53,363
    Median Age 30.7
    Unemployment 5.0%
    Family Household Percent 46.7%
    Avg. Household Size 2.2
    Avg. House Price $213,900
    Foreign Born 9.4%
    Married 47.7%
    Cost of Living 52.0%
  • Average Temperature
    January 18.8°F -7.3°C
    February 23.1°F -4.9°C
    March 34.0°F 1.1°C
    April 46.6°F 8.1°C
    May 57.3°F 14.1°C
    June 67.0°F 19.4°C
    July 71.3°F 21.8°C
    August 69.2°F 20.7°C
    September 61.0°F 16.1°C
    October 48.9°F 9.4°C
    November 36.2°F 2.3°C
    December 23.0°F -5.0°C
  • Demographics
    White 74.7%
    Hispanic / Latino 7.7%
    Black / African American 6.2%
    Asian 8.0%
    Native American 0.4%

  Market & Regulatory Conditions For Wisconsin

Third parties rate Wisconsin's business and regulatory conditions according to their own methods. We report them here for informational purposes.

  • Small-Business Friendliness
    Overall small business friendliness C+
    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 C-
    Friendliness of tax code C
    Friendliness of licensing regulations B-
    Friendliness of environmental regulations C
    Friendliness of zoning regulations D+
    Publicity of training programs C
    Publicity of networking programs D+
    Current economic health of small business 14th/50
    Change in revenue over past 12 months 22th/50
    Forecast of small business's future economic health 41th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 17th/50
    Cost of Doing Business 26th/50
    Economy 22th/50
    Infrastructure 10th/50
    Workforce 40th/50
    Quality of life 24th/50
    Technology and innovation 20th/50
    Business friendliness 25th/50
    Education 10th/50
    Cost of living 23th/50
    Access to capital 37th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Wisconsin Corporate Tax Rate 5.0%
    Avg Local Corporate Tax Rate in Wisconsin 0.4%
    Avg Combined Corporate Tax Rate 5.4%
    Overall tax friendliness 43th/50
    Corporate tax rank 33th/50
    Individual income tax rank 43th/50
    Sales tax rank 14th/50
    Unemployment insurance tax rank 27th/50
    Property tax rank 31th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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