Market Research Report

Accounting Firm opportunities in McAllen, TX
$42,665 Potential Yearly Earnings What's this number?
$156,445 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 $156,445.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $213,325 $319,988 $426,650 $452,324 $479,544
Net Costs $191,993 $287,989 $383,985 $407,092 $431,589
Net Operating Profits $21,333 $31,999 $42,665 $45,232 $47,954
Capital
      Startup Cost -$35,583
      Terminal Value $143,863
Net Cash Flow -$35,583 $21,333 $31,999 $42,665 $45,232 $191,817

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 McAllen.

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

  Competitors

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

H&R Block National Competitor
2401 Pecan Blvd Ste D McAllen, TX 78501

H&R Block National Competitor
2612 Pecan Blvd Ste B McAllen, TX 78501

H&R Block National Competitor
2300D N 10th St McAllen, TX 78501

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 McAllen and its Consumers

Mcallentx Mcallentx

McAllen is a city located at the southern tip of Texas in an area known as the Rio Grande Valley. Only about five miles from the Mexican border, McAllen is situated along U.S. Route 83, which connects the Valley to West Texas. Other major highways servicing the city include U.S. Route 281 and Texas State Highway 107. Regional air transportation is available at Miller International Airport, which offers frequent daily flights to major hubs in Houston, Dallas and Mexico City. Developer John McAllen settled in the Rio Grande Valley in the late 1800s and established a town site in 1904 known as West McAllen. Shortly thereafter, other developers started a nearby town which they named East McAllen. The two groups eventually joined forces and in 1911 the City of McAllen was incorporated. Over the next several centuries, McAllen experienced steady growth and by the 1970s saw an increase in industrial trade and manufacturing brought about by activation of the Free Trade Zone (FTZ). The passing of the North American Free Trade Agreement (NAFTA) in the 1990s enhanced the impact of the FTZ, resulting in the creation of several thousand new jobs in both the U.S. and Reynosa, Mexico.

McAllen is a city located at the southern tip of Texas in an area known as the Rio Grande Valley. Only about five miles from the Mexican border, McAllen is situated along U.S. Route 83, which connects the Valley to West Texas. Other major highways servicing the city include U.S. Route 281 and Texas State Highway 107. Regional air transportation is available at Miller International Airport,...

description source
  • Population
    Population (2012) 134,719
    Population Density 2,786 ppl/sq mi
    Population Growth Rate 3.7%
    Median Income $35,348
    Median Age 32.7
    Unemployment 7.5%
    Family Household Percent 76.5%
    Avg. Household Size 3.1
    Avg. House Price $109,000
    Foreign Born 26.6%
    Married 28.4%
    Cost of Living 43.7%
  • Average Temperature
    January 60.8°F 16.0°C
    February 64.7°F 18.2°C
    March 70.8°F 21.6°C
    April 76.5°F 24.7°C
    May 81.9°F 27.7°C
    June 85.9°F 29.9°C
    July 86.7°F 30.4°C
    August 87.4°F 30.8°C
    September 83.3°F 28.5°C
    October 77.2°F 25.1°C
    November 69.4°F 20.8°C
    December 62.0°F 16.7°C
  • Demographics
    White 11.7%
    Hispanic / Latino 84.6%
    Black / African American 0.6%
    Asian 2.5%
    Native American 0.09%

  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 McAllen based on a number of market characteristics. See More Results

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