Market Research Report
Based on the parameters below, we project this business would break even in 3.8 years with a net present value of $107,573.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$21,439||$32,159||$42,878||$44,793||$46,793|
|Net Cash Flow||-$82,247||$21,439||$32,159||$42,878||$44,793||$187,171|
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 Miami Gardens.
- July temperature
- median income
- August temperature
- gross rent
- population density
- February temperature
- business activity
- house price
- December temperature
- April temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
Elvira Acosta Enrolled Agent
401 Coral Way Ste 107 Miami, FL 33134
Rodriguez Ariza & Co.
9500 S Dadeland Blvd Miami, FL 33156
Estela Lorenzo & Company CPA
6830 SW 159th Pl Miami, FL 33193
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About Miami Gardens and its Consumers
Miami Gardens is a suburban Miami city located in north-central Miami-Dade County, Florida. Its boundaries stretch from I-95 and NE 2nd Street on the East, to NW 47th and NW 57th Avenues on the West, and from the Broward County line on the North, to 151st Street on the South. The city name comes from one of the major roadways through the area, Miami Gardens Drive. According to a 2011 estimate from the US Census Bureau, the city had a population of 109,680, and it is the largest city in Florida that has a majority black American population. In the wake of the construction of I-95 in the late 1960s, many middle and upper income African American and West Indian American families migrated from Miami neighborhoods such as Liberty City to what became Miami Gardens (then called "Norland" or "Norwood") as restrictive covenants fell into disuse and mostly lower income blacks moved to the inner city neighborhoods surrounding Liberty Square and Edison Courts.
Miami Gardens is a suburban Miami city located in north-central Miami-Dade County, Florida. Its boundaries stretch from I-95 and NE 2nd Street on the East, to NW 47th and NW 57th Avenues on the West, and from the Broward County line on the North, to 151st Street on the South. The city name comes from one of the major roadways through the area, Miami Gardens Drive. According to a 2011 estimate...description source
Population Population (2012) 110,754 Population Density 6,075 ppl/sq mi Population Growth Rate 3.3% Median Income $43,129 Median Age 33.4 Unemployment 6.2% Family Household Percent 80.4% Avg. Household Size 3.3 Avg. House Price $129,595 Foreign Born 29.8% Married 25.9% Cost of Living 100.0%
Demographics White 26.9% Hispanic / Latino 43.3% Black / African American 24.4% Asian 2.1% Native American 0.2%
Market & Regulatory Conditions For Florida
Third parties rate Florida'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 B- Friendliness of health and safety regulations C+ Friendliness of employment, labor, and hiring regulations B- Friendliness of tax code B+ Friendliness of licensing regulations C+ Friendliness of environmental regulations C+ Friendliness of zoning regulations C+ Publicity of training programs C Publicity of networking programs C+ Current economic health of small business 34th/50 Change in revenue over past 12 months 35th/50 Forecast of small business's future economic health 23th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 20th/50 Cost of Doing Business 37th/50 Economy 11th/50 Infrastructure 27th/50 Workforce 3th/50 Quality of life 28th/50 Technology and innovation 12th/50 Business friendliness 35th/50 Education 38th/50 Cost of living 31th/50 Access to capital 7th/50Source: CNBC (2014)
Tax Friendliness Florida Corporate Tax Rate 6.0% Avg Local Corporate Tax Rate in Florida 0.6% Avg Combined Corporate Tax Rate 6.6% Overall tax friendliness 5th/50 Corporate tax rank 14th/50 Individual income tax rank 1th/50 Sales tax rank 12th/50 Unemployment insurance tax rank 3th/50 Property tax rank 16th/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.