Market Research Report

Accounting Firm opportunities in Minneapolis, MN
$51,270 Potential Yearly Earnings What's this number?
$167,709 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 2.3 years with a net present value of $167,709.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $256,349 $384,524 $512,698 $534,412 $557,046
Net Costs $230,714 $346,071 $461,428 $480,971 $501,342
Net Operating Profits $25,635 $38,452 $51,270 $53,441 $55,705
Capital
      Startup Cost -$58,704
      Terminal Value $167,114
Net Cash Flow -$58,704 $25,635 $38,452 $51,270 $53,441 $222,818

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 Minneapolis.

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

  Competitors

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

H&R Block National Competitor
830 2nd Ave S Minneapolis, MN 55402

H&R Block National Competitor
607 W Broadway Ave Minneapolis, MN 55411

Vern and Sandys Forsythe Tax & Accounting Regional Competitor
81 38th Ave NE Suite 1 Minneapolis, MN 55421

Burdette & Associates, LLC, CPA's Regional Competitor
5775 Wayzata Blvd Suite 700 Minneapolis, MN 55416

Tom Dotzenrod CPA Local Competitor
7600 Parklawn Ave #420 Minneapolis, MN 55435

  Suppliers & Service Providers Contact List

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  About Minneapolis and its Consumers

Minmn Minmn

Minneapolis, the largest city in Minnesota and the seat of Hennepin County, is located in the southeast central part of the state on the Mississippi River. It is adjacent to its “twin city” of St. Paul. The name Minneapolis is a combination of the Dakota Sioux word “minna,” for water, and the Greek word “polis,” for city. Minneapolis was incorporated as a city in 1867, and in 1872 the city of St. Anthony (chartered in 1860) was annexed to it. After the spread of the railroads in the 1870s, Minneapolis became the gateway to the Northern Great Plains. Minneapolis is a center of industry and commerce serving a large agricultural region. During the 20th century, manufacturing, food processing, milling, computers, health services, and graphic arts developed as Minneapolis's major industries. Fifteen Fortune 500 companies are headquartered in the Minneapolis–St. Paul metropolitan area. The city is the headquarters of the Ninth Federal Reserve Bank. The Twin Cities are known for their wide array of cultural attractions, and Minneapolis is home to many fine museums, including the Minneapolis Institute of Arts, the Walker Center, and the Frederick R. Weisman Art Museum at the University of Minnesota's Minneapolis campus.

Minneapolis, the largest city in Minnesota and the seat of Hennepin County, is located in the southeast central part of the state on the Mississippi River. It is adjacent to its “twin city” of St. Paul. The name Minneapolis is a combination of the Dakota Sioux word “minna,” for water, and the Greek word “polis,” for city. Minneapolis was incorporated as a city in 1867, and in 1872 the city of...

description source
  • Population
    Population (2012) 392,880
    Population Density 7,279 ppl/sq mi
    Population Growth Rate 2.7%
    Median Income $46,682
    Median Age 32.1
    Unemployment 3.3%
    Family Household Percent 44.0%
    Avg. Household Size 2.22
    Avg. House Price $199,100
    Foreign Born 15.2%
    Married 35.7%
    Cost of Living 60.0%
  • Average Temperature
    January 15.6°F -9.1°C
    February 20.8°F -6.2°C
    March 32.8°F 0.4°C
    April 47.5°F 8.6°C
    May 59.1°F 15.1°C
    June 68.8°F 20.4°C
    July 73.8°F 23.2°C
    August 71.2°F 21.8°C
    September 62.0°F 16.7°C
    October 48.9°F 9.4°C
    November 33.7°F 0.9°C
    December 19.7°F -6.8°C
  • Demographics
    White 61.0%
    Hispanic / Latino 10.6%
    Black / African American 18.4%
    Asian 5.2%
    Native American 1.4%

  Market & Regulatory Conditions For Minnesota

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

  • Small-Business Friendliness
    Overall small business friendliness B
    Ease of starting a small business B-
    Cost of hiring a new employee B
    Overall regulatory friendliness C+
    Friendliness of health and safety regulations B-
    Friendliness of employment, labor, and hiring regulations C+
    Friendliness of tax code C
    Friendliness of licensing regulations C
    Friendliness of environmental regulations B
    Friendliness of zoning regulations B
    Publicity of training programs B-
    Publicity of networking programs C-
    Current economic health of small business 12th/50
    Change in revenue over past 12 months 4th/50
    Forecast of small business's future economic health 24th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 6th/50
    Cost of Doing Business 38th/50
    Economy 5th/50
    Infrastructure 5th/50
    Workforce 30th/50
    Quality of life 4th/50
    Technology and innovation 11th/50
    Business friendliness 15th/50
    Education 12th/50
    Cost of living 28th/50
    Access to capital 11th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Minnesota Corporate Tax Rate 6.9%
    Avg Local Corporate Tax Rate in Minnesota 0.3%
    Avg Combined Corporate Tax Rate 7.2%
    Overall tax friendliness 47th/50
    Corporate tax rank 44th/50
    Individual income tax rank 46th/50
    Sales tax rank 37th/50
    Unemployment insurance tax rank 29th/50
    Property tax rank 34th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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