Market Research Report
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 Operating Profits||$25,635||$38,452||$51,270||$53,441||$55,705|
|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.
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.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- business activity
- land area
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
830 2nd Ave S Minneapolis, MN 55402
607 W Broadway Ave Minneapolis, MN 55411
Vern and Sandys Forsythe Tax & Accounting
81 38th Ave NE Suite 1 Minneapolis, MN 55421
Burdette & Associates, LLC, CPA's
5775 Wayzata Blvd Suite 700 Minneapolis, MN 55416
Tom Dotzenrod CPA
7600 Parklawn Ave #420 Minneapolis, MN 55435
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About Minneapolis and its Consumers
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 MinneapolisSt. 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%
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/50Source: 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/50Source: 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/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.
Suggested Cities & Businesses
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