Market Research Report
Based on the parameters below, we project this business would break even in 2.6 years with a net present value of $83,661.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$13,415||$20,122||$26,830||$27,887||$28,986|
|Net Cash Flow||-$34,451||$13,415||$20,122||$26,830||$27,887||$115,946|
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 Mobile.
- July temperature
- median income
- August temperature
- gross rent
- land area
- population density
- February temperature
- house price
- business activity
- April temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
Busey and Busey CPA LLC
4324 Boulevard Park S Mobile, AL 36609
Jones, Terry CPA
5910 Grelot Rd Mobile, AL 36609
Prichard, Dewberry & Hodges PC
800 Hillcrest Rd Mobile, AL 36695
Fobes Michael J CPA PC
5920 Grelot Rd., Ste. F2 Mobile, AL 36609
Anne M. Waters, CPA, CVA, PC
3655 The Cedars Ave Mobile, AL 36608
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
Suppliers & Service Providers Contact List
Free help for entrepreneurs
Our experienced entrepreneurs can help you reach your goals.
We provide free business mentoring for entrepreneurs.
Get business insurance for your venture
Find great rates on business insurance.
Thousands of commercial properties for sale!
Find the right commercial property for your business here.
Thousands of properties to choose from.
About Mobile and its Consumers
Mobile is the county seat of Mobile County, Alabama. The population within the city limits was 195,111 as of the 2010 United States Census,making it the third most populous city in the U.S. state of Alabama, the most populous in Mobile County, and the largest municipality on the Gulf Coast between New Orleans, Louisiana, and St. Petersburg, Florida. Alabama's only saltwater port, Mobile is located at the head of the Mobile Bay and the north-central Gulf Coast. The Port of Mobile has always played a key role in the economic health of the city beginning with the city as a key trading center between the French and Native Americans down to its current role as the 12th-largest port in the United States. Mobile is the principal municipality of the Mobile Metropolitan Statistical Area, a region of 412,992 residents which is composed solely of Mobile County and is the third-largest metropolitan statistical area in the state. Mobile is the largest city in the Mobile-Daphne?Fairhope CSA, with a total population of 604,726, the second largest in the state. As of 2011, the population within a 60 mile radius of Mobile is 1,262,907.
Mobile is the county seat of Mobile County, Alabama. The population within the city limits was 195,111 as of the 2010 United States Census,making it the third most populous city in the U.S. state of Alabama, the most populous in Mobile County, and the largest municipality on the Gulf Coast between New Orleans, Louisiana, and St. Petersburg, Florida. Alabama's only saltwater port, Mobile is...description source
Population Population (2012) 194,822 Population Density 1,400 ppl/sq mi Population Growth Rate -0.1% Median Income $40,153 Median Age 35.6 Unemployment 8.0% Family Household Percent 61.7% Avg. Household Size 2.4 Avg. House Price $127,200 Foreign Born 3.4% Married 38.3% Cost of Living 45.0%
Demographics White 43.9% Hispanic / Latino 2.4% Black / African American 50.3% Asian 1.7% Native American 0.3%
Market & Regulatory Conditions For Alabama
Third parties rate Alabama'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 B+ Cost of hiring a new employee C+ Overall regulatory friendliness A Friendliness of health and safety regulations A Friendliness of employment, labor, and hiring regulations B+ Friendliness of tax code A Friendliness of licensing regulations A+ Friendliness of environmental regulations A- Friendliness of zoning regulations A Publicity of training programs A Publicity of networking programs A Current economic health of small business 23thth/50 Change in revenue over past 12 months 5th/50 Forecast of small business's future economic health 10th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 34th/50 Cost of Doing Business 4th/50 Economy 40th/50 Infrastructure 21th/50 Workforce 20th/50 Quality of life 46th/50 Technology and innovation 31th/50 Business friendliness 38th/50 Education 47th/50 Cost of living 7th/50 Access to capital 45th/50Source: CNBC (2014)
Tax Friendliness Alabama Corporate Tax Rate 4.0% Avg Local Corporate Tax Rate in Alabama 4.5% Avg Combined Corporate Tax Rate 8.5% Overall tax friendliness 28th/50 Corporate tax rank 27th/50 Individual income tax rank 23th/50 Sales tax rank 41th/50 Unemployment insurance tax rank 25th/50 Property tax rank 10th/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.