Market Research Report
Based on the parameters below, we project this business would break even in 1.8 years with a net present value of $255,441.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$36,476||$54,713||$72,951||$75,831||$78,824|
|Net Cash Flow||-$65,729||$36,476||$54,713||$72,951||$75,831||$315,295|
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 Nashville.
- median income
- July temperature
- August temperature
- gross rent
- land area
- population density
- house price
- business activity
- nearby population
- February temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
Lewis Smith and Associates
2206 21st Ave S Nashville, TN 37212
Advanced Tax & Income Services
1008 Forrest Ave Nashville, TN 37206
Kraft and Company PLLC
114 29th Ave S Nashville, TN 37212
Frasier Dean & Howard PLLC
3310 W End Ave Nashville, TN 37203
Uselton Clay & Bright
209 10th Ave S Nashville, TN 37203
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Nashville and its Consumers
Nashville is the capital of the U.S. state of Tennessee. It is located on the Cumberland River in Davidson County. Nicknamed "Music City, U.S.A.", Nashville is the home of the Grand Ole Opry, the Country Music Hall of Fame, and many major record labels. Since much earlier times it has been called the "Athens of the South", for its educational institutions and classical architecture. Nashville is also a major hub for the health care and publishing industries. Nashville lies on the Cumberland River in the northwestern portion of the Nashville Basin. The population of the entire 13-county Nashville metropolitan area is 1,311,789, making it the most populous metropolitan area in the state. Much of the city's cultural life has revolved around its large university community. Particularly significant in this respect were two groups of critics and writers who were associated with Vanderbilt University in the early twentieth century, the Fugitives and the Agrarians.
Nashville is the capital of the U.S. state of Tennessee. It is located on the Cumberland River in Davidson County. Nicknamed "Music City, U.S.A.", Nashville is the home of the Grand Ole Opry, the Country Music Hall of Fame, and many major record labels. Since much earlier times it has been called the "Athens of the South", for its educational institutions and classical architecture. Nashville...description source
Population Population (2012) 624,496 Population Density 1,314 ppl/sq mi Population Growth Rate 3.9% Median Income $42,639 Median Age 33.7 Unemployment 6.7% Family Household Percent 55.4% Avg. Household Size 2.3 Avg. House Price $161,600 Foreign Born 10.8% Married 39.8% Cost of Living 47.2%
Demographics White 56.1% Hispanic / Latino 10.1% Black / African American 28.3% Asian 2.9% Native American 0.3%
Market & Regulatory Conditions For Tennessee
Third parties rate Tennessee'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 A Overall regulatory friendliness A- Friendliness of health and safety regulations B+ 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 A- Publicity of networking programs B+ Current economic health of small business 17th/50 Change in revenue over past 12 months 16th/50 Forecast of small business's future economic health 30th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 14th/50 Cost of Doing Business 13th/50 Economy 14th/50 Infrastructure 4th/50 Workforce 6th/50 Quality of life 50th/50 Technology and innovation 28th/50 Business friendliness 18th/50 Education 39th/50 Cost of living 9th/50 Access to capital 33th/50Source: CNBC (2014)
Tax Friendliness Tennessee Corporate Tax Rate 7.0% Avg Local Corporate Tax Rate in Tennessee 2.5% Avg Combined Corporate Tax Rate 9.5% Overall tax friendliness 15th/50 Corporate tax rank 15th/50 Individual income tax rank 8th/50 Sales tax rank 47th/50 Unemployment insurance tax rank 26th/50 Property tax rank 37th/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.