Market Research Report
Based on the parameters below, we project this business would break even in 1.7 years with a net present value of $266,297.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$37,131||$55,697||$74,263||$78,063||$82,058|
|Net Cash Flow||-$64,757||$37,131||$55,697||$74,263||$78,063||$328,232|
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 Norman.
- median income
- July temperature
- August temperature
- gross rent
- land area
- house price
- population density
- business activity
- February temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
1264 N Interstate Dr Norman, OK 73072
686 Ed Noble Pkwy Norman, OK 73072
Picek & Hollingsworth PC CPA
3500 W Robinson St Norman, OK 73072
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About Norman and its Consumers
Norman is a U.S. city in Oklahoma 20 miles (30 km) south of downtown Oklahoma City in its metropolitan area. Norman's 110,925 residents make it the third-largest city in Oklahoma by population, and the city serves as the county seat of Cleveland County. The National Weather Center, located in Norman, houses a unique collection of university, state, and federal organizations that work together to improve the understanding of events related to the Earth's atmosphere. Norman lies within Tornado Alley, a geographic region where tornadic activity is predominant. The Oklahoma City metropolitan area, including Norman, is the most tornado-prone area in the United States. In addition to this, the SPC or Storm Prediction Center, a branch of the National Oceanic and Atmospheric Administration, is in Norman due to its location. The facility is used for forecasting severe storm and tornado outbreaks in addition to housing various experimental weather radars. Despite being in the wide belt at high risk of this weather phenomenon, in 2008 CNN's Money Magazine ranked Norman as the sixth best small city within the United States in which to live.
Norman is a U.S. city in Oklahoma 20 miles (30 km) south of downtown Oklahoma City in its metropolitan area. Norman's 110,925 residents make it the third-largest city in Oklahoma by population, and the city serves as the county seat of Cleveland County. The National Weather Center, located in Norman, houses a unique collection of university, state, and federal organizations that work together...description source
Population Population (2012) 115,562 Population Density 646 ppl/sq mi Population Growth Rate 4.2% Median Income $47,815 Median Age 29.9 Unemployment 4.3% Family Household Percent 55.8% Avg. Household Size 2.3 Avg. House Price $147,700 Foreign Born 5.8% Married 41.7% Cost of Living 45.7%
Demographics White 76.1% Hispanic / Latino 6.4% Black / African American 4.2% Asian 3.8% Native American 4.5%
Market & Regulatory Conditions For Oklahoma
Third parties rate Oklahoma'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 A+ Cost of hiring a new employee A Overall regulatory friendliness A Friendliness of health and safety regulations A Friendliness of employment, labor, and hiring regulations A Friendliness of tax code B 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 10th/50 Change in revenue over past 12 months 17th/50 Forecast of small business's future economic health 6th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 28th/50 Cost of Doing Business 1th/50 Economy 26th/50 Infrastructure 33th/50 Workforce 35th/50 Quality of life 49th/50 Technology and innovation 39th/50 Business friendliness 27th/50 Education 41th/50 Cost of living 3th/50 Access to capital 41th/50Source: CNBC (2014)
Tax Friendliness Oklahoma Corporate Tax Rate 4.5% Avg Local Corporate Tax Rate in Oklahoma 4.2% Avg Combined Corporate Tax Rate 8.7% Overall tax friendliness 32th/50 Corporate tax rank 7th/50 Individual income tax rank 40th/50 Sales tax rank 38th/50 Unemployment insurance tax rank 1th/50 Property tax rank 11th/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.