Market Research Report
Based on the parameters below, we project this business would break even in 2.8 years with a net present value of $178,803.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$29,251||$43,877||$58,502||$61,194||$64,008|
|Net Cash Flow||-$80,558||$29,251||$43,877||$58,502||$61,194||$256,034|
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 Oakland.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- business activity
- February temperature
- land area
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
1300 Clay St Ste 169 Oakland, CA 94612
1801 Park Blvd Oakland, CA 94606
4125 Macarthur Blvd Oakland, CA 94619
Williams, Adley & Company- CA LLP
7677 Oakport St Suite 1000 Oakland, CA 94621
Liberty Tax Service-Oakland / REMAX Active Realty
3207 Grand Ave Oakland, CA 94610
TIP: Your market is dominated by national chains. Consider entering the market with an independant business or a regional franchise.
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About Oakland and its Consumers
Oakland is a major West Coast port city in the U.S. state of California. The Port of Oakland is the busiest port forSan Francisco Bay and all of Northern California. Oakland is the third largest city in the San Francisco Bay Area, the eighth-largest city in the state, and the 47th-largest city in the U.S. with a population at the 2010 U.S. Census of 390,724.Incorporated in 1852, Oakland is the county seat of Alameda County. It serves as a major transportation hub and trade center for the entire region and is also the principal city of the Bay Area Region known as the East Bay. The city is situated directly across the bay, six miles (9.7 km) east of San Francisco. Oakland is known for its history of political activism, as well as its professional sports franchises and major corporations, which include health care, dot-com companies and manufacturers of household products. The city is a transportation hub for the greater Bay Area, and its shipping port is the fifth busiest in the United States.
Oakland is a major West Coast port city in the U.S. state of California. The Port of Oakland is the busiest port forSan Francisco Bay and all of Northern California. Oakland is the third largest city in the San Francisco Bay Area, the eighth-largest city in the state, and the 47th-largest city in the U.S. with a population at the 2010 U.S. Census of 390,724.Incorporated in 1852, Oakland is the...description source
Population Population (2012) 400,740 Population Density 7,183 ppl/sq mi Population Growth Rate 2.6% Median Income $50,500 Median Age 36.2 Unemployment 11.9% Family Household Percent 54.4% Avg. Household Size 2.5 Avg. House Price $419,200 Foreign Born 28.8% Married 42.4% Cost of Living 72.2%
Demographics White 25.3% Hispanic / Latino 24.4% Black / African American 27.4% Asian 17.8% Native American 0.3%
Market & Regulatory Conditions For California
Third parties rate California's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness F Ease of starting a small business D Cost of hiring a new employee C- Overall regulatory friendliness F Friendliness of health and safety regulations F Friendliness of employment, labor, and hiring regulations F Friendliness of tax code F Friendliness of licensing regulations F Friendliness of environmental regulations D Friendliness of zoning regulations D Publicity of training programs C- Publicity of networking programs D+ Current economic health of small business 40th/50 Change in revenue over past 12 months 40th/50 Forecast of small business's future economic health 35th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 32th/50 Cost of Doing Business 48th/50 Economy 9th/50 Infrastructure 24th/50 Workforce 36th/50 Quality of life 23th/50 Technology and innovation 1th/50 Business friendliness 48th/50 Education 26th/50 Cost of living 47th/50 Access to capital 1th/50Source: CNBC (2014)
Tax Friendliness California Corporate Tax Rate 7.5% Avg Local Corporate Tax Rate in California 0.9% Avg Combined Corporate Tax Rate 8.4% Overall tax friendliness 48th/50 Corporate tax rank 34th/50 Individual income tax rank 50th/50 Sales tax rank 42th/50 Unemployment insurance tax rank 14th/50 Property tax rank 14th/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.