Market Research Report
Based on the parameters below, we project this business would break even in 2.0 years with a net present value of $215,404.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$31,692||$47,538||$63,384||$65,878||$68,471|
|Net Cash Flow||-$63,610||$31,692||$47,538||$63,384||$65,878||$273,883|
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 Olathe.
- 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.
1317 E Santa Fe St Olathe, KS 66061
15254 W 119th St Olathe, KS 66062
15245 W 135th St Olathe, KS 66062
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 Olathe and its Consumers
Olathe, Kansas, in Johnson county, is located 19 miles SW of Kansas City, Missouri. The city is considered part of the Kansas City metropolitan area, and has a population of 92,962. The city of Olathe, also known as the cow boy capital, is the county seat of Johnson County, located in the Kansas City metro area. The name of the community means beautiful or fine. The city was founded by Dr. John T. Barton in the spring of the year 1857 who thought that the city was very beautiful. The city became the county seat in the year 1859. Olathe served as a stoppage at the Oregon Trail, the California Trail and the Santa Fe Trail. The citys main source of income was hospitality business. Olathe and nearby Attractions Shawnee Indian Mission State Historic Site, Clinton State Park, Kansas City Museum, Wyandotte County Park, Blue and Grey Park Reserve, Meadowbrook Country Club.
Olathe, Kansas, in Johnson county, is located 19 miles SW of Kansas City, Missouri. The city is considered part of the Kansas City metropolitan area, and has a population of 92,962. The city of Olathe, also known as the cow boy capital, is the county seat of Johnson County, located in the Kansas City metro area. The name of the community means beautiful or fine. The city was founded by Dr....description source
Population Population (2012) 130,045 Population Density 2,179 ppl/sq mi Population Growth Rate 3.3% Median Income $72,449 Median Age 33.3 Unemployment 5.5% Family Household Percent 74.8% Avg. Household Size 2.8 Avg. House Price $194,200 Foreign Born 8.2% Married 24.9% Cost of Living 46.0%
Demographics White 77.7% Hispanic / Latino 10.2% Black / African American 5.1% Asian 4.1% Native American 0.3%
Market & Regulatory Conditions For Kansas
Third parties rate Kansas'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 D+ Overall regulatory friendliness C+ Friendliness of health and safety regulations D+ Friendliness of employment, labor, and hiring regulations C Friendliness of tax code B- Friendliness of licensing regulations C+ Friendliness of environmental regulations D Friendliness of zoning regulations A- Publicity of training programs B Publicity of networking programs A Current economic health of small business 16th/50 Change in revenue over past 12 months 8th/50 Forecast of small business's future economic health 34th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 15th/50 Cost of Doing Business 26th/50 Economy 31th/50 Infrastructure 8th/50 Workforce 13th/50 Quality of life 25th/50 Technology and innovation 27th/50 Business friendliness 11th/50 Education 14th/50 Cost of living 24th/50 Access to capital 41th/50Source: CNBC (2014)
Tax Friendliness Kansas Corporate Tax Rate 6.2% Avg Local Corporate Tax Rate in Kansas 2.0% Avg Combined Corporate Tax Rate 8.2% Overall tax friendliness 22th/50 Corporate tax rank 38th/50 Individual income tax rank 18th/50 Sales tax rank 30th/50 Unemployment insurance tax rank 9th/50 Property tax rank 28th/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.