Market Research Report
Based on the parameters below, we project this business would break even in 2.4 years with a net present value of $297,951.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$46,318||$69,478||$92,637||$96,898||$101,356|
|Net Cash Flow||-$112,739||$46,318||$69,478||$92,637||$96,898||$405,422|
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 Palmdale.
- median income
- July temperature
- August temperature
- gross rent
- population density
- land area
- house price
- business activity
- February temperature
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
37262 47th St E Palmdale, CA 93552
2321 E Avenue Q , Ste E-6 Palmdale, CA 93550
2270 E Palmdale Blvd Ste D Palmdale, CA 93550
39505A 10th St W Palmdale, CA 93551
38745 Tierra Subida Ave A-3 Palmdale, CA 93551
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 Palmdale and its Consumers
Palmdale is a city in the center of northern Los Angeles County in the U.S. state of California. The San Gabriel Mountains separate Palmdale from the City of Los Angeles. On August 24, 1962, Palmdale became the first community in the Antelope Valley to incorporate. 47 years later, in November 2009, voters approved making it a charter city. Its population was 152,750 at the 2010 census, up from 116,670 at the 2000 census. Palmdale is the 33rd most populous city in California. In 2013, the Palmdale / Lancaster urban area had an estimated population of 513,547.
Palmdale is a city in the center of northern Los Angeles County in the U.S. state of California. The San Gabriel Mountains separate Palmdale from the City of Los Angeles. On August 24, 1962, Palmdale became the first community in the Antelope Valley to incorporate. 47 years later, in November 2009, voters approved making it a charter city. Its population was 152,750 at the 2010 census, up from...description source
Population Population (2012) 155,650 Population Density 1,468 ppl/sq mi Population Growth Rate 1.9% Median Income $50,394 Median Age 28.7 Unemployment 13.4% Family Household Percent 82.3% Avg. Household Size 3.5 Avg. House Price $166,800 Foreign Born 22.3% Married 41.2% Cost of Living 63.8%
Demographics White 24.6% Hispanic / Latino 54.3% Black / African American 13.7% Asian 5.1% Native American 0.2%
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.