Market Research Report

Accounting Firm opportunities in Pasadena, CA
$75,895 Potential Yearly Earnings What's this number?
$231,656 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 2.8 years with a net present value of $231,656.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $379,474 $569,211 $758,948 $793,860 $830,377
Net Costs $341,527 $512,290 $683,053 $714,474 $747,339
Net Operating Profits $37,947 $56,921 $75,895 $79,386 $83,038
Capital
      Startup Cost -$104,811
      Terminal Value $249,113
Net Cash Flow -$104,811 $37,947 $56,921 $75,895 $79,386 $332,151

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.

Financial Parameters

Change these parameters to customize your financial model

  Statistical Analysis
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 Pasadena.

  1. median income
  2. July temperature
  3. August temperature
  4. gross rent
  5. population density
  6. house price
  7. February temperature
  8. business activity
  9. December temperature
  10. nearby population

  Competitors

Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.

H&R Block National Competitor
1255 N Lake Ave Pasadena, CA 91104

H&R Block National Competitor
953 E Colorado Blvd Pasadena, CA 91106

H&R Block National Competitor
2990 E Colorado Blvd Ste 104 Pasadena, CA 91107

TIP: Your market is dominated by national chains. Consider entering the market with an independant business or a regional franchise.

  Suppliers & Service Providers Contact List

  • Get a great business loan today!
    Fundera

    Get a business loan that suits your needs.

    Get the business loan you need and want.

       

  • Thousands of commercial properties for sale!
    Loopnet

    Find the right commercial property for your business here.

    Thousands of properties to choose from.

       

  • Access angel investors around the U.S.
    Gust

    Get Angels to invest in your business.

    Access angel investment today!

       

  About Pasadena and its Consumers

183 183

Pasadena, California is a city of nearly 145,000 people. It is located in Los Angeles County, approximately fifteen minutes northeast of Los Angeles. Pasadena is in the Los Angeles Long Beach Santa Ana metropolitan area, which at 12.9 million people is the second largest metropolitan area in the United States. Pasadena is near Los Angeles, which was ranked among the thirty "Most Fun U.S. Cities" in a study conducted by Cranium, Inc. in 2004. Pasadena is also a past finalist community for the National Civic Leagues coveted "All-America City Award". Pasadena is home to three Fortune 1000 companies. It is also home to the California Institute of Technology. In the heart of Southern California, Pasadena receives the weather for which Southern California is famous. Temperatures are pleasant in the winter with average daily temperatures in the high sixties and low seventies (degrees Fahrenheit), and summer temperatures average in the high eighties and low nineties (degrees Fahrenheit).

Pasadena, California is a city of nearly 145,000 people. It is located in Los Angeles County, approximately fifteen minutes northeast of Los Angeles. Pasadena is in the Los Angeles Long Beach Santa Ana metropolitan area, which at 12.9 million people is the second largest metropolitan area in the United States. Pasadena is near Los Angeles, which was ranked among the thirty "Most Fun U.S....

description source
  • Population
    Population (2012) 138,547
    Population Density 6,031 ppl/sq mi
    Population Growth Rate 1.0%
    Median Income $72,265
    Median Age 37.1
    Unemployment 8.3%
    Family Household Percent 55.9%
    Avg. Household Size 2.4
    Avg. House Price $601,000
    Foreign Born 29.3%
    Married 40.4%
    Cost of Living 72.4%
  • Average Temperature
    January 57.8°F 14.3°C
    February 59.1°F 15.1°C
    March 61.4°F 16.3°C
    April 64.5°F 18.1°C
    May 67.8°F 19.9°C
    June 72.0°F 22.2°C
    July 76.8°F 24.9°C
    August 78.0°F 25.6°C
    September 76.3°F 24.6°C
    October 70.1°F 21.2°C
    November 62.7°F 17.1°C
    December 57.0°F 13.9°C
  • Demographics
    White 36.9%
    Hispanic / Latino 32.0%
    Black / African American 9.9%
    Asian 17.8%
    Native American 0.1%

  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/50
    Source: 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/50
    Source: 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/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

The following cities have the highest PYE for Accounting Firm within 500 miles of Pasadena based on a number of market characteristics. See More Results

The following businesse types have the highest PYE in Pasadena. See More Results