Market Research Report

Accounting Firm opportunities in Pasadena, TX
$85,798 Potential Yearly Earnings What's this number?
$307,399 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 1.8 years with a net present value of $307,399.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $428,991 $643,486 $857,981 $909,611 $964,349
Net Costs $386,091 $579,137 $772,183 $818,650 $867,914
Net Operating Profits $42,899 $64,349 $85,798 $90,961 $96,435
Capital
      Startup Cost -$78,763
      Terminal Value $289,305
Net Cash Flow -$78,763 $42,899 $64,349 $85,798 $90,961 $385,739

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

  Competitors

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

H&R Block National Competitor
3439 Spencer Hwy Pasadena, TX 77504

H&R Block National Competitor
2619C Red Bluff Rd Pasadena, TX 77506

H&R Block National Competitor
1213A Main St Pasadena, TX 77506

Mosher Seifert & Co Local Competitor
4701 Preston Ave Pasadena, TX 77505

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 Pasadena and its Consumers

158 158

Pasadena is a Texas city located about 14 miles southeast of Houston in Harris County. The city is serviced by several thoroughfares, including Texas State Highway 225 (known as the Pasadena Freeway), Interstate I-45, and the Sam Houston Tollway. Pasadena is bordered by Deer Park (to the east) and Jacinto City (to the north). The city is home to San Jacinto College, the University of Houston at Clear Lake and the Texas Chiropractic College. Founded in 1893, Pasadena was named for Pasadena, California, due to its lush vegetation and the similarities in natural beauty between the two cities. The advent of the La Porte, Houston and Northern Railroad in 1894 opened the area for development as a farming community. After the devastating Galveston hurricane of 1900, Clara Barton of the American Red Cross purchased over a million strawberry plants for Gulf Coast farmers, quickly establishing Pasadena as the strawberry capital of the region. Incorporated in 1928, Pasadena slowly transitioned from a farming economy to an industrial one. By the time of World War II, a major increase in the ship-channel industries solidified the transition in the city's economy.

Pasadena is a Texas city located about 14 miles southeast of Houston in Harris County. The city is serviced by several thoroughfares, including Texas State Highway 225 (known as the Pasadena Freeway), Interstate I-45, and the Sam Houston Tollway. Pasadena is bordered by Deer Park (to the east) and Jacinto City (to the north). The city is home to San Jacinto College, the University of Houston at...

description source
  • Population
    Population (2012) 152,272
    Population Density 3,560 ppl/sq mi
    Population Growth Rate 2.2%
    Median Income $46,623
    Median Age 30.5
    Unemployment 7.9%
    Family Household Percent 73.9%
    Avg. Household Size 3.1
    Avg. House Price $109,200
    Foreign Born 25.5%
    Married 32.4%
    Cost of Living 48.1%
  • Average Temperature
    January 51.0°F 10.6°C
    February 55.0°F 12.8°C
    March 60.0°F 15.6°C
    April 68.0°F 20.0°C
    May 75.0°F 23.9°C
    June 80.0°F 26.7°C
    July 82.0°F 27.8°C
    August 82.0°F 27.8°C
    September 78.0°F 25.6°C
    October 69.0°F 20.6°C
    November 60.0°F 15.6°C
    December 53.0°F 11.7°C
  • Demographics
    White 33.0%
    Hispanic / Latino 59.3%
    Black / African American 2.5%
    Asian 3.5%
    Native American 0.8%

  Market & Regulatory Conditions For Texas

Third parties rate Texas'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 B+
    Overall regulatory friendliness A
    Friendliness of health and safety regulations A-
    Friendliness of employment, labor, and hiring regulations A
    Friendliness of tax code A
    Friendliness of licensing regulations A
    Friendliness of environmental regulations A-
    Friendliness of zoning regulations A
    Publicity of training programs C+
    Publicity of networking programs C
    Current economic health of small business 13th/50
    Change in revenue over past 12 months 29th/50
    Forecast of small business's future economic health 17th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 2th/50
    Cost of Doing Business 23th/50
    Economy 1th/50
    Infrastructure 1th/50
    Workforce 11th/50
    Quality of life 37th/50
    Technology and innovation 2th/50
    Business friendliness 20th/50
    Education 27th/50
    Cost of living 18th/50
    Access to capital 5th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Texas Corporate Tax Rate 6.3%
    Avg Local Corporate Tax Rate in Texas 1.9%
    Avg Combined Corporate Tax Rate 8.2%
    Overall tax friendliness 10th/50
    Corporate tax rank 39th/50
    Individual income tax rank 6th/50
    Sales tax rank 36th/50
    Unemployment insurance tax rank 15th/50
    Property tax rank 36th/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