Market Research Report

Accounting Firm opportunities in Paterson, NJ
$56,053 Potential Yearly Earnings What's this number?
$174,452 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 2.5 years with a net present value of $174,452.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $280,267 $420,400 $560,533 $580,119 $600,389
Net Costs $252,240 $378,360 $504,480 $522,107 $540,350
Net Operating Profits $28,027 $42,040 $56,053 $58,012 $60,039
Capital
      Startup Cost -$71,132
      Terminal Value $180,117
Net Cash Flow -$71,132 $28,027 $42,040 $56,053 $58,012 $240,155

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 Paterson.

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

  Competitors

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

Alana Tax Group National Competitor
Serving the Paterson Area.

BBS Accounting & Services LLC Regional Competitor
30 Howe Ave Ste 203 Passaic, NJ 07055

Michael Gutwetter CPA Local Competitor
527 North Midland Avenue Saddle Brook, NJ 07663

  Suppliers & Service Providers Contact List

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  About Paterson and its Consumers

Paterson is a city in and the county seat of Passaic County, New Jersey, United States, in the New York City Metropolitan Area. As of the 2010 United States Census, its population was 146,199, rendering it New Jersey's third-most-populous city reflecting a decline of 3,023 (-2.0%) from the 149,222 counted in the 2000 Census, which had in turn increased by 8,331 (+5.9%) from the 140,891 counted in the 1990 Census. The Census Bureau estimated a 2012 population of 145,219, a decrease of 980 (-0.7%) since 2010. Detailed analysis of 2011 U.S. Census Bureau data reveals that Paterson continues to carry the second-highest density of any U.S. city with over 100,000 people, behind only New York City. Paterson is known as the "Silk City" for its dominant role in silk production during the latter half of the 19th century but has since evolved into a major destination for Hispanic emigrants as well as for immigrants from the Arab and Muslim world.

Paterson is a city in and the county seat of Passaic County, New Jersey, United States, in the New York City Metropolitan Area. As of the 2010 United States Census, its population was 146,199, rendering it New Jersey's third-most-populous city reflecting a decline of 3,023 (-2.0%) from the 149,222 counted in the 2000 Census, which had in turn increased by 8,331 (+5.9%) from the 140,891 counted...

description source
  • Population
    Population (2012) 145,219
    Population Density 17,230 ppl/sq mi
    Population Growth Rate -0.7%
    Median Income $32,419
    Median Age 32.2
    Unemployment 15.0%
    Family Household Percent 73.8%
    Avg. Household Size 3.2
    Avg. House Price $276,000
    Foreign Born 31.1%
    Married 45.4%
    Cost of Living 66.5%
  • Average Temperature
    January 29.5°F -1.4°C
    February 31.2°F -0.4°C
    March 39.6°F 4.2°C
    April 50.4°F 10.2°C
    May 60.6°F 15.9°C
    June 69.7°F 20.9°C
    July 74.6°F 23.7°C
    August 72.9°F 22.7°C
    September 65.6°F 18.7°C
    October 54.4°F 12.4°C
    November 44.2°F 6.8°C
    December 33.5°F 0.8°C
  • Demographics
    White 9.2%
    Hispanic / Latino 57.6%
    Black / African American 28.3%
    Asian 3.2%
    Native American 0.1%

  Market & Regulatory Conditions For New Jersey

Third parties rate New Jersey's business and regulatory conditions according to their own methods. We report them here for informational purposes.

  • Small-Business Friendliness
    Overall small business friendliness D+
    Ease of starting a small business C-
    Cost of hiring a new employee B+
    Overall regulatory friendliness C
    Friendliness of health and safety regulations C+
    Friendliness of employment, labor, and hiring regulations B-
    Friendliness of tax code C+
    Friendliness of licensing regulations C
    Friendliness of environmental regulations D+
    Friendliness of zoning regulations D
    Publicity of training programs B+
    Publicity of networking programs C
    Current economic health of small business 38th/50
    Change in revenue over past 12 months 43th/50
    Forecast of small business's future economic health 43th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 43th/50
    Cost of Doing Business 43th/50
    Economy 47th/50
    Infrastructure 47th/50
    Workforce 23th/50
    Quality of life 18th/50
    Technology and innovation 15th/50
    Business friendliness 37th/50
    Education 4th/50
    Cost of living 44th/50
    Access to capital 11th/50
    Source: CNBC (2014)
  • Tax Friendliness
    New Jersey Corporate Tax Rate 7.0%
    Avg Local Corporate Tax Rate in New Jersey 0.0%
    Avg Combined Corporate Tax Rate 7.0%
    Overall tax friendliness 50th/50
    Corporate tax rank 41th/50
    Individual income tax rank 48th/50
    Sales tax rank 48th/50
    Unemployment insurance tax rank 32th/50
    Property tax rank 50th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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