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 $209,007.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$30,297||$45,446||$60,595||$63,446||$66,432|
|Net Cash Flow||-$59,934||$30,297||$45,446||$60,595||$63,446||$265,728|
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 Peoria.
- July temperature
- median income
- August temperature
- gross rent
- land area
- population density
- business activity
- house price
- February temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
10641 W Olive Ave Peoria, AZ 85345
9249 W Union Hills Dr Ste 201 Peoria, AZ 85382
6811 W Peoria Ave Ste 119 Peoria, AZ 85345
9976 N 91st Ave Ste 105 Peoria, AZ 85345
7549 W Cactus Rd Ste 110 Peoria, AZ 85381
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 Peoria and its Consumers
The city of Peoria got its name in the late 1880's from early settlers who moved from Peoria, Illinois to this area of Arizona in order to farm the land. Incorporated in 1954, Peoria has steadily grown from a farming community into what is now the 9th largest city in the state of Arizona. Peoria is centrally located, only 13 miles from the city of Phoenix. Other nearby cities include Glendale (approximately 4 miles southeast), Surprise (approximately 9 miles to the northwest), Tempe (approximately 22 miles to the southeast), Scottsdale (approximately 25 miles to the east), and Mesa (approximately 30 miles to the east). Peoria is governed by a mayor and a city council consisting of six district representatives, all of whom are elected. Peoria is home to Lake Pleasant Regional Park, a large water recreation area housing campgrounds and offering a variety of fishing and boating activities. Another major recreational facility is the Peoria Sports Complex, which serves as the spring training site for both the Seattle Mariners and San Diego Padres. Built in 1994, the complex was the first Major League Baseball facility to be shared by two teams for spring training games and year-round player development.
The city of Peoria got its name in the late 1880's from early settlers who moved from Peoria, Illinois to this area of Arizona in order to farm the land. Incorporated in 1954, Peoria has steadily grown from a farming community into what is now the 9th largest city in the state of Arizona. Peoria is centrally located, only 13 miles from the city of Phoenix. Other nearby cities include Glendale...description source
Population Population (2012) 159,789 Population Density 916 ppl/sq mi Population Growth Rate 3.7% Median Income $64,864 Median Age 38.2 Unemployment 6.4% Family Household Percent 70.7% Avg. Household Size 2.7 Avg. House Price $164,700 Foreign Born 8.7% Married 27.9% Cost of Living 48.5%
Demographics White 73.9% Hispanic / Latino 17.0% Black / African American 3.1% Asian 2.6% Native American 0.8%
Market & Regulatory Conditions For Arizona
Third parties rate Arizona's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness C Ease of starting a small business B- Cost of hiring a new employee B- Overall regulatory friendliness C+ Friendliness of health and safety regulations B- Friendliness of employment, labor, and hiring regulations B Friendliness of tax code C+ Friendliness of licensing regulations C Friendliness of environmental regulations C+ Friendliness of zoning regulations C Publicity of training programs D Publicity of networking programs B+ Current economic health of small business 22th/50 Change in revenue over past 12 months 20th/50 Forecast of small business's future economic health 26th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 13th/50 Cost of Doing Business 28th/50 Economy 15th/50 Infrastructure 8th/50 Workforce 2th/50 Quality of life 27th/50 Technology and innovation 19th/50 Business friendliness 16th/50 Education 50th/50 Cost of living 27th/50 Access to capital 5th/50Source: CNBC (2014)
Tax Friendliness Arizona Corporate Tax Rate 5.6% Avg Local Corporate Tax Rate in Arizona 2.6% Avg Combined Corporate Tax Rate 8.2% Overall tax friendliness 23th/50 Corporate tax rank 24th/50 Individual income tax rank 19th/50 Sales tax rank 49th/50 Unemployment insurance tax rank 4th/50 Property tax rank 6th/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.