Market Research Report
Based on the parameters below, we project this business would break even in 2.2 years with a net present value of $109,037.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$16,537||$24,805||$33,073||$34,172||$35,308|
|Net Cash Flow||-$35,601||$16,537||$24,805||$33,073||$34,172||$141,232|
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.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- business activity
- land area
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
8839 N Knoxville Ave Ste 9 Peoria, IL 61615
JV Business Services Inc
3526 N California Ave Peoria, IL 61603
Gerber Gerry CPA
2920 W Lake Ave Peoria, IL 61615
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About Peoria and its Consumers
Peoria is a city in and the county seat of Peoria County, Illinois, United States, and the largest city on the Illinois River. Established in 1691 by the French explorer Henri de Tonti, Peoria is the oldest European settlement in Illinois,and is named after the Peoria tribe. As of the 2010 census, the city was the seventh-most populated in Illinois, with a population of 115,007.The Peoria Metropolitan Statistical Area had a population of 373,590 in 2011. Peoria had a population of 118,943 in 2010, when far northern Peoria was also included. Peoria is the headquarters for Caterpillar Inc., one of the 30 companies composing the Dow Jones Industrial Average. Peoria became the first world leader for distilleries thanks to Andrew Eitle (1837) and Almiron S. Cole (1844). During this time, Peoria held 22 distilleries and multiple breweries. Together, they produced the highest amount of internal revenue tax on alcohol of any single revenue district in the entire U.S. Peoria also was one of the major bootlegging areas during the prohibition and home to the famed mobsters, the Shelton brothers. This great success placed Peoria into a building boom of beautiful private homes, schools, parks, churches, as well as municipal buildings.
Peoria is a city in and the county seat of Peoria County, Illinois, United States, and the largest city on the Illinois River. Established in 1691 by the French explorer Henri de Tonti, Peoria is the oldest European settlement in Illinois,and is named after the Peoria tribe. As of the 2010 census, the city was the seventh-most populated in Illinois, with a population of 115,007.The Peoria...description source
Population Population (2012) 115,687 Population Density 2,409 ppl/sq mi Population Growth Rate 0.6% Median Income $41,541 Median Age 33.7 Unemployment 10.6% Family Household Percent 58.0% Avg. Household Size 2.4 Avg. House Price $119,700 Foreign Born 4.9% Married 38.5% Cost of Living 44.9%
Demographics White 60.4% Hispanic / Latino 4.9% Black / African American 26.7% Asian 4.5% Native American 0.2%
Market & Regulatory Conditions For Illinois
Third parties rate Illinois'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 C Friendliness of tax code D+ Friendliness of licensing regulations D 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 36th/50 Change in revenue over past 12 months 23th/50 Forecast of small business's future economic health 28th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 27th/50 Cost of Doing Business 40th/50 Economy 36th/50 Infrastructure 3th/50 Workforce 32th/50 Quality of life 30th/50 Technology and innovation 5th/50 Business friendliness 41th/50 Education 15th/50 Cost of living 29th/50 Access to capital 14th/50Source: CNBC (2014)
Tax Friendliness Illinois Corporate Tax Rate 6.3% Avg Local Corporate Tax Rate in Illinois 1.9% Avg Combined Corporate Tax Rate 8.2% Overall tax friendliness 31th/50 Corporate tax rank 47th/50 Individual income tax rank 11th/50 Sales tax rank 34th/50 Unemployment insurance tax rank 38th/50 Property tax rank 44th/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.