Market Research Report
Based on the parameters below, we project this business would break even in 2.3 years with a net present value of $274,067.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$41,685||$62,528||$83,371||$87,206||$91,217|
|Net Cash Flow||-$95,543||$41,685||$62,528||$83,371||$87,206||$364,868|
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 Riverside.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- land area
- February temperature
- business activity
- December temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
Blecker & Associates CPA's
3600 Lime St Riverside, CA 92501
Kanouse & Associates Inc
4781 Arlington Ave Riverside, CA 92504
Leivas And Associates
6370 Brockton Ave Riverside, CA 92506
Delta Bookkeeping And Tax Services
6611 Arlington Ave Riverside, CA 92504
Rescue Tax Services
PO Box 52890 Riverside, CA 92517
TIP: Your market is dominated by regional chains. Consider entering the market with an independant business or a national franchise.
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About Riverside and its Consumers
Riverside is a city in Riverside County, California, United States, located in the Inland Empire metropolitan area. Riverside is the county seat of the eponymous county and named for its location beside the Santa Ana River.It is the most populous city in the Inland Empire as well as Riverside County, and is located approximately 60 miles (97 km) east of Los Angeles. It is also part of the Greater Los Angeles area. Riverside is the 59th most populous city in the United States and 12th most populous city in California. Riverside was founded in the early 1870s and is the birthplace of the California citrus industry as well as home of the Mission Inn, the largest Mission Revival Style building in the United States. It is also home to the Riverside National Cemetery. The University of California, Riverside, is located in the northeastern part of the city. The university also hosts the Riverside Sports Complex. Other attractions in Riverside include the Fox Performing Arts Center, Riverside Metropolitan Museum, the California Museum of Photography, the California Citrus State Historic Park, and the Parent Washington Navel Orange Tree, one of the two original navel orange trees in California.
Riverside is a city in Riverside County, California, United States, located in the Inland Empire metropolitan area. Riverside is the county seat of the eponymous county and named for its location beside the Santa Ana River.It is the most populous city in the Inland Empire as well as Riverside County, and is located approximately 60 miles (97 km) east of Los Angeles. It is also part of the...description source
Population Population (2012) 313,673 Population Density 3,865 ppl/sq mi Population Growth Rate 3.2% Median Income $51,331 Median Age 30.6 Unemployment 5.9% Family Household Percent 71.4% Avg. Household Size 3.2 Avg. House Price $228,100 Foreign Born 21.9% Married 48.6% Cost of Living 60.1%
Demographics White 30.5% Hispanic / Latino 51.9% Black / African American 6.2% Asian 7.2% Native American 0.8%
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/50Source: 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/50Source: 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/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.