Market Research Report

Accounting Firm opportunities in Rockford, IL
$52,232 Potential Yearly Earnings What's this number?
$183,399 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 1.7 years with a net present value of $183,399.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $261,158 $391,737 $522,316 $539,675 $557,612
Net Costs $235,042 $352,563 $470,084 $485,708 $501,850
Net Operating Profits $26,116 $39,174 $52,232 $53,968 $55,761
Capital
      Startup Cost -$45,024
      Terminal Value $167,283
Net Cash Flow -$45,024 $26,116 $39,174 $52,232 $53,968 $223,045

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 Rockford.

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

  Competitors

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

H&R Block National Competitor
3720 N Main St Rockford, IL 61103

H&R Block National Competitor
3201 Auburn St Rockford, IL 61101

H&R Block National Competitor
520 7th St Rockford, IL 61104

H&R Block National Competitor
6278 E State St Rockford, IL 61108

TIP: Your market is dominated by national chains. Consider entering the market with an independant business or a regional franchise.

  Suppliers & Service Providers Contact List

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  About Rockford and its Consumers

Rockford is the third largest city in the U.S. state of Illinois, the 160th most populous city in the United States, and the 112th most populous region in the United States. It is the county seat of Winnebago County and is located on both banks of the Rock River in far northern Illinois. According to 2010 census data, the City of Rockford has a population of 152,871, with an outlying metropolitan area population of 348,360. Settled between 1834 and 1835, Rockford was strategically positioned between Chicago and Galena and thus became suitable for industrial development. Rockford was notable for its output of heavy machinery and tools; by the twentieth century, it was the second leading center of furniture manufacturing in the nation. Its decline, emblematic of other cities in the Rust Belt, led to economic diversification into automotive, aerospace, and healthcare industries, as well as the undertaking of various tourism and downtown revitalization efforts.

Rockford is the third largest city in the U.S. state of Illinois, the 160th most populous city in the United States, and the 112th most populous region in the United States. It is the county seat of Winnebago County and is located on both banks of the Rock River in far northern Illinois. According to 2010 census data, the City of Rockford has a population of 152,871, with an outlying...

description source
  • Population
    Population (2012) 150,843
    Population Density 2,469 ppl/sq mi
    Population Growth Rate -1.3%
    Median Income $34,024
    Median Age 35.6
    Unemployment 13.0%
    Family Household Percent 61.8%
    Avg. Household Size 2.5
    Avg. House Price $101,500
    Foreign Born 10.7%
    Married 35.9%
    Cost of Living 45.2%
  • Average Temperature
    January 21.5°F -5.8°C
    February 25.9°F -3.4°C
    March 37.2°F 2.9°C
    April 49.4°F 9.7°C
    May 60.1°F 15.6°C
    June 69.8°F 21.0°C
    July 73.8°F 23.2°C
    August 71.9°F 22.2°C
    September 63.9°F 17.7°C
    October 51.7°F 10.9°C
    November 38.9°F 3.8°C
    December 25.4°F -3.7°C
  • Demographics
    White 56.4%
    Hispanic / Latino 17.6%
    Black / African American 21.2%
    Asian 2.8%
    Native American 0.1%

  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/50
    Source: 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/50
    Source: 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/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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