Market Research Report
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 Operating Profits||$26,116||$39,174||$52,232||$53,968||$55,761|
|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.
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.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- land area
- business activity
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
3720 N Main St Rockford, IL 61103
3201 Auburn St Rockford, IL 61101
520 7th St Rockford, IL 61104
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
Get a great business loan today!
Get a business loan that suits your needs.
Get the business loan you need and want.
Connect with audiences in a whole new way
The easiest way to access consumer data and survey communities in real time.
Free help for entrepreneurs
Our experienced entrepreneurs can help you reach your goals.
We provide free business mentoring for entrepreneurs.
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%
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/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.