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 $172,712.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$25,307||$37,961||$50,614||$52,942||$55,378|
|Net Cash Flow||-$51,677||$25,307||$37,961||$50,614||$52,942||$221,511|
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 Salinas.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- February temperature
- business activity
- land area
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
4 Rossi Cir Ste 141 Salinas, CA 93907
1221 S Main St Ste 101 Salinas, CA 93901
Woods Kari CPA
238 Capitol St Salinas, CA 93901
Jeffrey Wriedt & Company CPA
35 Winham St Salinas, CA 93901
McGilloway Ray Brown & Kaufman
379 W Market St Salinas, CA 93901
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About Salinas and its Consumers
Founded in the 1820s, Salinas is a city of nearly 150,000 people. Salinas is the county seat of Monterey County. According to the U.S. Census Bureau, Salinas has a metropolitan population of slightly over 400,000 people. Salinas is located in central California about twenty minutes from the coast. It is an hour south of San Jose, an hour and forty-five minutes south of San Francisco, and twenty-five minutes northeast of Monterey. Salinas is in a very rich farming region that produces fruit and vegetables. It is known as the "Salad Bowl of America" because over 80% of the lettuce grown in the United States is grown in the Salinas area. Salinas weather can be characterized as cool and moderate. September is the warmest month of the year with an average daily temperature of 75 degrees Fahrenheit. December and January are the coolest months with an average daily temperature of 63 degrees. Salinas receives a little over 14 inches of rain a year.
Founded in the 1820s, Salinas is a city of nearly 150,000 people. Salinas is the county seat of Monterey County. According to the U.S. Census Bureau, Salinas has a metropolitan population of slightly over 400,000 people. Salinas is located in central California about twenty minutes from the coast. It is an hour south of San Jose, an hour and forty-five minutes south of San Francisco, and...description source
Population Population (2012) 154,484 Population Density 6,664 ppl/sq mi Population Growth Rate 2.7% Median Income $44,387 Median Age 28.6 Unemployment 11.6% Family Household Percent 78.0% Avg. Household Size 3.7 Avg. House Price $243,600 Foreign Born 35.4% Married 42.6% Cost of Living 53.5%
Demographics White 15.7% Hispanic / Latino 75.5% Black / African American 0.9% Asian 5.9% Native American 0.4%
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.