Market Research Report
Based on the parameters below, we project this business would break even in 2.6 years with a net present value of $306,019.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$49,036||$73,554||$98,073||$102,584||$107,303|
|Net Cash Flow||-$128,769||$49,036||$73,554||$98,073||$102,584||$429,211|
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 San Diego.
- median income
- July temperature
- August temperature
- gross rent
- land area
- population density
- house price
- February temperature
- business activity
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
5412 El Cajon Blvd San Diego, CA 92115
Associated Professional Services
7007 Mission Gorge Rd San Diego, CA 92120
3111 Camino Del Rio N Ste 400 San Diego, CA 92108
Sonnenberg & Company CPA's
5190 Governor Dr San Diego, CA 92122
Bonk and Cushman Cpa's
591 Camino De La Reina Ste 1216 San Diego, CA 92108
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About San Diego and its Consumers
San Diego is the second-largest city in California. It is located in the southwest part of the state, on San Diego Bay.Today, San Diego's excellent natural harbor is a busy commercial port and a hub of U.S. naval operations (although the naval training center at San Diego has closed due to defense cutbacks). Other leading industries are electronics, aerospace and missiles, medical and scientific research, oceanography, and agriculture. Its magnificent climate and proximity to Mexico have made tourism a significant part of the city's economy. San Diego is a cultural, educational, and medical center. Its many health facilities include large naval and veterans hospitals. It is the seat of the Univ. of California at San Diego with its Scripps Institution of Oceanography, San Diego State Univ., the Univ. of San Diego, Alliant International Univ., and the Salk Institute for Biological Studies. Balboa Park contains an art gallery, several museums (including an aerospace museum), and the enormous San Diego Zoo. Some buildings from the Panama-California International Exposition (191516) and the California Pacific International Exposition (193536) remain, and there is a spectacular aquatic park.
San Diego is the second-largest city in California. It is located in the southwest part of the state, on San Diego Bay.Today, San Diego's excellent natural harbor is a busy commercial port and a hub of U.S. naval operations (although the naval training center at San Diego has closed due to defense cutbacks). Other leading industries are electronics, aerospace and missiles, medical and...description source
Population Population (2012) 1,338,350 Population Density 4,115 ppl/sq mi Population Growth Rate 2.4% Median Income $60,797 Median Age 33.7 Unemployment 7.8% Family Household Percent 59.0% Avg. Household Size 2.6 Avg. House Price $429,200 Foreign Born 26.4% Married 40.4% Cost of Living 68.9%
Demographics White 43.2% Hispanic / Latino 30.4% Black / African American 6.8% Asian 15.7% Native American 0.3%
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.