Market Research Report
Based on the parameters below, we project this business would break even in 2.9 years with a net present value of $135,375.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$22,570||$33,855||$45,140||$47,217||$49,389|
|Net Cash Flow||-$64,746||$22,570||$33,855||$45,140||$47,217||$197,554|
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 Santa Ana.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- February temperature
- business activity
- nearby population
- household size
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
1077 W 17th St Santa Ana, CA 92706
117 N Broadway Santa Ana, CA 92701
1211 N Broadway Santa Ana, CA 92701
400 N Grand Ave Ste B Santa Ana, CA 92701
726 S Main St Santa Ana, CA 92701
TIP: Your market is dominated by national chains. Consider entering the market with an independant business or a regional franchise.
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About Santa Ana and its Consumers
Santa Ana is the county seat and second most populous city in Orange County, California. With a population of 329,427, as of the 2011 census, Santa Ana is the 57th most-populous city in the United States. Now fully developed, Santa Ana has several distinct districts. The core of the city is the downtown area, which contains both retail and housing, as well as the Santa Ana Civic Center which is a dense campus of administrative buildings for both the city and the county of Orange. The civic center is also home to the Ronald Reagan Federal Building and Courthouse. Several historic homes dating from the late 1800s can be found as well, and their preservation is a key issue as development of the downtown area continues. Santa Ana is the corporate headquarters of several companies including Behr Paint, CoreLogic, Corinthian Colleges, First American Corporation, Greenwood & Hall, Ingram Micro, The Orange County Register, Schools First Federal Credit Union, STEC, TTM Technologies, beverage company Kern's, and Wahoo's Fish Taco. It also houses major regional headquarters for the Xerox corporation, Ultimate Software Ultimate Software, and T-Mobile. Nonprofits based in Santa Ana include Open Doors.
Santa Ana is the county seat and second most populous city in Orange County, California. With a population of 329,427, as of the 2011 census, Santa Ana is the 57th most-populous city in the United States. Now fully developed, Santa Ana has several distinct districts. The core of the city is the downtown area, which contains both retail and housing, as well as the Santa Ana Civic Center which...description source
Population Population (2012) 330,920 Population Density 12,134 ppl/sq mi Population Growth Rate 2.0% Median Income $51,264 Median Age 30.2 Unemployment 4.7% Family Household Percent 81.5% Avg. Household Size 4.4 Avg. House Price $340,700 Foreign Born 47.8% Married 38.6% Cost of Living 66.2%
Demographics White 8.8% Hispanic / Latino 79.5% Black / African American 1.3% Asian 9.6% Native American 0.2%
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.