Market Research Report
Based on the parameters below, we project this business would break even in 3.6 years with a net present value of $177,738.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$33,912||$50,869||$67,825||$70,945||$74,208|
|Net Cash Flow||-$122,952||$33,912||$50,869||$67,825||$70,945||$296,832|
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 Clara.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- business activity
- February temperature
- nearby population
- December temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
1556 Halford Ave Santa Clara, CA 95051
2200 Mission College Blvd Santa Clara, CA 95054
3959 Rivermark Plz Santa Clara, CA 95054
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 Clara and its Consumers
Santa Clara County, officially the County of Santa Clara, is a county located in the U.S. state of California. As of the 2010 census, the population was 1,781,642.The county seat is San Jose,the tenth-most populous city in the United States. Santa Clara County is included in the San Jose-Sunnyvale-Santa Clara, CA Metropolitan Statistical Area as well as the San Jose-San Francisco-Oakland, CA Combined Statistical Area. The highly urbanized Santa Clara Valley within Santa Clara County is also known as Silicon Valley. Santa Clara is the most populous county in the Bay Area region, and one of the most affluent counties in the United States. Santa Clara County was one of the original counties of California, formed in 1850 at the time of statehood. The original inhabitants included the Ohlone, residing onCoyote Creek and Calaveras Creek. Part of the county's territory was given toAlameda County in 1853. In 1882, Santa Clara County tried to levy taxes upon property of the Southern Pacific Railroad within county boundaries. The result was the U.S. Supreme Court case ofSanta Clara County v. Southern Pacific Railroad, 118 U.S. 394 (1886), in which the Court extended Due Process rights to artificial legal entities.
Santa Clara County, officially the County of Santa Clara, is a county located in the U.S. state of California. As of the 2010 census, the population was 1,781,642.The county seat is San Jose,the tenth-most populous city in the United States. Santa Clara County is included in the San Jose-Sunnyvale-Santa Clara, CA Metropolitan Statistical Area as well as the San Jose-San Francisco-Oakland, CA...description source
Population Population (2012) 119,311 Population Density 6,481 ppl/sq mi Population Growth Rate 2.4% Median Income $87,015 Median Age 34.4 Unemployment 6.5% Family Household Percent 64.9% Avg. Household Size 2.6 Avg. House Price $602,300 Foreign Born 36.5% Married 33.5% Cost of Living 74.1%
Demographics White 34.4% Hispanic / Latino 23.6% Black / African American 3.2% Asian 35.1% 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.