Market Research Report
Based on the parameters below, we project this business would break even in 2.5 years with a net present value of $441,691.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$69,792||$104,688||$139,584||$146,005||$152,721|
|Net Cash Flow||-$177,132||$69,792||$104,688||$139,584||$146,005||$610,884|
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 Clarita.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- business activity
- February temperature
- land area
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
Serving the Santa Clarita Area.
27737 Bouquet Canyon Rd Santa Clarita, CA 91350
Hutchinson & Bloodgood LLP
Serving the Santa Clarita Area.
Vincent's Bookkeeping Service
18345 Sierra Hwy Canyon Country, CA 91351
David J Fender & Associates
27200 Tourney Rd Valencia, CA 91355
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About Santa Clarita and its Consumers
Santa Clarita, officially the City of Santa Clarita, is the third largest city in Los Angeles County, California, United States and the eighteenth largest city in the state of California, based on the population estimate from the California Department of Finance. The city recently annexed a number of unincorporated areas contributing to the large population increase. It is located about 35 miles (56 km) northwest of downtown Los Angeles, and occupies most of the Santa Clarita Valley. It is a notable example of a U.S. edge city or boomburb. Santa Clarita was ranked as number 18 of the top 100 places to live by Money magazine in 2006. Santa Clarita was incorporated in 1987 as the union of several previously existing communities, including Canyon Country,Newhall, Saugus, and Valencia, all of which are the land of the former Rancho San Francisco. Santa Clarita is often associated with the Six Flags Magic Mountain amusement park, though the park is located just outside city limits in unincorporated Los Angeles County, and the California Institute of the Arts (CalArts), located in Valencia.
Santa Clarita, officially the City of Santa Clarita, is the third largest city in Los Angeles County, California, United States and the eighteenth largest city in the state of California, based on the population estimate from the California Department of Finance. The city recently annexed a number of unincorporated areas contributing to the large population increase. It is located about 35...description source
Population Population (2012) 179,013 Population Density 3,395 ppl/sq mi Population Growth Rate 1.5% Median Income $78,738 Median Age 36.1 Unemployment 6.6% Family Household Percent 74.5% Avg. Household Size 2.9 Avg. House Price $373,200 Foreign Born 18.9% Married 30.9% Cost of Living 66.5%
Demographics White 48.2% Hispanic / Latino 33.9% Black / African American 2.2% Asian 10.0% Native American 0.1%
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.