Market Research Report
Based on the parameters below, we project this business would break even in 1.9 years with a net present value of $230,661.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$33,138||$49,706||$66,275||$69,394||$72,660|
|Net Cash Flow||-$63,492||$33,138||$49,706||$66,275||$69,394||$290,639|
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 Scottsdale.
- July temperature
- August temperature
- median income
- gross rent
- land area
- population density
- house price
- February temperature
- business activity
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
9180 E Indian Bend Rd Ste F5 Scottsdale, AZ 85250
2765 N Scottsdale Rd Scottsdale, AZ 85257
8664 E Shea Blvd Ste 151 Scottsdale, AZ 85260
7125 E Shea Blvd Scottsdale, AZ 85254
7607 E McDowell Rd Scottsdale, AZ 85257
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 Scottsdale and its Consumers
Scottsdale is a city in the eastern part of Maricopa County, Arizona, adjacent to the Greater Phoenix Area. According to the U.S. Census Bureau, as of 2010 the population of the city was 217,385.The 2013 population is estimated to be of about 226,918 people living within the city,The New York Times described downtown Scottsdale as "a desert version of Miami's South Beach" and as having "plenty of late night partying and a buzzing hotel scene". Its slogan is "The West's Most Western Town". Scottsdale, 31 miles long and 11.4 miles wide at its widest point, shares boundaries with many other municipalities and entities. On the west, Scottsdale is bordered by Phoenix, Paradise Valley, and unincorporated Maricopa County land.Carefree is also located along the eastern boundary, as well as sharing Scottsdale's northern boundary with the Tonto National Forest. To the south Scottsdale is bordered by Tempe. The southern boundary is also occupied by the Salt River Pima-Maricopa Indian Community, which also extends along the Eastern boundary, which also borders Fountain Hills, the McDowell Mountain Regional Park and more unincorporated Maricopa County land.
Scottsdale is a city in the eastern part of Maricopa County, Arizona, adjacent to the Greater Phoenix Area. According to the U.S. Census Bureau, as of 2010 the population of the city was 217,385.The 2013 population is estimated to be of about 226,918 people living within the city,The New York Times described downtown Scottsdale as "a desert version of Miami's South Beach" and as having "plenty...description source
Population Population (2012) 223,514 Population Density 1,215 ppl/sq mi Population Growth Rate 2.8% Median Income $65,020 Median Age 45.1 Unemployment 5.7% Family Household Percent 56.5% Avg. Household Size 2.1 Avg. House Price $341,600 Foreign Born 11.2% Married 30.8% Cost of Living 50.2%
Demographics White 83.7% Hispanic / Latino 8.8% Black / African American 1.6% Asian 3.3% Native American 0.7%
Market & Regulatory Conditions For Arizona
Third parties rate Arizona's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness C Ease of starting a small business B- Cost of hiring a new employee B- Overall regulatory friendliness C+ Friendliness of health and safety regulations B- Friendliness of employment, labor, and hiring regulations B Friendliness of tax code C+ Friendliness of licensing regulations C Friendliness of environmental regulations C+ Friendliness of zoning regulations C Publicity of training programs D Publicity of networking programs B+ Current economic health of small business 22th/50 Change in revenue over past 12 months 20th/50 Forecast of small business's future economic health 26th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 13th/50 Cost of Doing Business 28th/50 Economy 15th/50 Infrastructure 8th/50 Workforce 2th/50 Quality of life 27th/50 Technology and innovation 19th/50 Business friendliness 16th/50 Education 50th/50 Cost of living 27th/50 Access to capital 5th/50Source: CNBC (2014)
Tax Friendliness Arizona Corporate Tax Rate 5.6% Avg Local Corporate Tax Rate in Arizona 2.6% Avg Combined Corporate Tax Rate 8.2% Overall tax friendliness 23th/50 Corporate tax rank 24th/50 Individual income tax rank 19th/50 Sales tax rank 49th/50 Unemployment insurance tax rank 4th/50 Property tax rank 6th/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.