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 $107,481.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$16,697||$25,045||$33,394||$35,177||$37,056|
|Net Cash Flow||-$41,739||$16,697||$25,045||$33,394||$35,177||$148,224|
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 Sioux Falls.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- land area
- business activity
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
5000 W Empire Mall Ste 926 Sioux Falls, SD 57106
2317 W 12th St Sioux Falls, SD 57104
1730 S Minnesota Ave Sioux Falls, SD 57105
4601 E Arrowhead Pkwy Ste 101 Sioux Falls, SD 57110
3308 S Minnesota Ave Sioux Falls, SD 57105
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 Sioux Falls and its Consumers
Sioux Falls is the largest city in the U.S. state of South Dakota. It is the county seat of Minnehaha County, and also extends into Lincoln County to the south. It is the 47th fastest growing city in the United States and the fastest growing metro area in South Dakota, with a total increase of 22% since 2000. As of the 2013, Sioux Falls had an estimated population of 164,676. The metropolitan population of 243,513 accounts for 29% of South Dakota's population. It is also the primary city of the Sioux Falls-Sioux City Designated Market Area (DMA), a larger media market region that covers parts of four states and has a population of 1,043,450. Chartered in 1856 on the banks of the Big Sioux River, the city is situated on the prairie of the Great Plains at the junction of Interstate 90 and Interstate 29. Partially due to the lack of a state corporate income tax, Sioux Falls is the home of a number of financial companies. The largest employers among these, and fourth and fifth largest employers overall, are Wells Fargo and Citigroup.
Sioux Falls is the largest city in the U.S. state of South Dakota. It is the county seat of Minnehaha County, and also extends into Lincoln County to the south. It is the 47th fastest growing city in the United States and the fastest growing metro area in South Dakota, with a total increase of 22% since 2000. As of the 2013, Sioux Falls had an estimated population of 164,676. The metropolitan...description source
Population Population (2012) 159,908 Population Density 2,191 ppl/sq mi Population Growth Rate 3.9% Median Income $50,470 Median Age 33.6 Unemployment 3.2% Family Household Percent 60.7% Avg. Household Size 2.4 Avg. House Price $153,400 Foreign Born 5.3% Married 34.9% Cost of Living 43.4%
Demographics White 84.9% Hispanic / Latino 4.4% Black / African American 4.2% Asian 2.5% Native American 2.5%
Market & Regulatory Conditions For South Dakota
Third parties rate South Dakota's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness N/A Ease of starting a small business N/A Cost of hiring a new employee N/A Overall regulatory friendliness N/A Friendliness of health and safety regulations N/A Friendliness of employment, labor, and hiring regulations N/A Friendliness of tax code N/A Friendliness of licensing regulations N/A Friendliness of environmental regulations N/A Friendliness of zoning regulations N/A Publicity of training programs N/A Publicity of networking programs N/A Current economic health of small business N/A Change in revenue over past 12 months N/A Forecast of small business's future economic health N/ASource: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness N/A Cost of Doing Business N/A Economy N/A Infrastructure N/A Workforce N/A Quality of life N/A Technology and innovation N/A Business friendliness N/A Education N/A Cost of living N/A Access to capital N/ASource: CNBC (2014)
Tax Friendliness South Dakota Corporate Tax Rate 4.0% Avg Local Corporate Tax Rate in South Dakota 1.8% Avg Combined Corporate Tax Rate 5.8% Overall tax friendliness N/A Corporate tax rank N/A Individual income tax rank N/A Sales tax rank N/A Unemployment insurance tax rank N/A Property tax rank N/ASource: 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.
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