Market Research Report

Accounting Firm opportunities in Sioux Falls, SD
$33,394 Potential Yearly Earnings What's this number?
$107,481 Net Present Value What's this number?

  Financial Projections

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 Revenues $166,968 $250,452 $333,936 $351,772 $370,561
Net Costs $150,271 $225,407 $300,542 $316,595 $333,505
Net Operating Profits $16,697 $25,045 $33,394 $35,177 $37,056
Capital
      Startup Cost -$41,739
      Terminal Value $111,168
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.

Financial Parameters

Change these parameters to customize your financial model

  Statistical Analysis
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.

  1. median income
  2. July temperature
  3. August temperature
  4. gross rent
  5. population density
  6. house price
  7. land area
  8. white
  9. business activity
  10. nearby population

  Competitors

Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.

H&R Block National Competitor
5000 W Empire Mall Ste 926 Sioux Falls, SD 57106

H&R Block National Competitor
2317 W 12th St Sioux Falls, SD 57104

H&R Block National Competitor
1730 S Minnesota Ave Sioux Falls, SD 57105

H&R Block National Competitor
4601 E Arrowhead Pkwy Ste 101 Sioux Falls, SD 57110

H&R Block National Competitor
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.

  Suppliers & Service Providers Contact List

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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%
  • Average Temperature
    January 16.6°F -8.6°C
    February 21.5°F -5.8°C
    March 32.9°F 0.5°C
    April 46.4°F 8.0°C
    May 58.0°F 14.4°C
    June 67.8°F 19.9°C
    July 73.0°F 22.8°C
    August 70.6°F 21.4°C
    September 61.3°F 16.3°C
    October 47.9°F 8.8°C
    November 32.6°F 0.3°C
    December 19.2°F -7.1°C
  • 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/A
    Source: 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/A
    Source: 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/A
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

The following cities have the highest PYE for Accounting Firm within 500 miles of Sioux Falls based on a number of market characteristics. See More Results

The following businesse types have the highest PYE in Sioux Falls. See More Results