Market Research Report

Accounting Firm opportunities in Springfield, MA
$54,356 Potential Yearly Earnings What's this number?
$173,598 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 2.4 years with a net present value of $173,598.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $271,782 $407,673 $543,564 $564,923 $587,121
Net Costs $244,604 $366,906 $489,208 $508,431 $528,409
Net Operating Profits $27,178 $40,767 $54,356 $56,492 $58,712
Capital
      Startup Cost -$65,663
      Terminal Value $176,136
Net Cash Flow -$65,663 $27,178 $40,767 $54,356 $56,492 $234,848

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 Springfield.

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

  Competitors

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

H&R Block National Competitor
609 State St Springfield, MA 01109

H&R Block National Competitor
1985 Main St Springfield, MA 01103

H&R Block National Competitor
1305 Liberty St Springfield, MA 01104

H&R Block National Competitor
350 Cooley St Springfield, MA 01128

H&R Block National Competitor
485 Sumner Ave Springfield, MA 01108

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

  • Customer Interviews
    Cint

    Connect with audiences in a whole new way

    The easiest way to access consumer data and survey communities in real time.

       

  • Free help for entrepreneurs
    Sbdc

    Our professionals can help you get your business going.

    We can help with your business plan! We have expertise and datasets.

       

  • Business for sale listing from around the U.S.
    Bizbuysell

    Find great businesses for sale.

    Find businesses for sale now!

       

  About Springfield and its Consumers

Springfield is a city in Western New England, and the seat of Hampden County, Massachusetts, United States. Springfield sits on the eastern bank of the Connecticut River near its confluence with three rivers; the western Westfield River, the eastern Chicopee River, and the eastern Mill River. As of the 2010 Census, the city's population was 153,060. Metropolitan Springfield, as one of two metropolitan areas in Massachusetts (the other being Greater Boston), had an estimated population of 698,903 as of 2009. The first Springfield in the New World, it is the largest city in Western New England, and the urban, economic, and cultural capital of Massachusetts' Connecticut River Valley (colloquially known as the Pioneer Valley). It is the third-largest city in Massachusetts and fourth-largest in New England, after Boston, Worcester, and Providence, Rhode Island. Springfield has several nicknames –The City of Firsts, because of its many innovations (see below for a partial list); The City of Homes, due to its Victorian residential architecture; and Hoop City, because basketball - one of the world's most popular sports - was invented in Springfield.

Springfield is a city in Western New England, and the seat of Hampden County, Massachusetts, United States. Springfield sits on the eastern bank of the Connecticut River near its confluence with three rivers; the western Westfield River, the eastern Chicopee River, and the eastern Mill River. As of the 2010 Census, the city's population was 153,060. Metropolitan Springfield, as one of two...

description source
  • Population
    Population (2012) 153,552
    Population Density 4,818 ppl/sq mi
    Population Growth Rate 0.3%
    Median Income $32,124
    Median Age 31.8
    Unemployment 11.8%
    Family Household Percent 63.5%
    Avg. Household Size 2.6
    Avg. House Price $149,400
    Foreign Born 10.1%
    Married 44.2%
    Cost of Living 63.3%
  • Average Temperature
    January 24.0°F -4.4°C
    February 27.0°F -2.8°C
    March 36.0°F 2.2°C
    April 48.0°F 8.9°C
    May 58.0°F 14.4°C
    June 67.0°F 19.4°C
    July 72.0°F 22.2°C
    August 70.0°F 21.1°C
    September 62.0°F 16.7°C
    October 52.0°F 11.1°C
    November 41.0°F 5.0°C
    December 29.0°F -1.7°C
  • Demographics
    White 36.3%
    Hispanic / Latino 40.8%
    Black / African American 18.5%
    Asian 1.9%
    Native American 0.2%

  Market & Regulatory Conditions For Massachusetts

Third parties rate Massachusetts's business and regulatory conditions according to their own methods. We report them here for informational purposes.

  • Small-Business Friendliness
    Overall small business friendliness D
    Ease of starting a small business D+
    Cost of hiring a new employee C+
    Overall regulatory friendliness D
    Friendliness of health and safety regulations D
    Friendliness of employment, labor, and hiring regulations D
    Friendliness of tax code D+
    Friendliness of licensing regulations D
    Friendliness of environmental regulations D+
    Friendliness of zoning regulations D+
    Publicity of training programs C
    Publicity of networking programs A-
    Current economic health of small business 24th/50
    Change in revenue over past 12 months 10th/50
    Forecast of small business's future economic health 37th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 25th/50
    Cost of Doing Business 46th/50
    Economy 19th/50
    Infrastructure 45th/50
    Workforce 20th/50
    Quality of life 7th/50
    Technology and innovation 5th/50
    Business friendliness 21th/50
    Education 3th/50
    Cost of living 45th/50
    Access to capital 9th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Massachusetts Corporate Tax Rate 6.3%
    Avg Local Corporate Tax Rate in Massachusetts 0.0%
    Avg Combined Corporate Tax Rate 6.3%
    Overall tax friendliness 24th/50
    Corporate tax rank 37th/50
    Individual income tax rank 13th/50
    Sales tax rank 21th/50
    Unemployment insurance tax rank 48th/50
    Property tax rank 45th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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