Market Research Report
Based on the parameters below, we project this business would break even in 1.8 years with a net present value of $110,314.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$15,875||$23,812||$31,749||$32,765||$33,814|
|Net Cash Flow||-$28,349||$15,875||$23,812||$31,749||$32,765||$135,254|
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 Springfield.
- median income
- July temperature
- August temperature
- gross rent
- population density
- land area
- house price
- business activity
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
1907 S Glenstone Ave Springfield, MO 65804
3555 S Culpepper Cir Springfield, MO 65804
Jackson & Jackson PC
3249 E Ridgeview St Springfield, MO 65804
Elliott, Robinson & Company, LLP
2305 S Blackman Rd Suite D Springfield, MO 65809
Kollmeyer & Company, LLC
1736 E Sunshine St Springfield, MO 65804
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Springfield and its Consumers
Springfield is the third largest city in the state of Missouri and the county seat of Greene County. According to the 2010 census data, the population was 159,498, an increase of 5.2% since the 2000 census. The Springfield Metropolitan Area has a population of 436,712 and includes the counties of Christian, Dallas, Greene, Polk and Webster. Springfield's nickname is the Queen City of the Ozarks and is known as the Birthplace of Route 66 as well as the home of several universities including Missouri State University, Drury University, and Evangel University. Springfields economy is based on health care, manufacturing, retail, education and tourism. With a Gross Metropolitan Product of $13.66 billion in 2004, Springfield's economy makes up 6.7% of the Gross State Product of Missouri. Total retail sales exceed $4.1 billion annually in Springfield and $5.8 billion in the Springfield MSA. Its largest shopping mall is Battlefield Mall. According to the Springfield Convention & Visitors Bureau, an estimated three million overnight visitors and millions of day-trippers visit the city annually. The city has more than 60 lodging facilities and 6,000 hotel rooms.
Springfield is the third largest city in the state of Missouri and the county seat of Greene County. According to the 2010 census data, the population was 159,498, an increase of 5.2% since the 2000 census. The Springfield Metropolitan Area has a population of 436,712 and includes the counties of Christian, Dallas, Greene, Polk and Webster. Springfield's nickname is the Queen City of the Ozarks...description source
Population Population (2012) 162,191 Population Density 1,984 ppl/sq mi Population Growth Rate 1.7% Median Income $33,391 Median Age 33.2 Unemployment 6.3% Family Household Percent 50.8% Avg. Household Size 2.1 Avg. House Price $109,200 Foreign Born 2.7% Married 40.1% Cost of Living 44.5%
Demographics White 86.8% Hispanic / Latino 3.7% Black / African American 4.0% Asian 1.9% Native American 0.7%
Market & Regulatory Conditions For Missouri
Third parties rate Missouri's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness B- Ease of starting a small business B Cost of hiring a new employee C+ Overall regulatory friendliness C+ Friendliness of health and safety regulations C- Friendliness of employment, labor, and hiring regulations C+ Friendliness of tax code B- Friendliness of licensing regulations C+ Friendliness of environmental regulations C- Friendliness of zoning regulations C- Publicity of training programs C- Publicity of networking programs C- Current economic health of small business 37th/50 Change in revenue over past 12 months 38th/50 Forecast of small business's future economic health 13th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 23th/50 Cost of Doing Business 11th/50 Economy 15th/50 Infrastructure 13th/50 Workforce 44th/50 Quality of life 48th/50 Technology and innovation 24th/50 Business friendliness 29th/50 Education 20th/50 Cost of living 18th/50 Access to capital 39th/50Source: CNBC (2014)
Tax Friendliness Missouri Corporate Tax Rate 4.2% Avg Local Corporate Tax Rate in Missouri 3.4% Avg Combined Corporate Tax Rate 7.6% Overall tax friendliness 17th/50 Corporate tax rank 4th/50 Individual income tax rank 29th/50 Sales tax rank 29th/50 Unemployment insurance tax rank 12th/50 Property tax rank 7th/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.