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 $107,996.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$15,712||$23,568||$31,424||$32,430||$33,467|
|Net Cash Flow||-$29,248||$15,712||$23,568||$31,424||$32,430||$133,870|
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 St. Louis.
- July temperature
- median income
- August temperature
- gross rent
- population density
- business activity
- house price
- land area
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
McCollum, Karen CPA PC
3811 Fillmore St Saint Louis, MO 63116
Above All Personnel
2228 S Big Bend Blv Saint Louis, MO 63117
Orent Financial Services
2506 S Brentwood Blvd Saint Louis, MO 63144
Maixner Maixner & Company LLC CPAs
4501 Telegraph Rd Saint Louis, MO 63129
Poppen & Associates CPA's PC
9012 Manchester Rd Saint Louis, MO 63144
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About St. Louis and its Consumers
St. Louis is an independent city and a major United States port on the eastern line of the state of Missouri. At the2010 census, the population was 319,294, and a 2013 estimate put the population at 318,416, making it the 58th-largest U.S. city in 2013. The metropolitan St. Louis area, known as Greater St. Louis (CSA), is among the 20 largest metropolitan areas in the United States with a population of 2,900,605. The economy of St. Louis relies on service, manufacturing, trade, transportation of goods, and tourism. The city is home to several major corporations, including Express Scripts, Peabody Energy, Ameren, Ralcorp and Sigma-Aldrich. St. Louis is home to three professional sports teams: the St. Louis Cardinals, one of the most successful Major League Baseball clubs, the St. Louis Blues of the National Hockey League, and the St. Louis Rams of the National Football League. The city is commonly identified with the Gateway Arch, which is part of the Jefferson National Expansion Memorial in downtown St. Louis.
St. Louis is an independent city and a major United States port on the eastern line of the state of Missouri. At the2010 census, the population was 319,294, and a 2013 estimate put the population at 318,416, making it the 58th-largest U.S. city in 2013. The metropolitan St. Louis area, known as Greater St. Louis (CSA), is among the 20 largest metropolitan areas in the United States with a...description source
Population Population (2012) 318,172 Population Density 5,139 ppl/sq mi Population Growth Rate -0.4% Median Income $32,570 Median Age 34.7 Unemployment 6.8% Family Household Percent 47.5% Avg. Household Size 2.0 Avg. House Price $120,500 Foreign Born 6.7% Married 29.0% Cost of Living 47.1%
Demographics White 43.3% Hispanic / Latino 3.6% Black / African American 47.8% Asian 2.3% Native American 0.1%
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.