Market Research Report

Accounting Firm opportunities in Sterling Heights, MI
$28,093 Potential Yearly Earnings What's this number?
$76,819 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 3.2 years with a net present value of $76,819.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $140,465 $210,697 $280,929 $287,671 $294,575
Net Costs $126,418 $189,627 $252,836 $258,904 $265,118
Net Operating Profits $14,046 $21,070 $28,093 $28,767 $29,458
Capital
      Startup Cost -$44,829
      Terminal Value $88,373
Net Cash Flow -$44,829 $14,046 $21,070 $28,093 $28,767 $117,830

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 Sterling Heights.

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

  Competitors

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

H&R Block National Competitor
43520 Van Dyke Ave Sterling Heights, MI 48314

H&R Block National Competitor
35748 Van Dyke Ave Sterling Heights, MI 48312

Edward B McClellan, CPA Local Competitor
39393 Van Dyke Ave Sterling Heights, MI 48313

  Suppliers & Service Providers Contact List

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  About Sterling Heights and its Consumers

The city of Sterling Heights, situated along the banks of the Clinton River, is not only one of Michigan's largest in terms of population but also one of its largest in area. It is also one of the state's fastest growing large cities. Located in Macomb County, the city lies about 25 miles northeast of Detroit. Nearby communities include Warren (to the south), Troy (to the west), and Mt. Clemens (to the east). Sterling Heights is serviced by Michigan State Highways 53 and 59; and is close to Interstates I-75, I-94, and I-696. Settlement in the area now made up by Sterling Heights began shortly after the Revolutionary War. Farmers soon took advantage of the area's rich soil and built large homesteads, and by 1880, Sterling Township was a prosperous rural area consisting of farm homes and fields of wheat, corn and other crops. When the railroad era arrived, passenger trains from the Detroit and Bay City Railroad passed through Sterling Township four times a day.

The city of Sterling Heights, situated along the banks of the Clinton River, is not only one of Michigan's largest in terms of population but also one of its largest in area. It is also one of the state's fastest growing large cities. Located in Macomb County, the city lies about 25 miles northeast of Detroit. Nearby communities include Warren (to the south), Troy (to the west), and Mt. Clemens...

description source
  • Population
    Population (2012) 130,410
    Population Density 3,572 ppl/sq mi
    Population Growth Rate 0.5%
    Median Income $49,865
    Median Age 40.3
    Unemployment 8.0%
    Family Household Percent 69.8%
    Avg. Household Size 2.6
    Avg. House Price $140,900
    Foreign Born 21.5%
    Married 29.9%
    Cost of Living 47.1%
  • Average Temperature
    January 25.5°F -3.6°C
    February 27.3°F -2.6°C
    March 35.0°F 1.7°C
    April 47.2°F 8.4°C
    May 58.6°F 14.8°C
    June 68.9°F 20.5°C
    July 73.3°F 22.9°C
    August 71.3°F 21.8°C
    September 63.9°F 17.7°C
    October 52.1°F 11.2°C
    November 40.8°F 4.9°C
    December 29.7°F -1.3°C
  • Demographics
    White 83.8%
    Hispanic / Latino 1.9%
    Black / African American 5.1%
    Asian 6.7%
    Native American 0.2%

  Market & Regulatory Conditions For Michigan

Third parties rate Michigan'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 C-
    Friendliness of employment, labor, and hiring regulations D+
    Friendliness of tax code C-
    Friendliness of licensing regulations D+
    Friendliness of environmental regulations D+
    Friendliness of zoning regulations D+
    Publicity of training programs C+
    Publicity of networking programs B-
    Current economic health of small business 28th/50
    Change in revenue over past 12 months 15th/50
    Forecast of small business's future economic health 25th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 26th/50
    Cost of Doing Business 31th/50
    Economy 28th/50
    Infrastructure 16th/50
    Workforce 15th/50
    Quality of life 45th/50
    Technology and innovation 14th/50
    Business friendliness 32th/50
    Education 34th/50
    Cost of living 17th/50
    Access to capital 23th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Michigan Corporate Tax Rate 6.0%
    Avg Local Corporate Tax Rate in Michigan 0.0%
    Avg Combined Corporate Tax Rate 6.0%
    Overall tax friendliness 13th/50
    Corporate tax rank 10th/50
    Individual income tax rank 14th/50
    Sales tax rank 7th/50
    Unemployment insurance tax rank 47th/50
    Property tax rank 27th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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