Market Research Report
Based on the parameters below, we project this business would break even in 2.9 years with a net present value of $284,236.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$47,304||$70,956||$94,609||$98,961||$103,513|
|Net Cash Flow||-$135,196||$47,304||$70,956||$94,609||$98,961||$414,051|
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 Sunnyvale.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- business activity
- February temperature
- nearby population
- land area
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
1641 Hollenbeck Ave Sunnyvale, CA 94087
Pizarek M.A. CPA
525 W Remington Dr Sunnyvale, CA 94087
640 W. California Avenue #210 Sunnyvale, CA 94086
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About Sunnyvale and its Consumers
Sunnyvale is a city located in Santa Clara County, California. As of the 2010 United States Census, the population was 140,095. The city is one of the major cities that make up the Silicon Valley located in the San Francisco Bay Area. It is the seventh most populous city in the San Francisco Bay Area. Sunnyvale is bordered by portions of San Jose to the north, Moffett Federal Airfield to the northwest, Mountain View to the west, Los Altos to the southwest, Cupertino to the south, and Santa Clara to the east. It lies along the historic El Camino Real and Highway 101. As part of the Silicon Valley, high-tech companies such as Juniper Networks, Fortinet, AMD, NetApp, Spansion, Yahoo!,AppliedMicro and Ariba are headquartered there. Sunnyvale is also home to several aerospace/defense companies; Lockheed Martin has a major facility in Sunnyvale, and Honeywell, Northrop Grumman Electronic Systems - Marine Systems (formerlyJoshua Hendy Iron Works), Finisar, and Spirent also have offices in Sunnyvale. Sunnyvale was also the home to Onizuka Air Force Station, where its memorial building was locally known as the Blue Cube.
Sunnyvale is a city located in Santa Clara County, California. As of the 2010 United States Census, the population was 140,095. The city is one of the major cities that make up the Silicon Valley located in the San Francisco Bay Area. It is the seventh most populous city in the San Francisco Bay Area. Sunnyvale is bordered by portions of San Jose to the north, Moffett Federal Airfield to the...description source
Population Population (2012) 146,197 Population Density 6,649 ppl/sq mi Population Growth Rate 4.4% Median Income $93,836 Median Age 35.5 Unemployment 6.1% Family Household Percent 66.6% Avg. Household Size 2.6 Avg. House Price $708,000 Foreign Born 39.3% Married 28.1% Cost of Living 74.9%
Demographics White 34.5% Hispanic / Latino 18.9% Black / African American 1.8% Asian 40.7% Native American 0.2%
Market & Regulatory Conditions For California
Third parties rate California's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness F Ease of starting a small business D Cost of hiring a new employee C- Overall regulatory friendliness F Friendliness of health and safety regulations F Friendliness of employment, labor, and hiring regulations F Friendliness of tax code F Friendliness of licensing regulations F Friendliness of environmental regulations D Friendliness of zoning regulations D Publicity of training programs C- Publicity of networking programs D+ Current economic health of small business 40th/50 Change in revenue over past 12 months 40th/50 Forecast of small business's future economic health 35th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 32th/50 Cost of Doing Business 48th/50 Economy 9th/50 Infrastructure 24th/50 Workforce 36th/50 Quality of life 23th/50 Technology and innovation 1th/50 Business friendliness 48th/50 Education 26th/50 Cost of living 47th/50 Access to capital 1th/50Source: CNBC (2014)
Tax Friendliness California Corporate Tax Rate 7.5% Avg Local Corporate Tax Rate in California 0.9% Avg Combined Corporate Tax Rate 8.4% Overall tax friendliness 48th/50 Corporate tax rank 34th/50 Individual income tax rank 50th/50 Sales tax rank 42th/50 Unemployment insurance tax rank 14th/50 Property tax rank 14th/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.