Market Research Report

Accounting Firm opportunities in Surprise, AZ
$66,565 Potential Yearly Earnings What's this number?
$233,666 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 1.9 years with a net present value of $233,666.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $332,824 $499,237 $665,649 $696,974 $729,772
Net Costs $299,542 $449,313 $599,084 $627,276 $656,795
Net Operating Profits $33,282 $49,924 $66,565 $69,697 $72,977
Capital
      Startup Cost -$61,772
      Terminal Value $218,932
Net Cash Flow -$61,772 $33,282 $49,924 $66,565 $69,697 $291,909

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 Surprise.

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

  Competitors

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

H&R Block National Competitor
14455 W Grand Ave Ste 106 Surprise, AZ 85374

H&R Block National Competitor
17031 W Bell Rd Ste B-106 Surprise, AZ 85374

H&R Block National Competitor
15411 W Waddell Rd Surprise, AZ 85379

TIP: Your market is dominated by national chains. Consider entering the market with an independant business or a regional franchise.

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  About Surprise and its Consumers

Surprise, Arizona is 6 miles NW of Peoria, Arizona and 19 miles NW of Phoenix, Arizona. It is in Maricopa county. The city is part of the Phoenix - Mesa metropolitan area. The population of Surprise is 30,848. Real estate developer and state legislator Homer C. Ludden founded the city of Surprise in 1938. The community was named after his hometown of Surprise, Nebraska. Initially, there were only a few houses and a gas station in the area. However, Surprise experienced dramatic growth over the following years and was officially incorporated as a city in 1960. Sun City Grand, an age-restricted resort-like community, was built in the city by the Del Webb property development firm. In the 1990s and early 2000s, many retirees moved to the city to live in this community. Surprise and nearby Attractions are Bead Museum, West Valley Art Museum, Lake Pleasant, Cerreta Candy Factory, White Tank Regional Park.

Surprise, Arizona is 6 miles NW of Peoria, Arizona and 19 miles NW of Phoenix, Arizona. It is in Maricopa county. The city is part of the Phoenix - Mesa metropolitan area. The population of Surprise is 30,848. Real estate developer and state legislator Homer C. Ludden founded the city of Surprise in 1938. The community was named after his hometown of Surprise, Nebraska. Initially, there were...

description source
  • Population
    Population (2012) 121,287
    Population Density 1,146 ppl/sq mi
    Population Growth Rate 3.2%
    Median Income $51,892
    Median Age 36.0
    Unemployment 8.8%
    Family Household Percent 76.0%
    Avg. Household Size 2.7
    Avg. House Price $160,400
    Foreign Born 6.9%
    Married 20.2%
    Cost of Living 48.7%
  • Average Temperature
    January 53.8°F 12.1°C
    February 57.5°F 14.2°C
    March 62.4°F 16.9°C
    April 69.3°F 20.7°C
    May 78.5°F 25.8°C
    June 87.1°F 30.6°C
    July 92.4°F 33.6°C
    August 90.9°F 32.7°C
    September 84.9°F 29.4°C
    October 73.3°F 22.9°C
    November 61.1°F 16.2°C
    December 53.1°F 11.7°C
  • Demographics
    White 71.2%
    Hispanic / Latino 18.5%
    Black / African American 4.8%
    Asian 2.5%
    Native American 0.5%

  Market & Regulatory Conditions For Arizona

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

  • Small-Business Friendliness
    Overall small business friendliness C
    Ease of starting a small business B-
    Cost of hiring a new employee B-
    Overall regulatory friendliness C+
    Friendliness of health and safety regulations B-
    Friendliness of employment, labor, and hiring regulations B
    Friendliness of tax code C+
    Friendliness of licensing regulations C
    Friendliness of environmental regulations C+
    Friendliness of zoning regulations C
    Publicity of training programs D
    Publicity of networking programs B+
    Current economic health of small business 22th/50
    Change in revenue over past 12 months 20th/50
    Forecast of small business's future economic health 26th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 13th/50
    Cost of Doing Business 28th/50
    Economy 15th/50
    Infrastructure 8th/50
    Workforce 2th/50
    Quality of life 27th/50
    Technology and innovation 19th/50
    Business friendliness 16th/50
    Education 50th/50
    Cost of living 27th/50
    Access to capital 5th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Arizona Corporate Tax Rate 5.6%
    Avg Local Corporate Tax Rate in Arizona 2.6%
    Avg Combined Corporate Tax Rate 8.2%
    Overall tax friendliness 23th/50
    Corporate tax rank 24th/50
    Individual income tax rank 19th/50
    Sales tax rank 49th/50
    Unemployment insurance tax rank 4th/50
    Property tax rank 6th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

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

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