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 $233,666.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$33,282||$49,924||$66,565||$69,697||$72,977|
|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.
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.
- July temperature
- August temperature
- median income
- gross rent
- land area
- population density
- February temperature
- house price
- business activity
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
14455 W Grand Ave Ste 106 Surprise, AZ 85374
17031 W Bell Rd Ste B-106 Surprise, AZ 85374
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%
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/50Source: 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/50Source: 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/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.