Market Research Report
Based on the parameters below, we project this business would break even in 2.2 years with a net present value of $247,168.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$36,882||$55,323||$73,764||$77,226||$80,852|
|Net Cash Flow||-$80,181||$36,882||$55,323||$73,764||$77,226||$323,406|
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 Tacoma.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- business activity
- land area
- February temperature
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
7044A Pacific Ave Tacoma, WA 98408
2411 6th Ave Tacoma, WA 98406
5003 Tacoma Mall Blvd Ste 104R Tacoma, WA 98409
4916L Center St Tacoma, WA 98409
101 S 38th St Unit 110 Tacoma, WA 98418
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 Tacoma and its Consumers
Tacoma is a mid-sized urban port city in and the county seat of Pierce County, Washington, United States.The city is on Washington's Puget Sound, 32 miles (51 km) southwest of Seattle, 31 miles (50 km) northeast of the state capital, Olympia, and 58 miles (93 km) northwest of Mount Rainier National Park. The population was 198,397, according to the2010 census.Tacoma is the second-largest city in the Puget Sound area and the third largest in the state. Tacoma also serves as the center of business activity for the South Sound region, which has a population of around 1 million people. Tacoma adopted its name after the nearby Mount Rainier, originally called Mount Tahoma. It is known as the "City of Destiny" because the area was chosen to be the western terminus of the Northern Pacific Railroad in the late 19th century. The decision of the railroad was influenced by Tacoma's neighboring deep-water harbor, Commencement Bay. By connecting the bay with the railroad Tacoma's motto became "When rails meet sails." Today, Commencement Bay serves the Port of Tacoma, a center ofinternational trade on the Pacific Coast and Washington state's largest port.
Tacoma is a mid-sized urban port city in and the county seat of Pierce County, Washington, United States.The city is on Washington's Puget Sound, 32 miles (51 km) southwest of Seattle, 31 miles (50 km) northeast of the state capital, Olympia, and 58 miles (93 km) northwest of Mount Rainier National Park. The population was 198,397, according to the2010 census.Tacoma is the second-largest city...description source
Population Population (2012) 202,010 Population Density 4,062 ppl/sq mi Population Growth Rate 1.8% Median Income $48,402 Median Age 35.4 Unemployment 8.7% Family Household Percent 58.2% Avg. Household Size 2.4 Avg. House Price $207,000 Foreign Born 12.4% Married 35.0% Cost of Living 57.0%
Demographics White 59.3% Hispanic / Latino 12.2% Black / African American 10.1% Asian 10.4% Native American 0.9%
Market & Regulatory Conditions For Washington
Third parties rate Washington'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 D+ Overall regulatory friendliness D+ Friendliness of health and safety regulations C Friendliness of employment, labor, and hiring regulations D+ Friendliness of tax code D Friendliness of licensing regulations D+ Friendliness of environmental regulations C- Friendliness of zoning regulations D+ Publicity of training programs A- Publicity of networking programs D+ Current economic health of small business 42th/50 Change in revenue over past 12 months 41th/50 Forecast of small business's future economic health 21th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 7th/50 Cost of Doing Business 34th/50 Economy 2th/50 Infrastructure 17th/50 Workforce 24th/50 Quality of life 6th/50 Technology and innovation 4th/50 Business friendliness 23th/50 Education 25th/50 Cost of living 38th/50 Access to capital 9th/50Source: CNBC (2014)
Tax Friendliness Washington Corporate Tax Rate 6.5% Avg Local Corporate Tax Rate in Washington 2.4% Avg Combined Corporate Tax Rate 8.9% Overall tax friendliness 11th/50 Corporate tax rank 28th/50 Individual income tax rank 6th/50 Sales tax rank 46th/50 Unemployment insurance tax rank 19th/50 Property tax rank 23th/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.