Market Research Report

Accounting Firm opportunities in Tempe, AZ
$56,214 Potential Yearly Earnings What's this number?
$197,160 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 $197,160.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $281,068 $421,601 $562,135 $588,588 $616,287
Net Costs $252,961 $379,441 $505,922 $529,730 $554,658
Net Operating Profits $28,107 $42,160 $56,214 $58,859 $61,629
Capital
      Startup Cost -$52,335
      Terminal Value $184,886
Net Cash Flow -$52,335 $28,107 $42,160 $56,214 $58,859 $246,515

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 Tempe.

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

  Competitors

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

H&R Block National Competitor
5110 S Rural Rd Tempe, AZ 85282

H&R Block National Competitor
206 W Southern Ave Tempe, AZ 85282

H&R Block National Competitor
6340 S Rural Rd Tempe, AZ 85283

H&R Block National Competitor
937 E Broadway Rd Tempe, AZ 85282

All States Tax & Accounting Local Competitor
4500 S Lakeshore Dr Ste 280 Tempe, AZ 85282

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

  Suppliers & Service Providers Contact List

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  About Tempe and its Consumers

Tempe, also known as Hayden's Ferry during the territorial times of Arizona, is a city in Maricopa County, Arizona, United States, with the Census Bureau reporting a 2010 population of 161,719.The city is named after the Vale of Tempe in Greece. Tempe is located in the East Valley section of metropolitan Phoenix; it is bordered by Phoenix and Guadalupe on the west, Scottsdale on the north, Chandler on the south, and Mesa on the east. Tempe was the location of US Airways Group's corporate headquarters until December 9, 2013, when US Airways and American Airlines merged to form American Airlines Group. The headquarters for the combined airline moved to American's headquarters in Fort Worth, Texas. Tempe is the headquarters and executive office of two Fortune 500 companies US Airways(formerly America West Airlines) and Insight Enterprises. Limelight Networks LifeLock, First Solar, the Salt River Project, Circle K, Go Daddy, Fulton Homes and Mobile Mini are also headquartered in Tempe. Cold Stone Creamery was originally headquartered in Tempe and location #0001 is still in operation today at 3330 S McClintock Drive in Tempe, Arizona. Tempe is also home to the largest campus of Arizona State University.

Tempe, also known as Hayden's Ferry during the territorial times of Arizona, is a city in Maricopa County, Arizona, United States, with the Census Bureau reporting a 2010 population of 161,719.The city is named after the Vale of Tempe in Greece. Tempe is located in the East Valley section of metropolitan Phoenix; it is bordered by Phoenix and Guadalupe on the west, Scottsdale on the north,...

description source
  • Population
    Population (2012) 166,842
    Population Density 4,178 ppl/sq mi
    Population Growth Rate 3.2%
    Median Income $45,518
    Median Age 28.1
    Unemployment 6.1%
    Family Household Percent 47.8%
    Avg. Household Size 2.3
    Avg. House Price $184,500
    Foreign Born 16.8%
    Married 55.3%
    Cost of Living 48.8%
  • Average Temperature
    January 54.2°F 12.3°C
    February 57.1°F 13.9°C
    March 62.0°F 16.7°C
    April 68.8°F 20.4°C
    May 77.4°F 25.2°C
    June 85.2°F 29.6°C
    July 90.0°F 32.2°C
    August 89.0°F 31.7°C
    September 83.9°F 28.8°C
    October 72.9°F 22.7°C
    November 61.2°F 16.2°C
    December 52.9°F 11.6°C
  • Demographics
    White 60.2%
    Hispanic / Latino 20.7%
    Black / African American 6.1%
    Asian 7.2%
    Native American 1.0%

  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 Tempe based on a number of market characteristics. See More Results

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