Market Research Report
Based on the parameters below, we project this business would break even in 1.7 years with a net present value of $188,154.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$26,313||$39,469||$52,626||$55,046||$57,579|
|Net Cash Flow||-$45,153||$26,313||$39,469||$52,626||$55,046||$230,314|
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 Visalia.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- February temperature
- business activity
- land area
- April temperature
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
1444 S Mooney Blvd Visalia, CA 93277
2121 N Dinuba Blvd Ste C Visalia, CA 93291
M Green & Co LLP CPA
308 S M St Tulare, CA 93274
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About Visalia and its Consumers
Visalia is a city situated in the agricultural San Joaquin Valley of California, approximately 230 miles (370 km) southeast of San Francisco, 190 miles (310 km) north of Los Angeles, and 36 miles (58 km) west of Sequoia National Park. The population was 124,442 at the 2010 census. Settled in 1852, Visalia is the oldest continuously inhabited inland European settlement between Stockton and Los Angeles. It is the 5th largest city in the San Joaquin Valley after Fresno, Bakersfield, Stockton and Modesto, the 44th most populous in California, and 198th in the United States. As the county seat of Tulare County, Visalia serves as the economic and governmental center to one of the most productive single agricultural counties in the country. Yosemite, Sequoia, and Kings Canyon National Parks are located in the nearby Sierra Nevada mountains, the highest mountain range in the contiguous United States. The city is divided into neighborhoods, some of which were incorporated places or communities. There are also several independent cities around Visalia that are popularly grouped with the city of Visalia, due to its immediate vicinity.
Visalia is a city situated in the agricultural San Joaquin Valley of California, approximately 230 miles (370 km) southeast of San Francisco, 190 miles (310 km) north of Los Angeles, and 36 miles (58 km) west of Sequoia National Park. The population was 124,442 at the 2010 census. Settled in 1852, Visalia is the oldest continuously inhabited inland European settlement between Stockton and Los...description source
Population Population (2012) 127,081 Population Density 3,506 ppl/sq mi Population Growth Rate 2.1% Median Income $52,194 Median Age 31.4 Unemployment 8.5% Family Household Percent 74.1% Avg. Household Size 3.0 Avg. House Price $161,800 Foreign Born 12.6% Married 33.1% Cost of Living 45.0%
Demographics White 46.4% Hispanic / Latino 44.8% Black / African American 1.8% Asian 5.2% Native American 0.6%
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.