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 $158,425.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$22,519||$33,778||$45,037||$47,501||$50,099|
|Net Cash Flow||-$43,102||$22,519||$33,778||$45,037||$47,501||$200,397|
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 West Valley City.
- median income
- July temperature
- August temperature
- gross rent
- population density
- house price
- business activity
- land area
- nearby population
- household size
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
3513 S Constitution Blvd West Valley City, UT 84119
Serving the West Valley City Area.
Butler Tax and Accounting
5959 S Redwood Rd Salt Lake City, UT 84123
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About West Valley City and its Consumers
West Valley City, a suburb of Salt Lake City, is located in Utah's Salt Lake County. Situated about 8 miles southwest of Salt Lake City and 41 miles northwest of Provo, West Valley City affords easy access to nearby cities via Interstate Highways I-15 and I-80; as well as Utah State Highways 173 and 201. With a population in six figures, West Valley City is one of the largest cities in the state of Utah. Part of an area which had been largely agricultural for over one hundred years, West Valley City was formed from a conglomeration of the four separate communities of Hunter, Granger, Chesterfield, and Redwood. In 1980, these four unincorporated communities merged to incorporate as West Valley City, only to face a strong challenge a week later in the form of a campaign to do away with the new city. The campaign had enough petitioners to successfully persuade the states court system to order a disincorporation election a mere three months after the original incorporation vote. By a mere 72 votes, voters rejected the effort to disincorporate and West Valley City survived.
West Valley City, a suburb of Salt Lake City, is located in Utah's Salt Lake County. Situated about 8 miles southwest of Salt Lake City and 41 miles northwest of Provo, West Valley City affords easy access to nearby cities via Interstate Highways I-15 and I-80; as well as Utah State Highways 173 and 201. With a population in six figures, West Valley City is one of the largest cities in the...description source
Population Population (2012) 132,434 Population Density 3,724 ppl/sq mi Population Growth Rate 2.3% Median Income $47,679 Median Age 29.6 Unemployment 4.9% Family Household Percent 79.6% Avg. Household Size 3.5 Avg. House Price $169,200 Foreign Born 18.5% Married 29.7% Cost of Living 47.4%
Demographics White 49.8% Hispanic / Latino 35.4% Black / African American 2.3% Asian 6.3% Native American 0.7%
Market & Regulatory Conditions For Utah
Third parties rate Utah's business and regulatory conditions according to their own methods. We report them here for informational purposes.
Small-Business Friendliness Overall small business friendliness A+ Ease of starting a small business A+ Cost of hiring a new employee A- Overall regulatory friendliness A- Friendliness of health and safety regulations A Friendliness of employment, labor, and hiring regulations B Friendliness of tax code A- Friendliness of licensing regulations A Friendliness of environmental regulations A Friendliness of zoning regulations A- Publicity of training programs C+ Publicity of networking programs B+ Current economic health of small business 8th/50 Change in revenue over past 12 months 7th/50 Forecast of small business's future economic health 3th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 3th/50 Cost of Doing Business 16th/50 Economy 6th/50 Infrastructure 28th/50 Workforce 12th/50 Quality of life 15th/50 Technology and innovation 18th/50 Business friendliness 4th/50 Education 46th/50 Cost of living 20th/50 Access to capital 1th/50Source: CNBC (2014)
Tax Friendliness Utah Corporate Tax Rate 5.9% Avg Local Corporate Tax Rate in Utah 0.7% Avg Combined Corporate Tax Rate 6.7% Overall tax friendliness 9th/50 Corporate tax rank 5th/50 Individual income tax rank 12th/50 Sales tax rank 19th/50 Unemployment insurance tax rank 22th/50 Property tax rank 4th/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.