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 $193,423.
Net Cash Flow over 5 years
|Year 0||Year 1||Year 2||Year 3||Year 4||Year 5|
|Net Operating Profits||$27,144||$40,715||$54,287||$56,423||$58,644|
|Net Cash Flow||-$45,547||$27,144||$40,715||$54,287||$56,423||$234,576|
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 Wichita.
- median income
- July temperature
- August temperature
- gross rent
- population density
- land area
- house price
- business activity
- nearby population
Accounting firms or individuals that provide accounting, tax filing, or related financial services to clients.
Dunn & Company LLC
201 N Main St Wichita, KS 67202
961 W 29th St N Wichita, KS 67204
Profit Builders Inc.
7325 W 33rd St N Wichita, KS 67205
Bookkeepers Business Systems
250 N Rock Rd Ste 372 Wichita, KS 67206
Hiebert & Decker CPA
200 W Douglas Ave Ste 820 Wichita, KS 67202
TIP: Your market is dominated by independant companies. Consider entering with a national or regional franchise.
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About Wichita and its Consumers
Wichita is the largest city in Kansas and the seat of Sedgwick County. It is located in the south-central part of the state, at the confluence of the Arkansas and Little Arkansas rivers. Incorporated as a city in 1870, Wichita is the chief commercial and industrial center of southern Kansas. More or less uninhabited at the time of Kansas's entry into the Union in 1861, the area was first settled by Wichita Indians, who came north from Texas and Oklahoma during the Civil War. At about the same time (during the mid-1860s) a number of trading posts were established at or near the river junction. One of the traders, Jesse Chisholm, pioneered the Chisholm Trail, which passed through Wichita and was the main cattle-drive route from Texas to the railroad in Abilene. After the railroad was extended to Wichita in 1872, the city boomed first as a cow town and then later as the trading center in an agricultural and livestock region. Although the city experienced an economic slump at the end of the 19th century, oil was discovered nearby in 1915, and subsequently the population almost doubled.
Wichita is the largest city in Kansas and the seat of Sedgwick County. It is located in the south-central part of the state, at the confluence of the Arkansas and Little Arkansas rivers. Incorporated as a city in 1870, Wichita is the chief commercial and industrial center of southern Kansas. More or less uninhabited at the time of Kansas's entry into the Union in 1861, the area was first...description source
Population Population (2012) 385,577 Population Density 2,420 ppl/sq mi Population Growth Rate 0.8% Median Income $44,184 Median Age 34.0 Unemployment 5.1% Family Household Percent 62.5% Avg. Household Size 2.5 Avg. House Price $119,900 Foreign Born 10.2% Married 52.0% Cost of Living 44.0%
Demographics White 64.3% Hispanic / Latino 15.6% Black / African American 10.2% Asian 4.6% Native American 0.8%
Market & Regulatory Conditions For Kansas
Third parties rate Kansas'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 D+ Overall regulatory friendliness C+ Friendliness of health and safety regulations D+ Friendliness of employment, labor, and hiring regulations C Friendliness of tax code B- Friendliness of licensing regulations C+ Friendliness of environmental regulations D Friendliness of zoning regulations A- Publicity of training programs B Publicity of networking programs A Current economic health of small business 16th/50 Change in revenue over past 12 months 8th/50 Forecast of small business's future economic health 34th/50Source: Thumbtack.com (2012)
Business Friendliness Overall Business Friendliness 15th/50 Cost of Doing Business 26th/50 Economy 31th/50 Infrastructure 8th/50 Workforce 13th/50 Quality of life 25th/50 Technology and innovation 27th/50 Business friendliness 11th/50 Education 14th/50 Cost of living 24th/50 Access to capital 41th/50Source: CNBC (2014)
Tax Friendliness Kansas Corporate Tax Rate 6.2% Avg Local Corporate Tax Rate in Kansas 2.0% Avg Combined Corporate Tax Rate 8.2% Overall tax friendliness 22th/50 Corporate tax rank 38th/50 Individual income tax rank 18th/50 Sales tax rank 30th/50 Unemployment insurance tax rank 9th/50 Property tax rank 28th/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.