Market Research Report

Accounting Firm opportunities in Worcester, MA
$67,164 Potential Yearly Earnings What's this number?
$209,395 Net Present Value What's this number?

  Financial Projections

Based on the parameters below, we project this business would break even in 2.6 years with a net present value of $209,395.

Net Cash Flow over 5 years

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5
Net Revenues $335,818 $503,727 $671,636 $698,027 $725,456
Net Costs $302,236 $453,354 $604,472 $628,225 $652,910
Net Operating Profits $33,582 $50,373 $67,164 $69,803 $72,546
Capital
      Startup Cost -$86,238
      Terminal Value $217,637
Net Cash Flow -$86,238 $33,582 $50,373 $67,164 $69,803 $290,182

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 Worcester.

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

  Competitors

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

H&R Block National Competitor
93 Stafford St Worcester, MA 01603

H&R Block National Competitor
893 Grafton St Worcester, MA 01604

H&R Block National Competitor
347 Grafton St Worcester, MA 01604

H&R Block National Competitor
490 Lincoln St Worcester, MA 01605

H&R Block National Competitor
18 Park Ave Worcester, MA 01605

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 Worcester and its Consumers

Worcester is a city and the county seat of Worcester County, Massachusetts, United States. Named after Worcester, England, as of the 2010 Census the city's population was 181,045, making it the second largest city in New England after Boston. Worcester is located approximately 40 miles (64 km) west of Boston, and 38 miles (61 km) east of Springfield. Due to its location in Central Massachusetts, amidst Massachusetts' major metropolitan regions, Worcester is known as the "Heart of the Commonwealth", thus, a heart is the official symbol of the city. However, the heart symbol may also have its provenance in lore that Valentine's Day cards were invented in the city

Worcester is a city and the county seat of Worcester County, Massachusetts, United States. Named after Worcester, England, as of the 2010 Census the city's population was 181,045, making it the second largest city in New England after Boston. Worcester is located approximately 40 miles (64 km) west of Boston, and 38 miles (61 km) east of Springfield. Due to its location in Central...

description source
  • Population
    Population (2012) 182,669
    Population Density 4,887 ppl/sq mi
    Population Growth Rate 0.9%
    Median Income $42,718
    Median Age 34.0
    Unemployment 9.3%
    Family Household Percent 58.3%
    Avg. Household Size 2.5
    Avg. House Price $211,200
    Foreign Born 18.8%
    Married 42.2%
    Cost of Living 67.3%
  • Average Temperature
    January 24.1°F -4.4°C
    February 27.0°F -2.8°C
    March 34.7°F 1.5°C
    April 46.0°F 7.8°C
    May 56.3°F 13.5°C
    June 65.0°F 18.3°C
    July 70.2°F 21.2°C
    August 68.8°F 20.4°C
    September 61.2°F 16.2°C
    October 50.0°F 10.0°C
    November 40.3°F 4.6°C
    December 29.4°F -1.4°C
  • Demographics
    White 58.9%
    Hispanic / Latino 19.8%
    Black / African American 10.4%
    Asian 7.7%
    Native American 0.2%

  Market & Regulatory Conditions For Massachusetts

Third parties rate Massachusetts's business and regulatory conditions according to their own methods. We report them here for informational purposes.

  • Small-Business Friendliness
    Overall small business friendliness D
    Ease of starting a small business D+
    Cost of hiring a new employee C+
    Overall regulatory friendliness D
    Friendliness of health and safety regulations D
    Friendliness of employment, labor, and hiring regulations D
    Friendliness of tax code D+
    Friendliness of licensing regulations D
    Friendliness of environmental regulations D+
    Friendliness of zoning regulations D+
    Publicity of training programs C
    Publicity of networking programs A-
    Current economic health of small business 24th/50
    Change in revenue over past 12 months 10th/50
    Forecast of small business's future economic health 37th/50
    Source: Thumbtack.com (2012)
  • Business Friendliness
    Overall Business Friendliness 25th/50
    Cost of Doing Business 46th/50
    Economy 19th/50
    Infrastructure 45th/50
    Workforce 20th/50
    Quality of life 7th/50
    Technology and innovation 5th/50
    Business friendliness 21th/50
    Education 3th/50
    Cost of living 45th/50
    Access to capital 9th/50
    Source: CNBC (2014)
  • Tax Friendliness
    Massachusetts Corporate Tax Rate 6.3%
    Avg Local Corporate Tax Rate in Massachusetts 0.0%
    Avg Combined Corporate Tax Rate 6.3%
    Overall tax friendliness 24th/50
    Corporate tax rank 37th/50
    Individual income tax rank 13th/50
    Sales tax rank 21th/50
    Unemployment insurance tax rank 48th/50
    Property tax rank 45th/50
    Source: Tax Foundation (2015)

  Suggested Cities & Businesses

The following cities have the highest PYE for Accounting Firm within 500 miles of Worcester based on a number of market characteristics. See More Results

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