The 2 Simple & Straightforward Methods for Market Sizing Your Business

When you’re considering a new venture, one of the first things you should do is determine whether there is a valuable market for it.

Imagine putting in months of hard work to realize that there are only 100 people in the U.S. who will potentially buy your product. Knowing this early on will enable you to make educated business decisions and decide what’s worth pursuing.

Discover the methods to calculate your market size and accurately measure your business’ revenue potential.

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When market sizing, you’re calculating customer numbers to measure the growth potential of your business.

Why is market size important?

There are several reasons why every business should spend time sizing its market:

• Market sizing helps you figure out if your product is a worthy investment. Say you have a great idea for a product but there are only 100 people who would buy it. From there, you can decide if that population size is worth the cost of manufacturing, production, distribution, and more for your product.
• Market sizing helps you estimate profit and potential for growth. If you know how many people your business has the potential to reach, you can estimate how much revenue you can generate. This is valuable for both business owners as well as investors.
• Market size defines who you’re marketing to and what their needs are. No business can succeed without marketing. Knowing your market size is the first step in understanding your target market and their needs.
• Market sizing helps your business make better decisions. Understanding your market landscape, gaps, and opportunities will inform your decision-making. It…