TX Zhuo says, “Besides developing an exceptional product or hiring the right talent, doing some much-needed market research is the most critical step for any startup. A part of this research should involve market size. Without knowing your market size, you may be conducting business in a market so small, it’s next to impossible to make any money.

Understanding market size helps you distinguish between two categories: the addressable market, which is the total revenue opportunity for your product or service; and the available market, which is the portion of the addressable market for which you can realistically compete. By outlining the difference between these two, you can develop a product offering to tackle that consumer sweet spot.

Without a solid grasp on your market size, you endanger your business’ success in not only the early stages, but also throughout its entire life cycle.

Seeing the business horizon.

Market sizing gives you a sense of market trends. It can clue you in on the necessary drivers of demand, as market movements often continue in one direction or another for a period of time”.

5 Strategies to Effectively Determine Your Market Size
MarketingSherpa

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