How to Size a Market?

Posted on the 27 February 2013 by Beingunordinary

I like an entrepreneur who tries to define the market as tightly as possible. This is mainly driven by a loosely defined industry. “I’m addressing the $300 billion US energy market.  We want to have people 10% on energy.  Therefore our market size is $30 billion” or “I’m addressing the $2.3 trillion US services market.  It is a huge market.”  That is a sure way to lose the interest of a potential investor. Define your market sizing as tightly as you can.  Nobody will fault you for estimates, just make sure they are reasonable.