Sizing the Market

One of the most important selling points for a startup is their potential market size. Market size is the amount of people in any given market segment who are potential buyers/customers. It is important for startups to determine market size before launching their product and/or service. The goal is to figure out where these customers are and then sell to them. The size of your market determines your potential sales. There are several ways to find the market size for your startup, however a common option is buying a market research report.  

Market research reports are a detailed analysis of a given market and offer insight into business decisions and strategy. These reports allow you to see information about market shifts. They typically run anywhere from $5K to $20K. Keep in mind, this is a costly investment and there are other ways to find the market size.

For example, you can usually find the summary of a market research report on the web which gives the market size at a high level. You can also contact the trade association related to your industry. These associations are most often located in Washington DC as they provide government advocacy in addition to industry support. The website of the association typically provides stats on the industry including market size and sector breakdowns.

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