Effective Market Sizing in No Time
How Much Is Your Idea Worth?
Market Size
A critical component of any new venture.
Estimating market size is critical to creating a successful business plan. It determines whether a new venture is feasible and provides the foundation to generate financial projects.
There are two basic ways to evaluate the market size — a top-down analysis and bottom-up analysis.
Top-Down Analysis
Start large and broad and reduce.
A top-down methodology takes a macro approach by estimating the total market and then reducing it based on your industry and the segments you’re targeting. This method is fast because market information is easily accessible through government or industry reports, but can be less accurate than a bottom-up analysis.
Let’s take an example of a Smart Bicycle Sensor that provides speed, distance and other fitness measurements when attached to any bicycle.
Our target market will be cycling enthusiasts with interest in specialty bicycle components and smart devices, between…
