You've validated that customers have the problem you want to solve. But is the opportunity big enough to build a sustainable business around?
Market sizing helps you understand whether enough customers exist to make your venture worthwhile.
Engagement Message
Have you ever thought through a market size for an idea?
Two approaches work for estimating market size: top-down (starting with large market data) and bottom-up (counting individual customers you can realistically reach).
Bottom-up gives more accurate numbers for new businesses.
Engagement Message
Which approach sounds more reliable for a local coffee shop: top-down or bottom-up?
Start with simple online research. Google your problem plus "market size," check industry reports, and browse trade association websites. Government databases like Census.gov provide demographic data.
Don't overthink this—rough estimates matter more than precision.
Engagement Message
What's one free online source you could use to research your potential target market?
For direct research, observe your target customers where they already spend time. This could be online communities, competitor websites, industry events, or relevant physical locations.
These methods give you real-world data about customer behavior.
Engagement Message
Name one place where you could observe potential customers for your idea.
Calculate conservatively using this formula: identify total potential customers, estimate what percentage you could realistically reach, then determine how many would actually buy.
Most new businesses capture 1-5% of their addressable market in year one.
Engagement Message
If 1,000 people have this problem and you capture 1–5%, roughly how many customers is that?
