Market Size: The Two Best Methods for Market Sizing Your Business, Plus Expert Tips

When considering a new venture, you must understand: “What is market size?” More specifically, you need to know your venture’s potential market size. But “Why?” I hear you ask.When considering a new venture, you must understand: “What is market size?” More specifically, you need to know your venture’s potential market size. But “Why?” I hear you ask. Picture this: You’ve put in months of hard work only to realize that 100 people in the U.S. will potentially buy your product. The potential revenue from that population size may be worth your product’s manufacturing, production, and distribution costs — or it may not. But even if you’ve got 10,000 potential customers, you still need to go deeper in your market sizing to understand whether there’s a viable market. Below, I’ll share methods to calculate your market size and accurately measure your business’ revenue potential. I will also share first-hand experiences from founders, CEOs, entrepreneurs, and more who spoke to me about their market sizing journeys. Keep reading, or jump to the section you’re looking for: What is market sizing? Why is market size important? Market Size vs. Market Value Market Sizing Terms to Know How to Calculate Market Size Market Sizing