According to a theory, entrepreneurs are often thought of as national assest to be refined, motivated and remunerated to the greatest possible extent. Besides that for the entrepreneur himself, entrepreneurship is a journey that requires a lot of time, effort and hard work. It can change the way we live and work, improve our standars of living and also create jobs and the conditions for a flourishing society.
If you are thinking of starting a new business or expanding an existing business into a new market, it better to do some research to understanding the market size. It is a crucial aspect of evaluating a company’s potential for future success. Market size refers to the number of potential buyers of a product or service in a given area. Determining your market size is a key part of the research stage of product development. There is ways to evaluate your market :
IDENTIFY THE IDEAL CUSTOMER
Evaluating demographic criteria relevant to your market. Asking a couple of quetions to yourself and write the answer; who is your target? where can they be found? Is this product or service is going to satisfy a market need? How badly do people want or need your product?
DETERMINING THE NUMBER
The second step is determining the number of people in a given region who meet your demographic criteria, followed by an assessment of your ability to meet their needs. It’s important to be realistic about your delivery capacity when evaluating market size. If you don’t have effective distribution channels, you won’t be able to take advantage of all your potential clients.
After identifying the number of potential target customers in an area, businesses can assess the market penetration for their product or service.
RESOURCES FOR EVALUATING MARKET SIZE
There are many online resources that offer reliable figures to help business assess their market size and potential. Find information about buying habits and calculate your consumer price index (what is the highest price a typical purchaser would be willing to spend for), who is your competitor and understand your competitor.
If people are interested in purchasing your product and a sizeable percentage of the population has not yet done so, there is a good chance your business will be a success. Review similar products in the marketplace and make sure yours is different enough to stand out (How unique is your offer versus competing offerings in the market and how easy is it for potential competitors to copy you?)
MAKING SMART CHOICES ABOUT MARKET SIZE
It’s no secret that the size of your available market has a profound impact on the success of your business in the long term. Before you launch a new product or business, do your research to determine how today’s consumers are spending their time and money.
source : http://quickbooks.intuit.com/r/marketing/evaluate-market-size/