Is the market big enough?
Direct answer
Estimate market size with a bottom-up method: count the customers you can reach, multiply by what they would pay per year and sanity-check with top-down data. Use real numbers, not wishful percentages.
Example (bottom-up)
- 5,000 small bakeries in your region.
- You can reach 20 percent in two years: 1,000.
- Price: 300 per year.
- Revenue potential: 300,000 per year.
Steps
- Define the customer precisely.
- Count how many exist.
- Estimate who you can reach.
- Multiply by price.
- Compare with top-down data.
Where Teyro fits
Teyro's How to Validate a Business Idea course turns this into short lessons you can play in a few minutes a day. It has 50 lessons, and you can start free.
The bottom line
Be specific about who and how many.
