Came across this really cool, yet super simple visual illustrating how to frame your market opportunity for start-ups and entrepreneurs.
Start with the total available market.
How many people would want/need your product or service?
How large would the market be in $ if every demand was met. What would that look like in terms of total number of product bought or services rendered?
Next determine your maximum market share.
How many customers can use the product or service?
How many have the money to buy it?
How much can I possible produce?
Now you can build a target market.
Who am I going to sell to first?
How will I let them know about me?
If I see everything possible to my target market how much would that be?
Sometimes it is the simplest visuals that mean the most.