Once you’ve determined that there is an unmet or under-met consumer need for your product or service, you’ll need to quantify the number of potential customers and the amount that they are willing to spend. You will use this quantification of your market opportunity to convince yourself and potential investors that the revenue estimates for your business are realistic and substantiated.

When looking at your market opportunity, be sure to consider any observable market trends. You’ll use that information to establish that the current market is viable, and to understand the growth potential of the market. Observable trends might include industry trends, socioeconomic trends, demographic shifts, and so on. Such trends are likely to have some impact on your specific business.  

Once you’ve established the size of your market opportunity, take a step back. Are you poised to tap into the biggest opportunity in the marketplace? Is there another significant niche you should be considering? Is there a way to refine your business idea that will increase your opportunity?

What Next: Click What should I remember about assessing a market opportunity?