ideas to numbers .. simple financial projections
A market size estimation is a useful exercise as it will allow you to determine whether the new business is a feasible proposition.
Starting a business on the assumption that the market place will get bigger to accommodate you is a dangerous game. More often than not, the market will stay the same and the business you get will be at the expense of competitors. There are many factors to consider when deciding how to determine market size.
This is one of a series of articles on the contents of a simple business plan.
To the investor, the customer solution shown in a business plan in itself has no value unless it can be realized in the market place. Ultimately, it will be the industry market size that decides the value of your business to an investor and, as a rule of thumb, the bigger the available market, the better.