7. MARKET SIZE
Just how big is the opportunity?
Give your business plan a sense of scale.
angel.co/ligaya@ligayaya
Top Down Bottom UpVS
Research firms
Industry analysts
Market reports
Purchase intent:
Google“size of X industry”
whittle it down
User behavior analysis
User end purchases
Competitor revenues
Extrapolate from small
subset of data
roll it up
8. TOP DOWN:
SLICING THE MARKET
Consumer
Geography
Demography
Enterprise
Vertical
angel.co/ligaya@ligayaya
Market Size
multiply:
# of customers
average quantity
price per unit
BOTTOM UP:
EXTRAPOLATING
9. TOP DOWN:
FRAMEWORK
angel.co/ligaya@ligayaya
SOM
SAM
TAM
Total Available Market
How much money is generated by a
specific segment of the market?
Serviceable Available Market
Whats the value of your niche market?
Serviceable Obtainable Market
What market share can you realistically
capture given sales, distribution, and
competition?