Studying a market to see if there is an opportunity for your products or services is called Market Sizing. You get to understand how your competitors are doing and what you can do to make your place in it. It also includes calculating the total size of the market to see how much can be gained from it.
It’s the first and most important phase before you launch a business. That’s why it’s crucial that you understand all market sizing questions to make an efficient plan that only leads to success. This might sound like a lot of hard work, but it’s worth the effort as explained in this article.
Avoid a Potential Loss
It’s better to research the market before you step in. Blindly following a path is most likely to lead to loss. With market sizing, you would already know the size of the market and complete supply and demand. In the process, you would also learn if your competitors have left any place for you.
Even if you are not very experienced, a bad plan after the research would be much better than no plan. If there are any challenges, you would already know about them and get the time to prepare. One unexpected issue could put an end to all you have achieved.
Manage Your Expectations
Businesses are run on numbers. They don’t just invest and hope things turn out fine. Many people see other businesses perform well in the market and they just enter it hoping they will be able to do the same. It’s different for every business and they all have to face a unique set of challenges.
Market sizing will ensure you have the right facts and figures and you set your expectations accordingly. If you make plans on hunches, you will be disappointed later. A demotivated leader means the end of the company.
Helps Finding Unique Selling Propositions
A unique selling proposition is important to make your place in a new market. You have competitors who have been in the same market longer than you. Many of them have more resources, experience, and skills compared to you. Today’s competition is not just about getting more sales.
They also make sure that no one can come to their competition and follow practices to run you out of the market.
You would learn about what your target audience wants and what your competition is offering. You might be able to find a gap that could provide you a strong footing. That gap will be your unique selling proposition to ensure you can stand against the attacks of your competitors.
Understand Your Position in the Market
Market sizing also helps you understand where you stand in a market. You might be making a lot of mistakes and ignoring a big part of the industry. It will help you see outside the box and get a fresh new perspective of the business.
Studying where you stand compared to your competitors will ensure you are not misunderstanding your brand and help create more efficient growth plans.
Learn Your Shortcomings
Nothing is perfect and there is always room for improvement. You might be the strongest business in the market, but it doesn’t mean there are no more opportunities for you – it means you just haven’t found them yet.
Market sizing will allow you to see your shortcomings. You will understand where your sales and marketing or the product might be lacking and how you can improve them. With every improvement, you get to open new doors for your business. You will see what you have been ignoring and how many customers left you without you knowing the reason.