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Define and Size Your Market

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Last updated 5/2022 English
Overview

To determine the size of your potential market, tighten the focus until you have a clear and specific picture. By applying successive industry and market segment funnels, you can arrive at a target market which is both credible to investors and feasible for you to serve well. This course introduces the market funnel framework, a three-step process for defining your target audience and sizing segments in terms investors can use and you can apply to your financial plan.

Introduction

Don't be that entrepreneur — saying you only need 'one percent' of the market in order to become a millionaire. Not only will investors throw you out of their offices, but you'll lose credibility. This market sizing overview illustrates the importance of carving out a core market you can reach.

The Market Funnel Framework

The Market Funnel Framework is a method for identifying your core market. Your industry is defined by categories and their segments. Your market is defined by the customers—the people—who populate it. This framework will walk you through a process of narrowing your industry into sub-segments until you've carved out a clear, specific target customer that you can measure.

Define Your Market

The trick to defining your market is how broadly or narrowly you need to define your market. Your market definition must be large enough to attract investors. 

Have you heard the terms TAM, SAM and SOM? These are all methods of defining and sizing your market. Even if you are familiar with them, we will have some great guidelines on how to effectively use them. 

We walk you step by step through how a skincare company and a microbrewing company defined their markets.

How to Size Your Market

It is critical to understand exactly how investors will view your market size. We will show you what investors are looking for, and how to present this valuable data to them.

Let's take a look at how our example skincare company sizes their market.  

Workshop

Time to put pen to paper — or fingers to keyboard. Take a look inside the worksheet that prepares you to define and size your market for your business plan. The key to success is taking the time necessary to deeply understand your business and be prepared to run it—use this workshop and worksheet to do just that.

Course Guide

I recommend that you download this handy course guide to aid your journey through the course as well as great reference materials for the future.

Testimonials
  1. I'm not graduate from economic bachelor and English is not my mother tongue. But this course and how Mr. Ken explained the content is really easy to understand for beginner like me. Thanks to Mr. Ken for answered all of my question with a fast and easy understandable answer! ~ Diantini S
  2. Perfect timing and the insights till now are those that I was exactly looking for.... Excited to learn more ~ Yogen P
  3. Such an amazing course. You'll be able to understand and create your own business plan and you'll get a lot of valuable advices ~ A Cerimagic
  4. Lot’s of info in this course. Ken really takes you from A to Z . Just what I needed for my business to take off. Thanks ~ Hugo M
  5. I'm new to the business world and have been looking for courses with practical guidance. This course definitely provides that and so much more ~ S Slawinski
  6. So far so good! A lot of challenges I'm facing in my work place Ken has highlighted the root course, which I was not expecting. He is clear, very engaging and breaks down the jargon. He is straight talking, right down to business attitude. I've just completed the first chapter and he's restoring a little faith in me so quite excited to keep learning (I know, I sound like a nerd) ~ Harrie T
  7. This course is the right match for me as I know some about business but believe in always improving. I also want to make sure I have a solid foundation for my business so I'm positioned right for the new year, and growth ~ E Jollymore
What you'll learn
  1. When defining my target market, should I go big or think small?
  2. How do I identify a market big enough to support my business?
  3. What calculations do investors use to determine whether they’ll see a viable return on investment?
  4. What resources can I use to define my industry and its segments?
  5. What is my “sweet spot” target market, and how do I size it?
  6. How can I assign a dollar amount to my target audience?