Created by:
James Shaw
What is the market sizing template?
Before launching a product, it’s crucial to understand the market potential – and our market sizing template is designed to help you do just that.
Market sizing goes beyond merely estimating demand; instead, it provides insights into the total revenue a market might generate, helping you decide if an investment is worthwhile and which strategies to deploy.
This template offers a structured approach to market sizing, covering two main methods—top-down and bottom-up—along with actionable steps for defining your target market and conducting research. Use it to create reliable projections and support business decisions with clear, data-driven insights.
How to use the market sizing template
- Define your market segments: Start by identifying the market segments where your product fits. By dividing your potential buyers into targeted groups, you get a clearer picture of who will benefit most from your product.
- Choose your method (Top-Down or Bottom-Up): The top-down approach offers a quick estimate based on general market data, while the bottom-up method uses detailed, ground-level research to yield a more accurate forecast.
- Conduct market research: Use surveys, focus groups, or interviews to gauge interest and potential price points. The larger your sample size, the stronger your conclusions.
- Calculate potential sales and develop financial models: With your market interest estimate, build a financial model, incorporating tools like cash flow forecasting and scenario analysis. This final step helps you quantify the potential ROI and assess if the opportunity aligns with your business goals.
Download your market sizing template
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