Measuring The Potential Splash Before Jumping In The Water
As the economy is slowly recovering, new opportunities are opening up for businesses. Those organizations that uncover and capitalize on those opportunities first enjoy the biggest gains. So how does an organization uncover those new opportunities?
One simple but effective way is to research the research. In other words, begin combing government and industry sources for information on the market size, current trends and areas of growth or decline. By combining and comparing data from multiple sources, a clear picture of new opportunities begins to emerge.
We have conducted several market sizing projects and have found the following tips to be helpful:
- Begin with a broad overview of an industry and then narrow your research to a specific product or service line within the industry
- The government often provides several types of data from multiple agencies. Pulling data from different agencies can provide a more complete picture of an industry. We recommend starting with the Census Bureau and the Bureau of Labor Statistics.
- Consult industry association websites for reports, white papers and other useful information. You can often contact these organizations for informational interviews.
- Review industry publication websites for recent articles.
How does a typical Market Sizing study work?
We like to view Market Sizing in a tiered approach. (See chart below)
Competitive Product and Pricing Review
Identify and include any other competitors currently serving the market. Each competitor’s product/service will be compared to the closest applicable product/service of the Client
Prepare a report showing each competing product/service, highlighting any advantages or disadvantages the Client has
Market Size and Growth Potential
The primary objective for this research is to provide a broad base understanding of the commercial and residential markets through research into the statistics, trends and competitive landscape of the Client’s industry.
Important Directional Information
While this type of research may not be the most exciting, it can give you important directional information on where the opportunities are and potentially save you from spending money in a market with limited opportunity.