How Big Is The Market For Your Startup?

Determining how big the market is for your startup should be easy. However, I see startup CEOs make the same mistakes calculating their TAM and SAM. And, in the process, they kill their chances of getting an investment.

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I’ll share with you the right way to determine your market size, and how you should present this information to investors.

Today’s article is divided into three parts:

Part one is the likely mistakes you are making determining the market size.

Part two is the right way to determine market size.

Part three is showing you the right way to explain your market size to your investors.

Let’s get started with part one…

Part one: The mistakes you are making determining your market size.

So, let’s start with the most likely mistake you’ll make when it comes to sizing your market which is mistake number one…

Mistake one: You’re using the wrong numbers.

I would say that seventy percent of the pitches that I see use the wrong market numbers. For example, I was reviewing a pitch for a company focused on the replacement market for airplane parts.