Market sizing is often done with a degree of rigour, but far less rigour is applied to the task of sizing your own sales funnel. The proposition that “there is plenty out there” might be true, but sizing is not just about working out if the market can support you.
You need to ask yourself, “How much market do I need?” To be a small player in a big market is as frustrating as it is unprofitable – but being No. 1 generates its own awareness. What you really need is to choose a market small enough – not big enough – to win. Here’s how:
1. Identify how many customers you can properly serve;
2. Determine what share you need to be dominant; and
3. Divide your target customer base by your target market share to determine the number of businesses in your ideal market size.
Once you’ve done this, your sales and marketing planning must centre on sustainable marketing effectiveness for a market of just this number of businesses.
If targeting this tightly sits uncomfortably with you, then perhaps you need to reconcile yourself to being the happy chimp rather than the wealthy gorilla!