"Everyone will buy this product!" This overambitious misjudgment underscores an all too common fallacy in the world of entrepreneurs: the entrepreneur's bias. After all, ideas quickly become "your baby," and no one wants to hear their baby is ugly. But this thought process, could be a costly mistake. Instead, entrepreneurs need to ensure there is a need for their "baby"
Reasonably and thoughtfully estimating an idea's potential market size is a key step to successfully bringing an idea to market. When seeking out potential licensors or investors, you can bet they’ll consider market size to judge the revenue generating potential of a new idea.
Put simply: an invention or concept that could only potentially appeal to a small population is typically a riskier investment than those with mass-market appeal.
How do you go about determining the size of your idea’s potential market? Sure, you could hire an expert to conduct a market analysis. However, I adamantly believe that the more involved inventors are, the more information they are able to absorb, and the better off they’ll be in the long run.
With government data, trade association data, censuses and customer surveys at your fingertips, there is no excuse to not at least estimate a ballpark figure.
For the sake of this article, let’s say you’ve invented a new product that you believe will dramatically improve the way people groom their dogs. Using publicly available data and a touch of critical thinking, you can easily estimate the idea’s potential market size.
Read More: Why Entrepreneurs Must Research Market Size by Louis Foreman
Related Article: 3 Ways to Figure Out If There’s a Market for Your Business Idea
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