Navigating the seas of market size and finding your perfect island of customers

Introduction

Hey there, founders! Ever found yourself wondering about the vast ocean of market opportunities out there? Let's embark on a journey together to demystify the concept of market size and uncover the treasure that is your focus segment. Ready to dive in?

Why care about Market Size anyway?

Picture this: You're setting sail with your startup idea, but the sea is vast. Knowing the size of the sea helps you plan your journey. But here’s the twist – not all of us aim to conquer the entire ocean. Some might be searching for that perfect island where their idea flourishes. Whether your dream is to build a sprawling empire or find a cozy corner that feels like home, understanding market size is your compass.

The essence of market analysis: A tale of discovery

Market analysis isn't just about numbers and graphs; it's about discovering where your story intersects with those of your future customers. It's answering questions like:

• How many souls are out there who might love my idea?
• What whispers of their needs and desires can guide my path?
• Why does uncovering these secrets matter to my quest?

Let’s unravel these mysteries together, shall we?

Step 1: Charting the map – How big is the sea?

First off, let’s talk about understanding the size of your potential market. Think of TAM (Total Addressable Market) as the entirety of the ocean, SAM (Serviceable Available Market) as the regions you can realistically reach, and SOM (Serviceable Obtainable Market) as the parts of those regions where you actually want to drop anchor. And growth rate? It’s the wind in your sails – is it pushing you forward, or do you need to tack another way?

Step 2: The art of finding your island

Now, imagine segmenting the ocean into regions – not just any old way, but in a manner that reveals the richest fishing grounds, using:

• Demographics: Are you catering to young adventurers or wise sages?
• Geography: Which shores are calling your name – bustling port cities or quiet coves?
• Psychographics: What values do your ideal islanders hold dear?
• Behavioural Traits: Are they frequent travelers on these waters, or are they looking for a lighthouse to guide them home?

Step 3: The voyage to your focused segment

With your map of islands (customer segments) at hand, it’s time to choose your destination. Which island’s song resonates with your heart? Here, you align the size of the island (market size) with the urgency and depth of its needs – your cue to set sail.

Your map to treasure

By narrowing your gaze to a select island (focused segment) and understanding the very heartbeats of its inhabitants (user personas), you plot a course for success that’s tailored, impactful, and, above all, deeply connected to those you aim to serve.

Conclusion

Founders, think of this journey as not just a business venture, but a voyage of discovery and connection. By seeking not just any port in a storm but your very own island paradise, you create a haven where your business isn’t just successful—it’s meaningful and fulfilling.

And remember, founders, in this voyage, your island is just the beginning. Embrace it to delve deeper and, step by step, expand your horizons to the vast ocean beyond. Click to raise the anchor and set sail together. 

Where will your journey take you? Let fn7 Helix guide you.