Why is market potential important?
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Market potential is crucial for several reasons, as highlighted by various experts.
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Future Growth and Expansion: Brian O'Malley from emphasizes that market potential is more valuable than an already established market. It's not just about current size but the future impact and growth. Companies that create or redefine markets can be particularly successful, even if the market is initially small 1.
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Focused Strategy: Shoaib Makani, also on , advises that initially targeting a narrow and clearly defined market segment can help in securing a strong market share and product-market fit before expanding. This step-by-step approach allows companies to grow logically and sustainably 2.
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Urgency and Market Size: Business expert Josh Kaufman explains that evaluating market potential involves assessing how urgently customers need your product and the size of the market. A higher urgency and larger market size often indicate better business opportunities. Also important are pricing potential and the cost of delivering value 3.
In summary, understanding market potential helps businesses prioritize growth, ensure strategic focus, and evaluate critical factors such as market size, urgency, and profitability.
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