Where are Your Customers, and how many are there anyway?
You might not have considered thie question before, or perhaps you have subconsciously answered it and the set it aside. But the answer to this question is never found in your own mind. At least the answers that you tell yourself can be drastically innactuate.
Imagine if the total number of potential customers for your proudct was only 100 people; world-wide. Image what that would mean if you were designing and building a product that you $50. Well, you can probably guess what would happen next. You’d make at-most $5,000 and then have nobody else to sell to. Actually, you’re likely to make far less than $5,000 because not everyone that is a “potential” customer is an “actual” customer.
Either way, your build a product for a demographic so narrow and small that you have to close down your business.
This extreme hypothetical is mean to draw attention to how crucial it is to confirm there is a market for your product. Is there a group of people (with money) that want your product? How many people are in that group? Where are they? Who are they? What jobs are they hiring products to occupy? What problems are they trying to solve?
Answers to these questions is exactly what we are going to cover in Day 4.
We’ll tackle this topic following this rough outline:
- Who is the customer for my product
- What is the size of the total addressable market for my product
- What is the size of the served market for my product
- What is the size of the target market for my product