How do I evaluate my market size for my business plan?

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My answer to How do I evaluate my market size for my business plan?

Answer by Ken Larson:

Conduct market research.

“WIRED” – “How the ‘Failure’ Culture of Startups Is Killing Innovation” By Eika Hall

“Research is not about whether people “like” or don’t like something. No business should ever use the word “like.” Like is not a design word and has nothing to do with any business goal. It’s just a reported mental attitude with no necessary connection to behavior. (Same thing with “hate”: I may hate The Newsroom, but I still watch it. Why? The better to hate it.)

In market research, this is known as the difference between “declared preference” — the fruit of focus groups — and “revealed preference” or reality.

Yet focus groups are not research; they’re research theater. They tell us very little about how real people behave in the real world. The brilliant sociologist and father of focus groups Robert K. Merton later lamented their misuse in replacing research: “Even when the subjects are well selected, focus groups are supposed to be merely the source of ideas that need to be researched.”

When the research focuses on what people actually do (watch cat videos) rather than what they wish they did (produce cinema-quality home movies) it actually expands possibilities. But a common concern and excuse for not doing research is that it will limit creative possibilities to only those articulated by the target users, leaving designers devising a faster horse (lame) rather than a flying car (rad).”

Read on: How the ‘Failure’ Culture of Startups Is Killing Innovation

How do I evaluate my market size for my business plan?

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About rosecoveredglasses

2 Tours in US Army Vietnam. Retired from 36 Years in the Defense Industrial Complex after working on 25 major weapons systems, many of which are in use today in the Middle East. Volunteer MicroMentor. I specialize in Small, Veteran-owned, Minority-Owned and Woman-Owned Businesses beginning work for the Federal Government. MicroMentor is a non-profit organization offering free assistance to small business in business planning, operations, marketing and other aspects of starting and successfully operating a small enterprise. You can set up a case with me at MicroMentor by going to: http://www.micromentor.org/ key words: "Federal Government Contracting"

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