Market size matters. If you're trying to build the next big thing, this market won't suffice. Take your potential market pie of $1.5 m, apply a reducing ratio

Market size matters. If you're trying to build the next big thing, this market won't suffice. Take your potential market pie of $1.5 m, apply a reducing ratio to factor in businesses that won't use your service, customers with competing products or substitute products, etc. to conservatively estimate what your company can realistically attain. With fewer customers, you may have higher marketing expenses because you'll need to target and focus them individually. But again, it depends on what your product is; if its something they absolutely need, then this obviously isn't a factor. Also a factor is how much work you need to put in as another poster mentioned. If its not that much work, it could be worth it. A friend sells SEO software subscriptions for $50-$100/month, making about a million a year. The market is probably only a handful of companies, maybe 6 to 12. Very lucrative for a 2 man operation, make a ton of money by just maintaining the software and rolling out updates, improvements, new related products, etc. He doesn't have to do too much selling because the software is in demand; it sells itself.