3 ms·
I would be more concerned about what % of that 1.5M you can make and how confident you are of that. Market size just by itself is a pretty useless figure in mos
by zaidf 16y ago
I would be more concerned about what % of that 1.5M you can make and how confident you are of that. Market size just by itself is a pretty useless figure in most situations if you don't get into the nuances.
We are in a similar market-size(even smaller). But this issue has never really worried me too much. At this stage, I am a lot more concerned about how easily I can make the sale in a market than how big of a market it is. Right now, I would rather be in a small market I can easily sell and make payroll/salary. Once you have that covered, you should be able to come up with new product ideas for bigger market.
This is more of a problem if you are going the VC route. If you are bootstrapping, it is more important IMO to focus on not dying before shooting for the stars. So if you are not financially safe(ie. no vc/angel) and can get 50% of a $200K market in 3mos with some certainty, I'd go for that over being in a 100M market with a lot less certainty! Of course larger market does not automatically mean more risk. But if it does, I prefer the smaller market.
Rephrase your question:
1. How much money do I need in short-term to not die as a start-up? Or do I?(may be not, if you are well funded).
2. What are the paths to getting the $ along with the seeming risks? You can cold-call or buy some clicks for each market and see which one is an easier sell/less risky and vice-versa.
tl;dr: if you are bootstrapping, go after whatever market is most quickly to get you your min $ you need to survive. maximize profit later with new products/bigger markets.