When you’re on the hook to launch a new product or service, you need to answer a critical question: How many customers will buy it? It’s tempting to jump right in, assuming everyone will want your fantastic new offering. But before you put the resources into building, marketing, and launching a product, it pays to research just how big the market is. Your gut feel may be directionally correct, but double-check it against hard data about potential customer groups. And don’t do this in a vacuum. Be sure to have an objective conversation with the people on your team about exactly where this product will play and how big that market might be. Defining the specifics will help you clarify your product’s competitive advantage.
Adapted from HBR’s Go to Market Tools: Market Sizing.