24 Nov What does “market potential” mean?
Market potential in general boils down to a very basic formula. You figure out a customer profile (who you want to target with your marketing) and combine that with the geographic size you want to target (how many of those people are in that area). This is your general market potential.
To get a more specific marketing potential, you need to know also how many competitors you have and their strength in the market area. You can then estimate how much of their business you’ll be able to take from them (we recommend being conservative on your estimates), and that will be the market potential of your business.