Her search words were: Street markets, street vending, street market industry. Ī simple Google search using industry-specific keywords can yield big results. When Christine Souffrant Ntim, founder of Vendedy, wanted to launch a business that connected travelers to global street vendors, she needed to know how many people and how much money existed in this industry.

#2 Calculate your TAM using Industry Reports mobile phone users accessed the internet with their mobile device When thinking about internet and mobile penetration, to get an idea of how many people could access your ecommerce store, remember:ĥ4% of the world’s population has internet access ħ3% of U.S. The serviceable obtainable market is the market size that your product can realistically capture.

The serviceable available market is the market size that is geographically and/or politically available for you. The total addressable market is the total revenue opportunity for your product or service. There are three important elements in assessing market size: Correctly estimating your market size and how much market share you can corner is a key element in any ecommerce business plan. Knowing your market size is key to understanding other aspects of your business, such as costs (how much you would have to spend to reach your market, how much you would have to produce to penetrate the market, etc.). You don’t want to build a company that doesn’t have a market, or the market size is too small to generate any meaningful revenue. Use This Ecommerce Business Plan Template To Define Your Problem And Solution Market Research #1 Understand your TAM, SAM, and SOM Just like Lindsay, there’s nothing you can’t learn. Passion will help keep you motivated to succeed when the hurdles pop up.

After speaking with your friends, select the idea you feel most passionate about. This line of questioning will help you figure out what hurdles may come up in bringing your idea to fruition (and if your idea meets the initial criteria stated of being needed and useful). Is this something that can improve your life? #2 Once you have a list, get together with your friends (or even start a Facebook thread) to discuss your ideas. Lindsay wasn’t a chemist, but that didn’t stop her from following through on her idea. If you already have an idea (or several!) skip to #2.ĭon’t worry right now if you have the skills to bring your idea to life. What’s something that’s bothering you or something you believe could make life easier? Hold a solo brainstorming session where you write out your ideas. Here’s how you can start brainstorming your own product idea: #1 Create a list of products or services that could potentially solve a problem.

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