How to estimate market size for your startup

It's a tech era, it's difficult to know the market size of the startups. The craze for startups has increased more than long-term capital investments. So must know which startup is trending and has more potential to give profit in long term. So I think before studying market size one must know which startup idea is best. You can get the resource from here: https://www.apurple.co/best-mobile-app-ideas/

Agreeing to this point. " Most companies are never able to sell their product or service to 100% of the TAM because you would have to have zero competitors"

Which isn't possible in the market for all kinda product or service in today's world. SaaS Market are growing and will grow than previous year. So the founders should estimate the market size for their start up.

Nice article.

I was a bit disappointed there. It's a long article with many definitions, but it's not really useable and didn't make much sense.

Just an example :

• The article says that top-down TAM is : whatever the size of the market is, minus the share of competitors. (which makes no sense: why would the Total Adressable Market be just those prospects who are no buying anything yet ?)
• And then it says that bottom-up TAM is easy : just multiply the total number of potential buyers (it doesn't tell you where you're supposed to find this data and how it's supposed to be different from the top-down data above) by average spending (same issue)

All in all, I think the article would have been more valuable if it only tried to answer the question in this thread's title "How to estimate market size for your startup" and provided actual actionable steps to find data and calculate TAM.

Sébastien

Amazing and useful article.

Please contact us if you want to test your MVP, we do it for free now.
My services are

• startup validation (idea validation, market validation and product validation)
• test your MVP
• give feedbacks after testing

good

This is so, so useful. The step-by-step guidelines really help as this kind of thing is really not my strong suit.

Brilliant article. Hadn't heard of some of these terms before. Super useful in helping me figure out the market size for my health business, which I'd previously miscalculated. Thanks