You have decided to set up your own business. You think you have a great, unusual, promising idea. But will it work? You need to assess how the market will accept your idea.
There are many aspects to consider before starting a business. But the first thing budding entrepreneurs should realise is that the most important factors are marginality and market size. These two are the foundation of the business. If the market is large and the margins are high, you will make money and not fail.
Any business is first and foremost about numbers. Your beautiful ideas are cool, of course, but you need to know how to count. You need to understand what you are offering and what your potential market size is. Let's think of the market as a cake. If it's big, that means you can make money by taking even a small bite. If the market is small, you are unlikely to make much money even if you are the biggest player. In theory, if you have no idea where you can get enough customers to make the business worthwhile, it is better not to open at all.
To calculate the size of the market, you can use data from government statistics, industry bodies, trade associations, business media, trade publications and web resources, as well as data from various surveys. The Mafpels management's marketers always carefully calculate these aspects to avoid unnecessary risks and losses at the start.