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Market Study workshop for Startup Weekend Liege


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A couple of practical notes on where a startup can get the data on market size

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Market Study workshop for Startup Weekend Liege

  1. 1. Market studyresearch techniques and information sources Leo Exter, founder @ westartup
  2. 2. Why? Break-even analysis
  3. 3. Before you start• 80/20 rule: 80% data is good enough for now• Better approximately right than exactly wrong: beware of precise numbers• Estimating market size is an iterative process: you’ll get there in the end
  4. 4. Key sources of data: big-name research firms• Gartner• Forrester• IDC• Good Thing: LOTS of free stuff• Bad Thing: they collect other people’s guesses, and add own guesses on top.• Look for facts, not Big Future predictions
  5. 5. Boutique research companies• Soft drinks:• Mobile telephony:• There’s got to be one for you!
  6. 6. A few aggregators••• Lots of good stuff, but…
  7. 7. Watch out fordiscrepancies of definitions.
  8. 8. Definitions are situational, just like ethics• The Coca-Cola Company: NARTD beverages because it wants to look smaller (avoid competition trouble)• Pepsi is Nr. 2 in “Cola” market
  9. 9. Government does a LOT of research• National statistics organizations• European Commission
  10. 10. TradeFederation
  11. 11. Trade federationsESMA is a Leading, non-profit,Association in Europe forSpecialist PrintingManufacturers of Screen,Digital and Flexo technology.
  12. 12. So how do you use the data for your business model? Value SourcePopulation 305 million US CensusWorking Population X 50.5% Dept. of LaborChanging Jobs Annually X 15% AssumedUsing Online Job Postings X 50% AssumedWilling to Pay $50 for Posting X 20% AssumedMarket Size in Revenue = $115.5 mln
  13. 13. We’ll be rich if we can get 1% of themarket…DOESN’T WORK THAT WAY!
  14. 14. First, make sure you understand your consumers and market
  15. 15. Shortcut: look at the competition• Revenue vs. employee numbers are fairly consistent within an industry• Example: a consultancy earns 5-7 times what it pays an average employee.
  16. 16. Finding competitive data• Annual reports of publicly listed companies• Even better: ALL companies have to file their financial statements in Belgium
  17. 17. You’re just starting, so…• Everything will cost more and take longer than for established companies – Everything you do for the 1st time will take longer – People will cost more than you think – Marketing will cost WAY more than you think• Throw in a small correction for that: – Triple it.
  18. 18. Last but not least:BOTTOM-UP ESTIMATE
  19. 19. What market can you realistically reach?• Are there networks you can use to reach the entire niche? How many people in them?• How many sales calls can YOU make per month?• If you do get clients, how many can you actually service?
  20. 20. Thank you!