Target Market Sizing

Target Market Sizing is key for business and marketing planning, and budgeting for all startups, especially when seeking third-party financing. A diligent preparation makes sure, that you go-to-market in the right niche.

Quantifies the financial potential of your business. Measurement in money terms or consumption units Helps you refine business model canvas hypotheses A very small market size may not be worth pursuing.

Market Size Estimates

Total Addressable Market

Entire chain of buyer/seller relationships. Value of the relationships at the point of consumption.

Served Addressable Market

The part of the Total Addressable Market for which your business model’s value proposition is strongest

Target Market

The part of the Served Addressable Market segment with the most direct path to success.

Step 1

All buyer/seller relationships – value of the relationships at a point of consumption

  • We use two methods to determine the total addressable market
  • 1. A top-down analysis relies on secondary market research such as market analysis reports to determine how many end users meet your different characteristics.
  • 2. A bottom-up analysis to identify how many customers there are, as well as how many end users each customer has
Step 2

The part of the total addressable market for which your value proposition is strongest

  • The served addressable market is more clearly defined as that market opportunity that exists within a firm’s existing core competencies and/or past performance.


  • A firm most likely can only service markets that are core or directly adjacent to its current customer base
Step 3

The served addressable market segment with the most direct path to success.


  • A segment of people considered likely to buy a product or service.


  • A target market consists of customers that share the same buying motives and often as well follow similar characteristics, such as age, location, income and lifestyle, to which a business directs its marketing efforts and sells its product.

Only a few companies have the resources to conduct market research beyond their core market. They have brilliant expertise in this home-turf but little understanding about cross-industry threats, or black-swan scenarios. While this wasn’t a problem in the past – today, disruption comes from tech platforms or startups

Expanding internationally comes with its own unique set of obstacles. Expect language and cultural barriers. You will have to understand the different ways people communicate. Different tax codes, business regulations and packaging standards in different countries

In Germany, doing business is as much a personal event as it is professional. You have to be patient and prepared for multiple interactions to build trust. There is a local competition. Why would customers buy from you over the local champion?

Find the right partners and team. If you expanding in Germany, you’ll want the right partner. You’ll want someone you trust.
The people you hire to deal with your overseas business partners and customers must be fully immersed in the local environment but should also be looking out for your interests