I was on a website recently to submit my company as a possible entrant for a business contest. This should be easy enough but I found he following questions disturbing:
Describe the value proposition, including differentiation versus the rest of the market.
How big is the market? How do you calculate TAM? What is the business model? Be as specific as possible. I prefer bottom-up TAM versus top-down TAM for my analysis and dislike broad swathes.
What are the top target segments? Be precise and granular.
Huh?
It seems that we have forgotten a few things. Most people who start businesses do a reasonable job analyzing the potential market. They are trying to fill a need as they perceive it. They most likely did not start by reading through and understanding this kind of stuff. If you ask the average business owner these questions, their reaction will most likely be the same one I had. Huh?
I know that this stuff probably is important, it is a good idea to have a handle on your potential. But remember, the most important points are passion, drive, desire to accomplish your goals. These with a little luck and some skills will take a business wherever you want it to go. No matter what the numbers say.