Market Potential, Do You Know Yours?
business market potential
Do you have a measuring stick? You know, a device that tells you how much business is available in your trade area and how much
- you have,
- don’t have,
- are gaining
- or losing?
If you don’t have a stick, let me say this plainly….. “You can not qualify what you do not measure”.
The Wizard of Ads Group uses market potential for all of our clients. It sets real expectations and tells us if what we are doing is working. Our income is tied to their growth. The more our clients make the more we make, so we need a way to keep score.
Here is how you can keep score: Add up the total number of dollars spent in your trade area of every competitor, even the little one man operations. Yes, the guy in the Dodge Neon counts.
Derive a number, divide your annual sales volume by the total of all competitors, carry the decimal point over twice and you have your current place in the market.
You can also pull national sales volume estimates from trade publications for your category, divide that number by the population of the nation, then multiply by the population of your marketplace.
The best businesses on the planet rarely get 33% of the market and the rarest of the rarest can only hope for 40% of the market. The growth from 5% to 25% will be much easer to gain than the growth from 25% to 33%.
If you’re at 30% to 40% you’re the master of your trade and are probably bumping your head on a glass ceiling. It might be time to open another store in another trade area.
Have a stick, measure success, live well,
Wizard of Ads Group.
business growth, market, market potential, owner operated business, small business marketing