Emergic: Rajesh Jain's Blog

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Market Size Matters

March 18th, 2010 · 2 Comments

I was discussing this topic with one of my colleagues the other day. The size of the market opportunity matters. For example, we sell Linux-based mailing solutions. That is a tenth of the spend that companies do on Exchange and Notes. So, the question is: how can we target those users?

How we define the market opportunity will either embolden us or constrain us.

In most early stage companies, the discussion of market size never comes up because there is little or no revenue. Once the revenues start coming in, then one needs to start thinking of the future – and how the market opportunity can be expanded.

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2 responses so far ↓

  • 1 Parth // Mar 19, 2010 at 9:16 am

    Well said, Rajesh! Its gets even more interesting when addressing emerging markets..

  • 2 iptiam (iPad, Therefore I am) // Mar 19, 2010 at 8:34 pm

    I think you need to qualify that statement Rajesh – it matters AFTER your revenues start coming in. So for example, when you are starting up, you can make an argument to focus on a niche.

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