Once a business has a concept they think they can make profitably, there is often a belief from the team or further up the line, that suggests there is a large market ready and waiting.
“Build it and they will come!”
Make strategic business decisions with The Essential Guide to Market Research by Ellen Baron.
But this is an overambitious misjudgment and it can be a costly mistake.
In any case you need to have clear information on your market to talk to the board, potential partners, financiers, licensing or acquisition partners.
To successfully bring any idea to market, what is required is an estimate of it’s potential market size. Ideas that could only potentially appeal to a small population is a risky investment. Similarly, those that seem to appeal to a mass market, may not, because we may have missed the boat, or gone to market too early.
These days the consumers seem to be leaping ahead in their sophistication and expectations, so at the very least we need to understand the available and potential market prior to shaping or building on the idea.