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Foundation · Market sizing

Market sizing and estimation

How to estimate a number when you have almost no data: define it first, then build it top-down or bottom-up, choose assumptions you can defend, and cross-check from a second direction.

10 min1 lesson Last reviewed
Start the lesson Estimating anything from almost nothing

Key takeaways

  • Segment only where groups behave very differently.
  • Define exactly what you are estimating before you start.
  • Estimate top-down (from demand) and bottom-up (from a single unit)
  • Cross-check an estimate from the supply side.
  • Use a small set of anchor numbers for the main regions.
By the end you will be able to
  • Define exactly what you are estimating before you start
  • Estimate top-down (from demand) and bottom-up (from a single unit)
  • Cross-check an estimate from the supply side
  • Use a small set of anchor numbers for the main regions