Once we think we have defined the market best suited to your startup business, we must determine if the potential of that market will be in keeping with your financial goals and professional ambitions. Much of the information we require for these calculation was acquired in the market definition effort. We just have to treat it in a different way to mathematically determine the financial potential of that market.

Additional information can be obtained from business credit agencies, such as Dunn & Bradstreet, and includes:

1. What is the financial strength of each competitor?
2. What are their approximate sales for last complete fiscal year?
3. What are the competitors' pricing structures?
4. Are sales incentive price based, brand based or quality based?
4. What are the approximate advertising expenditures for last complete fiscal year?
5. What is the market share of each competitor versus annual revenue share?
6. What is the expected response to your entry into this market?

Are Re-definitions and Re-Evaluations Necessary?

If the potential of that market will be in keeping with your financial goals and professional ambitions then we are set to go. If it is tentative or still not adequately clear, adjustments to previous assumptions are in order and the market potential recalculated. If it is determined that the market potential is inadequate to meet your financial goals and professional ambitions we have to start compromising and find a different market. If that fails, perhaps a revision of your financial goals and professional ambitions is in order.

Defining the Best Approach . . .