What angels look for in a company: Market size and revenue model (part 2 of 6) | StartupNorth (Build 20100722155716) In the last article, we discussed how you would go about describing your company’s product or service. Now that potential investors have a clear idea of what your company does, you need to show them the potential for how much money the company can make. You do this by outlining the market size potential and revenue model for your company. First lets start with market size. The amount of market share your company will get each year is obviously highly speculative, especially for a new company offering a new product or service.
However, rather than just come up with a number such as the number of customers you project to have after the first year, it is important to show the reasoning behind this number. You will need to do research to determine the total potential market you can serve and build up how you will get a share of the market. If we take our hypothetical company that is building cases for iPods, what is the total market size? Who are your customers?
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