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Vlad

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7

B2B Market Sizing (no B2C)

Hi, I've seen this question asked and answered before but only in reference to working out B2C size and then making an assumption about the ratio between B2B and B2C. I was wondering what an approach would be for markets that are solely B2B, e.g. some financial instruments? Thanks

Hi, I've seen this question asked and answered before but only in reference to working out B2C size and then making an assumption about the ratio between B2B and B2C. I was wondering what an approach would be for markets that are solely B2B, e.g. some financial instruments? Thanks

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Hi,

B2B can be measured by:

  • Businesses
  • Employees <- Businesses

In any case, there are Small, Medium, and Enterprise businesses. Each of these segments has certain revenue thresholds and # of employees thresholds

How do you calculate each of them?

  • SMBs - most probably by geography. Can you calculate the number of barbershops per district? Or barbershops per certain population size? - that's relatively easy
  • Enterprise - there are not that many big companies, especially if you split them by industry. And you can also take F500, F100 and apply 80/20 rule

Best,

Hi,

B2B can be measured by:

  • Businesses
  • Employees <- Businesses

In any case, there are Small, Medium, and Enterprise businesses. Each of these segments has certain revenue thresholds and # of employees thresholds

How do you calculate each of them?

  • SMBs - most probably by geography. Can you calculate the number of barbershops per district? Or barbershops per certain population size? - that's relatively easy
  • Enterprise - there are not that many big companies, especially if you split them by industry. And you can also take F500, F100 and apply 80/20 rule

Best,

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Every Business has an end customer

For example if you are selling Slack your end customer are employees so you can estimate total employees at any given time that would benefit from Slack and size it that way.

If you are selling airpane engines you can estimate number of aircrafts for passengers, use a proportion for non-passenger use (cargo, military etc.) and get to an answer using that approach

Does that help?

Udayan

Every Business has an end customer

For example if you are selling Slack your end customer are employees so you can estimate total employees at any given time that would benefit from Slack and size it that way.

If you are selling airpane engines you can estimate number of aircrafts for passengers, use a proportion for non-passenger use (cargo, military etc.) and get to an answer using that approach

Does that help?

Udayan

(edited)

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Hi A,

this is a generic question. I could only provide a generic answer (search for market estimation in PL and there are many posts on how to approach market estimations from a step-by-step approach / process).

B2B vs. B2C should not make the market estimation any harder or easier, you always need to understand the business model and force yourself to think of both bottom-up (e.g. population or demand) and top-down (e.g. supply side) approaches first.

Perhaps the other experts have a more specific answer to the generic question.

Best,

Denis

Hi A,

this is a generic question. I could only provide a generic answer (search for market estimation in PL and there are many posts on how to approach market estimations from a step-by-step approach / process).

B2B vs. B2C should not make the market estimation any harder or easier, you always need to understand the business model and force yourself to think of both bottom-up (e.g. population or demand) and top-down (e.g. supply side) approaches first.

Perhaps the other experts have a more specific answer to the generic question.

Best,

Denis

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What was the particular market that you have to size?

What was the particular market that you have to size?

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Hello!

Can you post a specific question where it´s applied?

Cheers,

Clara

Hello!

Can you post a specific question where it´s applied?

Cheers,

Clara

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Hi there,

It really depends on the specific question asked for B2B.

In some cases, you can still estimate the market size "normally", then figure out how many businesses would have to exist to meet that demand.

In others, you can use reference points on GDP/total Market sizes. Yes, you need to know the general size of some key industries in your country!

Hi there,

It really depends on the specific question asked for B2B.

In some cases, you can still estimate the market size "normally", then figure out how many businesses would have to exist to meet that demand.

In others, you can use reference points on GDP/total Market sizes. Yes, you need to know the general size of some key industries in your country!

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