All questions tagged market sizing assumptions - Consulting Q&A - PrepLounge.com

Hi,

1. Define the time it takes for a single person to pay
2. Define max number of people paying in a singly cashier line per shift
3. Multiply by the average utilization of the cashier line
4. Multiply by the number of lines
5. Multiple by the av check based on your personal experience
6. Multiply by the number of months, adjusting to seasonality

Best

Hi Kristian,

I usually start from demand side me as well, because I find it more intuitive. Nevertheless, there may be some cases where you have some specific insights about supply and it's easier/most accurate starting from supply side. It really depends on the case. Happy to discuss it further if you have more details.

Hope it helps! :)

I’d echo the previous response.

I’d add that when you size the market from the demand side, usually it’s good to be within +-30% range of the first input. For example, value size of market of tea in China equals to population of China multiplied by % drink hot drinks multiplied by... here you should start with a proper assumption on population of China. Ideally, you should break down the equation to as many steps as you can and your inputs should be within +-20% range of the actual values. It’s fine, however, if your final output is 2x times bigger than it is in reality. If the final number seems to be too high or too low, sanity check the response and change equation input values to lower or higher respectively