How to Identify Your Largest Target Audience – Part 2: Research Methodology
Investors look for companies that have credibly identified, large reachable markets that are big enough to generate significantly better than average returns. Once there’s a large enough market, investors will measure and evaluate business plans based on the size and potential of the portion of the identified market that a startup can capture in three to five years.
The only way a startup can reliably size the that three-to-five year obtainable market is by validating assumptions and features through prototypes with customers. These are the people your target audience should represent.
Use this tool, which is part of the market development series of the Rev1 startup studio’s Customer Learning Lab, to help you discuss and name your largest target audiences.
Before you use the tool, read these two Toolkit articles: How Big Is Your Market? 3 Tips to Size It Like a Pro and How to Identify Your Largest Target Audience – Part 1: Know the Territory.
Rev1 Ventures is the investor startup studio that combines capital and strategic services to help startups scale. At Rev1 Learning Labs, entrepreneurs dig deep into the big topics that founding teams must master to build successful companies.