Business model · Business planning

No available statistics for the industry I am working on ?

Karan Chopra Founder & CEO at ARTYSTANT

Last updated on October 10th, 2017

The idea I am working on revolves around an industry whose statistics (growth,market size) aren't available as no intensive survey has ever been done . So how can I formulate a business plan without the statistics ?

Sergey Razumkov Experienced executive with intense and multifold practical background in Russian industrial sector

October 10th, 2017

There are a lot of tools to make estimation for market size and its direction. Survey, even if you have one, may turn unreliable and biased, so you should have cross-checking tool anyway. The selection will depend significantly on industry and product. To give you some specifics I need you to give me an idea on what is your product and what metrics you are trying to estimate.

Avron Olshewsky CTO Knowledgemotion

October 10th, 2017

Sometimes you have to be creative and find ways of getting some data. There is a great book called "how To Measure Anything" by D.W Hubbard which might give you inspiration

Diana Pederson Ex-Microsoft Project Manager; Executive Management in Software, Operations, and Medical

October 10th, 2017

Unless it is a very established market, it can be a challenge to find exact market data. If you note the area, perhaps we can make suggestions. In the mean time, consider:Unless it is a very established market, it can be a challenge to find exact market data. If you note the area, perhaps we can make suggestions. In the mean time, consider:Unless it is a very established market, it can be a challenge to find exact market data. If you note the area, perhaps we can make suggestions. In the mean time, consider:Unless it is a very established market, it can be a challenge to find exact market data. If you note the area, perhaps we can make suggestions. In the mean time, consider:Unless it is a very established market, it can be a challenge to find exact market data. If you note the area, perhaps we can make suggestions. In the mean time, consider:Unless it is a very established market, it can be a challenge to find exact market data. If you note the area, perhaps we can make suggestions. In the mean time, consider:Unless it is a very established market, it can be a challenge to find exact market data. If you note the area, perhaps we can make suggestions. In the mean time, consider:

Unless it is a very established market, it can be a challenge to find exact market data. If you note the area, perhaps we can make suggestions. In the mean time, consider:

1. What stats of any kind are available for the topic area? Start with that. E.g. If you are creating a nuclear powered car but none of those exist, how many cars are there in location you are targeting to start with?

2. For another part of your target market, what additional stats can you get? E.g. What percent of cars use alternate energy sources (electric or mixed electric)? Are there trends for that which show growth? And, any stats you find on safety of nuclear powered devices with current technology, et al.

3. Look at your target market persona and see what motivations of that market drive comparable purchases. E.g. electric car purchases - because they want to do something cool for the environment. Would they have a similar motivation for purchasing your vehicle?

4. Go out and talk to customers. For your target market persona, can you find people who are like that who will talk with you. Ask them what their problem is that they are trying to solve. Does your idea solve that? If you can talk with 30-50 of them and there is a strong response as Yes, you definitely have something worth pursuing.


Also note that a business plan is meant to help you to figure out if the project is worth doing and to think through how to do that. Based on that, investor types want to take a look at it to reality check your discovery process. What do YOU need to know about your market to feel good/confident about taking the leap? Correctly identifying your target market with a product that solves a key problem for them is a key requirement for success of a new business.


Steve Lawrence Launch and operation of companies to $15 mil. for investors/owners, US and Asia, BSEng, MBA Wharton

October 10th, 2017

Hi Karan,

Good question. I’ve experienced the same, so have many others. First: In the absence of verified data, quantifying your available market from multiple different (maybe inventive and indirect) starting points can help. Any individual approach might be quite inaccurate, but multiple independent approaches remarkably converge on a good estimate of the market your addressing. This is something like ‘Wisdom of the Crowd’ (give it a wiki).


Second: The rest of your operational proforma should show that your success is not gated by the range of TAM’s, SAM's, etc. you have modeled. I.e., Even if your estimate is off, your underlying business model still works.


I have a way I communicate this to investors and boards. I’ll share if you contact me. And good luck.


Steve

Arpit Palod Senior Analyst at Idein Ventures

October 11th, 2017

There are two ways you can go about it: 1. take the not-so-accurate stats and average out the stats of at least 3 reports and arrive at the conclusion. 2. Go out on the ground and do the survey/make the report on your own. Although it will take time, it's gonna help you a lot in the long term. I would suggest you go ahead with the second one if you have enough time and if you are serious about whatever you are doing. Thank you

Vladimir Isaev Partner

October 10th, 2017

If there is no secondary data, it is necessary to obtain primary data. It is necessary to conduct a research... If this is not available, try to find the data in the media and the Internet. But first of all, you should anderstand, what kind of data you need, what risks you will come across.

Harsh Vardhan Co-Founder & Chief Number Cruncher: Cookedin.com

October 10th, 2017

Fund permitting, conduct a sample market survey!

Steve Lawrence Launch and operation of companies to $15 mil. for investors/owners, US and Asia, BSEng, MBA Wharton

October 10th, 2017

Hi Karan,


Good question. I’ve experienced the same, so have many others. First: In the absence of verified data, quantifying your available market from multiple different (maybe inventive and indirect) starting points can help. Any individual approach might be quite inaccurate, but multiple independent approaches remarkably converge on a good estimate of the market your addressing. This is something like ‘Wisdom of the Crowd’ (give it a wiki).


Second: The rest of your operational proforma should show that your success is not gated by the range of TAM’s you have modeled. I.e., Even if your estimate is off, your underlying business model still works.


I have a way I communicate this to investors and boards. I’ll share if you contact me. And good luck


Steve

Geetha Bellu Chief Alchemist at Blue Mountain Alchemy Corp.

October 11th, 2017

India lacks vital data in many sectors and most statistics is made up. Which industry are you referring to? Commissioning a customized survey might help but too expensive.

Logan Herzog Facebook/Instagram Lead Gen For Startups

October 19th, 2017

Try facebook audience insights. You will need to create a facebook business manager account (free). It's a tool that allows you to create potential audiences, and dive into demographic data from that group. It will only show you what facebook has, but statistically it should still be viable when applied to the masses.