Assessing the potential of a niche helps a company make correct and cost-effective management decisions : what sales volumes are possible, whether it is worth entering a new market or whether it is better to expand its presence in an existing one. Without analyzing this indicator, any actions can be risky and ineffective.
At the same time, the calculation and assessment of the volume and capacity of the market may be relevant not only for launching a new business, but also for an existing company. Let’s consider why a business should still calculate the capacity of the market.
1. Optimize investments
Implementing any business solution requires gambling data taiwan resources, and before investing them, it is important to understand how justified the investment will be.
2. Calculating production volume. Market capacity allows you to determine how much of a product or service needs to be produced to meet existing demand. This helps avoid both overproduction and shortages of products. Companies most popular waitlist management systems reviewed or projects that know the exact market capacity receive additional benefits: they can plan production more effectively and minimize losses.
3. Attracting investments
Market capacity is one of the key indicators that investors use to assess the attractiveness of a business. Large capacity shows that the market has potential for implementation and growth. This makes the project more attractive in terms of investment in it.
4. Justification of expansion
The process of measuring market capacity will help to contact lists assess the feasibility of developing an existing business. For example, when the question of expanding the company arises. This may not always be profitable.
Let’s assume that entrepreneur Inna decided to double the area of her hairdressing salon and hire more specialists. However, before that, she analyzed the market capacity of her area in a small town.
It turned out that the capacity is 900 people per month, that is, on average 30 people per day can visit the hairdresser. The current number of specialists serve approximately 850 people per month. This means that the decision to double the number will only bring losses.