Market size is a critical component for several reasons:
Validation of Business Idea: Knowing the market size helps in validating whether there is a sufficient demand for the product or service. Attracting Investors: Investors look for opportunities in markets with substantial size and growth potential. A larger market size often translates to higher potential returns. Strategic Planning: It aids in setting realistic goals and formulating strategies to capture market share. Resource Allocation: Understanding market size helps in optimal allocation of resources such as marketing, production, and manpower.