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Market share projection tips for small business

It's similar to a gap analysis

The small business has to identify how many units each customer can purchase in a given year

Then, they've to use this information to quantify their current business and determine the amount of remaining business

The same basic approach applies when looking at market share projections

1. Determine market size: To determine market size it's necessary to calculate the potential consumption within the market

2. Determine current business relative to potential business: Every small business should be able to quantify its existing business, to understand how much customers could actually purchase within a given year

3. Determine current market share: Determining current market share simply involves dividing current business by total market size

How Can a Company Project its Future Market Share?

To project its future market share, the small business must determine how much of the remaining business it can steal from its competition -because every market is different, every market share projection will involve different approaches and different circumstances- however, the basic approach is to determine how much new business (units) the company can steal from its competition