Article · 12 min read

Everything You Need to Know About Market Sizing

Alex Iskold · Startup Hacks (Alex Iskold) Free Intermediate

Iskold reduces market size to a single honest formula, number of customers times revenue per customer, and warns against padding decks with irrelevant giant TAM figures. It is a fast way to force both cofounders onto the same bottom-up basis, so you are comparing the same two or three inputs rather than talking past each other. Practical, opinionated, and short enough to read together in one sitting.

• Market size equals number of customers times revenue per customer
• Build it bottom-up rather than borrowing a huge industry figure
• Disagreements collapse onto a few shared inputs once the formula is explicit