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How to Identify Companies That Are Riding Industry Trends

I once read a (rare) thoughtful post on Reddit in /r/entrepreneur, or some similar subreddit. It said something to the effect of “better to be an average entrepreneur in a hot market than a great entrepreneur in an average market.” The same principle applies to all companies, I think. Not …

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3 Real-Life Examples of a Bottom-up Market Sizing Approach

Dog walking service NYC Telemarketing Tomatoes on Demand Company potential revenue = $300K Total revenue = $720K Total revenue = $156MM Total gross revenue/yr = $150MM # of salespeople = 10 Revenue/city = $5.3MM Total gross revenue/day = $960K # of sales/salesperson = 240 # of tomatoes/household annually = 150 …

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Top Down Analysis – A Complete Examination Via Examples

Analysts and investors use a top-down analysis to determine the size of the market for a business’s products or services. Doing so helps them to understand a company’s potential for revenue. A top-down analysis starts with the biggest pool of potential customers. From there, it filters that pool down to …

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Market Size & Growth Rate – Fundamental Analysis for Stocks

Product growth potential involves performing analyses that determine if a company has “products or services with the potential to make possible a sizable increase in sales for at least several years.” One of the steps in determining this is to estimate the market size and growth potential of the company. …

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