How to know the size of your target market

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fatimahislam
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Joined: Sun Dec 22, 2024 3:30 am

How to know the size of your target market

Post by fatimahislam »

In my recent conversations with entrepreneurs and sales managers, I’ve seen that identifying the size of a target market is often a challenge.

For those who are in a B2B business (business to business: a company that sells to other companies) and intend to carry out active prospecting (or outbound sales, using a more modern term), this work can be easier.


I presented the first step in the last post: identifying targets and market segmentation.

The next step is to size your market.

There are over 18 million active CNPJs in Brazil. However, not all of them taiwan email list correspond to companies as such, as entities such as associations, investment funds, political parties and others also have CNPJs.

For example, if we consider only organizations considered companies in the Econodata database, which currently corresponds to approximately 99% of all companies in the country, we have the following distribution:

Image

Individual Entrepreneur: 8.21 million companies
Limited Liability Company: 4.42 million companies
Simple Limited Liability Company: 312 thousand companies
Individual Limited Liability Company: 303 thousand companies
Closed Joint Stock Company: 96 thousand companies
Public Limited Company: 26 thousand companies
Furthermore, organizations registered as an entrepreneur or sole proprietorship are typically made up of a single person and are too small for B2B prospecting .

Therefore, the total potential market for B2B businesses in Brazil is a maximum of 4.8 million companies .

This is the market that you will segment based on specific criteria for your business, such as industry, company size, revenue, number of employees and location, which will define the real size of your target market. You can measure the size of your target market using our simulator.

LinkedIn

I'm often asked about LinkedIn, a professional network commonly used to gauge the market and find prospects. Among some of its interesting features for searching for companies is the filter by number of employees, which serves as a reference for the size of the company.

The main problem with Linkedin, however, is the small number of companies registered in Brazil. At the moment, there are only 104,793 companies, a number that you can find yourself by searching for companies in Brazil, as follows:

companies on linkedin

Meanwhile, Econodata has more than 20 million companies. Removing individual companies, there are 4.8 million.

In any case, these are certainly not the only ways.

Do you know the size of your market? How do you estimate it? Comment below.
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