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The Kevin M. McGovern Family Center For Venture Development In the Life SciencesLou Walcer, Director
The Myth of the “Big Market”
The magic thinker’s mantra:
•“It’s a big market.”
•“We can’t help but get a piece of it.”
•“We’re gonna get rich!”
But wait!
• Just how big is this market?• Just how big a piece of this
total market can you get?• Just how profitable will your
piece of the market be?
Just how big a TOTAL market?
•What is the problem you propose to fix?
•Whose problem is it?
•Where are these folks located?
•How can they be described?
•How/what do THEY think about the problem?
•Etc., etc.
Just how big a piece where you compete?
• How well do you fix the problem for them?
• Where/For whom does your fix work best?
• Who is competing for their business now?
• Who pays when they buy? • Will these payers pay for your product? • Etc., etc.
Just how profitable will your piece be?
• How much/how long will it take for you to develop your product to market?
• How much does it cost to promote your product in your piece of the market?
• How much does will it cost you to deliver your product/service to your buyers?
• How much can you charge for your product/service?
• Etc., etc., etc.
After considering segmentation, competition , promotion costs, logistics
costs, etc., etc., etc. ... Your “Big Market” fantasy might well be . . .
A big bankruptcy.