In our last article, we discussed competition and different types of substitute products. This week we’ll cover Revealed Preferences (RPs), and how they show up in your business and in your life in general. What are Revealed Preferences? RP theory was developed around 1940 by economist Paul Samuelson to analyze choices made by people in their purchase decisions. We use a simplified definition to help size the market, determine actual customer behaviors, and to figure out whet

In our last article, we looked into sizing the market and the distinctions between TAM, SAM, and SOM. This week we will dive into one of our favorite topics—competition—and why it’s a hot button for investors. Competition In most every initial funding meeting, investors want to know about the market and your competition. This helps them understand the difference between your serviceable addressable market (SAM) and your projected share of market (SOM), and determine if your C

Last article, we reviewed scaling your revenues without commensurate increases in marketing costs. This week we’ll get into market sizing and basic strategy. Market Sizing and Investment In order to raise money from investors, they have to believe that the return on their investment (ROI) will be worth the risk of funding your business. They want to understand that your ability to capture customers is well thought out and justifiable. They will want to know that: You understa