Presenting market size in a pitch deck is crucial because it gives potential investors a clear idea of your business’s potential for growth. Here are some steps you can follow to effectively present market size:
1. Define Your Market: Start by clearly defining your market. This could be geographical, demographic, or based on consumer behavior. Make sure the market you define aligns with your business model and target audience.
2. Present the Total Available Market (TAM): This represents the total revenue opportunity for your product or service. Essentially, it’s how much you’d make if you captured 100% of the market. Use reliable sources for your data and present it in a way that’s easy to understand. For example, you could use a pie chart or bar graph.
3. Show the Serviceable Available Market (SAM): This is the segment of the TAM that you can capture based on your business model and capabilities. Again, present this information visually for easy comprehension.
4. Serviceable Obtainable Market (SOM): This is the portion of the SAM that you aim to capture within a specified time frame. This should be a realistic estimate based on your business’s resources and capabilities.
5. Use Visuals: Use graphs, charts, and infographics to visually represent these figures. This makes the information easier to digest and allows potential investors to grasp your market size at a glance.
6. Explain Your Strategy: After presenting the numbers, explain how you plan to capture your market share. This could involve your marketing strategy, unique selling proposition, or competitive advantage.
7. Provide References: Always cite your sources for your market data. This not only gives your pitch deck credibility, but it also shows that you’ve done your homework.
Remember, the key is to present clear, concise, and accurate data that’s visually appealing and easy to understand. This will give potential investors confidence in your understanding of the market and your strategy to capture it.
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