Welcome, dear reader, to the world of pitch deck crafting! If you’re an entrepreneur looking to secure funding and take your business to new heights, then you’ve come to the right place.
Today, we’re diving into the essential element of any pitch deck: the market size slide. This slide is crucial in communicating the vast potential of your business and the size of the opportunity you’re pursuing.
But crafting the perfect market-size slide can be a daunting task. That’s why we’re here to guide you through the process and show you how to craft a slide that will knock the socks off of any investor. So sit back, relax, and let’s get started on crafting a market-size slide that will make your business shine!
What’s a market-size slide in a pitch deck?
The market size slide in a pitch deck is the ultimate tool for showcasing the potential of your business. It’s a powerful way to demonstrate the scale of the problem you’re solving and how big the market opportunity is for your solution.
It’s also a chance to show off your research skills, prove that you understand your target market & make a strong case for why your business is poised for success.
Think of it as the cherry on top of your pitch deck sundae — it’s the slide that’ll make investors’ mouths water with excitement and their wallets open with anticipation.
So, let’s embark on a journey together as we uncover the secrets of crafting the ultimate market size slide in your pitch deck.
But before we take the plunge, there’s one crucial aspect we must address, the art of calculating your market size. So, grab your calculator, and let’s get started!
Calculating market size by TAM, SAM & SOM [Most common method]
There are several ways to calculate the market size, but using TAM, SAM & SOM is the most common & known method. What are TAM, SAM & SOM?
Total Addressable Market (TAM): This method calculates the total market demand for a product or service. It includes all potential customers and revenue opportunities.
Serviceable Available Market (SAM): This method calculates the portion of the TAM that a company can realistically target and serve.
Serviceable Obtainable Market (SOM): This method calculates the portion of the SAM that a company can realistically capture through its own efforts. Basically, the market share it can capture.
Confused? No problem, let’s look at an example of a water bottle business for a better understanding.
In the Total Addressable Market (TAM), you would look at the total market size for all water bottles sold globally. This would include all types of water bottles, from plastic to metal, and all sizes, from small to large.
To calculate the Serviceable Available Market (SAM), you would look at the portion of the TAM that your business can realistically serve, based on factors such as location, distribution channels, and target customer segment. For example, if your water bottle business is only selling online and only targeting customers in North America, your SAM would be the total market size for water bottles sold in North America online.
Finally, to calculate the Serviceable Obtainable Market (SOM), you would look at the portion of the SAM that your business can realistically capture, based on factors such as marketing budget, competitive landscape, and business model. For example, if your water bottle business has a limited marketing budget and faces strong competition, your SOM may be a smaller portion of the total North American online water bottle market.
Note: When calculating market size, it is important to consider factors such as the size and growth of the market, the target customer base, and the competition. Additionally, it is important to use reliable data sources and to clearly explain the methodology used in the calculations.
Other methods to calculate the market-size
Beyond TAM, SAM, and SOM, there are additional techniques to determine the size of your market.
Market Segmentation: This method involves dividing the market into smaller segments based on characteristics such as demographics, behavior, or needs.
Market Surveys: This method involves conducting surveys to gather data on the size of the market and consumer behavior.
Industry Reports: This method involves analyzing industry reports to understand market size and trends.
Historical Sales Data: This method involves analyzing your company’s historical sales data to estimate the size of the market.
Bottom-up approach: This method involves estimating the market size by starting with the number of potential customers and multiplying it by the average revenue per customer.
Expert Opinion: This method involves consulting with experts in the industry to gather their opinion on the size of the market.
How to craft a winning market-size slide? [Expert tips by an agency]
1. Paint the big picture
Set the stage by starting your slide with an overview of the total market size, and then break it down into smaller segments or sub-markets that are relevant to your product or service. Give your audience a sense of the vastness of the market and how your product or service fits into it.
2. Use visuals to tell a story
Use charts, graphs, and infographics to bring the market size to life and help illustrate the size and growth of the market. This will make the information more easily digestible for your audience and will help them understand the potential of your product or service.
3. Cite your sources and add credibility
Be sure to include information on where you sourced your market data from, and make sure it’s from reputable sources. This will add credibility to your presentation and give your audience confidence in the information you are providing.
4. Highlight your target market
Make sure to focus on the specific segment of the market that your product or service is targeting. This will help your audience understand the potential size of your addressable market and how it aligns with your product or service.
5. Show the growth potential
If the market is projected to grow in the future, be sure to highlight this growth potential. This will help demonstrate the potential for your business to grow along with the market and the potential for success for your product or service.
6. Keep it simple yet effective
Avoid overwhelming your audience with too much data or information. Stick to the most important and relevant information, but make sure it’s presented in an effective way that will capture the audience’s attention.
7. Make it visually appealing
Make sure that the slide is visually appealing and easy to read. Use colors, imagery, and design elements that will capture the attention of your audience and keep them engaged and interested in the information you’re presenting.
Work with us
Feeling overwhelmed by the thought of crafting a market-size slide in your pitch deck? Don’t worry, we got you! At our presentation design agency, we know a thing or two about pitch decks. In fact, we build them day in and day out. We understand that it can be daunting to put together a pitch deck all by yourself, especially when it comes to the market size slide.
But don’t let that stress you out. Let us take the reins and help you create a market-size slide that will knock the socks off of any potential investor. We promise to make it as painless as possible for you. So, if you need a hand, give us a shout and we’ll be there to assist you.
Are you looking to get your pitch deck done by professionals?
Check out our Pitch Deck Design Services.