July 24, 2016: Last week’s essay dealt with the fine art of pricing your startup product or service. Pricing is inextricably tied to your volume projections, so let’s now look into your crystal ball on that topic.
The most common mistake I see is estimating from the top down. You’ve created a must-have product for left-handers, and you know that approximately 10% of the US population is left-handed. So, there are 30M+ customers. Surely you can get 10% of that market and have 3M users, right? Or left? It looks easy.