Market Share Projection Tips for Small Businesses

1. Every small business wants to increase sales and grow market share. To be successful requires the ability to assess the company’s current business, quantify the business that remains, and then adopt strategic planning initiatives that increase sales. Market share projection makes this possible.

2. Market Share Projection is Similar to a Gap Analysis

2.1. The small business has essentially identified how many units each customer can purchase in a given year. They then use this information to quantify their current business and determine the amount of remaining business.

3. So, how is this done?

3.1. 1. Determine Market Size

3.2. 2. Determine Current Business Relative to Potential Business

3.3. 3. Determine Current Market Share

4. How Can a Company Project its Future Market Share?

4.1. Because every market is different, every market share projection will involve different approaches and different circumstances. However, the basic approach is to determine how much new business (units) the company can steal from its competition.