Atlanta Ventures - Simple Market Sizing Example (Public)

	B	C	D	E	F	G	I	J
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2		2014	2015	2016	2017	2018	Notes:	Source:
3	US Homes (M homes)	123	125	126	126	128		Statista
4	% of US Homes with income >$200K	6.1%	6.5%	7.2%	7.7%	8.3%	Total Addressable Market (TAM) is the entire market demand for your product. In this example, we've identified our target segment as households >$200K in household income.	US Census Data
5	Total Addressable Market (M homes)	7.5	8.1	9.1	9.7	10.6
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7	Annual cost for service	$300	$300	$300	$300	$300	Once you have the potential market for customers, use a revenue figure to calculate the potential market in dollars.	Able to use customer discovery interviews to determine that customers would be willing to pay $300 per month
8	Total US Addressable Market ($M)	2,255	2,430	2,718	2,916	3,185

	B	C	D	E	F	G	I	J
1
2		2014	2015	2016	2017	2018	Notes:	Source:
3	Annual cost for service	$300	$300	$300	$300	$300	Start with the value of one home to your business	Able to use customer discovery interviews to determine that customers would be willing to pay $300 per month
4	Number of homes in Atlanta Metro (K)	1326	1432	1546	1670	1804	We found data for 2017 and we were able to use source from the top down analysis on how US homes have grown (~8% annually) to estimate the market for Atlanta historically
5	% of Atlanta Homes with income >$200K	18%	18%	18%	18%	18%	Assume that our target segment >$200K in annual income lives in properties >$400K in value (which is 18% of 1.67M single unit homes)	US Census
6	Atlanta Total Addressable Market ($M)	71.6	77.3	83.5	90.2	97.4		US Census
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8	Number of metropolitan areas >2M population	34	34	34	34	34	We use 2M population as the benchmark here, assuming that those with higher populations than Atlanta have more potential revenue and those less than Atlanta have less	US Census
9	Total US Addressable Market ($M)	2,434	2,629	2,839	3,066	3,311
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