This is going to be a brief article about estimating the number of customers you can get!
First there is the top down approach, which is probably the most commonly used method of estimation. You start from the whole market and breaking it down from there. For example, if you wanted to size the number of people who would visit your restaurant, you’d start by sizing the entire county that you live in, figuring out how often people wish to eat your food, then figure out how often they will travel to your restaurant. Easy enough?
Then there’s the bottom up approach. Slightly more complex, this just means you do things the other way around. You interview individual customers on their preferences, and take it to the next steps from there.
In practice, professionals use averages that is using a bottom up and top down approach, then dividing by the appropriate numbers to get a better estimate, much better than whatever you’ll arrive to on your own.