OpportunityMarket home

Market opportunity analysis: a seven-step framework you can finish in a week

Opportunity analysis fails in a predictable way: a large number for the market size, a paragraph of adjectives for everything else, and no way for a reader to disagree with any of it. This framework produces the opposite — seven numbers, each traceable to something you can point at.

On this page

  1. 11. Define the problem, not the product
  2. 22. Size the demand from evidence, not from a report
  3. 33. Measure pain, not interest
  4. 44. Map the competition honestly
  5. 55. Test willingness to pay before you build
  6. 66. Check the trend over the last quarter
  7. 77. Write it as a scorecard, not an essay

1. Define the problem, not the product

Write the problem in the words the affected person would use, with no mention of a solution. "Small shops cannot reconcile bank transfers against orders without typing them in twice" is a problem. "An AI reconciliation tool" is a product, and analysing a product tells you only whether you like your own idea.

The test is whether someone who has the problem would recognise themselves in the sentence. If the sentence contains a technology, rewrite it.

2. Size the demand from evidence, not from a report

The industry figure you can cite in one line — "a $47 billion market growing at 12%" — is almost never the market you are entering. It is a category label that includes incumbents, adjacent products and revenue you could never reach. It is useful for a slide and useless for a decision.

Count what you can observe instead: how many distinct people described this problem in public in the last ninety days, in how many separate places. It will be a small number and it will be real, and a small real number is a far better basis for a decision than a large borrowed one.

3. Measure pain, not interest

Pain is what the problem costs today. Look for three things in the evidence: a workaround someone built, an hour count, or a sum of money. Someone who wrote a script to work around the problem has paid for it in labour and told you the price. Someone who says a category sounds interesting has told you nothing.

4. Map the competition honestly

List every product a person with this problem could buy today, including the spreadsheet and the intern. Then find, for each, the specific reason the people in your evidence are not using it: price, missing feature, wrong language, wrong segment, or they tried it and left. That list of reasons is the actual specification of your product, and it is worth more than any feature brainstorm.

"No competitors" is almost always a research failure. A market with genuinely no one in it is more often a market with no money in it.

5. Test willingness to pay before you build

Find evidence of money already moving: a subscription someone resents paying, a competitor's price that gets quoted in complaints, a person asking what a solution would cost. If money appears nowhere in ninety days of evidence, treat that as a finding rather than an omission — you may have found a real problem in a market that has never paid for anything.

6. Check the trend over the last quarter

Split the evidence in half by date and compare the two halves. A market whose second half is thinner than its first is a market you will enter late. This one comparison catches most of the opportunities that look attractive on a total and are actually finished.

7. Write it as a scorecard, not an essay

End with one line per dimension — demand, pain, willingness to pay, competition, momentum — each with a number and a link to the evidence behind it. The point of the number is not precision; it is that a colleague can disagree with a specific figure instead of with your general feeling, and that you can compare two opportunities side by side six weeks later.

That scorecard is exactly what an opportunity page on this site is: seven measured sub-scores, each one clickable down to the posts it was computed from.

Scorecards from the index

Measured from public posts, updated continuously — every row links to its evidence

1
Negative Reviews of Subscription Packages
SaaS
50.7
2
Frequent Errors and Slow Access
Banking & Payment Apps
50.5
3
Banking: Failed Update Version
Banking & Payment Apps
50.5
1.0%
4
Zalo messaging app issues and errors
Mobile Apps
50.9
4.4%
5
Logistics: Late Deliveries and No Pickup
Delivery & Logistics Apps
56.1
1.1%
6
Search: Failed Login and Authentication
Mobile Apps
50.1

Frequently asked

What is market opportunity analysis?
It is the work of establishing whether a demand is real, urgent, payable and unserved, before committing resources to a product. Done properly it produces numbers with sources, not adjectives.
How long should a market opportunity analysis take?
For one problem, about a week of reading. If it takes a month you are researching a category rather than a problem, and the answer will be too general to act on.
Is TAM the right way to size an opportunity?
TAM sizes a category, not the demand you can reach. It is fine as context and dangerous as a decision input, because it is the one number in a deck that nobody can check.
What is the most common mistake?
Analysing a product instead of a problem. Everything downstream then measures your idea's appeal rather than the market's condition.

Keep reading

Every guide

How to find, test and value an opportunity — the whole series.