Average Selling Price _ Now when you calculate your average selling price which is your cost of sales (material + labor) divided by Ƒ_gross profit), you can determine how many customers you would need and then come up with what you think your conversion rate would be for converting leads to customers, you can determine how many leads you would need. Then from this and with the aid of the U.S. Census Bureau and some basic research on your own you can actually have a pretty decent idea of what size your market is and is going to be in the future so you can see if it will support your business plan or not.
Who are your direct and indirect competitors? You really should gain at least an initial understanding of who else is offering similar products or services to your target market. It's good to know how their products or services are currently used and perceived _ why people buy them, and why they don't. In doing so, you begin to understand the strengths and weaknesses of your competitors from the consumer's perspective. Depending on what your product or service is, you can find all kinds of information about user experiences with your competitors' offerings. Sites like Amazon let you see product reviews by customers who bought products.