Is my market big enough for my software business idea?

**geekChick** · 02-23-2011 01:42 PM

Hi,

I have a software idea for college athletic departments for colleges in the NCAA, NJCAA, NAIA. Currently the number of schools competing in each is as follows:

NCAA (1,281 schools)
NAIA (290 schools)
NJCAA (436 schools)

With a grand total of 2007.

My question....is this too small of a market? Or would it also depend on my pricing structure? This will be my first business and although it would be nice to have a company worth multi millions or billions...I'm really not looking at that the first time around. If it happens....great! But I can live with having a $5 million dollar business and not feel like a failure. The other 2 concerns I have are:

1. So lets say my idea comes to fruition and we have $5 mill in reveune. Is it too small to attract venture capitalist? If they invest $1 mill they want to get bacik 10 times that amount from profit, right?

2. Would I be able to exit? Will someone want to buy the business for more than $5 mill.

Thanks
P.S...I live in Chicago, not Silicon Valley

-

**GotLiveChat** · 02-23-2011 03:23 PM

You've got it right... depends on your pricing structure. If you're only billing each of the schools $1 per month for your services then you're only get $2007/mo. in revenue. Not bad revenue but not sure venture-capitalist worthy

1. Not sure if 10 times the amount is required for investing with venture capitalists. And if you're offering 10 times the return I can't imagine you'll have any problems finding even just 'angel' investors.

2. The possibility is there if the revenue is that high.

**Smiz** · 02-24-2011 02:21 AM

Don't forget international expansion (if your product is versatile enough).

**Flux_nutrition** · 02-24-2011 08:16 PM

Say it all works out the way you plan and do get revenue in the millions. Investors should be very interesting in your company as long as it is unique and can expand. If not, then broaden your possible market to college students/athletes as well.