We’ve been modeling opportunities bottoms-up and top-down. Bottoms up modeling involves taking real data, known trends, some assumptions and forecasting an opportunity.
Top down modeling involves taking an idea, looking at a market size, and making assumptions on what part of the market the idea can address.
I think top down modeling is good for a dream, when you’re just starting out, and to get people energized around a new direction.
Bottoms up is is good when more precision is needed, when the opportunity is a natural extension of an existing product, or when the assumptions can be vetted through real data.
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