Market potential is the valuation of the sales revenue from all the supplying channels in a market. Market potential is the population that is interested in the product/ service that is being made or offered by an organization. In other words, market potential is the potential money making capability of a firm if it capitalizes all advantages and everything goes its way. It is usually measured in sales units/sales volume or the potential revenue. It is very important for a new business to know and determine the market potential of the product of service being offered. If the market potential is very low then there is no point spending a lot of money on the product. One of the most important aspects of market potential is the amount of business a product can generate in future as compared to today. Companies can also evaluate the market share of companies in the market.The most relevant question is the target market growing for the offering. Market potential helps business plan better and launch their products and services with better preparation. Depending upon the overall market potential, companies can identify the sales potential, or the amount of sales they would be doing in that identified market.