Confidence Score Explained: How Reliable Is Your Data?

Every market analysis sits on a foundation of data — and not all data is equally reliable. Your confidence score is an honest signal about how strong that foundation is.

The confidence score reflects how much high-quality, consistent data is available for your specific industry, location, and business type. It factors in:

• Depth of available census and BLS data for your industry code
• Consistency between multiple data sources
• How recently the underlying data was collected and updated
• How well your specific business type maps to the industry classification

• 8–10: Strong data. The numbers in your report are well-supported by multiple authoritative sources. High confidence in the figures.
• 6–7: Good data with some gaps. The core numbers are solid, but some projections involve estimation. Treat figures as directional, not exact.
• 4–5: Moderate confidence. Often happens with newer industries, niche categories, or highly regional markets with limited published data. Use for directional guidance.
• Below 4: Limited data. This can happen with very new categories, hyper-local markets, or highly specialized industries. Cross-reference with your own primary research.

A lower confidence score doesn't mean your market doesn't exist or that the analysis is wrong. It means the market is less well-documented. This often happens with emerging industries, specialized niches, or local markets that aren't large enough to generate major research coverage.

If your confidence score is 7+, you can build a business plan directly from the numbers. If it's 5–6, use the numbers as directional context while validating key assumptions through customer research. Below 5, treat the analysis as a starting framework and do additional validation before making major capital decisions.