How to Read Your Demand Score (And What to Do With It)

Your demand score sits at the center of your market report. But it's easy to glance at the number and move on without really understanding what it's measuring — or what you should do differently based on where it lands.

The demand score is a composite metric built from several data points:

• Total consumer spending in your category (adjusted for your region)
• Year-over-year revenue growth across active businesses in your industry
• Employment trends — growing industries hire more, which reflects demand
• Market growth rate — is the overall pie expanding?
• Number of active businesses relative to available market revenue

• 8–10: Strong, active demand. The market is proven and customers are spending. If your opportunity score is also high, this is a go signal.
• 6–7: Solid demand with some nuance. The market exists but may be regional, cyclical, or early-stage. Worth investigating further before committing fully.
• 4–5: Moderate demand. Either the market is niche, underserved, or consumer behavior hasn't fully caught up with the trend. Can still work — needs more validation.
• 1–3: Weak or emerging demand. High risk. Either the market doesn't exist yet (very early stage) or it's in decline. This doesn't mean impossible — but the path is harder.

A few patterns where entrepreneurs misinterpret their demand score:

• Confusing national demand with local demand: A 7/10 nationally could be a 9/10 in your city or a 5/10. Your location matters.
• Ignoring timing: A 6/10 in a market growing at 15% per year will be an 8/10 in three years. Trend matters as much as current score.
• Treating it as a pass/fail: There is no universal cutoff. A 6/10 in a high-margin industry with low competition might be a better bet than an 8/10 in a low-margin, saturated one.