You’ve got a groundbreaking product idea—maybe it’s the next big SaaS platform, or a niche micro-tool with massive potential. How do you figure out if your big dream aligns with a big-enough market? Enter TAM, SAM, and SOM—the ultimate reality check for your product’s future.
“The only way to win is to learn faster than anyone else.” – Eric Ries
From Pie-in-the-Sky to Practical- TAM (Total Addressable Market): The grand sum of all potential customers if you had zero competition and infinite resources.
- SAM (Serviceable Available Market): The slice of that pie you could realistically serve given your product’s scope.
- SOM (Serviceable Obtainable Market): The portion you can actually capture with your current capacity.
Why This Matters
For founders running solo, resources are precious. Overestimating your market can lead to wasted effort, while underestimating it might mean you never take that bold leap. People like Pieter Levels often excel because they define just the right slice of market to focus on—an approach that fosters laser-sharp marketing and product decisions.
Balancing Dreams and Data
Embracing market analysis doesn’t mean you lose your creative spark. It means you’re fueling your vision with facts. Is your SOM big enough to sustain a profitable venture? If not, time to rethink or refine your offering. No sense in building a solution for an audience that isn’t there.
A Healthy Dose of Realism
Investors, mentors, and even your future customers will want to know if your idea has legs. The triad of TAM, SAM, and SOM helps you articulate that convincingly. Our soon-to-launch consulting app will let you gather these insights in a breeze, but the conceptual clarity is valuable even if you’re not seeking investment—because no one wants to open a store where no one shops.