Market Size
Total addressable market (TAM) = "Theoretical customer base"
S
erved Available Market (SAM) = potential customers, who may purchase the product from a supplier
Target Market = the number of customers the company believes it can sell to
Sales Budget = what the company anticipates is will sell in a given period
Try the worksheet linked in ebook titled: Discipled Entrepreneurship Workbook (linked)
See an overview of TAM in on pages 57–61 in ebook titled: Disciplined Entrepreneurship (linked).
Bottom up approach
The user profile is used to identify secondary research sources for your calculations.
Remember - seldom does ONE source provide all of the needed information.
- How many users are there?
- Look at demographic information, is there a proxy (stand-in or similar product) that can be used to determine users), where can you collect intelligence (information) are your potential users? Examples of places to talk with potential customers are a: tradeshow, conference, meet-up, seminar, or hang-out in between a meeting or after work (bar, restaurant, etc.).
Try the worksheet linked in ebook titled: Discipled Entrepreneurship Workbook (linked)
See an overview of TAM in on pages 57–61 in ebook titled: Disciplined Entrepreneurship (linked).
Top Down Approach
The top-down approach
You can do a top-down analysis using secondary market research