How to calculate Total Addressable Market (TAM) - Startups 101

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What is the Total Addressable Market, and How to Calculate it -

In this episode, we break down basic definitions such as TAM, what are the most common mistakes made while calculating and presenting this to investors, and how to estimate it properly. Steve will also demonstrate the simple formula that applies to every startup, no matter what the industry is.

#slidebean #startups #TAM

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[johnnygarces]

this was an MBA lecture done in 15 minutes. im in awe

[carleenhaylett]

Pure gold. Just redid my TAM slide. GUILTY as charged as a top-downer. Total convert now my entire life is about bottom up! THANK YOU yet again.

[harshverma]

I have to admit that this is the best channel.

[charleyluckey]

Still no change on the market. We are already in the big crash, Inflation is a catastrophe. This CPI report is a colossal failure. To bring the housing market to a halt, the FED will have to pull all the stops. The unfortunate issue is that other markets are being decimated. If you want to stay green, you have to rely on a lot of diversification. Currently up 14% and being careful. Still a better deal than leaving it in a savings or checking account yielding 0-1 percent interest

[naava]

I LOVE this GUY! Please collaborate with them again. I loved this video and saw so much value.

[brianndege]

This video is awesome, I'm a victim of top down approach and today the approach will change. Greetings from Kenya slidebean

[zwcdpeu]

Well that would be impossible to do considering I'm in my late 50s and I'm more interested in investments that could set me up for retirement in my 60s, my goal is at least $2million.

[camiloguzman]

Not only this video is gold info, but has the right aproach in how to take on a market, and how your firm construct a key advantage over that spot. Guys and Gals of Slidebean for me you have surpassed the already high expectation that i had over your content.

[ajeeli_travels]

Amazing, thank you! ... I think a lot of people don't understand how important this video is !

[kahh]

I love these videos and they are super helpful. Can you make a more detailed video with multiple examples showing how to obtain good data to calculate bottom-up TAM. It isn't obvious or easy to understand how to figure out how many ideal customers are in the segmented market I will use in my estimate.

[santiagomachado]

Excelent content, cristal clear, please can you share also SAM and SOM calculation for a startup, thanks!

[Superstud]

Thank you for posting. I've been a senior sales executive for years. Companies coming from overseas want to be successful in the US but they don't have the right approach. I will be sure to forward this to the many who ask me for help understanding strategy.

[MikeLingle]

Great walkthrough of TAM! It seems like growth (CAGR) of the target market is also an important element to mention to investors.

[youknowitzgd]

Cool. I kinda like your premiers. As I sit here in my startup office I got something asides from my next water break to look forward to.

[excelminutes]

Great content. Please make a video on the assumptions one usually do while calculating TAM, SAM, market sizing. Also, where top down and bottom up approaches are effective.

[kennygo]

I realized through this video that marketing is by doing own research with mine not searching someones report pay to read. what a lecture what a genious talented man.

[lexiejones]

Can you do more videos like this?! where you bring in investors to help us topic like this? it's really helpful. I just realized I was way off on my TAM! LOL.

[alexandramccarthy]

Top down model is taught by so many other channels. No wonder so many of us are trying to apply it to our business. I did think it doesn't make sense.... Now I know why! :)

[scottmarker-treasurevalley]

Wow! This is a fantastic quick overview for any company of any size wanting to learn how to figure their TAM, total addressable market. Spoilers alter. Most of you are probably figuring it wrong. Thanks for the video!

[daveking]

Interesting topic and definitely have fallen into the top down trap on early startups I tried. Nice to know that I finally got it right. My tam is $1.6B just in the US based on gov stats. Now who has a checkbook and a pen handy LOL