How to calculate Total Addressable Market (TAM)

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

Рет қаралды 233,451

4 жыл бұрын

Our team at Slidebean can help you scale your Startup ► youtube.slidebean.com/TAM
Subscribe to our FREE weekly startup newsletter ► youtube.slidebean.com/TAM-news
--
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
Check DreamIt's KZfaq Channel: / dreamitventures
Follow Steve Barsh: / stevebarsh
--
About Slidebean
Slidebean is a platform for founders to scale their startups. Our platform offers everything you need to build your startup, your pitch deck, set up your company, and start gaining traction.
Our team of experts can also help you write and design your pitch deck and build the financial model for your startup.
--
Follow us
Twitter: / slidebean
LinkedIn: / slidebean
Instagram: / slidebean
Facebook: / slidebean
Caya
Twitter: / cayahere
LinkedIn: / caya

Пікірлер: 269

@slidebean Жыл бұрын

A platform for founders to scale their startup ► youtube.slidebean.com/TAM-comment

@johnnygarces2216 3 жыл бұрын

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

@COSMO_INC1 3 жыл бұрын

Hahaha! It's True!

@jeevanjotsinghnarula2453 2 жыл бұрын

Haha, well not taking any MBA so I am fortunate.

@carleenhaylett1759 4 жыл бұрын

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.

@stevebarsh7727 4 жыл бұрын

Carleen Haylett Thx for watching and so glad it was helpful! - Steve @ Dreamit Ventures.

@slidebean 4 жыл бұрын

Thank you! We're so happy to see it helped!

@harshverma3737 3 жыл бұрын

I have to admit that this is the best channel.

@bashimolowo 3 жыл бұрын

I concur! I visit for 30 minutes every night.

@charleyluckey2232 Жыл бұрын

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

@riggsmartins4033 Жыл бұрын

If you are not in the financial market space right now, you are making a huge mistake. I understand that it could be due to ignorance, but if you want to make your money work for you, prevent inflation from eroding your savings, build generational wealth, and cultivate good habits and financial knowledge, you must be in the market

@charleyluckey2232 Жыл бұрын

You are right! I diversified my $400K portfolio across various market with the aid of an investment coach, I have been able to generate a little bit above $1.2m in net profit across high dividend yield stocks, ETF and bonds during this red season

@charleyluckey2232 Жыл бұрын

My advisor is "LARRY KENT NICK ". In terms of portfolio diversity, he's a genius. You can glance his name up on the Instagram and verify him yourself. He has years of financial market experience

@charleyluckey2232 Жыл бұрын

INSTAGRAM

@charleyluckey2232 Жыл бұрын

@ Larry Kent Nick Trading

@ajeeli_travels 3 жыл бұрын

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

@user-zw7cd7pe4u 11 ай бұрын

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.

@MaryPatricia-wr3wj 11 ай бұрын

As you plan your retirement, be sure to talk with a financial advisor who can help you make the most of your retirement investing scheme.

@user-zw7cd7pe4u 11 ай бұрын

@@MaryPatricia-wr3wj Very true, If you're looking for help building a retirement nest egg, you most likely want a certified financial planner with expertise in retirement planning. With the aid of a coach, I grew my reserve from $160k to almost $600k during this Red season.

@MaryPatricia-wr3wj 11 ай бұрын

@@user-zw7cd7pe4u How can one find a verifiable financial Planner, I buy the idea of employing the services of a Financial Advisor because finding that balance between saving and living requires counsel.

@user-zw7cd7pe4u 11 ай бұрын

@@MaryPatricia-wr3wj KRISTIN GAIL CUNNINGHAM. On the internet, that’s the financial advisor I use. She’s verified; you could also read more about her and then communicate with her. it’s always good to do your research before putting your money into any investment.

@MaryPatricia-wr3wj 11 ай бұрын

@@user-zw7cd7pe4u Thank you so much! Found her webpage and left a message. Hopefully, she responds.

@excel2minutes 3 жыл бұрын

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.

@camiloguzman1801 4 жыл бұрын

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.

@slidebean 4 жыл бұрын

Thank you so much, Camilo! Glad the video was helpful!

@brianndege5331 4 жыл бұрын

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

@slidebean 4 жыл бұрын

Thank you! All our love back to Kenya!

@k80ahh 3 жыл бұрын

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.

@MikeLingle 3 жыл бұрын

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

@slidebean 3 жыл бұрын

Thanks for watching! Steve's insights are awesome!

@kennygo770 2 жыл бұрын

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.

@naava1978 4 жыл бұрын

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

@slidebean 4 жыл бұрын

We love Steve, too! Looking forward to our next opportunity to collaborate!

@dsrathore01 Ай бұрын

How did it go? It has been 4 years now, were you able to build the company you were building, and raised capital?

@chloealix8063 2 жыл бұрын

Absolutely amazing and the best thing I've seen. So simple and clearly explained. Thank you so much!!

@kapetanioss Жыл бұрын

Thank you! That was super helpful

@Superstud11 5 ай бұрын

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.

@scottmarker-treasurevalley7244 3 жыл бұрын

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!

@COSMO_INC1 3 жыл бұрын

True!

@youknowitzg00d 4 жыл бұрын

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.

@bhasuda 4 жыл бұрын

What is your startup about?

@bhasuda 4 жыл бұрын

And the DF?

@slidebean 4 жыл бұрын

Thank you for watching!

@stevebarsh7727 4 жыл бұрын

Glad you liked it! -- Steve

@adikrashnik Жыл бұрын

this is the most practical helpful video I've seen in my life

@alexandramccarthy3790 2 жыл бұрын

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! :)

@vulnmachines 3 жыл бұрын

As a cyber security company, This video has solved my problem :) Thank you slide bean. I wanna connect with him.

@indianspiritualitygyan7660 3 жыл бұрын

Thanks for making this video and saving my life

@kimgreen3933 2 жыл бұрын

I am always on the hunt for good learning tools. This is a good one!

@adrianmoreno2717 2 жыл бұрын

First time learning about TAM and I fully get it.

@georgecool9917 3 жыл бұрын

Very simple and clear explanation!

@justthej 3 жыл бұрын

Very helpful, thanks, Steve!

@kritivatsa8713 Жыл бұрын

Literally the best explanation! it worked for me very well

@user-tn3fo3pj2x 4 жыл бұрын

this video is a gold mine!

@stevebarsh7727 4 жыл бұрын

Thanks for watching! Very happy you found it helpful!

@slidebean 4 жыл бұрын

Thank you!

@aprilmintacpineda2713 4 жыл бұрын

THANKS!

@stevebarsh7727 4 жыл бұрын

Glad you liked it. Thx for watching!

@JohnSmith-hn6kv 2 жыл бұрын

I find these sort of videos fascinating. Not relevant to me at all, but I love 'em.

@lighttheoryllc4337 3 жыл бұрын

Salam, Great Video of info that the SBA and SBDC centers will NEVER tell you.

@itsDe0n Жыл бұрын

so amazing, got to know a lot of things in detail Thank you

@lexie02jones25 4 жыл бұрын

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.

@slidebean 4 жыл бұрын

Thank you for watching! We're glad it helped! Browse our channel as there are many more videos related to this one! Also, you're welcome to discuss with other founders or Caya on Discord slidebean.com/startup-cafe

@william.darrigo 3 жыл бұрын

You explained this so simply. Thank you as always

@COSMO_INC1 3 жыл бұрын

Yeah, you are right!

@akbarkhan-nq3xl 4 жыл бұрын

Very very very helpful and informative. Thank you SlideBean

@slidebean 4 жыл бұрын

Glad it was helpful!

@animelover5093 Жыл бұрын

I'm glad found this content. it helps with my learning journey for product/maket

@anthonyifemade2305 2 жыл бұрын

Thank you so much for prodiving multiple examples

@ahmetakil787 4 жыл бұрын

I can listen to him for days

@slidebean 4 жыл бұрын

Thanks, Ahmet!

@victorokello9611 3 жыл бұрын

This was of great value!!

@petrolking7824 3 жыл бұрын

That's great content. Thanks 🙌🏿

@ProfessionalTycoons 4 жыл бұрын

My God this video is SUCH GOLD

@slidebean 4 жыл бұрын

Thanks Jae! 😊

@pavlosvasileiadis8209 4 жыл бұрын

Super useful, keep on the great work!

@slidebean 4 жыл бұрын

Glad it was helpful!

@daveking4229 4 жыл бұрын

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

@stevebarsh7727 4 жыл бұрын

Thanks for watching Dave and glad to hear you got it right! - Steve

@fliu5282 4 жыл бұрын

if you are a 4-Legged Cap Table startup, let me know. meaning: 1. you are a coder, 2. you got a co-founder. 3. you got an MVP (minimum viable product) 4. you got PMF (product market fit). Optional 5. Extra Leg: if you got $50k in friends and family round invested in you, i have the checkbook and a pen handy. LOL. Other than that, keep dreaming. P.S. Go convert your CPA's LLC stupid advise into Deleware corp, then i can open your e-mail; otherwise, it automatically all goes to junk folder and gets "deleted".

@abdulahmed6307 Жыл бұрын

thank you for this!

@_ADHK293A_ 2 жыл бұрын

wow, thank you, this is gold !!

@kefamutuma7402 4 жыл бұрын

BEAUTIFUL VIDEO. well explained!!

@slidebean 4 жыл бұрын

Thank you for watching!

@MohammedAtifSami 3 жыл бұрын

wow this is so helpful, thank you, this is really so logical

@Je.rone_ 3 жыл бұрын

This video is extremely informative

@techviking23 2 жыл бұрын

pure gold! thank you!

@abdulrhmankhallil8254 4 жыл бұрын

Can't be better, Piece of knowledge that worth Thanks, Slidebean wish you the best KEEP GOING

@stevebarsh7727 4 жыл бұрын

Very happy you found it worthwhile. Thx for tuning in! -- Steve

@slidebean 4 жыл бұрын

Our best wishes back to you! Thank you!

@jodysterling1813 2 жыл бұрын

OMG this was AMAZING thank you

@sanjaypradahan4703 3 жыл бұрын

Thanks, a great learning.

@santiagomachado2587 Жыл бұрын

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

@jariatoujallow9577 3 жыл бұрын

well explained in a simple language

@etanmatt 3 жыл бұрын

Amazing Video!!!!

@nandinijoshi5768 2 жыл бұрын

This is worthy sharing

@rayhyltonjr 2 жыл бұрын

Thank you!

@everythingjamieraine9270 10 ай бұрын

THIS WAS GREAT!

@Uniuni266 4 жыл бұрын

Great video very informative thank you!

@slidebean 4 жыл бұрын

Glad you enjoyed it!

@nelsonnigel4775 3 жыл бұрын

This is very good information

@aldemaro1183 Жыл бұрын

Great video, totally agree! Can you do a explanation on SAM and SOM ?

@sarmy2420 Жыл бұрын

Thank you ❤

@bluecafe509 3 жыл бұрын

Very good.

@rushabhgorghate3033 3 жыл бұрын

Thank you so much

@brightreepteltd6434 2 жыл бұрын

Good video. I am a tech startup in Singapore. Hope to get connected with the speakers. Thanks.

@User-du7kf 3 жыл бұрын

It was intuitive

@dorisjohn1779 4 жыл бұрын

Brilliant video.

@slidebean 4 жыл бұрын

Glad you enjoyed it!

@y_social_ 8 ай бұрын

super great!

@pnjwck 3 жыл бұрын

Great explanation. Please the SAM and SOM plss

@janetlindiwe 2 жыл бұрын

Thanks a lot this was super helpful. But my question is if I look for the wellness industry and then I only want women age x to x for example... how do I go about that? It's easy to find statistics on the total market or regional markets but then to know how many of those actually fit my other demographics?

@gspencer6750 2 жыл бұрын

This was gold.

@lernik4 Жыл бұрын

Thanks a lot for the video. Probably the best that I've seen so far. I have a few questions if I may. Is showing an accurate TAM number sufficient? Or is it also important to show SAM and SOM? And if the market is growing fast (30-35% CAGR), should the startup show the TAM for the current year or forecast the future TAM in 5-10 years (when the exit is assumed to happen)?

@alisherfez32 2 жыл бұрын

Thank you so much!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

@spencerdepas4235 3 жыл бұрын

Thank you.

@ikennapaschal3875 4 жыл бұрын

Steve is a great guy.

@stevebarsh7727 4 жыл бұрын

Thx for the props @Ikenna and for watching! - Steve

@slidebean 4 жыл бұрын

He is! :) Thank you for watching!

@patrickdainese2166 4 жыл бұрын

Hi, brilliant video. Thanks for that. Is your definition of TAM what others explain with SAM or SOM? Because you are breaking down the TAM pretty much there would not be much left for SAM or SOM. Thanks for your answer.

@slidebean 4 жыл бұрын

Good Q! Welcome to discuss with other founders or Caya on Discord slidebean.com/startup-cafe

@JakobHelm 3 жыл бұрын

This is the key question here.

@Ken-ul6ll 2 жыл бұрын

THIS

@faisalwahabkhan5310 4 жыл бұрын

awesome video and a golden advice

@stevebarsh7727 4 жыл бұрын

Happy you found it worthy! Thx for watching. -- Steve

@slidebean 4 жыл бұрын

Thank you, Faisal!

@nandphal8955 2 жыл бұрын

I love Caya. He is simply faadoo

@denzelmosore 4 жыл бұрын

That was rich! Thanks Caya and dreamit

@stevebarsh7727 4 жыл бұрын

@denzel - thanks for watching! you're welcome! -- Steve

@slidebean 4 жыл бұрын

Thanks, Denzel!

@sawsanagourmat6142 3 жыл бұрын

Hi ! Thanks for the great content, how do you consider competitors in the TAM? I am thinking for example about Kindle who gained market shares compared to hardcover books. Do you take into account customers how could switch to your product? Thanks !

@slidebean 3 жыл бұрын

Good Q! Welcome to discuss with other founders or Caya on Discord slidebean.com/startup-cafe

@emmanuelokebugwu6944 4 жыл бұрын

I just tossed my entire startup financial model into the trash! What a revelation!

@slidebean 4 жыл бұрын

Hope the video helped!

@emmanuelokebugwu6944 4 жыл бұрын

@@slidebean I'll be spending this night redoing all my models - Thank you for this channel and the superb content you put out!

@techmadeazy 2 жыл бұрын

This is awesome. But I have a question. In the bottom up process, how do you calculate the TAM for something as universal as WhatsApp? Imagine WhatsApp when they had launched and lets imagine that it charged $1 per user per month for the sake of this exercise. How would you calculate the number of customers at that stage? Any thoughts guys?

@alexnjoroge3186 4 жыл бұрын

Amazing video 👍🏾

@stevebarsh7727 4 жыл бұрын

Glad you liked it. Thx for watching!

@slidebean 4 жыл бұрын

Thank you for watching!

@oxglowinc.1614 4 жыл бұрын

Impressive content.!

@stevebarsh7727 4 жыл бұрын

Glad you liked it @oxglow. Thanks for watching! -- Steve @ Dreamit

@slidebean 4 жыл бұрын

Thanks for watching!

@kristofvizy3970 4 жыл бұрын

Great video! But how do you even start to calculate how many branches of mid-sized banks (or whatever selection you finally found possible) there can possibly be?

@slidebean 4 жыл бұрын

Good remarks! Welcome to discuss with other founders or Caya on Discord slidebean.com/startup-cafe

@Cloudnine2024 Жыл бұрын

Good info! But where do you get the information to get this drilled down in information?

@chasesessoms8443 3 жыл бұрын

This was so damn helpful

@pindakaashonden 4 жыл бұрын

Hi Steve, Great informational video once again! Question: why are you not a fan of SAM & SOM? Thanks

@stevebarsh7727 4 жыл бұрын

SAM and SOM are fine. I often find TAM + your go-to-market strategy get's the job done very clearly.

@ajromeroesclusa 2 жыл бұрын

Any ideas on how the "customers x price" would work for a lending fintech model ? Did the "intuitive" top-bottom strategy, but reviewing this approach for TAM

@varshard0 4 жыл бұрын

I like how Steve used Slidebean as an example

@slidebean 4 жыл бұрын

We love Steve!

@noitpursid6190 4 жыл бұрын

@@slidebean Can you make a video on SAM,SOM

@isaacbalintuma9157 2 жыл бұрын

This is a very helpful video, but my question is "If you are developing a social media app like facebook, who make up the TAM customers? the advertisers OR the users?"

@mistere1063 3 жыл бұрын

Man, started calculating my TAM bottom up, my partner is a top down guy

@mistere1063 3 жыл бұрын

also, i sell multiple products so I used the average amount of money customers spent

@aligulaj 3 жыл бұрын

Question: What pricing would you use if you have a three tier subscription plan to calculate the TAM? Would I be wrong to use MRR or ARR? Or will it be the sum total of TAMs for each plan? Great channel by the way.

@Robertohanas Жыл бұрын

Might want to calculate the TAM using adoption/ tier. Ex: Price: T1Px0.25+T2Px0.6+T3Px0.15 T1P = Tier 1 Price 0.25= projected share of the customers that will choose that tier. This is how I'd do it,hope it helps. Have a good day.

@sampat97 Жыл бұрын

@@Robertohanas Hey dude, this was really helpful. Do have anything on how to calculate the projected share of customers?

@princessikeod 4 жыл бұрын

Nice video but how can I calculate the TAM for a private clinic especially where there is no general data. Thank you

@slidebean 4 жыл бұрын

Good Q! Welcome to discuss with other founders or Caya on Discord slidebean.com/startup-cafe

@fliu5282 4 жыл бұрын

don't know where you come from but the presenter is 100% accurate, truth and the way "ALL startup should subscribe to". the rest are just "some ink over flow on toilette paper".

@slidebean 4 жыл бұрын

Thanks, F! David is a special guest from DreamIt Ventures, and we love him as well! Caya is the CEO of Slidebean, the company that hosts/created this KZfaq Channel. Find out more at slidebean.com Welcome!

@damveiss7517 4 жыл бұрын

Interesting ! But what about the TAM when your business model is based on a variable commission ? For example in the betting/casino industry where the user deposit the amount of money he wants, there is no fixed price for your service so the TAM is not relevant ? Thanks guys and continue the good work ;)

@stevebarsh7727 4 жыл бұрын

Just document your assumptions around spending (price) and possibly segment the audience and spend.

@damveiss7517 4 жыл бұрын

@@stevebarsh7727 Thanks Steve. Looking forward to see more content like this

@stevebarsh7727 4 жыл бұрын

@@damveiss7517 It's coming! Look for the #DreamitDose in the KZfaq Dreamit Ventures channel.

@nandphal8955 2 жыл бұрын

@@stevebarsh7727 Thanks Steve