Focus Your Efforts & Grow Effectively

What if you could just say: 
"Hey Siri, how do I make my business successful?"
 
Understanding your Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) is like unlocking the secret map to your business’s potential success.

Use the TAM, SAM & SOM as a GPS for your business journey, guiding you to the most promising opportunities and helping you avoid pitfalls.
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Total Addressable Market (TAM)

TAM is your big-picture dream – the total demand for your product or service if you had no competition. It’s the ultimate goalpost, showing you the full scope of opportunity out there.

Serviceable Available Market (SAM)

SAM narrows it down to the portion of TAM that your business can realistically target with its products or services. It’s your focused battlefield, where you can make a real impact.

Serviceable Obtainable Market (SOM)

SOM is the most actionable part – the segment of SAM that you can capture, given your current resources and capabilities. It’s your immediate playground, where you start making waves and building your customer base.

How to Calculate Your Market Share

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WATCH

Learn to find, document, research and present your TAM, SAM & SOM.
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Let’s take a look at how to calculate your market size.
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 Calculation market size, growth and share and discovery why these figures are important.
Examples

Here are some examples of how
TAM, SAM, and SOM can be applied
across different industries:

Food & Beverage (Organic Snacks)

  • TAM: The total market for snacks globally, encompassing all snack products.
  • SAM: The market for organic and healthy snacks, targeting health-conscious consumers.
  • SOM: The portion of the organic snack market that you can capture through local distribution channels, online sales, and partnerships with health food stores.

Retail
(Eco-Clothing)

  • TAM: The entire global market for clothing, including all types of apparel.
  • SAM: The market for eco-friendly and sustainable clothing, focusing on consumers who prioritize environmental impact.
  • SOM: The segment of eco-conscious consumers in specific regions or demographics that your brand can target through online and physical stores.

Wellness
(Nutrition Plans)

  • TAM: The total market for health and wellness products and services.
  • SAM: The market for personalized nutrition plans, targeting individuals looking for customized dietary solutions.
  • SOM: The portion of the personalized nutrition market that you can capture through online consultations, partnerships with fitness centers, and health influencers.

Tech Startup
(SaaS Product)

  • TAM: The total global market for SaaS products, including all potential users worldwide.
  • SAM: The market for SaaS products within a specific industry, such as healthcare or finance, where your product is most relevant.
  • SOM: The portion of the SAM that your startup can realistically capture in the first few years, considering your current resources and market reach.

Coaching
(Life Coaching)

  • TAM (Total Addressable Market): The global market for life coaching services, including all individuals seeking personal development and coaching support.
  • SAM (Serviceable Available Market): The market for life coaching services within a specific demographic, such as young professionals aged 25-40 looking to improve their career and personal lives.
  • SOM (Serviceable Obtainable Market): The portion of the SAM that your coaching business can realistically capture, focusing on clients in your local area or through online coaching sessions, considering your current marketing reach and resources.

Travel
(Eco-Tourism)

  • TAM: The global market for tourism and travel services. 
  • SAM: The market for luxury eco-tourism, focusing on high-end travelers seeking sustainable and environmentally friendly travel experiences. 
  • SOM: The segment of luxury eco-tourists that you can attract through exclusive travel packages, partnerships with eco-friendly resorts, and targeted advertising in luxury travel magazines.

Example Breakdown

Coaching
(Life Coaching)
Location: Denton, Texas

TAM: The global life coaching market is estimated to be worth billions of dollars, encompassing all potential clients worldwide who might seek life coaching services.


  • According to industry reports, the global life coaching market is estimated to be worth around $2 billion annually.
  • This includes all potential clients worldwide who might seek life coaching services.
  • Denton, Texas, has a population of around 150,000 people.
  • Assuming the U.S. population is about 330 million, Denton represents roughly 0.045% of the U.S. population.
  • Therefore, TAM for Denton = 0.045% of $2.1 billion = $945,000.  
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SAM: Within this global market, you identify that young professionals aged 25-40 in the United States are particularly interested in life coaching to enhance their careers and personal growth. This demographic represents a significant portion of the market that aligns with your expertise and services.

  • Let’s focus on young professionals aged 25-40 in Denton, who might be particularly interested in life coaching.
  • Assume this demographic represents about 20% of Denton’s population.
  • Therefore, SAM = 20% of $945,000 = $189,000.  


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SOM: Given your current resources, marketing efforts, and network, you estimate that you can capture a portion of this market by offering personalized coaching sessions, workshops, and online courses. You focus on attracting clients through social media marketing, partnerships with local businesses, and referrals.

  • If you aim to capture 5% of the SAM through effective marketing and outreach efforts.
  • Therefore, SOM = 5% of $189,000 = $9,450.     
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SUMMARY
Total Addressable Market: $945,000
(total market for life coaching in Denton)

Serviceable Available Market: $189,000
(market for young professionals aged 25-40 in Denton)

Serviceable Obtainable Market: $9,450
(realistic market capture for your business)

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