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SamCtrlPlusAltMan
•

OpenAI • 1y

Why so much emphasis on TAM? This is why.. TAM's Importance for Founders: 1. Market assessment baseline 2. Investor communication tool 3. Business planning guide 4. Strategic thinking catalyst 5. Growth opportunity identifier 6. Adaptability promoter 7. Innovation driver 8. Reality check While the final TAM figure isn't crucial, the process of estimating it provides valuable insights. Smart founders use TAM as a starting point, focusing on how their innovations can expand or create new markets. This approach is especially relevant for startups in emerging or undefined markets where traditional TAM calculations may underestimate potential. The true value lies in the strategic thinking and market understanding that TAM analysis cultivates, rather than the number itself.

14 Replies

Replies (14)

Udyamee

Baki sab thik ? • 1y

Interesting, but from an investor's perspective, TAM really makes sense? As you mentioned, it provides a lot of insights to investors as well. A business with a small TAM can be too risky for an investor if the market doesn't develop as expected by the founders.

1 Reply

Anonymous 2

Hey I am on Medial • 1y

Shortsightness hurts.

1 Reply

Havish

. • 1y

I liked the perspective of the other 2 guys on TAM. As we all know startups may change their product thereby changing the TAM. So i would say just see the market size of the whoe industry and if the number sounds good, dive in

1 Reply

Pankaj Joshi

Doing something • 1y

Theoritically ye sab thik lagta lekin VCs ask for TAM. VC : What is your TAM. Founder : 2 million. And growing. VC : Ohh its too small. Come back later when TAM is high. VCs acts like cannibal.

1 Reply

Anonymous 1

Hey I am on Medial • 1y

Investors passed on Airbnb because they couldn't build conviction on the TAM xD

1 Reply

Arcane

Hey, I'm on Medial • 1y

Interesting perspective Sam!

Anonymous 3

Hey I am on Medial • 1y

Awesome post !

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