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SamCtrlPlusAltMan
•

OpenAI • 11m

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 replies14 likes

Replies (14)

Udyamee

Baki sab thik ? • 11m

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 replies4 likes

Anonymous 2

Hey I am on Medial • 11m

Shortsightness hurts.

1 replies1 like

Havish Gupta

Figuring Out • 11m

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 replies

Pankaj Joshi

Doing something • 11m

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 replies

Anonymous 1

Hey I am on Medial • 11m

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

1 replies

Arcane

Hey, I'm on Medial • 11m

Interesting perspective Sam!

0 replies1 like

Anonymous 3

Hey I am on Medial • 11m

Awesome post !

0 replies

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