Size your market in three layers, from the total opportunity down to the share you can realistically win. Enter your numbers, or edit the example below.
Everyone who could ever need this product.
Of the market your product and geography can reach.
Of the SAM you can win in the next few years.
Pre-filled with an example (1M customers, $1,200/yr, 20% serviceable, 5% obtainable). Change any field to use your own numbers.
solvee turns your numbers into a real go-to-market plan, so your SOM rests on a strategy an investor will actually believe.
Size your market freeTAM, SAM and SOM are three nested ways to size a market. TAM is the total revenue if every possible customer bought. SAM is the part your product and geography can serve. SOM is the slice you can realistically capture in the next few years.
The bottom-up method builds from real numbers rather than a headline market figure:
One million potential customers at $1,200 a year is a $1.2B TAM. Serving 20% gives a $240M SAM, and winning 5% gives a $12M SOM.
Use bottom-up for anything an investor will see.
Investors care most about SOM and the plan behind it. A huge TAM with no credible route to SOM signals wishful thinking. Lead with the SOM you can defend, then show the room above it. Build that plan with solvee.
It is a three-layer way to size a market: the total addressable market, the serviceable market you can reach, and the obtainable market you can realistically win.
Multiply potential customers by annual revenue per customer for TAM, take the share you can serve for SAM, then the share of that you can win for SOM.
TAM is the entire market, SAM is the portion you can serve, and SOM is the portion you can capture in the near term.
A good SOM is backed by a credible go-to-market plan rather than a round percentage of TAM.