TAM SAM SOM Exploring Market Size For Your Business

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It gives a great excitement when starting a new venture. With all the enthusiasm that comes with that excitement of a new beginning and estimating its potential to bag industry profit or predict its revenue, you should never forget to ground stronger in reality.

You can set a utopian revenue goal for your startup and burn your employees out if you fail to step into a large market to fetch potential investors to back you.

These issues are natural, and to eliminate all these unwanted troubles, here are three methods that will help you calculate your industry’s total addressable market (TAM), serviceable available market (SAM), and serviceable obtainable market (SOM).

Startups use these three metrics to calculate the density of the business structure for fundraising. What about the existing companies? Businesses already in the market avail these metrics to seek innovative business ideas.


The total addressable market helps to calculate the overall revenue opportunity your product or service holds in the marketplace when 100% market share is achieved. It includes every consumer who potentially buys your product or services irrespective of any barriers or competition in the market.

TAM is an excellent metric for startups, entrepreneurs, and existing businesses to gauge the revenue estimation a product or service inherits, thus determining the efforts and investments they need to pour into a new business. It also helps them potentially launch their business by segregating their products according to customers’ needs, opportunities, and location in the global market.


SAM, aka serviceable available market, is a portion of the total addressable market (TAM). This means your business model is available for a particular group of people or people of a particular location or category. With this metric’s help, you can draw and launch effective marketing strategies and campaigns.

For example, if you only offer your service or product to Indian homemakers, your service available market (SAM) is the Indian homemakers of the total addressable market.


With SOM metrics’ help, you can quickly and realistically determine who will buy your product or service. Therefore, SOM is vital and helps you create a robust marketing plan and pitch your product or service to your potential target audience.

It includes marketing research, production capacity, distribution area, regional regulations and restrictions, possible revenue and loss, and natural barriers, such as distance, transportation, and language.


  • Passionate startups
  • Potential entrepreneurs
  • Business Analysts
  • Established Businesses
  • Venture capitalists


TAM, SAM, and SOM are effective metrics that will help you find a better position in the marketplace. Whether you are a startup or an established one, these metrics will guide you to get hold of a valuable place. Why are you waiting for it! just explore our ready-made TAM SAM SOM PowerPoint Templates & prepare your presentation with ease.

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