market-sizing-analysis

Comprehensive market sizing methodologies for calculating Total Addressable Market (TAM), Serviceable Available Market (SAM), and Serviceable Obtainable Market (SOM) for startup opportunities. Market sizing provides the foundation for startup strategy, fundraising, and business planning. Calculate market opportunity using three complementary methodologies: top-down (industry reports), bottom-up (customer segment calculations), and value theory (willingness to pay). TAM (Total Addressable Market) SAM (Serviceable Available Market) SOM (Serviceable Obtainable Market) Top-Down Analysis Bottom-Up Analysis Value Theory Start with total market size and narrow to addressable segments. Process: Formula: When to use: Established markets with available research (e.g., SaaS, fintech, e-commerce) Strengths: Quick, uses credible data, validates market existence Limitations: May overestimate for new categories, less granular Build market size from customer segment calculations. Process: Formula: When to use: B2B, niche markets, specific customer segments Strengths: Most credible for investors, granular, defensible Limitations: Requires detailed customer research, time-intensive Calculate based on value created and willingness to pay. Process: Formula: When to use: New categories, disruptive innovations, unclear existing markets Strengths: Shows value creation, works for new markets...