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Disciplined Entrepreneurship: 24 Steps to a Successful Startup by Bill Aulet

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STEP 4

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Calculate the Total Addressable Market (TAM) Size for the Beachhead Market

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IN THIS STEP, YOU WILL:

  • Use the demographics from the End User Profile to determine quantitatively how large your beachhead market is.
  • Use this market size number to determine whether you need to further segment the market to have a more appropriately sized beachhead market.

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It is important to start to understand the size of the market you are targeting early; you will modify this as time goes on, but it is wise to be thinking about this point early on and develop at least a rough market size to know you are heading in the right general direction.

Defining your beachhead market and End User Profile provides you with enough specificity to make a first-pass calculation of the Total Addressable Market (TAM) size for the beachhead market. The TAM for your beachhead market is the amount of annual revenue, expressed in dollars per year, your business would earn if you achieved 100 percent market share in that ...

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