Market Opportunity Assessment
TAM/SAM/SOM market sizing with validation
- • Clear TAM/SAM/SOM definitions and unit of measure (revenue or units).
- • Both top‑down and bottom‑up with triangulation and sources.
- • Explicit assumptions, sensitivity ranges, and confidence levels.
- • Realistic SOM based on GTM capacity and competition.
- • Link to pricing and unit economics (CAC/LTV) for credibility.
- • Confusing TAM with SAM and pitching the bigger number.
- • Only top‑down estimates with no bottom‑up reality check.
- • Double‑counting segments or mixing B2B and B2C totals.
- • Assuming Year‑3 market share without GTM constraints.
- • No sensitivity analysis—one number treated as gospel.
TAM vs SAM vs SOM—what's the quick difference?
TAM is the whole universe, SAM is the realistic segment you can serve, SOM is the slice you can actually capture in the time horizon with your GTM muscle.
Top‑down or bottom‑up—which should I use?
Use both methods where useful and explain material differences in definitions or assumptions. Agreement within a fixed percentage does not validate either estimate.
How do I size a totally new category?
Proxy markets + bottom‑up unit assumptions. Start with who pays, how often, and how much. Show scenarios and adoption curves.
What's a reasonable Year‑3 share for SOM?
Estimate share from sales capacity, conversion, competition, and the planning horizon. There is no universal Year-3 capture rate.
How often should I refresh the numbers?
Annually for stable markets, semi‑annually for fast‑moving categories. Refresh when pricing or target segment changes.
How do I validate assumptions with limited data?
Use customer research, expert interviews, and early conversion evidence. Match the research method to the question; an A/B sample-size calculator does not plan every kind of survey.
Should I size in revenue or units?
Use both when possible. Units reveal adoption mechanics; revenue ties to pricing and ROI. Investors want to see the bridge.
How do I handle multi‑region markets?
Break out by region with different adoption rates and pricing. One global average hides reality.
What confidence level should I present?
Explain confidence in each component using the available evidence. Show plausible ranges and the data needed to narrow them.
Investor says “too small.” Now what?
Show adjacent segments, pricing expansion, or wedge strategy that grows SOM. Small but winnable beats imaginary billions.
When to use it
Use this for investor decks, business cases, and quarterly planning when you need credible TAM/SAM/SOM with clear assumptions.
Before you use the output
- •Fill in the variables with the facts and constraints you have.
- •Check the output against your source material and revise any mistakes.
- •Enable web search where available and check the dates and sources it returns.
Expected output
Market analysis with sizing calculations