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Disciplined Entrepreneurship, 2nd Edition
book

Disciplined Entrepreneurship, 2nd Edition

by Bill Aulet
April 2024
Beginner to intermediate content levelBeginner to intermediate
400 pages
10h 44m
English
Wiley
Audiobook available
Content preview from Disciplined Entrepreneurship, 2nd Edition

STEP 4Calculate the Total Addressable Market (TAM) Size for the Beachhead Market

A diagrammatic representation of the chart represents two, three, four, and five.  Four number is highlighted.

In This Step, You Will:

  • Estimate how large your Beachhead Market is—specifically the total revenue you could achieve in your Beachhead Market 100% market share (while unlikely, the number is still useful).
  • Use this market size number to determine whether you need to further segment the market to have a more appropriately sized Beachhead Market.
A diagrammatic representation of a car in backward view. A man wearing a headset and driving. It mentions uninterestingly small, sweet spots big enough to get positive cash flow.

It is important to start to understand the size of the Beachhead Market you are targeting early; you will modify this as time goes on. This systematic estimate of market size reassures you are heading in the right direction.

Why This Step, and Why Now?

The TAM needs to be an appropriate size for your new venture. Too big and you won't be able to mobilize enough resources to compete; too small and your company won't have enough revenue to sustain itself. The exercise of calculating the TAM also increases your team's knowledge of the market. Beyond just a simple number, your team will exit this step understanding what makes the selected Beachhead Market attractive. This understanding may be more important than your specific TAM size and a simple “go/no go” decision. The data you gathered to create your End User Profile in the previous step will be ...

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Publisher Resources

ISBN: 9781394222513Purchase Link