Disciplined Entrepreneurship, 2nd Edition

STEP 14Calculate the Total Addressable Market Size for Follow‐on Markets

In This Step, You Will:

• Briefly consider which “follow‐on” markets you will expand to after dominating your Beachhead Market.
• Calculate the size of these follow‐on markets, and remember TAM is expressed in $/year in revenue if you had 100% market share, even acknowledging the limitations already mentioned in Step 4, Calculate the TAM Size for the Beachhead Market.

While maintaining a relentless daily focus on your Beachhead Market, you should also do some small amount of analysis on what happens if and when you win the Beachhead Market.

Why This Step, and Why Now?

At some point, you must look beyond the Beachhead Market. Up until this point in the process, you have been relentlessly focused on an increasingly well‐defined initial market. The premise is that when you “land,” you will then have an unfair advantage to be able to “expand.” The goal from the beginning was not just to win the beachhead. Beachhead Market is an entry point for a bigger market with much broader impact. So now you will take a step back to make sure you have an attractive long‐term game plan. While you could do this step at a different time, I recommend doing it now because you have more definition and confidence of what ...