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Disciplined Entrepreneurship Workbook by Bill Aulet

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STEP 14Estimate the Total Addressable Market (TAM) Size for Follow-on Markets

WHAT IS STEP 14, ESTIMATE THE TOTAL ADDRESSABLE MARKET (TAM) SIZE FOR FOLLOW-ON MARKETS?

Estimate the annual revenues from the next several markets you can start selling to after you are successful in the Beachhead Market, both by selling the same basic product to other markets and by selling the same customers additional products. This estimate represents the broader market potential.

WHY DO WE DO THIS STEP, AND WHY DO WE DO IT NOW?

This step shows the magnitude of the revenue potential your startup has, which will motivate you to focus on winning your Beachhead Market quickly and effectively so you can branch out into these other markets. It also forces you to raise your line of sight and remember you are creating a business not just for the Beachhead Market segment but for broader impact, which will affect the decisions you make about your business going forward. As the 24 Steps transition from “how does your customer acquire your product” to “how do you make money off your product,” now is an opportune time to take a step back and look at the broader context for your startup.

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This step confirms ...

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