In this enlightening masterclass, we discuss the imperative of comprehending the dimensions of your market—specifically, the
- Total Available Market (TAM),
- Serviceable Addressable Market (SAM), and
- Serviceable Obtainable Market (SOM).
This training breaks down how navigating the vast waters of entrepreneurship without a clear “map” can lead to inefficiencies and missed opportunities, akin to sailing without a compass.
By employing the Size Your Market Maker tool, we aspire to empower founders to articulate their business’s potential and refine their strategic focus, thereby enhancing client service and operational effectiveness.
Through illustrative examples, such as Maven Clinic and Rent the Runway, we will demonstrate how defining these market segments not only clarifies your business’s opportunities but also illuminates the path to sustainable growth.
Join us as we embark on this masterclass journey, transforming nebulous market concepts into actionable insights that will propel your venture forward with clarity and purpose!
Takeaways:
- Understanding the total available market (TAM), serviceable addressable market (SAM), and serviceable obtainable market (SOM) is crucial for founders aiming to scale their business effectively and strategically.
- Navigating the intricacies of market sizing without a clear map is akin to embarking on a journey without a compass, leading to potential misdirection and inefficiencies in resource allocation.
- The Size Your Market Maker tool empowers entrepreneurs to not only delineate their market segments but also to craft actionable strategies that align their growth aspirations with realistic outcomes.
- Regularly reviewing and updating your four-page growth plan, which includes insights on TAM, SAM, and SOM, can greatly enhance your team’s focus and overall strategic alignment in the pursuit of growth.
Chapters:
00:31 Navigating Market Opportunities
03:20 Understanding Market Dynamics: TAM, SAM, and SOM
10:31 Understanding Market Size: TAM, SAM, and SOM
25:56 Segmenting Your Total Addressable Market
30:12 Segmenting the Total Addressable Market by Occasion
This episode part of the Force for Good Tool of the Week Series! Each week we feature one of the 100+ Force for Good Tools.
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****Have questions on how to pioneer your 100 Year impact plan? Schedule time with Coco: https://calendly.com/coco-sellman/zoom-office-hours-clone ****
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Coco Sellman, the host of the Force for Good Business Show, believes business is a force for good, especially with visionary women at the helm. With over 25 years of entrepreneurial experience, she has launched five companies and guided over 500 startups. As Founder & CEO of A Force for Good, Coco supports purpose-driven women founders in unlocking exponential growth and prosperity. Her recent venture, Allumé Home Care, reached eight-figure revenues and seven-figure profits in just four years before a successful exit in 2024. A venture investor and board director, Coco’s upcoming book, *A Force for Good*, reveals a roadmap for women to lead high-impact, high-growth companies.
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Transcript
Hello there and welcome to How Big Could It Be?
Speaker A:Discover the size of your true opportunity with the size your market maker.
Speaker A:This is such an exciting conversation because it helps you decide the bigger picture of who you're meant to serve and it will dramatically improve how you serve your clients and see your business.
Speaker A:So are you leading without a map?
Speaker A:So often we see this happening where founders are leading blindly without a clear map of the market they're serving and where exactly they're going, which areas they want to focus in, where they want to be.
Speaker A:This masterclass today is going to help you do this.
Speaker A:Are you and your team team unsure of how big your opportunity really is?
Speaker A:Maybe you don't know how big your company can be with your current constraints or current ideas.
Speaker A:Does your team and your investors struggle to see the company's full potential?
Speaker A:Is your company trying to grow without clearly knowing who you can serve or how much you can truly capture?
Speaker A:Do you long for your company to grow beyond you, but aren't sure how big your business can become?
Speaker A:You might be making million dollar decisions every day based on instinct alone.
Speaker A:And often we tend to do that when we haven't defined our clear market.
Speaker A:So intuition is powerful, but without a clear data backed market sizing, it's like sailing without a compass.
Speaker A:You might eventually arrive where you're going, but you'll waste time, money and energy getting there.
Speaker A:What if the biggest reason your company isn't growing faster isn't your product, your people or your pitch, but your map?
Speaker A:Think about that for a second.
Speaker A:Every founder wants to scale, but most are operating without one of the most strategic tools.
Speaker A:This was me.
Speaker A:Until my last business.
Speaker A:I didn't have a clear market scoped tam, SAM and Psalm.
Speaker A:So a clear understanding of tam, SAM and Psalm.
Speaker A:We'll unpack what those are.
Speaker A:They help you create a roadmap for growth, a signal for strategic maturity, and a way to align your vision with with execution.
Speaker A:What is your business worth?
Speaker A:That's something you need to be thinking about.
Speaker A:Let's talk about valuation.
Speaker A:Whether you dream of one day selling your company, attracting funding, or simply building lasting prosperity, one thing is true.
Speaker A:Your company's worth begins with your market.
Speaker A:So that is what we're going to focus on today.
Speaker A:Today we're going to move right into these three important core growth elements and an important force for good tool that you can use to help you quickly decipher what these things are for your company.
Speaker A:So TAM is the total available market, SAM is the serviceable, addressable market, and SOM is the serviceable obtainable market.
Speaker A:We're going to use the Size your Market Maker tool that you can get for free by going to our forceforgood Biz weeklytool.
Speaker A:You'll also see in this masterclass you'll be able to use this tool and define your TAM Salmon som or at least a really get a good draft of it and you're gonna walk away with a specific high leverage habit and one high potency action so that you put into action what you learn.
Speaker A:So every time we have a masterclass and we focus on a core growth element and today there are three, they are meant to inspire exponential perpetual growth into your company.
Speaker A:If you haven't already, download the Size youe Market Maker now and you can follow right along with that tool as we go through this masterclass.
Speaker A:So what is tam, SAM and som?
Speaker A:I didn't really know about this until I started a business where I really had to think about investors.
Speaker A:I need to think about debt and equity.
Speaker A:I needed to think about my options and realized after the fact that knowing these three things put your brain in a different strategic place and help you think differently about your company and your growth.
Speaker A:It helps you get sharper the total available market is the total demand for a product or service in a given market.
Speaker A:It encompasses all potential customers or revenue opportunity for a particular product or service without without considering any constraints.
Speaker A:If you were in the business of selling smartphones, the total available market or TAM would include every potential buyer of smartphones and every single sale of smartphones in your industry worldwide, regardless of brand preference or affordability.
Speaker A:So the big dollar amount that could be derived in a year's time, really big global picture.
Speaker A:And what the value of this is, it requires you to name the big picture market you live in and that's really powerful, serviceable, addressable markets.
Speaker A:It's a portion of that market that your business can effectively serve.
Speaker A:It's a target based on your resources, capabilities and constraints within your wheelhouse.
Speaker A:Which part of the market are you going to serve?
Speaker A:Using the smartphone example, if your company only sells high end smartphones, then your SAM would be the portion of the TAM that consists of customers willing and able to look forward high end smartphones.
Speaker A:So then you name gigantic market and then after that you say okay, what's my serviceable obtainable market?
Speaker A:And we look at this in different constructs, different timelines in the force for good system.
Speaker A:We like to think in 10 year milestones, 10 year impact goals.
Speaker A:And so we want to think of this as a 10 year how big of a market can I obtain?
Speaker A:So the portion of the serviceable, addressable market your business can realistically expect with some stretching and expanding to obtain within a specific time frame.
Speaker A:So imagine how big you could get within your market in 10 years.
Speaker A:Continuing with the smartphone example.
Speaker A:So we might say continue that if your company forecasts that it can capture 15% of the SAM within 10 years, then 15% represents the Psalm.
Speaker A:We're going to look at some more examples to make this a little more clear.
Speaker A:I'm going to show those to you right now and then you'll see why it's important.
Speaker A:So Tam Sam, let's look at Maven Clinic, a company you might be familiar with.
Speaker A:A really great example, Kate Writer of a female founder.
Speaker A:She's in this women's health tech business and the total global health women's health market is 40 billion.
Speaker A:The piece that her business focuses on is telehealth for women and that's 5 billion of the 40 billion market.
Speaker A:Her sum 100 million is how much of the market she actually penetrates.
Speaker A:Right now $100 million is her approximate revenue which is 2% of the SAM.
Speaker A:Now we look at Fred Sense Technologies which is water quality monitoring.
Speaker A:It's this really cool company, thin technology and it was co founded by the brilliant Emily Hicks $47 billion global water monitoring market.
Speaker A:It's a big market across the world.
Speaker A:They're saying well we're not going to look at all global water monitoring market.
Speaker A:Our technology is focused on industrial water and we're going to specifically focus on North America as industrial water.
Speaker A:And that's 1.5 billion.
Speaker A:So from 4.7 billion to 1.5 billion.
Speaker A:Still enormous, right?
Speaker A:They're like right now at about $10 million in annual revenue.
Speaker A:Their SOM is $10 million or 6.67%.
Speaker A:Now if we ask them how big do you want to be in 10 years?
Speaker A:They might say oh we want to be a hundred million dollars.
Speaker A:And so then of course their SAM would increase significantly and they would say this is the sum we're going after.
Speaker A:So we've got a couple examples here.
Speaker A:A sustainable food tech company, 50 29.4 billion dollar global plant based food market.
Speaker A:They're going after very specific area, West Africa's plant based snacks.
Speaker A:And so that's 500 million.
Speaker A:And right now they own about $2 million annually which is 0.04%.
Speaker A:We could ask Ellie Fink, the founder, how big do you want to grow in the next 10 years?
Speaker A:And she might tell you $20 million right and so then she would move up to 0.4% of the total market in West Africa's plant based snack segments.
Speaker A:So Rent the Runway is another example.
Speaker A:It's a fashion rental business founded by Jennifer Hyman and Jennifer Place.
Speaker A:And it's a, it's part of a $1.5 trillion dollar global apparel market.
Speaker A:They focus on the 20 billion US women's formal wear market and have captured about 0.8% of that market, 157 million and will continue to grow.
Speaker A:We could ask Jennifer and Jennifer how big they want to grow in the next 10 years and they could say that's the sum we're going after.
Speaker A:So that's the question you're asking yourself.
Speaker A:What's the big market, what's the big global market and what is that segment you want to go into and then the piece of that segment you want to own?
Speaker A:All right, so now we're going to go back for a second and talk about why you need tam, SAM and som.
Speaker A:You'll notice that it creates clarity on the total opportunity size.
Speaker A:TAM gives you the big picture view.
Speaker A:How large is the market you're playing.
Speaker A:Playing in this matters because it signals your total potential to grow.
Speaker A:Any funder, especially venture back or private equity funder is going to want to know this what's the total possible markets out there so that you can think about how you might grow, whether it's individually organically or whether you do grow by acquisition or whether you get acquired by a company that's a huge company but it's you're part of a bigger play.
Speaker A:So it helps frame visionary thinking especially for investors, team members who want to understand your ceiling.
Speaker A:It shows if you are in a shrinking pond or a rapidly expanding ocean.
Speaker A:A femtech founder might show a Tam of 27 billion to demonstrate the rise of global interest and investment in women's health solutions.
Speaker A:We're seeing that a lot right now.
Speaker A:For example, the second area is the strategic focus.
Speaker A:This is my true playing field for my company.
Speaker A:Not just the whole world, but the part of the world that your company can realistically serve based on your business model, capabilities and geography.
Speaker A:It helps you avoid wasted effort trying to sell to everyone.
Speaker A:It allows you to align your resources with your real market and allows you to prioritize product development and marketing and actually reach the most viable customers for you.
Speaker A:So an example would be a health tech startup with limited compliance approval may narrow its SAM to just US hospital systems rather than global markets.
Speaker A:I was in a meeting two weeks ago about this and we were looking at how big could we take this one particular women's health tech product.
Speaker A:And it was really like, well, which countries can we most easily get into?
Speaker A:And so we were looking at which countries and what were the specific attributes of those countries.
Speaker A:We were looking at this idea of the sam.
Speaker A:Then there's the realistic growth planning and this is your som.
Speaker A:Different advisors will have you think about SAM in different timeframes.
Speaker A:Sun will tell you what's your realistic growth rate percentage, how much of your SAM can you own in the next year, the next three years, next five years?
Speaker A:I like to think about it first in 10 years and then create smaller goals to help you get to 10 years.
Speaker A:So three and five year goals to get you there.
Speaker A:So Sam is your short term achievable market share.
Speaker A:You can win with your current resources, the team and your ideas and your positioning.
Speaker A:It's critical to know what this is when you are setting your goals, creating your revenue goals and forecast, making hiring and budgeting decisions, which we talk about later in a separate masterclass on budgeting.
Speaker A:We think about it first, really big picture and then we bring it down to what do you need in the next 12 months?
Speaker A:2 years, 3 years, 5 years?
Speaker A:So earning investor trust shows that you are thinking clearly about this is my big market and then here's the smaller market and now here's the market we're going to go after first.
Speaker A:It helps them understand how you're thinking strategically about the big picture.
Speaker A:So it's grounding you in a big picture that has real world plans today.
Speaker A:An example would be a logistics startup might identify a sum of $20 million in local contracts they are equipped to fulfill in the next two years or 10 years, whatever that time period is.
Speaker A:This is the value to you.
Speaker A:And we just walked through several different examples of what that looks like.
Speaker A:Maven friendsense, Tamil Foods and Rent the Runway.
Speaker A:So now where does it fall on the four page growth plan?
Speaker A:The four page growth plan is the center of the force for good growth universe.
Speaker A:By being clear about your growth plan, you can help yourself see with your team, with yourself, how you're growing.
Speaker A:And the four page growth plan shows everything you need to know to unlock the puzzle of growth in your company.
Speaker A:And so the four page growth plan includes all the core growth elements, or at least most of them.
Speaker A:And you'll find that on page one of the four page growth plan you'll find these core growth elements we're talking about today, the tam, the SAM and the sum.
Speaker A:And they're Right here on that front page, right smack dab in the middle.
Speaker A:And it's under the section of know who you serve.
Speaker A:So we want to know our purpose, know who we serve and know our impact plan.
Speaker A:And so this is part of the know who you serve section of the four page plan.
Speaker A:All right, let's get into it.
Speaker A:Let's go into the size youe market maker and in it we're going to research your industry, calculate your TAM segment your tam, identify your sam, calculate your sum and put it all together.
Speaker A:So go ahead and grab it out right now.
Speaker A:And the first thing we're going to do is research your industry.
Speaker A:And this is something you could also right now open up and start finding some market research reports and government databases and industry association and trade publications that could help you use your chats or your clods or perplexities and start looking for some data and reports about your particular market.
Speaker A:And so so it involves using research and analysis.
Speaker A:You're giving yourself, I would say no more than 15 minutes to find some of these things and start to extract some big picture data.
Speaker A:This is not meant to be a huge exercise.
Speaker A:You're getting a big picture quickly and then you can always come back to it.
Speaker A:You'll find industry reports and look for industry insights about your market.
Speaker A:Look at government databases and ask yourself what are the demographic, what's the demographic information and economic indicators and industry insights that you find out about your particular market.
Speaker A:So you can look at U.S.
Speaker A:cENSA data, Bureau of labor and Statistics, other relevant government departments or ministries in your country.
Speaker A:I love looking at industry and association trade publications.
Speaker A:There's here's where you're going to find a wealth of knowledge and information.
Speaker A:Things like the National Retail Federation, American Medical Association.
Speaker A:I've been in home health, so the Connecticut association for Health Care at Home and the national alliance for Home Care and Hospice.
Speaker A:These are places you can go.
Speaker A:The national association of Realtors.
Speaker A:Find your industry and the associations that govern and support that industry and see if you can find some data.
Speaker A:What market dynamics and trends are you seeing within your market right now?
Speaker A:Write down whatever you discover.
Speaker A:What are the industry insights, demographic information and what market dynamics can you uncover?
Speaker A:Keep going onto the next page and start to unlock online databases and research platforms like statistica, market research.com Mintel and of course you can always use your chats and perplexities.
Speaker A:These guys are so good at finding deep data for you.
Speaker A:You could also find an industry report, upload it and ask it to give you some of the specific information that you want.
Speaker A:So look in these online databases and what's the some marketing data that you're finding.
Speaker A:Write down what you find about your market.
Speaker A:You start looking and you're going to be shocked.
Speaker A:You can do some Google searches or chat searches like search for terms like market size and then put in your industry.
Speaker A:So if you're in, you're in health tech, what is this market size of health technology?
Speaker A:You can then also search for industry trends in health technology.
Speaker A:You can search for marker research reports in healthcare technology or demographic data in your market.
Speaker A:One question you're going to ask yourself is what are the ways your market could be sized?
Speaker A:Think about your total market and how it could be sized.
Speaker A:You know, for a force for good.
Speaker A:I look at it in the total strategic consulting market in the world.
Speaker A:I could look at overall consulting, I could look at specific types of consulting, right?
Speaker A:But I chose strategic consulting.
Speaker A:So find the different ways you might want to language what your big market is.
Speaker A:Then you're going to start to focus.
Speaker A:You're going to have some focus questions to think about.
Speaker A:How big is the total universe of what we offer?
Speaker A:So what is the global demand for the kind of product you offer?
Speaker A:You could ask chat that if every potential customer in the world who could possibly benefit from your solution, how big would that be?
Speaker A:Look to see what's the total market for you and that other competitors are already doing across the world?
Speaker A:What industries, demographics or geographies face the core problem that you saw?
Speaker A:We're looking big picture, not just your market.
Speaker A:Even if you have a logistics company that's working in one state, you would want to find out how big is that market across the entire world.
Speaker A:You would want to see that even though your whole business is in one state, what reports, data or analysts estimate the size of this overall market?
Speaker A:And are there parallel industries that you could look at as part of a broader opportunity?
Speaker A:Think about that too.
Speaker A:All right, next you're going to keep going on the next page and you're going to start to focus on your serviceable of that addressable market.
Speaker A:So we just thought about the big picture and now we're going to focus in a little bit, going to start asking what portion of that total available market can we actually serve.
Speaker A:So again, based on your business model, is there a particular area of focus that you could really live into?
Speaker A:And don't go too small at this point.
Speaker A:You want to think still big, right?
Speaker A:Like instead of thinking just your state, think nationally.
Speaker A:So how could you define your market?
Speaker A:Are there technical, geographical, regulatory Limits to who you can serve right now.
Speaker A:I was a home health provider with Illume.
Speaker A:I only had a regulation to provide services in the state of Connecticut.
Speaker A:Didn't mean that I couldn't have a vision to serve the entire country.
Speaker A:My Medicare license allowed me to do that.
Speaker A:Think about the total size and the segment you're specifically building for.
Speaker A:I could have been in the home and community based market which provides home care, home health, there's all kinds of things.
Speaker A:It could be group homes, all kinds of additional community based care.
Speaker A:But which part do I want to be a part of?
Speaker A:Which part is my company going to probably stick with for the life of the company?
Speaker A:And so identify for yourself what is that serviceable, addressable market, what you help yourself focus on, where you're best equipped as a company?
Speaker A:Are there sectors or customer types you should remove from your focus?
Speaker A:Even if they fall within your tam?
Speaker A:Those are ones that creates a whole lot of complexity and we're not as good at that.
Speaker A:And if we really stayed focused to this other market, we could really do well.
Speaker A:What would we need to change or invest in Twix?
Speaker A:Expand our sam?
Speaker A:In my case, with my previous healthcare company, if I wanted to grow beyond the state of Connecticut, I would need to either acquire a license in another state or acquire another business that had a license in that state.
Speaker A:Think about those kinds of things too.
Speaker A:How you could overcome those kind of market barriers that exist right now or capabilities?
Speaker A:Then focus on the next piece Piece which is questions around this serviceable, obtainable market.
Speaker A:What portion of your SAM can you realistically capture?
Speaker A:Let's look out three to five years in this question.
Speaker A:Given your current team marketing budget and capacity, how many customers can you realistically serve?
Speaker A:What would winning look like over the next three to five years?
Speaker A:And what are the boundaries to capturing more?
Speaker A:Right?
Speaker A:How can we lower those boundaries?
Speaker A:How many customers, contracts or users could we support today at full capacity?
Speaker A:How does your SOM change if you raise capital, launch new product or expand your team?
Speaker A:Think about the size of your market right now, maybe in the next 12 to 24 months.
Speaker A:But then how could you grow it?
Speaker A:How big would it be in three years or five years?
Speaker A:And where could you go in 10 years?
Speaker A:You're starting to identify your serviceable obtainable market and you're really looking here to see how big could my revenue be?
Speaker A:What percentage of the total market and how much revenue could I capture?
Speaker A:And last, I would say it's a great idea outside of this masterclass to conduct some customer surveys and do some Interviews.
Speaker A:This is a great way to connect with your audience.
Speaker A:Reach out and analyze your market with customer surveys.
Speaker A:Interviews.
Speaker A:You can use various tools, SurveyMonkey or Google forums to help you get some information out there.
Speaker A:You can use social media to gather information and help you grow.
Speaker A:All right, so now we're gonna move on to the next piece which is calculating your total available market.
Speaker A:So now that you've done some research on your home whole market, it's time to describe your total available market.
Speaker A:So what's that big picture market?
Speaker A:Home health services across the world would be one example for Illume.
Speaker A:What is that big picture market?
Speaker A:Women's health for maven clinic across the world.
Speaker A:What is your total addressable markets?
Speaker A:Describe your industry or market, like I just said, in those very simple terms and then how big is it?
Speaker A:You can probably find that by doing a little googling.
Speaker A:Once you have that, you can put that on your four page growth plan.
Speaker A:But now you have your first piece, this tam.
Speaker A:You could be doing this while we're sitting here on the masterclass together.
Speaker A:You can be doing some Google searches and chat searches and come up with a first go at your tam.
Speaker A:All right, so now we're going to segment your tam.
Speaker A:Part three is to segment your TAM and then we're going to select your tam.
Speaker A:Start naming all the segments that could be part of your tam.
Speaker A:You could ask chat to help you segment your tam.
Speaker A:Ask chat your perplexity, you know I'm in the home health market.
Speaker A:Please tell me all the different potential market segments and they can list probably 30 different segments for you if you asked it.
Speaker A:And then you could start to your get your brain wheels turning and see where you might want to focus.
Speaker A:How would you segment the market of your tam?
Speaker A:Segment your market based on demographic factors such as age, gender, income, education level, occupation, marital status, family size, or if it's a company, describe that type of company.
Speaker A:Is it a mid sized company, enterprise size company?
Speaker A:Is it in a particular industry?
Speaker A:Is it focused on a particular function within that business?
Speaker A:Figure out the specific demographics of your tam.
Speaker A:And then how would you segment your geography?
Speaker A:Is there a segment of your geography?
Speaker A:Most of the time there is.
Speaker A:You want to keep a big market, but not so big that it doesn't give you any definition.
Speaker A:Right now we keep going and ask how would you segment this site?
Speaker A:Psychographics of your tam.
Speaker A:Things like lifestyle, personality, values, attitudes, interests, hobbies.
Speaker A:Think about your market and the people who would buy from your company.
Speaker A:So maybe the person has a particular job role or they come from A particular background.
Speaker A:Maybe they're more urban than they are rural living or what have you.
Speaker A:So identify those variables.
Speaker A:Lifestyle, personality, values.
Speaker A:Person that's part of force for good, probably a woman, although it could be an ally, is probably a person who has import.
Speaker A:Values are important to them, purpose driven.
Speaker A:They equate things like purpose with profit.
Speaker A:So these are, these are things that would matter.
Speaker A:So they're probably interested in women founders, they're interested in women's growth, women's equity.
Speaker A:Those are things that they might be interested in.
Speaker A:They might also be interested in self care.
Speaker A:So identify what that would be for your company.
Speaker A:See what those attitudes, interests and hobbies might be.
Speaker A:And how would you segment the behaviors of your town?
Speaker A:So this is where you're looking at consumer behavior, the purchasing habits.
Speaker A:When do they buy, what you have to sell?
Speaker A:What are the things that cause them to need it?
Speaker A:What creates brand loyalty?
Speaker A:What will make a person that buys from you always buy from you?
Speaker A:What's the product usage like?
Speaker A:Is it a one time thing?
Speaker A:Is it a repeat thing?
Speaker A:Is it daily?
Speaker A:Is it weekly?
Speaker A:Is a monthly usage, annual usage?
Speaker A:Right.
Speaker A:What are they looking for in terms of benefits and what indicates their readiness to buy?
Speaker A:What creates that urgency, that need?
Speaker A:And then how would you segment the spend specific needs of your tam?
Speaker A:We used to market to nurses and we used to think about nurses who would want to come and work with our company Illume.
Speaker A:We used to think about the different types of needs they had in leaving their other job and coming to us.
Speaker A:One would be that they wanted to deliver high quality care and they could do that by delivering one on one care with a patient.
Speaker A:Maybe it was because they wanted more flexibility and we had all kinds of around the clock shifts and in different locations.
Speaker A:Maybe it was because they wanted to increase their technical awareness.
Speaker A:And we work with patients who were very technically challenging with dents and trachs and so forth.
Speaker A:We had a market of people who worked in skilled nursing facilities where they were exhausted and had 50 patients they were required to take care of.
Speaker A:They didn't feel like they were giving quality care.
Speaker A:Those were different markets we were serving and different needs.
Speaker A:Think about your customers, who they are and what would be the specific needs and motivations that drive those purchasing decisions.
Speaker A:How would you segment your TAM by occasion?
Speaker A:Segment the total market based on specific occasions, events or circumstance that influence purchasing behavior.
Speaker A:Think about that.
Speaker A:I would look in my health care market, for example, whenever someone had a baby that was born early and was medically fragile and would then need to come home from a hospital that was a big moment.
Speaker A:Or families would want to change agencies when they weren't getting a full schedule.
Speaker A:Maybe it would be when their child had an episode that increased their complexity.
Speaker A:So right after they went in for a surgery and needed to come home and have higher level of care.
Speaker A:So these were specific moments or occasions or triggers.
Speaker A:These are also the kinds of moments you want to think about where people in your market show up, hang out and can be found.
Speaker A:The next question you're going to want to ask yourself is how would you segment your TAM by usage?
Speaker A:Segment your market based on patterns or frequency of product or service usage.
Speaker A:In the home health market, we have people that only use the services for a short period of time where they have an episode that's going to resolve and they don't need us anymore.
Speaker A:Whereas we have others that are going to need our services every day for 10 years.
Speaker A:So which are those different types?
Speaker A:Get a sense of your different products and services or different markets and patterns of how often they're going to need your services.
Speaker A:Isn't it amazing when you start to think about this, just how strategic you can be and how specific your market is?
Speaker A:So now it's time to identify your sand and be brave and do it.
Speaker A:You've already addressed your total available market, the big global picture you've divided into a bunch of segments and now it's time for you to declare, this is my start market segment that I we're gonna play in with our company.
Speaker A:Your TAM is likely very big, billions or trillions, and your SAM is still pretty big, pretty darn big, probably in the billions, maybe in the hundreds of million and sam.
Speaker A:So you're going to go ahead and figure out what your focus is.
Speaker A:Review part three and focus on the segments you found earlier in our conversation.
Speaker A:Which parts does your company want to focus on?
Speaker A:So again, we thought about the usage types, frequency types, demographics, psychographics, specific behaviors, specifically needs, specific geographies.
Speaker A:Go ahead and start to shape for yourself what that serviceable, addressable market is and go ahead and write it down and congratulate yourself.
Speaker A:Now you have a TAM and a sam.
Speaker A:Write it down on your growth plan and then we're going to go straight into the psalm.
Speaker A:So this is your serviceable, obtainable, sustainable market.
Speaker A:And let's think about it.
Speaker A:In a three to five year time frame, how big can you grow?
Speaker A:What percentage of that market, the total market you mentioned in your SAM can you grow?
Speaker A:Your TAM is the total available market.
Speaker A:Your SAM is the segment of the TAM that Your company is built to serve long term.
Speaker A:Your sum is the market share percentage of the SAM your company can own.
Speaker A:And we're going to say on this exercise, three, three to five years.
Speaker A:So our SAM is.
Speaker A:And write down your SAM that you already articulated.
Speaker A:And, and the market size of that.
Speaker A:So you already defined it before.
Speaker A:So Maybe it's a $200 million market size for consulting, strategic consulting services in the United States.
Speaker A:And now you're going to say we plan to acquire.
Speaker A:What percentage of that?
Speaker A:Maybe it's 1%, maybe it's 5%, maybe it's 05%, 005%.
Speaker A:Whatever that percentage is, what is that percent that you plan to capture of your psalm?
Speaker A:And that is your answer.
Speaker A:So you're going to say the market size times the market penetration rate and that equals your service full addressable market.
Speaker A:And that's how much your revenue would be.
Speaker A:What's the total revenue you want to capture in three to five years or in 10 years?
Speaker A:Is that of the total serviceable, addressable market that you aim to serve?
Speaker A:So now you have all three.
Speaker A:Congratulations.
Speaker A:And you're going to put it all together, right?
Speaker A:So here's the image.
Speaker A:If you're watching on YouTube or live streaming, you can see that this is the tam, the total available market.
Speaker A:You can write that down in the serviceable, addressable market, the sam and then the serviceable obtainable market.
Speaker A:Som.
Speaker A:And this is the sum that you want to address.
Speaker A:I would say in three to five years and then I would have another one for 10 years.
Speaker A:What percentage of that market do you want to own in 10 years?
Speaker A:And then go ahead and write on your four page growth plan.
Speaker A:If you just stepped into market intelligence, you've just expanded your strategic vision, you clarified your next growth stage, you empowered your team with focus.
Speaker A:You're going to be able to take this and help them and have conversations with them about it.
Speaker A:I would take this entire tool that we just use, Size youe Market Maker, and sit down with them and do some more work on this.
Speaker A:This can be a great way to go deeper on your market that you've positioned yourself to fundraise if that's something you need to do.
Speaker A:And you've positioned yourself to scale.
Speaker A:So really congratulate yourself for allowing all this to percolate.
Speaker A:Be sure to update your four page growth plan.
Speaker A:Think about the implications of everything on your plan.
Speaker A:Now that you know your total available market, now that you know your serviceable, addressable market, now you know your serviceable obtainable market, is there anything else that needs to shift.
Speaker A:Anything else that you could be inspired by.
Speaker A:Anything that doesn't jive with your core purpose or your vision or your inception story.
Speaker A:And how can you tweak it so that it does?
Speaker A:You can get all of this at A Force for Good Biz Weekly tool.
Speaker A:You'll get this week's free tool which is the Size youe Market Maker and it will include the four page growth plan.
Speaker A:Next, we want to put what you just learned with the sam, the tam, SAM and TOM into action.
Speaker A:First, you want to pick a new repeatable ritual, a high leverage habit that when practice almost guarantees new results.
Speaker A:So you are asking yourself what's one new repeatable weekly habit that you or your company could do to stay connected to the size and shape of your market?
Speaker A:So one example could be to review your four page growth plan every Monday.
Speaker A:Another example could be to read the tam, SAM and Psalm with your leadership team.
Speaker A:You could try the growth of your SOM in a live dashboard.
Speaker A:That's kind of cool, right?
Speaker A:What percentage are you last month versus this month?
Speaker A:Add a market watch block to weekly team meetings.
Speaker A:That's another thing you could do.
Speaker A:And this is monthly, but I highly recommend to host monthly customer interviews to stay in tune with your segments.
Speaker A:Really good stuff.
Speaker A:You can also pick a high potency action.
Speaker A:Pick one specific bold move that you could take to really help ignite momentum from the wisdom you just gained in identifying your TAM Salmon som.
Speaker A:Recalculate your sum perhaps this week.
Speaker A:Take more time to get in there with your team.
Speaker A:You might add your tam, SAM and SOM to a pitch deck if you're raising funds or getting a loan.
Speaker A:Use this clarity to say no to a distracting opportunity.
Speaker A:Start a segment specific campaign right?
Speaker A:Maybe you are going to see your market and you're going to start to see how your market needs to shift this week.
Speaker A:And you can also update your website messaging to reflect your som.
Speaker A:These are all specific actions you can take this week to move your tam, SAM and SOM forward.
Speaker A:Today we learned about how to size your market and and we did this using the Size youe Market Maker that you can get at a ForceForGood Biz weekly tool through May 11.
Speaker A:It's there for you for free.
Speaker A:You can also we also today defined three of the core growth elements of the Forced for Good system, the tam, the SAM and the som.
Speaker A:You integrated everything into the four page growth plan.
Speaker A:You identified a high leverage repeatable weekly habit and committed to a high potency action to move things forward.
Speaker A:This week.
Speaker A:So now I encourage you to pick up the Force for Good book if you haven't already.
Speaker A:The book shows the full Force for Good system.
Speaker A:It includes a downloadable PDF that has the full Force for Good toolkit which includes all the tools including the Size youe Market Maker.
Speaker A:You can read more about the Tam and Sam and Song and the Size youe Market maker in chapter six of the book.
Speaker A:You can get access to HorseForGood Biz Book.
Speaker A:You can also sign up for the Force for Good Tool of the Week.
Speaker A:Every week I provide a new tool that you can use and implement.
Speaker A:Every growth tool is inspiring you to grow your company in new and exciting ways, helping you unlock your wisdom.
Speaker A:Each one is considered a growth wisdom tool so that you apply the wisdom and brilliance of you and your team one little step at a time.
Speaker A:And every week we include a masterclass.
Speaker A:Get the recording and the links by signing up at a ForceForGood Biz weekly tool.
Speaker A:The best way to implement the Force for Good System is through our Growth Accelerator.
Speaker A:It is an online platform where you can install the Force for good system over 12 weeks, 12 modules, has videos, it has tools, it has self assessments.
Speaker A:You can do it alone or with your team and the tiered pricing starts at just $599 and there is options to pay over time.
Speaker A:You can get that at a ForceForGood biz accelerator.
Speaker A:Thank you for being here.
Speaker A:It's my pleasure to serve you and to support you.
Speaker A:The world is made better by women led business.
Speaker A:Let's all go make the world a better place.

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