How much time should I spend estimating TAM?

Two words: Relatively little.

Something in the range of 2-4 hours perhaps - definitely measurable in hours and not days.

TAM estimation is a little bit of a black art where you take the very imperfect data that you have, make some assumptions, and put out magic numbers that could be quite far from the mark. There are so many unknowns that spending days having fun with spreadsheets is just not a great investment in time.

Remember: TAM estimation is not a math exercise but a litmus test for whether this venture is worth your time. It's a tool that helps you iterate without overinvesting in the wrong thing early on in your business.

By the way: It helps if you are a student and have access to analyst reports via your school library system - that can save you a bit of time on secondary market research. 

 

Was this article helpful?
0 out of 0 found this helpful



This website and all posts and content are intended for educational purposes only and for no other purposes including without limitation commercial purposes. Any other use must give proper attribution to the Martin Trust Center and is subject to certain legal rights contained in our license and terms of use. See full legal disclaimer HERE.

The content in this knowledgebase is subject to a non-exclusive license with share-alike restrictions and the terms of use of this site – which is available for your review HERE.
Have more questions? Submit a request

Comments