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What is TAM SAM SOM?

  • TAM = Total Addressable Market

  • SAM = Serviceable Addressable Market

  • SOM = Serviceable Obtainable Market

Total Addressable Market

Total Addressable Market (TAM) is the total possible market size for your company’s product/service. This is the MAX revenue your business could generate (assuming your competitors don’t take any market share)!

Serviceable Addressable Market

Serviceable Addressable Market (SAM) is the sub-market that you will serve (i.e. region, demographic, niche, etc.)

Serviceable Obtainable Market

Serviceable Obtainable Market (SOM) is a portion of the SAM you plan to pursue first with your startup! Remember, you have limited resources to begin with when first launching a startup, so you should practice the 80/20 rule and focus on the EASIEST customers first!


Say you are starting a smoothie shop in your local city. First, you need to find your TAM for all restaurants in your city from data websites like

The TAM annual revenue for all restaurants in your city is $100m. Of those restaurants, 5% are smoothie shops. So $100m x 5% = $5m SAM.

There are 12 total smoothie shops accounting for that $5m SAM, so we divide that to find our SOM. $5m / 12 = $417k SOM for a single smoothie shop location (this can increase when you expand via franchise locations, etc.)

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