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Why we picked it This is the cleanest walkthrough of building a market number from the ground up: count the real end users who fit your profile, multiply by revenue per user, then sanity check with a top down view. It matches our short answer exactly, start from a real count instead of a national figure divided by a guess. Use it as the template for the number you eventually show an investor.
Calculate the TAM for Your Beachhead Market
From Disciplined Entrepreneurship (Bill Aulet, MIT) by Bill Aulet
- TAM equals real end users times annual revenue per user.
- Build bottom up first, then cross check top down.
- Win a beachhead you can actually reach, not the whole country.
