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Calculate the TAM for Your Beachhead Market

Bill Aulet · Disciplined Entrepreneurship (Bill Aulet, MIT) Free Intermediate

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.

• 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.