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TAM, SAM, SOM Financial Model Prep

Models Total Addressable Market, Serviceable Addressable Market, and Serviceable Obtainable Market with clear formulas.

Use Case

Use when writing your business plan or preparing the market size slide of your pitch deck to show rigorous mathematical backing.
AI Prompt
Act as a market research analyst and financial modeler. Help me calculate and justify the TAM, SAM, and SOM for my startup. Here are the details of our product, pricing, and target market demographics: [Insert Product, Target Demographics, Industry, and Unit Price]. Provide: 1. A Top-Down estimation of our market size using industry reports data points. 2. A Bottom-Up calculation using our pricing and target volume. 3. Defined bounds and calculations for Total Addressable Market (TAM), Serviceable Addressable Market (SAM), and Serviceable Obtainable Market (SOM). 4. A list of sources and assumptions we must verify to prove these numbers to an institutional investor.

How to Use

  1. 1Insert your pricing model and target demographic data
  2. 2Run the prompt to generate the formulas and figures
  3. 3Verify the assumptions against local census or industry reports

Example Output

The Total Addressable Market is calculated by multiplying the ten million potential businesses worldwide by our annual contract value of twelve hundred dollars, yielding twelve billion dollars. The Serviceable Addressable Market focusing only on North American businesses is three billion dollars. Our Obtainable Market targets five percent of that over three years, representing one hundred fifty million dollars.