Look at the
Whole Picture
With Market Research
How long has it been since your last... market research? Does this question sound weird to you? For most owners of small and middle-size companies it does.
It is not surprising. Big companies have budgets dedicated to studying their customers, competition and trends. For smaller companies with so many day-to-day tasks and urgent issues, one can easily forget to look at the whole picture. And even when they do, many mistakes happen. Miscalculating TAM (Total Addressable Market) is a common mistake that can ruin your revenue projections:
- TAM is not the size of the problem! Let’s say you are selling bread. The customers are obviously hungry people. But if you say your TAM is all hungry people – that is wrong because the problem of being hungry can be solved with soup, potatoes or ice-cream. Your TAM is only people, who are hungry for bread.
- TAM is not the total market size! If you are selling baguettes, you cannot say that the total market of bread consumers is worth billion of dollars. You want to count only those who buy baguettes in the particular region where you sell and who are willing to pay the price you set.
- So, to calculate your Total Addressable Market, you need to multiply the number of your customers by your price. If you are selling in a town where 10,000 people buy baguettes and your price is $4, then your TAM = $40,000.
By knowing your Total Addressable Market, you can get a realistic perspective on your actual opportunities and see the whole picture.
More Articles
Life-Changing Goals: A Step-by-Step Guide
21-01-2025
Set Life-Changing Goals using SMART strategies, free up resources, and jumpstart success with actionable steps for a truly transformative year
Wrapping Up the Year: What Matters More—Experience or Finances?
15-01-2025
Discover how to assess your annual achievements by balancing finances and experience, ensuring both stability and future growth.
Freelancer in the Spotlight: A Daily Guide
26-12-2024
A guide to building daily habits for personal brand promotion, staying visible online, and prioritizing consistency over perfection.
Etcetera Autumn 2024 In Numbers
12-12-2024
Explore Etcetera's autumn updates: key Upwork changes, AI integration with Uma, team milestones, and sales funnel insights.
Freelancers in the Spotlight: What to Write About Yourself
09-12-2024
Learn how freelancers can craft standout profiles and content to attract clients and build a strong personal brand in Freelancers in the Spotlight.
Upwork Updates for Fall 2024
09-12-2024
Upwork Fall 2024 updates: JSS changes, Profile Insights, video cover letters, Proposal Insights, and tools for better collaboration.
How Burgers and Kebabs Became Part of UI Design
09-12-2024
Learn how edible-sounding icons like Hamburger and Kebab Menus have shaped UI design. Dive into their history, functionality, and creative twists.
Updates JSS: A Transparent Reputation System on Upwork
22-11-2024
Today, we’re diving into recent updates to the Job Success Score (JSS) and what they mean for freelancers.
Special Offers and Discounts from Upwork
01-11-2024
Explore exclusive Upwork discounts on tools like Adobe, Microsoft 365, and ClickUp to enhance your freelancing toolkit!
Freelancer in the Spotlight: How to Build Your Professional Brand
31-10-2024
Explore how to create a standout professional brand as a freelancer and enhance your online visibility to attract clients.
Accessible Design: Why WCAG Standards Matter
31-10-2024
Explore the importance of WCAG standards for accessible design and how they enhance user experience and improve SEO for your website
A Digest of Etcetera's Posts on Teamwork
31-10-2024
Explore Etcetera's top teamwork tips for fostering effective communication, trust, and collaboration in any work setting.
