Forecasting

Understanding TAM, SAM, and SOM: Breaking Down Market Potential for Your Business

When evaluating market potential, businesses often rely on three key metrics: Total Addressable Market (TAM), Serviceable Addressable Market (SAM), and Serviceable Obtainable Market (SOM). These metrics help businesses understand their market size, allocate resources effectively, and set realistic forecast targets—especially critical for start-ups seeking to secure investor confidence. Although TAM, SAM, and SOM are sometimes Understanding TAM, SAM, and SOM: Breaking Down Market Potential for Your Business