Analyse market potential
How big is the market for your idea really? A well-founded estimate shows whether the effort is worthwhile – and it’s the first number every investor wants to see. If you answer with “the market is huge”, you’ve already lost; if you derive TAM, SAM and SOM properly, you come across as professional straight away.
TAM, SAM and SOM – the three market sizes
TAM is the total theoretical market, SAM the part you can reach, and SOM the share you can realistically win in the first few years. This tiering curbs overly optimistic assumptions and turns a wishful number into a credible one.
Bottom-up beats top-down
Don’t calculate “1% of a billion-franc market” (nobody believes that) – work from the bottom up: number of realistically reachable customers × revenue per customer × purchase frequency. Base every assumption on official statistics, industry data and comparable providers – that makes the estimate verifiable.
Direction matters more than size
A growing market forgives mistakes; a shrinking one makes even good ideas difficult. Example Switzerland: AI and health topics are currently attracting the biggest boost in venture capital. planix brings relevant market data directly into the process and helps you derive TAM/SAM/SOM transparently – free, without you having to gather sources yourself.
Frequently asked questions
Where can I get market data in Switzerland?
From the Federal Statistical Office (Bundesamt für Statistik), industry associations, studies and comparable figures from similar providers. planix brings relevant market data directly into the start-up process – you don’t have to click through ten sources.
How precise does the market estimate need to be?
Plausible and transparent, not accurate to the franc. What matters are the assumptions behind it – you need to be able to back them up. Better conservative and solid than optimistic and implausible.
Ready to put your idea into action?
Start for free with planix – no registration. Guidance, feedback and next steps, thoroughly reviewed within 24 hours max.
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