TOOL: Identifying Your Market
As part of our support for the entrepreneur community, Rev1 offers tools and tips that we think will be valuable to our audience. As part of the tools series, we review tools that are helpful along the startup journey.
Identifying your market with key terms
Investors look for companies that have significant market opportunity. Business plans are measured and evaluated based on the size and potential of the market that the startup can capture. That’s why identifying your market, and understanding the TAM, SAM, SOM methodology is so important for entrepreneurs, as we discuss in-depth here.
Your TAM, SAM, and SOM is an element of a larger mosaic of market validation.
Validating the market in this way is key to a successful business plan. After determining TAM and SAM, which will help validate your market, your SOM becomes important. (Stay tuned for our upcoming SOM tool.)
About Rev1 Ventures
Rev1 is a venture fund that helps entrepreneurs build great companies. Combining investment capital with a unique blend of services through our startup studio, we propel innovation for startups and corporate innovation teams. Our seasoned, data-driven team helps lay the foundation for scalable growth with the skills to evolve a product, sell to customers, and build the right team. Named a top VC investor in the Great Lakes Region, Rev1 manages a continuum of financial support from corporate and community partners, as well as the Ohio Third Frontier. Rev1 was named the Most Active VC in Ohio in 2017 by CB Insights. For more information, visit https://www.rev1ventures.com.