TAM Expansion

While it’s true that great businesses are built on top of good businesses and many times this happens through TAM expansion, there are industries that are structured in such a way that ADDRESSABLE and CAPTURABLE TAM is capped.

And some startups only serve niche populations. Treating them the same as startups that have massive markets is a mistake I see all the time.

So, while there are exceptions to the rule, in general you know the general size of the bucket that you’re playing for. And if it ends up bigger than expected you should get paid for this surprise!