market-sizing-analysis

Calculate TAM, SAM, and SOM using top-down, bottom-up, and value theory methodologies.

Updated Apr 23, 2026
One-click install
npx skills add https://github.com/SanketAdlak/PDMProjectDesign --skill market-sizing-analysis-sanketadlak
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Skill: market-sizing-analysis
Source: https://github.com/SanketAdlak/PDMProjectDesign/tree/main/.agents/skills/market-sizing-analysis
Command: npx skills add https://github.com/SanketAdlak/PDMProjectDesign --skill market-sizing-analysis-sanketadlak

SYSTEM DOCUMENTATION & REQUIREMENTS

💡 This Skill includes references (resource) components.

What problem does it solve? Estimating market opportunity for a startup or new venture is difficult without a structured methodology, and investors reject sizing claims that lack credible data sources and triangulation. This Skill provides a complete framework for calculating TAM, SAM, and SOM with defensible assumptions. ## Core Features & Use Cases - Three Sizing Methodologies: Apply top-down analysis from industry reports, bottom-up calculations from customer segments, and value theory based on willingness to pay. - Triangulation and Validation: Cross-check results across methodologies, validate against public company revenues, and detect red flags like oversized TAM or aggressive SOM. - Investor-Ready Presentation: Structure market sizing for pitch decks and business plans with documented sources, assumptions, and growth projections. - Use Case: A founder building an AI email marketing tool for e-commerce can follow the included SaaS example to compute a $539M North America TAM, narrow it to a $169M SAM, and present a defensible $8.5M Year 5 SOM to investors. ## Quick Start Ask the AI to calculate TAM, SAM, and SOM for your product idea using the bottom-up methodology, specifying your target customer segment, geography, and pricing.

Frequently Asked Questions about market-sizing-analysis

High-intent search queries and answers about installing and using this skill.

FAQPage Schema
How do I calculate TAM, SAM, and SOM for a startup?

Calculate TAM by multiplying total potential customers by annual revenue per customer, then narrow to SAM by applying geographic, product, and segment filters. Estimate SOM as 2-5% of SAM, representing realistic market share achievable in 3-5 years.

What is the difference between top-down and bottom-up market sizing?

Top-down starts with industry research reports and narrows through filters, while bottom-up builds from customer segment counts and pricing. Bottom-up is more credible to investors; top-down works best for validating established markets.

Which market sizing method should I use for a new product category?

Use value theory for new categories without existing market data. Quantify the problem's current cost, estimate willingness to pay at 10-30% of value created, and multiply by the addressable customer base.

Where can I find free data sources for market research?

Use the U.S. Census Bureau and Bureau of Labor Statistics for business counts, SEC EDGAR for public company segment revenue, and trade associations for industry trends. Statista and Google Scholar provide additional low-cost validation.

Why do investors reject market sizing in pitch decks?

Rejections typically stem from claiming entire TAM as addressable, using only top-down data, projecting SOM above 10% in five years, or showing over 50% variance between methodologies. Triangulate bottom-up with top-down results within 30%.

What is a realistic market share assumption for a new entrant?

New entrants typically capture 2% of SAM by year three and 5% by year five. Anything above 10% in five years is considered overly aggressive unless supported by exceptional competitive advantages or market dynamics.