The TAM-SOM Paradox: What Every Founder Needs to Know
Here's something many founders learn the hard way:
The most successful entrepreneurs master what's called the "TAM-SOM Paradox."
VCs demand massive Total Addressable Markets (TAM), but daily execution revolves entirely around the Serviceable Obtainable Market (SOM). This tension creates a strategic challenge many founders mishandle.
The truth? Founders must start uncomfortably narrow to win.
Many promising startups fail by spreading resources too thin across an ambitious TAM. Conversely, founders who nail their SOM execution but fail to articulate their TAM vision struggle to secure top-tier investment.
The solution isn't choosing one over the other – it's mastering both simultaneously:
Perfect SOM execution for efficiency and traction
Clearly communicate TAM potential for fundraising and vision
Founders don't need to compromise execution for vision. The most successful entrepreneurs execute precisely within their SOM while maintaining unwavering clarity about their TAM potential.
What's your experience with this balancing act?
Credit: This insight comes from "The GTM Handbook for SaaS Leaders" by Richard Blundell, Paul Watson, and Chris Tottman – a must-read for anyone navigating the startup landscape.
#StartupAdvice #VentureCapital #FounderLessons #SaaS #GTMStrategy