Expanding TAM

There’s an often-referenced acronym in business-building called TAM, or Total Addressable Market. The formula for calculating it is:

When it comes to pitching their businesses, CEOs are always making the case for how MASSIVE their TAM is. Because, all things being equal, investors are more likely to back a business that has a larger TAM. A bigger TAM means that business has more room to run. Small TAMs engender fear of stagnation.

Businesses can expand their TAM by building new products, adding new services, or addressing new customers. They might launch a new geography. They might (claim to) have a new AI technology. They might create a brand new product suite. Expanding TAM is ~almost~ always a good thing, whatever the method for expanding might be.

I try to apply this principle of “expanding the TAM” to my own perspective. I’ve realized that if I can stretch the bounds of what I see, then I can solve old problems with new creativity.

So, how do I do this tactically?

I have conversations.

• When I drop in to conversation with someone, then I can tap into their knowledge & experience. I get access to their unique perspective (assuming they’re down to share it).

• The more our beliefs & experiences differ, the smaller the sliver of the overlapping section of our Perspective Venn Diagram. Thus, the more I can learn from them.

I read books. I listen to podcasts. I consume positive influence media.

• I just want to learn new things that I didn’t know before.

• Granted, I always make it a point to check the source.

I travel to far out places and interact with who’s there. I want to know:

• How do they live?

• What do they value?

• What do they see that I’m missing?

This is the case for seeking diversity of opinion, as uncomfortable as it may be.

I already know what I know! My present-state perspective TAM is fixed with what’s in my brain already. So, the only way to expand it is to expose it to what’s not already in it.

For this purpose, the more different, the better.

This isn’t to say that I have to pickup everything I hear and adopt it as a belief. I can simply borrow the best and use what works for me.

Nobody has a monopoly on how to live this life “right.” So, I’ll continue to expose myself to new perspectives. I’ll continue to exercise openness & curiosity, as I craft my own answers to the age-old questions.

P.S. - As I’m sure you can tell, I just learned how to make Venn Diagrams. I hope you enjoyed ‘em :)