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Do you know your TAM? (Total Addressable Market) Aka: How much can my business actually make? Well, there is a simple estimate you can make. Bonus: It also shows your growth potential per country. Here's the step-by-step:On twitter.com
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Step 1: Get some customers, a few hundred ideally. Step 2: Create a sheet with all countries (took me a while, so take mine: docs.google.com/spreadsheets/d/1abYH9JD272EUasKruHG0_6PezzkNKYoqmJHP_pIxR68/edit?usp=sharing) Step 3: Get the number of customers you have for you top-10 countries. And the respective revenue if available.Permalink On twitter.com
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Step 4: Find the country with the highest customer-per-million-inhabitants ratio. (You can get recent population figures here: worldometers.info/world-population/population-by-country/). For Stagetimer that is Norway with ~23 customers/M.Permalink On twitter.com
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Step 5: Now use that ratio for all the other countries. This will show you how much potential customers you could have. Get your TAM: Either multiply all potential customers by your CLTV. Or, if you have revenue-by-country, do the same with revenue.Permalink On twitter.com
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(Bonus) Get your growth potential: Calculate the difference between potential customers and actual customers. For example, we have almost 10x growth potential in Germany and I think localization makes sense in the long run. Hope this helped 😄.Permalink On twitter.com