Understanding the Market Opportunities Available For Your Business in 2024

In business, identifying and accessing market opportunities is a crucial aspect that often eludes many entrepreneurs. A significant number of business owners find themselves adrift, not fully understanding the dimensions of their market share or the potential avenues for growth. In this enlightening article, I will explain the essential steps for business owners to discern the market size of their enterprise, providing invaluable insights on how to fine-tune their strategies and elevate their businesses to new heights in 2024 (No gree for anybody oo... LOL).

To truly comprehend and appreciate your market share, thorough research is indispensable. Assumptions can be misleading and detrimental to your business. Therefore, let's embark on a journey of discovery, unveiling the three pivotal metrics that will guide you in unlocking your business's true potential.

1. Total Addressable Market (TAM): The first key metric is the Total Addressable Market, commonly referred to as TAM. This metric encapsulates the comprehensive global market share of your particular product or service. For instance, consider the wellness products industry, where the TAM exceeds a staggering 10 billion. While this number may be daunting, it serves as a starting point, highlighting the vastness of the market. Understanding your TAM provides a panoramic view, allowing you to set realistic targets and navigate the global landscape strategically.

2. Serviceable Addressable Market (SAM): Moving closer to home, we encounter the Serviceable Addressable Market, known as SAM. This metric narrows the focus to the market size within your nation. Continuing with our example of wellness products, if you operate in Nigeria, your SAM would be over 200 million. However, realizing that attempting to cater to such a colossal number may not be sustainable, business owners must refine their approach. SAM acts as a compass, guiding you towards a feasible target audience within your national borders.

3. Serviceable Obtainable Market (SOM): The third and equally crucial metric is the Serviceable Obtainable Market, or SOM. This metric hones in on specific regions or communities within your nation. For our wellness products, the SOM may be identified as 8 million.

   Once SOM is established, the next step involves categorizing potential consumers based on socioeconomic factors. Distinguishing the high class, middle class, and lower class enables you to pinpoint those who can afford your products, ensuring a targeted and effective market approach.

In the realm of business, knowledge is power, and understanding your market size is paramount. By diligently researching and applying these three metrics - TAM, SAM, and SOM, you can gain a comprehensive understanding of your market share. With this knowledge, you can fine-tune your strategies, set realistic targets, and navigate the intricate landscape of opportunities. Embrace the power of information, and let it propel your business towards unprecedented success this year.

Kind Regards,

Olamiji Akeredolu.